Part II
Using Accounting Information
for Decision-Making, Planning
and Control
Part II shows the reader how accounting information is used in decision-making,
planning and control. The accounting tools and techniques are explained and
illustrated by straightforward examples. Case studies, drawn mainly from real
business examples, help draw outthe concepts. Theory is integrated with the
tools and techniques, and the use of quotations from the original sources should
encourage readers to access the accounting academic literature that they may find
of interest.
Chapter 7 helps the reader to interpret the main financial statements. Chapters 8,
9 and 10 consider the accounting techniques that are of value in marketing,
operations and human resource decisions respectively. Chapters 8, 9 and 10
do not take an approach to accounting that is common to other books. These
chapters provide a practitioner- rather than an accounting-centred approach,
demonstrating techniques that do not require any prior management accounting
knowledge. The more traditional accounting focus is left to Chapter 11, by which
time the reader should have little difficulty in understanding the more complex
concepts. Chapter 12 focuses on strategic decisions such as capital investment and
Chapter 13 on divisional performance measurement. Chapter 14 covers the subject
of budgeting and Chapter 15 discusses budgetary control.