The primary purpose of managerial accounting is to provide information useful for management decisions. Many of the managerial accounting techniques that you learn in this course will be useful for decisions you make in your everyday life.

Instructions

For each of the following managerial accounting techniques, read the definition provided and then provide an example of a personal situation that would benefit from use of this technique.

a. Break-even point (Chapter 22).

b. Budget (Chapter 24).

c. Balanced scorecard (Chapter 26).

d. Capital budgeting (Chapter 27).