01) How does managerial accounting differ from financial accounting? A: Managerial accounting is concerned with providing information to managers for use inside the organization. Financial accounting is con¬cerned with providing information to stockhold¬ers, creditors, and others outside of the organi¬zation.
02) Pick any major television network and describe some planning and control activities that its managers would engage in. A: Five examples of planning activities include: 1. Estimating the advertising revenues for a future period. 2. Estimating the total expenses for a future period, including the salaries fo all actors, news reporters and sportscasters. 3. Planning how One risk that NIKE faces is that its suppliers will fail to manage their employees in a socially responsible manner. NIKE faces the risk that unsatisfactory environmental performance will diminish its brand image. The company is investing substantial resources to develop products that minimize adverse impacts on the environment. NIKE faces the risk that customers will not like its new products. The company uses focus groups research to proactively assess the customers’ reaction to its new products.
10) Provide three examples of how a company’s risks can influence its planning, controlling and decision-making activities. A: Airlines face the risk that large spikes in fuel prices will lower their profitability. They may reduce this risk by spending money on hedging contracts that enable them to lock-in future fuel prices that will not change even if the market prices increases.
11) Pick any large company and explain a three ways that it could segment its companywide performance. A: Procter&Gamble could segment its performance by product category (Beauty and grooming, Household care, Health and well-being), product line ( crest and tide), and stock keeping units ( Crest cavity protection toothpaste, crest extra whitening toothpaste and crest sensitivity toothpaste).
12) Locate the website of any company that publishes a corporate social responsibility report (also referred to as a sustainability report). Describe three
Managerial Accounting Basics 1. (S.O. 1) Managerial accounting is a field of accounting that provides economic and financial information for managers and other internal users. Managerial accounting applies to all types of businesses—service, merchandising, and manufacturing—and to all forms of business organizations—proprietorships, partnerships and corporations. Managerial accounting is needed in not-for-profit entities as well as in profit-oriented enterprises. Comparing Managerial…
Chapter 1-1 CHAPTER 1 MANAGERIAL ACCOUNTING Managerial Accounting, Fifth Edition Chapter 1-2 Study Study Objectives Objectives 1. Explain the distinguishing features of managerial accounting. 2. Identify the 3 broad functions of management. 3. Define the 3 classes of manufacturing costs. 4. Distinguish between product and period costs. 5. Explain the differences between a merchandising and a manufacturing income statement. Chapter 1-3 Study Study Objectives Objectives 6. Indicate…
Date: January 13, 2013 Subject: Managerial Accountant Managerial accounting’s focus is the use of economic and financial information in order to support management in making decisions (Vitez). It plays an important role in: * Planning and coordination with production * Marketing functions * Financial functions This position will also focus on the determination and accumulation of products, processes, and service costs (cost accounting). A managerial accountant will be the individual…
Managerial accounting is based on informational systems for determining internal planning, business decisions, and control influence to establish the value of a company. This textbook include 15 chapters which mentioned in this study are reporting & decision, performance measurement, budgetary control and capital investment. Actually, I am not interested in all of 15 chapters, only chapter 8--Profit Planning, chapter 9--Flexible Budgets and Performance Analysis, Chapter 11—Performance Measurement…
exercise M1-1 thrue M1-3. E1-3, E-5, E-6, E-8, E-9, E-11, P1-1 1) it is a system that processes and collect financial info. About the org. and presents that info. To the decision makers. 2) *Financial accounting is focus in the external decision makers and prepare 4 financial statements. *Managerial accounting is information more detailed for internal use, which reports to the owners about the conditions and transactions of the company. 3) The internal group are the managers or personal which is inside…
Principles of Managerial Accounting—Fall 2013 Competencies Competency Description 1 (Ch. 1-2) Q 1-6 Know difference between managerial and financial accounting. • Managerial accounting – provision of accounting info for a company’s internal users. It is the firms internal accounting system and is designed to support information needs for managers. (provide planning, controlling, and decision making info) Internal accounting • Financial accounting – producing info for external users, including…
intended user’s understanding of the reports, comments, and recommendations presented.” Apart from the ethical issue, there is also a very practical consideration. If Merced Home Products becomes embroiled in controversy concerning questionable accounting practices, Stacy Cummins will be viewed as a responsible party by outsiders and her career is likely to suffer dramatically and she may even face legal problems. We would suggest that Ms. Cummins quietly bring the manipulation of earnings…
Abstract The objective is to explain the difference of managerial accounting and cost accounting. Also, to give details and find the purpose of the lean and typical production process and how they both vary differently. Lastly, give Dr. White some information and a proposal on how to prepare for a decreased budget. MANAGING COST Introduction In our ever changing business world, each organization must find ways to make tight budgets work. Management are always facing ways to increase the…
Chapter 4: Research and Application 1. The income statements differ in a few ways, first of all on page 33 the common size income statement is used and on page 50 it is not broken down the same way. Also on page 50 does not break down the costs as both variable and fixed. The income statement on page 33 also shows additional information, changes in line items from the years 2003 and 2004. The selling, general and administrative expenses appear to be reclassified as variable selling cost in the…
Introduction The purpose of management accounting in the organization is to support competitive decision making by collecting, processing, and communicating information that helps management plan, control, and evaluate business processes and company strategy. The interesting thing about management accounting is that it is rare to find an individual within a company with the title of “management accountant.” Often many individuals function as accountants within the organization, but these individuals…
