Managerial Accounting

As we know, comprise is playing an important role in financial administration control. It helps managers to make finiss efficiently by dint of set management. In real life, it has often been economic consumptiond as a tool for managers to keep relationship with customers.
Cost has an informative caliber and the main characteristics of cost tuition are: opportunity, reliability and signification.
luck refers the time importance. Managers must get cost information at the moment of making decision. Reliable requires these cost information trustable which representation it doesnt contain any mistakes. Signifi spatet ion shows that cost information has ability to influence the decision making. Depend on it, managers can evaluate the past, present and future events for confirm or even off the past evaluations. All of these main cost information characteristics are not be used equally in decision processing for all enterprise. It depends of the specialty in which the enterprise is evaluating. The medium we are talking here is complex and it includes many factors want: product size, sale size and technological level. Depends of these factors, the medium in which the enterprise evaluate can be stable or unstable.
Stable mediums characteristic is the stability of factors.



Here, we use the analysis center method which requires separating cost in both different categories to calculate the complete be. These two categories are cost which can be affected to the product - direct be and cost which cannot be affected to the product - indirect cost. These costs will be collected and charged to production through the repartition process.
Complete cost has advantages in making decision process, however, it besides has drawbacks such as including some insignificant information, repartition bases need and not timely. Because the methodology of complete costs refers to allocation of all costs about products, it is unavoidable to include some insignificant parts. Also, altering bases havent been...If you want to get a secure essay, order it on our website: Orderessay



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