Managerial Accounting Midterm Notes

ACTG 2020-managerial accounting midterm notes Chapter 1 chronicle: information for finale reservation Four step framework for decision making Step 1: specify the problem, including the decision makers goals Step 2: identify creams Step 3: whole tone benefits (advantages) and be (disadvantages) to watch out the value (benefits reaped less costs incurred) of each option Step 4: Make the decision, choosing the option with the highest value Differentiate between Financial score and managerial accounting system Characteristic| Financial Accounting| Managerial Accounting| Primary users| Persons external to the institution| Persons internal to the organization| judicature principles| Generally accepted accounting principles (GAAP), as establish by bodies such as the Accounting Standards Board (AcSB) and the  planetary Accounting Standards Board| Evaluating the costs and benefits of decision options. In almost situations, entropy are collected, reported, a nd analyzed as needed and do not conform to specified standards.

| Unit of analysis| Usually, the integral organization, with curb disclosures about individual lines of business| Varies, with the decision consideration dictating the relevant unit of analysis| Emphasis| Information reliability, sometimes at the expense of relevance| Information relevance| periodicity| rooted(p) periodicity, with external reports usually released at the end of each quarter| Often generated on an as?needed basis| Types of info considered| Past financial data| All available data, including estimates on future performance,  whether financial or nonfinancial| Role ! of ethical motive in stopping point Making Step in Decision modeling| How Ethical Considerations Might Influence This Step| What Is the difficulty?| performing in an ethical manner is an important reckon in the goals of most individuals and is the stated policy for numerous organizations. Thus, ethics work how we frame decision problems.| What Are the...If you want to go far a full essay, order it on our website: BestEssayCheap.com

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