Content Outline

Week One Content Outline: Decision Making

OBJECTIVE: Explain the role of budgets and performance reports in the management decision-making process.

Resource: Ch. 1 of Introduction to Management Accounting

Content

• Managerial Accounting, the Business Organization, and Professional Ethics (in Horngren, Sundem, Stratton, Burgstahler, & Schatzberg)

    o Management by Exception (pp. 11-14)

OBJECTIVE: Evaluate the role of ethics in accounting decision making.

Resource: Ch. 1 of Introduction to Management Accounting

Content

• Managerial Accounting, the Business Organization, and Professional Ethics (in Horngren et al.)

    o Importance of Ethics (pp. 8-10)

OBJECTIVE: Evaluate relevant accounting information for business decision making.

Resource: Ch. 5 & 6 of Introduction to Management Accounting

Content

• Relevant Information for Decision Making with a Focus on Pricing Decisions (in Horngren et al.)

    o The Concept of Relevance (pp. 198-203)
    o Pricing Special Sales Orders (pp. 203-209)
    o Basic Principles for Pricing Decisions (pp. 209-212)
    o General Influences on Pricing in Practice (pp. 212-213)
    o Cost-Plus Pricing (pp. 213-219)
        o Target Costing (pp. 220-224)

• Relevant Information for Decision Making with a Focus on Operational Decisions (in Horngren et al.)

    o Analyzing Relevant Information: Focusing on Futuristic and Differential Attributes (pp. 248-251)
    o Make-or-Buy Decisions (pp. 251-256)
    o Deletion or Addition of Products, Services, or Departments (pp. 257-259)
    o Optional Use of Limited Resources: Product-Mix Decisions (pp. 260-261)
    o Joint Product Costs: Sell or Process Further Decisions (pp. 262-263)
    o Keeping or Replacing Equipment (pp. 263-267)
    o Identify Irrelevant or Misspecified Costs (pp. 267-268)
    o Conflict Between Decision Making and Performance Evaluation (pp. 268-270)

Note: The information above is intended to help you...