Decision Making: Management Accounting Concepts

Management Accounting

WHY HAVE MANAGEMENT ACCOUNTS?

FINANCIAL ACCOUNTING and MANAGEMENT ACCOUNTING

THE NATURE OF COSTS

• Variable Cost
• Fixed Cost
• Direct Cost
• Indirect Cost
• Marginal Cost
• Sunk Cost
• Opportunity Cost

FIXED AND VARIABLE COSTS FOR RISK ASSESSMENT

FIXED AND VARIABLE COSTS FOR PRODUCT RISK APPRAISAL

FIXED AND VARIABLE COSTS FOR RESOURCE ALLOCATION

OPPORTUNITY COSTS

DIRECT AND INDIRECT COSTS - THE DANGERS OF COST ALLOCATION

SUNK COSTS

SUMMARY