Tham khảo tài liệu 'pearson education of management accounting_15', kinh doanh - tiếp thị, quản trị kinh doanh phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | SOLUTIONS TO REVIEW QUESTIONS 471 Most businesses are far too large and complex for managers to be able to see and assess everything that is going on in their own areas of responsibility merely by personal observation. Managers need information on all aspects within their control. Management accounting reports can provide them with this information to a greater or lesser extent. These reports can be seen therefore as acting as the eyes and ears of the managers providing insights not necessarily obvious without them. The following accounting information relating to a new service might be useful to a manager the cost of providing the service and the level of profit that will be required the capital investment that will be necessary to enable the business to provide the service and the extent to which the provision of the service would be expected to enhance the business s wealth. There is no doubt that the onus is on accountants to make their reports as easy to understand as they can possibly be. A key aspect of accountants work is communicating to non-accountants and they should never overlook this. At the same time accounting information cannot always be expressed in such a way that someone with absolutely no accounting knowledge can absorb it successfully. The onus is also therefore on managers to acquire a working knowledge of the basis on which accounting reports are prepared and what they mean. Chapter 2 The two attributes are 1 They must relate to the objective s that the decision is intended to work towards. In most businesses this is taken to be wealth enhancement. This means that any information relating to the decision that does not impact on wealth enhancement is irrelevant where wealth enhancement is the sole objective. In practice a business may have more than one objective. 2 They must differ between the options under consideration. Where a cost will be the same irrespective of the outcome of the decision that is to be taken it is .
