Managerial Accounting: Important Part of an Organization's Management Information System
All organizations have goals, and their managers need information as they strive to attain those goals. Managerial accounting is the process of identifying, measuring, analyzing, interpreting and communicating information in pursuit of an organization’s goals. It is an important part of any organization’s management information system.
1-1. The following changes should be in store for managerial accounting as a result of the explosion in e-commerce: a. Companies will have to invest in their security. Their private information could be at risk. b. The transactions between businesses are going to be faster. c. The companies will have to develop new programs for keeping records of transactions. d. The companies will have a reduction in paper work because the majority of transactions will be conducted electronically.
1-2. Plausible goals for the organizations listed are as follows: a. Amazon.com: 1. To achieve and maintain profitability. 2. To grow on-line sales of books, music, and other goods. b. American Red Cross: 1. To raise funds from the general public sufficient to have resources available to meet any disaster that may occur. 2. To provide assistance to people who are victims of a disaster anywhere in the country on short notice. c. General Motors: 1. To earn sufficient income to provide a good return on the investment of the company’s stockholders.
2. To provide the highest-quality product possible. d. Wal-Mart: 1. To penetrate the retail market in virtually every location in the United States. 2. To grow over time in terms of number of retail locations, total assets, and earnings. e. City of Seattle: 1. 2. f. To maintain an urban environment as free of pollution as possible. To provide public safety, police, and fire protection to the city 's citizens.
Hertz: 1. 2. To be a recognizable household name associated with rental car services. To provide reliable and economical transportation services to the company 's customers.
1-3. The following
1-1. The following changes should be in store for managerial accounting as a result of the explosion in e-commerce: a. Companies will have to invest in their security. Their private information could be at risk. b. The transactions between businesses are going to be faster. c. The companies will have to develop new programs for keeping records of transactions. d. The companies will have a reduction in paper work because the majority of transactions will be conducted electronically.
1-2. Plausible goals for the organizations listed are as follows: a. Amazon.com: 1. To achieve and maintain profitability. 2. To grow on-line sales of books, music, and other goods. b. American Red Cross: 1. To raise funds from the general public sufficient to have resources available to meet any disaster that may occur. 2. To provide assistance to people who are victims of a disaster anywhere in the country on short notice. c. General Motors: 1. To earn sufficient income to provide a good return on the investment of the company’s stockholders.
2. To provide the highest-quality product possible. d. Wal-Mart: 1. To penetrate the retail market in virtually every location in the United States. 2. To grow over time in terms of number of retail locations, total assets, and earnings. e. City of Seattle: 1. 2. f. To maintain an urban environment as free of pollution as possible. To provide public safety, police, and fire protection to the city 's citizens.
Hertz: 1. 2. To be a recognizable household name associated with rental car services. To provide reliable and economical transportation services to the company 's customers.
1-3. The following
References: Hilton, R. W., (2008), Managerial Accounting: Creating Value in a Dynamic Business Environment, 8th ed., McGraw Hill Irwin.