ACCT1501 Lecture Notes - Lecture 11: Management Accounting, External Auditor, Business Process
11 Nov 2018
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Week 11 introduction to management accounting: explain the differences between financial and management accounting. Independent external audit: evaluate how management accounting systems can assist decision-making processes. Identify/collect/measure/classify/report information decision-making for managers: supporting management activities, costing cost management system, budgeting system, performance measurement system (pms, used to assist in strategic and tactical decision making. Quality management approaches: total quality management (tqm, comprehensive management philosophy, focus is not just on defective products, aim for continuous improvement, plan do check act. Service quality: managing customers customer satisfaction surveys, how to maintain and improve the (cid:494)relationship(cid:495) Nb: all the organisations incur selling, general and admin costs. Sunk cost: has been paid and irretrievable and cannot be charged. Controllable vs. non-controllable costs: controllable costs heavily influenced by a manager (e. g employee salary, non-controllable costs a manager has no significant influence (e. g rent) Items or activity to which costs are assigned: e. g products, departments, projects etc.
