Answer
The three guidelines that help management accountants provide the most value to managers are utilizing a cost-benefit approach, evaluating behavioral and technical considerations, and applying the idea of different costs for different purposes. A cost-benefit approach is used by managers when making decisions on whether the upfront cost of something is worth the eventual return. Managers must analyze technical considerations, such as budgets, and employ behavioral techniques to the management of people. Managers also must be aware that different costs serve different purposes.
Work Step by Step
Management accounting is guided by three key items.
1) Cost-Benefit Approach
2) Behavioral and Technical Considerations
3) Different Costs for Different Purposes.
