ACT202 Chapter Notes - Chapter 1: Key Management, Financial Accounting, Decision Rule
ACT 202 Management Accounting
What is management Accounting?
Customer value
- The value that a customer places on particular features of a product or service
Shareholder value
- The value that shareholders or owners place on a business
Resources
- Financial and non-financial, including information, work processes, employees,
committed customers and suppliers Determine the capabilities and competencies of the
organisation
Management accounting systems
- Systems that produce the information required by managers to create value and manage
resources
- Include estimates of the costs of producing goods and services, information for planning
and controlling operations and information for measuring performance
- Ad-hoc information to satisfy managers’ short term and long-term decision-making
needs
Key management accounting guidelines
- Cost–benefit approach is commonly used: as a basic decision rule, benefits, generally,
must exceed costs.
- Behavioural and technical considerations: people are involved in decisions, not just
dollars and cents.
- Different definitions of cost may be used for different applications
Management accounting information
- Focus is on the needs of managers within the organisation
- Flexibility in the nature of information supplied
Influences
- Managers’ information needs, nature of the resources they manage
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Document Summary
The value that a customer places on particular features of a product or service. The value that shareholders or owners place on a business. Financial and non-financial, including information, work processes, employees, committed customers and suppliers determine the capabilities and competencies of the organisation. Systems that produce the information required by managers to create value and manage resources. Include estimates of the costs of producing goods and services, information for planning and controlling operations and information for measuring performance. Ad-hoc information to satisfy managers" short term and long-term decision-making needs. Cost benefit approach is commonly used: as a basic decision rule, benefits, generally, must exceed costs. Behavioural and technical considerations: people are involved in decisions, not just dollars and cents. Different definitions of cost may be used for different applications. Focus is on the needs of managers within the organisation. Managers" information needs, nature of the resources they manage.
