Disussion question 200 words only

After seeking the input of the people who attended the regular Online Room on March 4, I am going to make the last two posts (Weeks 7 and 8) about Chapter 12: Differential Analysis: The Key to Decision Making.

Chapter 12 is not on the final exam, but that does not make it any less important. In fact, if there were a capstone chapter to this course, Chapter 12 would be it. All semester long we have studied cost terms and definitions; we have applied our cost accounting techniques in a number of ways. I have stressed that “garbage in: garbage out” MUST be replaced with “greatness in: greatness out” when it comes to providing managerial accounting information. Managerial Accounting has, and always will be, the foundation of the information utilized for decision-making in the firm.

This chapter includes “classical” decision-making models. These are models for decisions, that although are not a daily event, present opportunities for the firm to capture additional profitability.

The topic from Chapter 12 this week has to do with the nature of information. When it comes to managerial accounting, what elements are present in that information? How do we define all the facets of costs that we have studied this semester? What is the nature of relevant information? What is the nature of irrelevant information?

There can be a number of elements listed and defined in these topics. As this is a graduate course, research and citing sources garner the best scores.

AS ALWAYS HAS BEEN TRUE, this discussion topic is open. It is better to have a well-reasoned response than just to submit an answer to “check the box”.