MAA103 Lecture Notes - Lecture 3: Business Plan, Management Accounting, Profit Margin

• School: Deakin University
• Department: Business and Law
• Course: MAA103
• Professor: All

Document Summary

*strategic management accounting: helping internal users make better decisions. Helping managers figure out the long-term business management. Looks at market data , industry trends, what your competitors are up to. *firstly target price customers will be willing to pay for the product. *figure how much the production of our product will take (through all raw material and manufacturing etc. ) *investigate ways to reduce the estimated cost to the target cost (because now we know the actual cost and our target cost). *firms that are more sustainable incorporate their environmental and social objectives to their plans. I(cid:374)ter(cid:374)al failure costs: whe(cid:374) the (cid:272)o(cid:373)pa(cid:374)(cid:455) ide(cid:374)tifies a defe(cid:272)t (cid:894)huge loss"s(cid:895) External failure costs: when the customers finds a fault in the product (loses customers trust). Business plan : written document that explains and analyses an existing or proposed business venture. Business plan can be applied to any sized organizations. *communicate the future of the business to potential investors.