Class Notes - 2/7/11 *Read the articles on Black Board*...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
2/7/11 **Read the articles on Black Board** Planning and control purposes: Plan ahead and forecast what it would be to implement the plan The types of incentives are put into place - Profit sharing, bonus Design financial system for special decision making – ad-hoc decisions Financial analysis, behavioral analysis - Costs it will be to close down, salaries lost - What will happen to the workers? What are the employees alternatives? **Motivation of the existing staff is very important** Fear of losing your job is demoralizing. Integrate financial and managerial accounting systems What the guiding principles in financial accounting? GAAP, SEC, IFRS What the guiding principles in managerial accounting? 1. Cost of providing information should not exceed potential benefit a. The challenge is quantifying the benefits compared to the costs 2. Tradeoff of timeliness vs. accuracy a. Want info asap=> immediate action a.i. Does fast time always translate into accurate information? 3. We must be sensitive of the technical analysis and the behavioral implications a. 4. Different costs for different purposes a. Know the objective of the decision first => type of costs basis used Example; Target Pricing Price is set based on competition and production price ***Things to know for the test*** Pg. 2, 3, 4, top 5, mid 11 Middle of 5 – middle of 11- will not be on test 13 – to end of chapter will not be tested Chapter 02 – 26 – 36 36-41 leave out of test Chapter 02 EBIT = earnings before interest and tax Operating profit => operating income
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Inventory systems Perpetual and periodic Inventory Methods
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/08/2011 for the course ECON 102 taught by Professor Smith during the Spring '11 term at Saddleback.

Page1 / 4

Class Notes - 2/7/11 *Read the articles on Black Board*...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online