Acounting for Decision making.

ACCOUNTING FOR DECISION MAKING

TABLE OF CONTENTS

S .No HEADINGS

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1 INTRODUCTION : 3

2 LITERATURE REVIEW

5 3 MAKING MANAGEMENT DECISIONS THROUGH APPLICATION OF FINANCIAL DECISIONS : 6

3 .1 DECIDING ON LABOUR AND STAFFING PATTERNS 7 3 .2

FIXING FEES FOR SERVICES AND OTHER FEES 7 3 .3 DETERMING THE COMBINATION OF SERVICES : 8 3 .4 ESTIMATING FUTURE SUPPLY COSTS AND INVENTORY 8 3 .5 ANALYSIS OF VARIANCE 9 3 .6 BUDGET : 9 3 .7 CASH FLOW STATEMENT : 9

4 RISK

MANAGEMENT 9

5 PRUDENT MANAGEMENT DECISIONS FROM FINANCIAL DATAS 10

6 HOSPITAL CLOSURE CAN BE FORETOLD BY KEY FINANCIAL RATIOS 11 7 CASH FLOW RATIOS CAN BE EMPLOYED TO FIND REASONS FOR BUSINESS FAILURES

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8 FINANCIAL PERFORMANCE AND EMPLOYEE DOWN SIZING

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9 CONCLUSION

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10 BIBILIOGRAPHY 22 1 . INTRODUCTION

Accounting is known as the tongue of business . Formalization of data and numbers in such a manner so as to help to arrive at decision making and financial planning is the main object of accounting process . While book keeping is mainly concerned with organizing and keeping records , i .e books of accounts but accounting is employed to examine the data of information . The main objective of this study is to make opinion or strategies based on trend or movements or assumptions

Financial reports are generated from financial accounting records of an organisation . Financial accounting includes the arrangement and preparation of a business 's financial statements , chiefly for outside users of the business . Financial reports are utilized by owners prospective owners of a business and creditors of organisations . Due to application of law , an organisation should have to submit financial statements to governmental agencies that regulate the business and stock markets if the company is a listed company

Financial reports and statements are prepared in accordance with set of rules , procedure and standards for reporting financial information known as the Generally Accepted Accounting principles (GAAP , as established by the Financial Accounting Standard Board ( FASB . This standard stipulates that a company account for all of their assets or economic resources according to their historical cost (Horngreen Stratton Sundem ,

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In addition to it , suppliers , shareholders , financial institutions and banks may also benefit from the financial reports of an organisation (Horngreen , Stratton Sundem ,

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Managerial reports are prepared from Managerial accounting statements Managerial accounting assists managers to plan and manage an organization 's operations . Budgets are prepared to convey management 's goals in financial terms by measuring , identifying , analyzing accumulating , communicating and interpreting accounting and financial information . Over a period , performance reports are prepared to evaluate the actual results with that of budgeted one . With the help of cost accountants , the management keeps watch of how much it costs a company to manufacture a product or to provide the service (Horngreen , Stratton Sundem ,

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Managerial accounting does not require complying with rules and procedures of the GAPP . An organisation can develop its own internal accounting system that will suit most to the needs of the...