Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
12 Cards in this Set
- Front
- Back
|
Goal of Managerial Accounting |
Provide information to decision makers inside the company |
|
|
Objectives of Managerial Accounting |
1. Assist the development of the business' strategic goals 2. Provide & analyze the data used in decision making 3. Assist the business to evaluate its performance |
|
|
Decision Making Framework |
1. define GOALS 2. identify OPTIONS 3. ANALYZE cost vs. benefit 4. CHOOSE the option with best value |
|
|
Value |
Value = Revenue - Cost |
|
|
How to Maximize Volume |
Value > Opportunity Cost |
|
|
Primary Role of Managerial Accounting |
Analyze options (cost vs. benefits) |
|
|
Planning and Control Cycle |
1. Plan (choices) 2. Implement 3. Evaluate (control) 4. Revise |
|
|
Plan |
Product/service to offer Resources to acquire |
|
|
Implement |
Choices from the plan (make products, offer the service) |
|
|
Evaluate |
Actual performance vs. targets Determine the reasons for deviations |
|
|
Revise |
Correct the problems; figure out why set performance targets are not met |
|
|
Individual vs. Organization Goals |
Sometimes individual goals conflict with organization goals because individuals are more concerned with themselves |
