178 ACCOUNTING FOR MANAGERS
the profitability of different business segments (e.g. new accounts, lending, ATM
transactions etc.).
Conclusion
In Chapters 8, 9 and 10, various accounting techniques were identified that can
be used by non-financial managers as part of the decision-making process. With
the shift in most western economies to service industries and high-technology
manufacture, overheads have increased as a proportion of total business costs.
This chapter has shown the importance to decision-making of the methods used
by accountants to allocate overheads to products/services. Understanding the
methods used, and their limitations, is essential if informed decisions are to be
made by non-financial managers.
This chapter has also shown that we need to consider the underlying assump-
tions behind the management accounting techniques that are in use. Other
countries adopt different approaches and we have something to learn from
the success or failure of those practices. We also need to consider the behavioural
consequences of the choices made in relation to accounting systems.
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