The purpose of accounting is ultimately to assist someone to make decisions by the accumulation of all accounting information. Accounting responds to the need for quantitative financial information. Management has to assess whether choosing a particular product X has the overall benefits or choosing an alternative, Y i.
NPV Stage 5, 6 and 7: This is normally assumed in a traditional microeconomics analysis. Planning It evaluates capital expenditures, identifies and measures information on products and markets and is especially critical in short term planning through budgets.
The types of data to use in decision-making and, by implication, the types of data not to use.
The fundamental question for consideration here is, "How is management to choose from among these so many possible alternatives so as to maximize the present value of the expected future cash flows? The choice of decision rules and ranking of alternative courses of action Making competent decisions depends on two indispensable criteria selected by managers: Appreciate the financial implications of changes in the internal and external environment in which the organization operates.
The final decision is to accept the alternative with the greatest net present value or cash flow, i. Management accounting has a role in all stages of the management process.
Alternative courses of actions are identified.
This is a continuous process. Actual results are compared with corresponding estimates. Estimating is made of the results of each alternative. If there is no available alternative, then decision-making is not necessary. The major users in accounting information can be divided into three groups: Therefore, analyzing the differences between available alternatives is essential to good decision-making.
Catching up or falling behind? The purpose of management accounting involves identifying the types of decision needed in management accounting in order to provide useful information for managers. Internal managers who use the information for short run planning and controlling everyday operation.ALTERNATIVE COURSES OF ACTION: ACA 1: Offer streaming services to other portable gadgets Increase and build relationship tie-ups to those application providers for other device companies other than Apple products.
With this, it will allow customers to access Netflix more easily using their portable gadgets. Information is important in management decision making. The objective of the management accounting system is to provide the best information for assessments of the amounts, timing and uncertainty of cash flows to the business from each alternative course of action available to the business.
Alternative Solutions and Their Analysis: Bob Henderson, chief information officer acted on the situation and has developed a list of possible actions that can be done so as to pull big valley’s information system out of trouble. Who Moved My Cheese- Alternative And Course Of Action Listing of alternative courses of action that could be taken & Evaluation of alternative courses of action.
Alternative courses of action From the list of problem sighted in Real Time Video Limited the following solution are proposed. For the marketing problem which seems to be the main problem i will suggest the firm should carry out an awareness program reasons being that the firm has being around for long.
Develops and evaluates alternative courses of action; makes decisions based on correct assumptions concerning resources and guidelines; supports decisions or recommendations with data or reasoning; defines and implements solutions to problems; and recognizes when no action is required.Download