BUS 254 Chapter Notes - Chapter 12: Variable Cost, Net Operating Loss, List Price

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 254
• Professor: Arsineh Garabedian

Document Summary

Managerial accountant serves in an advisory capacity, provides relevant information and is often a member of a decision-making team. Consists of the six steps (quantitative analysis: clarify the decision problem defined the problems that can be o addressed effectively. Specify the criterion upon which the decision will be made. Cost minimization and establish as a constraint o: develop a decision model that brings together the criterion, the constraints, and the alternatives, collect the data. To be useful in decision making, information must be: relevant pertinent to a decision problem. Timely available in time for a decision o o. Managerial accountant collects and presents quantitative information. The role of qualitative information should not be underestimated o. A skilled manager evaluates qualitative factors, such as employee morale. Do not fit easily into numerical decision models. Do not affect any future cost and cannot be changed by any current or future action.