Presentation on theme: "ACCOUNTING & BUSINESS DECISIONS: ACTG 6910 Presented by Charles Kile, Ph.D. Professor of Accounting Middle Tennessee State University 6:00 pm – 8:40 pm."— Presentation transcript:
ACCOUNTING & BUSINESS DECISIONS: ACTG 6910 Presented by Charles Kile, Ph.D. Professor of Accounting Middle Tennessee State University 6:00 pm – 8:40 pm BUSINESS AND AEROSPACE BUILDING S308
Required Textbook : Accounting for Decision Making & Control by Jerold Zimmerman, 8th edition ISBN: 9780078025747 Copyright year: 2013; Available through the campus bookstore.
Optional Reading: “Guests of the Kremlin” By Robert G. Emmens The updated and reprinted Guests of the Kremlin was reprinted in 2007 by Ishi Press with Pictures, Maps and Introductions. Available in Paperback, 342 Pages, ISBN-13: 978-0-923891-81-7, ISBN: 0-923891-81-1
Do you ever wonder why there are so many accountants? Do you ever wonder why accounting is so prevalent throughout our society?
WHY ACCOUNTING? Accounting is part of the system that helps determine... Who makes decisions over other people’s money (resources) What those people do with other people’s money (resources) that they manage
Two Compelling Questions Because of such limitations in the physical world within which we live, the two most compelling issues at any level in life are probably Who makes decisions over resources? What do those people decide to do with those resources?
Organizations Don’t Make Decisions! People within organizations Do Most decisions made by people within the organizations are not what a rational, altruistic, value-maximizing government or organization would make.
UNFORTUNATELY, Human psychology does not lend itself to making rational decisions. People making the decisions do not have the incentives to make decisions that maximize the organization’s value.