BU247 Chapter Notes - Chapter 1: Pdca, Management Accounting, Financial Statement
Document Summary
Chapter 1: how management accounting information supports decision making. Examples of mgt accounting info: reported expense of an operating department, cost of producing a product, cost of delivering a service, cost of performing an activity/business process, cost of serving a customer. Primarily oriented to external stakeholders (investors, creditors, regulators + tax authorities) Stresses the form in which it is communicated (consistent w rules like iasb) Primarily oriented to needs of employees and managers. No prescribed from or rules about its content. Early 19th century systems to measure cost of producing individual products. Middle 19th century railroads first to develop + use financial stats to asses & monitor performance. Andre carnegie developed detailed cost systems that gave him comp. adv. Early 20th century dupont + gm expanded focus to planning and control (cid:1005)97(cid:1004)"s japanese manufacturers developed new tools to report on quality, service, customer, and employee performance. Management accounting discipline that helps enterprise to develop and implement its strategy.
