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Week 1 - Coggle Diagram
Week 1
Supporting decisions for
Controlling
Evaluating alternative choices
Operating decisions - short-term focus
investment decisions - short-term focus
Planning
Preparing external reports
Information
Primary
material
whether omission or misstatement will affect the decision to be made
cost effective
whether the benefits of information provision exceed its costs
Secondary
Timeliness
Relevance
Clarity
Secure
Reliability
Differences in management accounting compared to financial accounting
Financial accounting
imposed formats
legal requirement
backward looking
audience - external stakeholders
regularlary prepared
Management accounting
audience: internal management
felexible structure
prepared at management discretion
prepared when required
Can be forward-looking
Costs directly traceable to the goods and services provided - direct costs
A share of other costs jointly incurred in producing the goods or services provided - indirect costs
Purpose - professional practice that seeks to provide information to assist organisational managers in their decision making