Managerial accounting is the information of understanding and decision making within an organization. A fundamental decision rule used by any organization is do that which maximizes profit (Revenue less Costs (expenses) equals Profit).
Central to this equation is the understanding of the various types of costs, and how they behave. Once costs and behavior are understood, an individual can begin to explore the concepts of the Break-Even point and profit planning.
- Understand the various definitions of costs and expenses, and their associated behavior.
- Understand how to forecast costs using analytical tools.