Management decision making, Managerial Accounting

  • Decision-making is an integral part of all management functions. It is the process of choosing the among alternative courses of action. Managers have to spend a considerable amount of time and thought in making decisions. 

  • Costs, which affect the managerial decisions, are called relevant costs. All types of costs are not relevant. Only the costs, which are futuristic in nature and differ among alternatives, are considered as relevant costs. 

  • Differential cost analysis or differential costing is a special technique to help management to take decision. It shows how costs and revenues would be different under different alternative courses of action.

  • With the help of a technique like marginal costing, CVP analysis and differential analysis, management makes decisions like determination of profitable levels of production, make or buy, process or sell, purchase or lease, accept or reject new orders etc.

 

 

Posted Date: 8/30/2012 1:50:35 AM | Location : United States







Related Discussions:- Management decision making, Assignment Help, Ask Question on Management decision making, Get Answer, Expert's Help, Management decision making Discussions

Write discussion on Management decision making
Your posts are moderated
Related Questions
The most ticklish difficulty that is faced through the finance manager is the resolve of the amount of working capital requirement at a specific level of production. To resolve thi

King Manufacturing has four categories of overhead. The four categories and expected overhead costs for each category for next year are as follows: Maintenance

What is Costco''s Financial decisions, Centralized or decentralized?

#quesXERCISE 3-15 Departmental Overhead Rates [LO1, LO2, LO3] Diewold Company has two departments, Milling and Assembly. The company uses a job-order costing system and computes a

JIT and Management Accounting Management accountants in many organizations have been criticized because of their failure to change their managing accounting system to reflect

taking the role of a consultant, discuss the factors you would consider in selecting a suitable accounting system solutio for a small to medium enterprise. i has to be 1200 q\work

Feed-forward control system Feed-forward control system describes a system in which deviations in the system are anticipated in a forecast of future results, so that corrective

#queComputing equivalents units and assigning costs to completed units and ending work in process; no beginning inventory or cost transferred in (30 -45min) Sue Electronics makes

STANDARD COSTING AND BUDGETARY CONTROL In practice, the terms standard cost and budgeted cost might be used interchangeably. Whereas it is possible to have budgeting without s

Constructing the Model Steps: 1) Identify the objectives of the simulation (A detailed listing of the results expected will help to clarify the output variables. 2) R