The most important thing in chapter one is the lean thinking model. My reason is that it allows you to see the concept of doing more with less. A practical example of this is TESCO, a food retailer in Great Britain that uses lean thinking to improve the replenishment process for cola products. The most important points or concepts in chapter two are how to prepare an INCOME STATEMENT and a BALANCE SHEET. My reason is that they are the most important for understanding a company's financials. They give you a picture of how your business is performing. A practical example of this is the following: Company income-expenses= net profit= 6000-4700=1300 this net profit of 1300 must also be indicated in the balance sheet as shareholders' equity. (Garrison, 2010) The most important point or concept in chapter three is the COST OF JOBS. My reason is that it allows you to distinguish overhead costs from direct labor costs. An example is the cost of service in a law firm. The time dedicated to clients by a lawyer is direct work and the preparation of legal documents, while secretaries, legal assistance, etc. can be classified as overheads. (Garrison, 2010) The most important point or concept in chapter five is the behavior of FIXED and VARIABLE COSTS. An example of a fixed cost would be the rent and taxes paid to use a facility to conduct business. This cost is constant and can only decrease on a per-unit basis as the activity level increases. In contrast, variable cost reacts to the occurrence of certain activities. This activity is what causes the cost to increase or decrease. (Garrison, 2010) The most important point or concept in chapter six is ​​to determine the CONTRIBUTION MARGIN RATIO. Determining your contribution ratio allows you to see the impact of fixed expenses and sales on your profit. Practice…half of the paper…recover the cash balance. An example would be the family budget. For example, your cash inflow would be your paycheck, and the outflow that affects your overall cash balance in your checkbook register could be anything from utilities to mortgages. The image lets you know whether you will be able to meet other financial obligations. (Garrison, 2010) The most important concept and point of chapter 16 is relationships and their effect. The ratios are not a panacea, but they give an organization a quick look at its ability to meet certain financial obligations. For example, a ratio analysis can give a bank lending to you a clear example of whether you have enough cash or disposable income to repay the loan. (Garrison, 2010) ReferencesGarrison, R.H. (2010). Management accounting (13th edition ed.). Ney York, New York: McGraw-Hill Irwin.