BU247 Chapter Notes - Chapter 1: Pdca, Financial Modeling, Balanced Scorecard
Document Summary
Chapter 1: how management accounting information supports decision making. Management accounting: process of supplying the managers and employees in an organization with relevant information, both financial and nonfinancial, for making decisions, allocating resources, and monitoring, evaluating, and rewarding performance. Reported expense of operating department, cost of producing product, etc. Measures related to customer satisfaction and loyalty, process qualities, innovation, employee motivation. Retrospective, reporting, and summarizing in financial terms the results of past decisions and transactions. Oriented to external stakeholders (investors, creditors, regulators, tax authorities) Consistent with rules by standard setters specifies contents of reports, rules for how content gets developed, and how content will be presented. Both retrospective, providing feedback about past operations, and prospective, incorporating forecasts and estimates future events; uses both financial and nonfinancial measures. Oriented to meet decision-making needs of employees and managers inside organization; good management accounting.
