IMI203H5 Chapter Notes - Chapter 1: Strategic Management, Lean Manufacturing, Cognitive Bias
8 Dec 2020
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Di erence in revenues between any two alternatives: opportunity cost. Potential bene t that is given up when one alternative is selected over another. Not usually entered in account records of organization but must be explicitly considered. Virtually every alternative has an opportunity cost: sunk cost. Cost that has already been incurred and that cannot be changed by any decision made now or in the future. Segments => any parts of organization that can be evaluated independently of other parts and about which manager seeks nancial or non- nancial data. Game plan that enables company to attract and retain customers by distinguishing itself from competitors. Managerial accounting plays critical role in providing information to management fo facilitate strategy implementation. Organizes resources around ow of business processes and that produces units only in response to customer orders. Production not initiated until a customer has ordered a product. Process used by a company to proactively identify and manage foreseeable risks.
