ACC 117 Lecture Notes - Lecture 3: Total Quality Management, Identifiability, Fixed Cost
24 Jul 2020
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Document Summary
Provides accounting information for a company"s internal users. As time went on new concepts develop out of competition. Therefore these systems change to cater to the need to be flexible enough to provide both financial and managerial accounting info. New methods of costing products and services such as activity-based costing. Activity-based costing: more detailed approach to determine the cost of goods and services. Emphasizes the cost as many activities or tasks that must be done to produce the product. Advantages come when companies create customer value (what customers receive - what they give up) the goal of the company is to understand, measure, then maximize customer value. Allows management to see the big picture improve quality, reduce time, and improve efficiency. One decision on one function will affect others. Therefore managerial accountants must understand many functions of the business to manage the value chain. Acceptable is unacceptable no defects, continuous improvement is mandatory.
