week 7 ACCY 111 RJD Lecture 2

At what point does this stop being cost effective we

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At what point does this stop being cost effective? We will return to these sorts of decisions next week.
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To support the strategic planning process, management accounting must: 1. Become more outward looking. 2. Develop and implement methods through which a business can outperform the competition – or collaborate more successfully with other organisations. 3. Monitor the strategies of the enterprise and focus on bringing these to a successful conclusion.
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Summary: Planning and Control We plan because we are uncertain and to provide a benchmark against which to make sense of what actually happens. Planning and control processes involve: setting the purpose (mission) and objectives; creating long and short term plans; monitoring actual performance; and responding to the variations between planned and actual performance.
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Summary: Planning and Control Strategic decisions focus on long term policy and objectives. Operational decisions focus on short term issues of resource availability and use. Strategic management accountants need to understand the organisation’s longer term objectives and the environment in which they must be accomplished.
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Next Time: How do we define costs How do costs behave? Please read: chapter 7 pp. 318-327
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