Select Any Three of the Five Guidelines to Decision Making

question 82

Essay

Select any three of the five guidelines to decision making and describe them.

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Definitions:

Prime Costs

consists of the direct costs directly attributable to the manufacture of goods, specifically direct materials and direct labor.

Conversion Costs

Costs incurred to convert raw materials into finished products, typically including direct labor and manufacturing overhead.

Managerial Accounting

The practice of identifying, measuring, analyzing, and interpreting accounting information to help managers make informed operational decisions.

Financial Accounting

A branch of accounting that focuses on the process of recording, summarizing, and reporting transactional information related to business operations to external parties.