Managerial Accounting Midterm Notes

ACTG 2020-managerial accounting midterm notes Chapter 1 chronicle: information for ratiocination qualification Four step framework for decision making Step 1: specify the problem, including the decision makers goals Step 2: identify survivals Step 3: bar benefits (advantages) and cost (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 government| Persons internal to the organization| judicature principles| Generally accepted accounting principles (GAAP), as completed by bodies such as the Accounting Standards Board (AcSB) and the  internationalistic Accounting Standards Board| Evaluating the costs and benefits of decision options. In approximately situations, entropy are c ollected, reported, and analyzed as needed and do not conform to specified standards.

| Unit of analysis| Usually, the perfect organization, with curb disclosures about individual lines of business| Varies, with the decision condition 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 shtup| Often generated on an as?needed basis| Types of data considered| Past financial data| All available data, including estimates on future performa nce, whether financial or nonfinancial| ! Role of morals in finding Making Step in Decision modeling| How Ethical Considerations Might Influence This Step| What Is the trouble?| performing in an ethical manner is an important cistron in the goals of most individuals and is the stated policy for numerous organizations. Thus, ethical motive work how we frame decision problems.| What Are the...If you want to witness a full essay, order it on our website: OrderCustomPaper.com

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