Tuesday, November 06, 2007

Attributes of Gd Info (processed data) :
- relevance
- clear n concise
- completeness
- give complete picture
- accuracy - correct
- clarity - clear
- able to inspire management's confidence to use e info
- present to right person.. using right medium
- ready by the required time
- cost effective - worthy

Planning process :
1 identify objectives (max profit, min cost)
2 identify alternative strategies
3 evalutate each strategy
4 choose alternative course of action
5 implement e long term plan in e form of e annual budget

Control process :
6 measure actual results n compare with plan
7 respond to divergences from plan

Planning
- Strategic Planning - long term
- Tactical Planning - 1 to 2 yr span
- Operational Planning - day to day, wk to wk

Financial Accounting
- Recording e financial transactions of an organisation
- Summarising into financial statements
- For external users who wish to analyse n interprete e financial position of e organisation
- More impt to be accurate than timely
- Historic (past figures)

Cost Accounting
- An appropriate analysis of costs
- To provide financial info abt e performance of e enterprise
- Estimates are used
- Can be for any period

Management Accounting
- Info sourced from Financial n Cost Accounting
- Also provides non-financial info
- Concerned with hist info but also forward-looking
- To assist mgmt in its policy & decision-making, planning & control activities

Responsibility Accounting (Segregates revenues n costs into areas of personal responsibility in order to monitor n assess e performance of each part of an organisation)

- Responsibility Centre - Direct responsibility for e performance of e organisation
- Cost Centre - Concerned with cost (production dept)
- Profit Centre - Control over sales n costs (sales dept)
- Revenue Centre - Concerned with revenues
- Investment Centre - Capital investment (costs, revenues & assets)

ROCE
- Return on Capital Employed compares profit to capital employed
- NOT a suitable measure for profit centre as e mngr is nt responsible for capital employed

- Lost Soul #3385 -

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