ACCTG 102 Lecture Notes - Lecture 25: Management Accounting, Decision-Making
Document Summary
Decision making, planning and control: the 5 steps decision making process. Implement the decision, evaluate the performance and learn. Predicting results under varies alternative ways of achieving those goals. Describing how to attain the desired goals and. Communicating the goals and how to achieve them to the entire organization. Management accountants serve as business partners in these planning activities. Control comprises because they understand the key success factors and what creates value. Taking actions that implement the planning decision. Providing feedback and learning to help future decision making. The most important planning tool when implementing strategy is a budget. A budget is the quantitative expression of a proposed plan of action by management and is an aid to coordinating what needs to be done to execute that plan. Management accounting guidelines costs, generally of course the benefits should exceed the costs. The cost benefit approach compares the benefits of an action/purchase to the.
