Integrating Cost Management and Decision Analysis
Using Managerial Accounting Information
Managers use cost behavior, contribution margin analysis, relevant costing, budgeting, variance analysis, and performance evaluation together when selecting business alternatives.
- Analyze relevant costs.
- Evaluate contribution margins.
- Prepare flexible budgets.
- Interpret variances.
- Measure operational performance.
Note
CPA BAR frequently combines budgeting, costing, and performance evaluation in integrated scenarios.
Summary
Managerial accounting techniques provide the financial foundation for operational and strategic decisions.