ACCY 211 – Week 2 Tutorial

1.3

Management accounting provides sources of financial and non-financial information to be used for
analysis and communicate them to make a decision in order to generate and preserve value. These
accountants have roots in accounting particularly cost account and have a close relationship with
financial accounting.

1.10

Cost benefit approach is commonly used as a basic decision rule, benefits, generally, must exceed
costs. Behavioural and technical considerations, people are involved in decisions, not just dollars and
cents. Different definitions of cost may be used for different applications. As in many other domains,
'one size fits all' does not apply to management accounting. Different costs serve different purposes.

1.22

a) Obtain relevant information

b) Make predictions about the future

c) Make decisions by choosing among alternatives

d) Evaluate performance and learn

e) Obtain relevant information

f) Identify the problem and uncertainties

g) Implement decision

1.28

1) Cost benefit

2) Cost benefit

3) Cost benefit

4) Behavioural and technical considerations

5) Behavioural and technical considerations

6) Cost benefit

7) Behavioural and technical considerations

8) Different definitions of cost

9) Cost benefit approach

1.30

Activity Management Accountant CFO

Managing accounts payable ü
Communicating with investors ü
Strategic review of different lines of business ü
Budgeting funds for a plant upgrade ü
Managing the company’s short-term investments ü
Negotiating fees with auditors ü
Assessing profitability of various products ü
Evaluating the costs and benefits of a new product design ü