. Explain the accounting aid to decision-making, Planning and Control.

GER AND MANAGEMENT ACCOUNTING Accountine

GER AND MANAGEMENT ACCOUNTING Example of Management Decision Making at Daily News PLANNING Identify the Problem and Uncertainties How to increase revenues Obtain Information Make Predictons About the Future Make Decisions by Choosing Among Alternatives Increase advertising rates by CONTROL Implement the Decision Implement a 4% increase in advertising rates Evaluate Performance and Learn Advertising revenues 7.2% lower than budgeted Management Accounting Expected advertising pages sold. rate per page, and revenue cccounting Source documents (invoices to advertisers indicating pages sold, rate per page, and payments received) Recording in general and subsidiary ledgers - Comparing actual advertising pages sold, average rate per page, and revenue to budgeted amounts Financial representation of plans Recording transactions and classifring them in accounting records Reports comparing actual results to budgets