CHAPTER 6-8: COST, VOLUME AND
PROFIT AND MAXIMIZATION
COST AND REVENUES ARE LINEAR FUNCTIONS
Profit = revenues – costs
COST IS LINEAR A FUNCTION AND REVENUES IS QUADRATIC FUNCTION
Profit = revenues – costs
BASIC FORMULAS OF QUADRATIC FUNCTIONS
Function: 𝑓(𝑥) = 𝑎𝑥 2 + 𝑏𝑥 + 𝑐
−𝑏±√𝑏 2−4𝑎𝑐
Solutions of equation: 𝑥 =
2𝑎
−𝑏
Extreme point of function: 𝑥 = 2𝑎
, CHAPTER 9: MANAGEMENT ACCOUNTING
Managerial accounting: provides economic and financial information for managers and other internal users
COMPARING MANAGERIAL AND FINANCIAL ACCOUNTING
MANAGEMENT FUNCTIONS
ORGANIZATIONAL STRUCTURE
Organization charts: show interrelationships of activities and delegation of authority and responsibility within
company
PROFIT AND MAXIMIZATION
COST AND REVENUES ARE LINEAR FUNCTIONS
Profit = revenues – costs
COST IS LINEAR A FUNCTION AND REVENUES IS QUADRATIC FUNCTION
Profit = revenues – costs
BASIC FORMULAS OF QUADRATIC FUNCTIONS
Function: 𝑓(𝑥) = 𝑎𝑥 2 + 𝑏𝑥 + 𝑐
−𝑏±√𝑏 2−4𝑎𝑐
Solutions of equation: 𝑥 =
2𝑎
−𝑏
Extreme point of function: 𝑥 = 2𝑎
, CHAPTER 9: MANAGEMENT ACCOUNTING
Managerial accounting: provides economic and financial information for managers and other internal users
COMPARING MANAGERIAL AND FINANCIAL ACCOUNTING
MANAGEMENT FUNCTIONS
ORGANIZATIONAL STRUCTURE
Organization charts: show interrelationships of activities and delegation of authority and responsibility within
company
