ACG 2071 Lecture Notes - Lecture 1: Earnings Before Interest And Taxes, Management Accounting, Retained Earnings
2 Sep 2016
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Document Summary
The communication of financial information necessary to run the business effectively and efficiently to internal users such as managers. Focuses on decisions that affect future relevance, timeliness and segment performance. Used for planning, decision making and controlling: segment. An activity, part or a division of business operations that earns revenue and/or generates costs or profit data. Product lines, customer groups, geographic territories, divisions, plants and departments. Establishing goals and objectives for the company, specifies how to achieve these goals and objectives. Wal-mart wants to increase their revenue (goal), so they increase their product offerings: directing. Using the managerial accounting information to run the day-to-day affairs of the organization. Ex. product cost resorts, raw materials purchase reports, product processing and completion report and etc. to run daily operations of the organization: controlling. Gathering feedback to ensure that the plan is being properly executed or modified as circumstances change.
