Accounting for Decision Making and Control, 7th Edition by Jerol.. Zimmerman

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By Jerol.. Zimmerman

Accounting for choice Making and keep watch over offers scholars and bosses with an figuring out appreciation of the strengths and barriers of an organization’s accounting process. This booklet presents a framework for pondering accounting structures and a foundation for reading proposed adjustments to those structures. The 7th variation demonstrates that managerial accounting is a vital part of the firm’s organizational structure, not only an remoted set of computational issues. the aim of this article is to supply scholars and bosses with an realizing and appreciation of the strengths and barriers of an organization’s accounting process, thereby letting them be extra clever clients of those platforms. the most objective proposed through the writer continues to be in tact for the 7th variation.

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Extra info for Accounting for Decision Making and Control, 7th Edition

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For example, the opportunity set for this Friday night includes the movies, a concert, staying home and studying, staying home and watching television, inviting friends over, and so forth. The opportunity cost concept focuses managers’ attention on the available alternative courses of action. Suppose you are considering three job offers. Job A pays a salary of $100,000, job B pays $102,000, and job C pays $106,000. In addition, you value each job differently in terms of career potential, developing your human capital, and the type of work.

In the period from 1925 to 1975, management accounting was heavily influenced by external considerations. , those of the Financial Accounting Standards Board) were the major factors affecting management accounting. Since 1975, two major environmental forces have changed organizations and caused managers to question whether traditional management accounting procedures (pre-1975) are still appropriate. These environmental forces are (1) factory automation and computer/information technology and (2) global competition.

Direct Costs, Overhead Costs, and Opportunity Costs E. Cost Estimation 1. Account Classification 2. Motion and Time Studies F. qxd 12/15/09 11:38 AM The Nature of Costs Page 23 23 As described in Chapter 1, accounting systems measure costs that managers use for external reports, decision making, and controlling the behavior of people in the organization. Understanding how accounting systems calculate costs requires a thorough understanding of what cost means. Unfortunately, that simple term has multiple meanings.

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