Computer legal billing accounting wagemont h general

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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...
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This document was uploaded on 03/30/2014.

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