Answered: Describe the decision making process in…

Business

Accounting

Describe the decision making process in management accounting.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter9: Responsibility Accounting And Decentralization

Section: Chapter Questions

Problem 16Q: Describe the concept of responsibility accounting.

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Question

Describe the decision making process in management accounting.

Definition Definition Process by which financial information is analyzed, interpreted, and communicated to managers to support the achievement of an organization's goals. The main objective of managerial accounting is to maximize profits and minimize losses.

Expert Solution

Step 1

The decision-making process includes a series of steps which are followed in making a decision for the organization. The organization tries to choose the best decision for the organization by following the stated steps.

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