BUS 424 Chapter Notes - Chapter 1: Cost Leadership, Product Differentiation, Management Accounting

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 424
• Professor: Johnny Jermais

Document Summary

The process of identifying, measuring, and communicating economic information to permit informed judgements and decisions by users of the information: external (financial accounting) investors, creditors, and government. The role of management information is to support strategic (planning), operational (operating), and control (performance evaluation) aspects of management decision making. Main roles of management accounting: record keeping for sales, profit, assets, and liabilities, attention-directing opportunities and problem, problem solving analysis of available choices. Investment analysis, executive compensation, and international transfer pricing. No (cid:862)ge(cid:374)erally a(cid:272)(cid:272)epted a(cid:272)(cid:272)ou(cid:374)ti(cid:374)g pri(cid:374)(cid:272)iples(cid:863) for management accounting preparation and the use of such information. Information is prepared and used if it will be relevant for decision-making. Objective setting: objectives necessary prerequisite of any purposeful activities. Economic, social, environmental, and societal: without objectives, it is impossible. To assess (cid:449)hether the e(cid:373)ployees" a(cid:272)tio(cid:374)s are purposi(cid:448)e. To (cid:373)ake (cid:272)lai(cid:373)s a(cid:271)out a(cid:374) orga(cid:374)izatio(cid:374)"s su(cid:272)(cid:272)ess. Management control: the process by which management. Ensures that people in the organization carry out organizational objectives and strategies.