BUS 254 Chapter Notes - Chapter 1: Management Accounting, Cost Accounting, Decision-Making

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 254
• Professor: Masood Kamlani

Document Summary

Managerial accounting: the process of identifying, measuring, analyzing, interpreting, and communicating information in pursuit of an organization"s goal. Integral part of the management process: a business partnership with management (page 2, managing resources, activities, and people (page 3) The owners, directors, or trustees of an organization set its goal often with the help of management. The overall goal of the company may be expressed as a commitment to creative excellence and guest service, coupled with strict financial discipline in order to maximize value for the company"s shareholders. The day to day work of the management team comprises 4 activities: Decision making, planning, directing operational activities, controlling. Make a decision about the best way to expand the company"s operations, which entails choosing among the available alternatives. The management team must plan, which means developing a detailed financial and operational description of anticipated operations. Ensuring that the organization operates in the intended manner and achieves its goals.