By Jerol.. Zimmerman

ISBN-10: 0078136725

ISBN-13: 9780078136726

Accounting for selection Making and keep watch over presents scholars and bosses with an knowing appreciation of the strengths and boundaries of an organization’s accounting process. This ebook offers a framework for considering accounting platforms and a foundation for examining proposed alterations to those structures. The 7th version demonstrates that managerial accounting is an essential component of the firm’s organizational structure, not only an remoted set of computational issues. the aim of this article is to supply scholars and executives with an figuring out and appreciation of the strengths and obstacles of an organization’s accounting approach, thereby permitting them to be extra clever clients of those structures. the most objective proposed via the writer continues to be in tact for the 7th version.

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Extra info for Accounting for Decision Making and Control, 7th Edition

Sample text

The opportunity cost of using an asset is the decline in its value. Accounting depreciation (such as straight-line depreciation) is based on historical costs. Accounting depreciation does not necessarily reflect the opportunity cost of the van (its decline in value from use). However, accounting depreciation can be a reasonably accurate approximation of the decline in the market value of the asset. In any given year, accounting depreciation may not exactly capture the decline in the asset’s market value.

P 1–9: Parkview Hospital Parkview Hospital, a regional hospital, serves a population of 400,000 people. The next closest hospital is 50 miles away. Parkview’s accounting system is adequate for patient billing. The system reports revenues generated per department but does not break down revenues by unit within departments. For example, Parkview knows patient revenue for the entire psychiatric department but does not know revenues in the child and adolescent unit, the chemical dependence unit, or the neuropsychiatric unit.

Since 1975, two major environmental forces have changed organizations and caused managers to question whether traditional management accounting procedures (pre-1975) are still appropriate. These environmental forces are (1) factory automation and computer/information technology and (2) global competition. To adapt to these environmental forces, organizations must reconsider their organizational structure and their management accounting procedures. Information technology advances such as the Internet, intranets, wireless communications, and faster microprocessors have had a big impact on internal accounting processes.

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Accounting for Decision Making and Control, 7th Edition by Jerol.. Zimmerman

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