Decision Making Across the Organization

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Decision Making Across the Organization Ramonica George ACC/561 January 14, 2014 Grace Kalil Decision Making Across the Organization When it comes to decision making across the organization, managers must have an understanding of cost effectiveness, selling, pricing, and budgeting. The organization must be able to accurately budget for variable cost as well as fixed cost while maintaining an increase in profit and revenue. In this paper, I will discuss the different view-points of decision making across the organization. I believe that when looking at the behavior of analysis cost it allows me to think of it in the prospect of how my uncle explains the real estate business. This is the study of how the specific cost of an…show more content…
In addition, each business function has its own needs for accounting knowledge, not all of them being of the same nature but all been important to the success of the organization. Human resources need accounting skills to calculate payroll or the cost of benefits. Operations needs accounting to optimize the ordering of inventories, schedules for production, forecast manpower needs, etc. Marketing needs accounting to estimate market size, market share, profit/loss, break-even points, and calculate profitable price points based on variable and fixed costs. Finance needs accounting to calculate cost of capital, interest payments and made decisions on capital investment. Today Company’s like Target and Wal-Mart management has a variety of responsibility; one understanding is cost effectiveness within the company cost-volume-profit is important to the company and management a critical factor that should not be miss understood. Management decision is important in selling, pricing, and determining product mix for example, cost-volume-profit consists of components (below) at different activity levels. Activity level are useful because management can analyze how the behavior levels changes the volume with changes in cost for example, variable cost in total activity will become proportionally with change. If a product variable level increase by 10% the cost will also increase by 10% and the same is
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