TAILIEUCHUNG - Lecture Accounting for business: A guide for non-accountants (2/e) – Chapter 8: Short-term decision-making techniques

After you have mastered the material in this chapter, you will be able to: Explain the terms incremental costs and incremental benefits, describe situations where incremental analysis may be used to assist management, distinguish between relevant and irrelevant information used in decision making,. | Chapter 8 Short-term decision making techniques 8- Objectives Explain the terms incremental costs and incremental benefits. Describe situations where incremental analysis may be used to assist management. Distinguish between relevant and irrelevant information used in decision making. 8- Objectives (continued) Apply incremental analysis to two (2) of the following situations: make or buy a component accept a special order add a new product close a department process a product further, or sell the product as is. 8- Objectives (continued) Explain how costs and profits respond to changes in sales volume. Use a cost-volume-profit analysis as a tool for management. Define contribution margin. Calculate the contribution margin per unit and the contribution margin as a ratio. 8- Objectives (continued) Calculate a break-even point by use of a formula and by use of a graph. Calculate the sales required to earn a desired level of profit (in dollars and units). Apply a cost-volume-profit analysis to practical situations. 8- Incremental benefits and incremental costs To assist decision makers by providing information?? Incremental benefits the difference between revenues of different alternatives. Incremental costs the difference between costs of the alternatives 8- Incremental benefits and incremental costs (continued) Managers will aim to choose the alternative which derives the greatest benefit. highest revenue lowest cost. 8- Incremental analysis Incremental analysis Making an informed decision when faced with alternatives. Examples: to make or buy a component to accept a special order to add a new product line to close a department to process a product further, or sell the product as is. 8- Relevant and irrelevant information Management needs information to make decisions, the more information the better. The accountant needs to identify all relevant information to assist decision makers. Relevant data is data that will alter the result

• Kế toán - Kiểm toán
• Accounting for business
• Lecture Accounting for business
• Incremental benefits
• Incremental costs
• Incremental analysis
• Decision making situations
• Accounting entity
• Classification of assets
• Accounting equation
• Accounting equation transactions
• Financial accounting reports
• Statement of financial performance
• Accrual accounting systems
• Statement of financial position
• Accounting reports
• Accounting principles
• Historical cost
• Monetary unit
• Accounting standards
• Australian accounting standards
• Conceptual framework
• Financial reports
• A business perspective
• Financial accounting
• Business decisions
• Recording business transactions
• Accounting theory
• Merchandising transactions
• Business accounting
• Business accounting two
• Frank Wood’s business accounting
• Original entry
• Financial statements of sole traders
• Adjustments for financial statements
• Special accounting procedures
• Principles of financial accounting
• Accounting information
• Accounting in business
• International standards
• Accounting assumptions
• Managerial accounting
• Fundamental accounting principles
• Lecture Fundamental accounting principles
• Financial reporting
• The accounting cycle
• Limited companies
• Special accounts
• Group financial statements
• Consolidation of balance sheets
• Lecture Financial accounting
• Business decision
• Kế toán tài chính
• Accounting information system
• Accounting transactions
• Paper F1
• Accountant in business
• Revision kit 2016
• Business on Accounting
• Business Accounting documents list
• Small business
• Accounting and finance for your small business
• Industrial management
• Business enterprises
• Small Business management
• New business enterprises management
• Operating the business
• Costing concepts
• Service costing
• Product costing
• Accounting for manufacturing overhead
• Business accounting and finance
• The importance of accounting
• Recording financial transactions
• Statement of cash flows
• Corporate governance
• Financial statements analysis
• Ebook Business accounting 1
• Balance sheet
• Double entry system for assets
• Balancing off accounts
• Accounting ratios
• Payments accounts
• Manufacturing accounts
• Departmental accounts
• the accounting
• auditing
• business
• accounting salaries
• accounting methods
• business ghiep accounting
• audit documents
• vouchers
• corporate tax
• wage accounting
• accounting
• statistics
• accounting documents
• Stock investments
• Interpretation of financial statements
• Financial statements
• Managerial accounting concepts
• Accrual accounting
• Revenue recognition