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)
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