RSM222H1 Chapter Notes - Chapter 1-3: Marginal Cost, Sunk Costs, Fixed Cost
Document Summary
Chapter 1: managerial accounting and the business environment: managerial accounting: provides information to managers for planning and controlling operations, and for decision making, financial accounting: provides information to shareholders, creditors, and other people outside the organization. Being a manager: planning, directing and motivating. To carry out plans for routine operations. Ensure plan is being executed properly, modify if needed. Financial versus managerial accounting: future versus past, does not have to be objective and verifiable, simply relevant, less emphasis on precision, more importance on non-financial data (i. e. customer satisfaction, emphasizes segment reporting. I. e. reports for products, customers, sales: not bound by gaap/ifrs, not required by law. Must always determine if information is useful, rather than if it is required. Business process management: lean production, enterprise system. Software system that integrates data across organization into single system to reduce duplication and errors. Direct materials: integral part of finished product, can be traced to it.
