Cost Accounting (15th Edition)

Published by Prentice Hall
ISBN 10: 0133428702
ISBN 13: 978-0-13342-870-4

Chapter 1 - The Manager and Management Accounting - Assignment Material - Questions - Page 21: 1-10

Answer

The three guidelines that help management accountants provide the most value to managers are utilizing a cost-benefit approach, evaluating behavioral and technical considerations, and applying the idea of different costs for different purposes. A cost-benefit approach is used by managers when making decisions on whether the upfront cost of something is worth the eventual return. Managers must analyze technical considerations, such as budgets, and employ behavioral techniques to the management of people. Managers also must be aware that different costs serve different purposes.

Work Step by Step

Management accounting is guided by three key items. 1) Cost-Benefit Approach 2) Behavioral and Technical Considerations 3) Different Costs for Different Purposes.
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