Management and Organizational Studies 1023A/B Lecture Notes - Lecture 4: Lcd Television, Management Accounting, Financial Accounting

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 1023A/B
• Professor: Barry Hawn

Document Summary

Decision-making in organizations: what is an organization, collection of individuals, engaged in a collectively beneficial mission, goals vary across organizations, for-profit firms, not-for-profit organizations, governments. Conflict in goals *exam: divergence between organizational and individual goals, people make decisions, what is best for employee is not necessarily best for organization, need to align incentives to create goal congruence . Aligning goals: three broad methods, policies & procedures, monitoring, incentive schemes and performance evaluation, decision makers consider costs and benefits of each control mechanism when choosing the best mix. Role for accounting: help decision makers measure the costs and benefits of decision options, two classes of decision makers, outside the firm, inside the firm. Information needs: differ across users, not cost effective to produce specific information, confidentiality issues, solution, comprehensive reports (financial statements, defined principles (gaap) with guidelines set by organizations such as the ias, statement issued at regular intervals.