ACCT2102 Lecture Notes - Lecture 11: Cost Accounting, Key Management, Management Accounting
Document Summary
Lecture 1 introduction to managerial and cost accounting. Management accounting internal focus, future oriented; assist decision making. Cost accounting measuring, analysing, reporting information related to cost acquiring/using resources. Cost management use resources increase value to customers, achieve organisational goals; decisions enter markets, implement processes, change product design, enter costs improve satisfaction later increase revenue. 5 step decision making process: identify problem/uncertainties. Eg. effect on demand of increasing prices: obtain information better understanding. Eg. decreased demand from increasing prices: choose best alternative adopt strategy aligned with goals. Do(cid:374)"t i(cid:374)(cid:272)rease pri(cid:272)e increase revenue through differentiation; better service/quality: implement decision, evaluate effectiveness evaluate, change if need. Cost-benefit approach only use resources if expected benefits exceed costs. Better customer support: quantify, compared to budgeted information, adopt if necessary. Behavioural/technical considerations management requires behaviour/technical processes combine: behavioural encourage employees achieve goals, technical provide managers desired information to make wise economic decisions. Different costs for different purposes measure costs method relevant cost.
