Learning Objectives1 explain the differences between tactical decisions and long-term decisions; 2 describe the steps in the decisionmaking process, and the management accountant’s role in that process; 3 describe the characteristics of relevant information; 4 select and analyse relevant information for special order decisions; 5 select and analyse relevant information for decisions about whether to make or buy a product; 6 select and analyse relevant information for decisions to add or delete a product or department; 7 explain how to treat joint product costs in decisions about whether to sell a product or process it further; 8 complete relevant cost analysis using activity-based costs; 9 discuss how incentives can influence the way that managers make decisions; 10 identify the pitfalls to avoid when using accounting data in decisions; and 11 after studying the appendix, use various approaches to allocate joint costs to products, and evaluate the usefulness of these approaches for managerial decision making. | ||||||
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