Management and Organizational Studies 1023A/B Chapter Notes - Chapter 4: Chief Executive Officer, Management Accounting, Financial Accounting

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 1023A/B
• Professor: Maria Ferraro

Document Summary

Accounting: information for decision-making: decision choosing of one option from a set of options to achieve a goal. 1: organizations don"t make decisions, the people who make up the organization do. Individual goals might differ from organizational goals, leading to actions that are not in the firm"s best interests: the lack of alignment of goals is even more of an issue when organizational goals are unclear. In canada, firms follow generally accepted accounting principles (gaap) as defined by the. 3: while financial accounting information is useful for accessing an organization"s overall current state and future prospects, it does not provide enough detail to address most decisions within the firm. Indeed, management needs information tailored to their specific decision problems; they need managerial accounting information. Financial and managerial accounting information differs on many dimensions. Evaluating costs/benefits, data collected, reported, analyzed as needed, no specified standards. Varies, with the decision context dictating the relevant unit of analysis.