Influence of managers behavior-management accounting
Write down a short note on the influence of manager’s behavior in management accounting information?
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The Management accounting information is proposed to have a consequence on the behavior of such working in the business. The main reason for giving the information is to enhance the quality of the decisions. This must lead to activities that better contribute to the fulfillment of the objectives of business. In certain cases, though, the behavior change caused through management accounting is not beneficial. One of the possible effects is that the managers and staff will concentrate their efforts and attention on the features of the business which are being measured and will provide much less attention to the items which are not.
What do you mean by the term key performance indicators or KPI? Explain in brief?
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Variance: The rate, amount, extent, or degree of change, or the divergence from a preferred state or characteristic.
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Write down a short note on determining costs and benefits in decision making process?
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