This chapter considers the impact of IT on management accounting. There is a lot of terminology, which may or may not be already familiar to you. You are unlikely to be tested on specific terminology, but you should be aware of the various items listed in this chapter.
Information needs of traditional manufacturing businesses
- Manufacturing businesses need information areas:
- Costs: material, labour overheads
- Inventory (raw material, work-in-progress, finished goods)
- Major customers and their buying habits
- Sales by product, customer, season, country.
- Time for the manufacturing process to allow scheduling
- Competitors’ products and prices
- Innovation: new products being developed