This preview shows page 1. Sign up to view the full content.
Unformatted text preview: vices, seasonal purchase patterns, managerial efficiency, and periodic changes in wages and supply prices. Nevertheless, if senior management has made the
decision to calculate full costs, it then must work with its accounting staff to select an appropriate methodology.
The expression “work with” rather than “delegate to” emphasizes an important distinction. Because the issues are complex, the decisions are not ones that can be delegated completely to the accounting staff. Rather, senior
management must be intimately involved in setting the ground rules for the cost accounting effort, and in guiding
the work of the accounting staff. Otherwise, the information that emerges from the effort may be of little managerial use. Indeed, because there is no one “right” cost figure, managers with differing needs will set different ground
rules, and request that the cost accounting decisions be made in different ways. Moreover, the decisions may
change at different times in the life of an organization as managers’ needs change. Consequen...
View Full Document
This document was uploaded on 03/30/2014.
- Spring '14