Management and Organizational Studies 1023A/B Lecture Notes - Lecture 4: Opportunity Cost, About The Money, Fixed Cost

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 1023A/B
• Professor: Maria Ferraro

Document Summary

Mos 1023- lecture 4: help decision makers measure the costs and benefits of decision options. Decide to give the company money or not: two classes of decision makers. Inside the firm (internal: external decision makers, types of decisions, information needs. Whether to invest in firm, lend money, calculate taxes owed. Not cost effective to produce specific information. Defined rules (gaap) with guidelines by organizations such as the. Internal decision makers: types of decisions, information needs. Whether to run promotion, what to purchase, who to hire. Differ across users: need specific data for the smaller decisions, might need both financial and non-financial data, solution. No pre-set rules for how to process. Produced as needed: comparison of financial and managerial accounting, focus is internal rather than external, relevance (information that is quick) Managers who plan for and control an organization. Need to follow gaap or any prescribed format. Not mandatory: managers need information to perform each of these functions: