Chapter 1 Outline

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Chapter 1
Cost Accounting: Information for Decision Making

Key Concepts

1Describe the way managers use accounting information to create value in organizations.

♦ Cost accounting helps manages achieve the maximum value for their organizations by providing information for decision making and by measuring the effects of decisions on the value creation of the organizations.

♦ Value chain is the set of activities that transforms raw resources into the goods and services end users purchase and consume, and includes the treatment or disposal of any waste generated by the end users.

| | | | |Example 1: The value chain for gasoline industry may include the following. | | | | | | | | | | | |Oil search and drilling | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |Oil refining | | | | | | | | | | | | | | | | | |...
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