Business Administration 2257 Chapter Notes - Chapter 9: Session 9

• School: Western University
• Department: Business Administration
• Course: Business Administration 2257
• Professor: Eleni Petrou

Document Summary

Business segments include: departments, outlets, product lines, business divisions. Managerial accounting involves breaking down accounting information into smaller groups such that specific decisions can be made. Management wants to know how each segment is performing such that: managers can be evaluated, budgets can be set, business strategy can be formulated. Evaluation of sub-unit performance: consider those costs associated with the running of the segment, compare those costs to budget or to segment revenues. Include only those costs that can be traced directly to the segment (i. e. escapable costs: segment direct costs may be fixed or variable, use for short-term decisions.