Homework chapter 1
Questions Chapter 1
1. How does managerial accounting differ from financial accounting?
The essential difference between managerial accounting and financial accounting is that managerial accounting attends the needs of managers inside the organization, while financial accounting serves the needs of those outside the organization. There are also specific guidelines that are used (GAAP/IFRS) in financial accounting and is mandatory whereas there are no guidelines in managerial accounting and is not mandatory.
2. Pick any major television network and describe some planning and control activities that its managers would engage in.
The Fox Broadcasting Company (FOX), is an American commercial broadcasting television network that is owned by the Fox Entertainment Group division of 21st Century Fox.
Some of the planning and control activities that its managers would engage in are:
R & D (research and development) planning and controlling the introduction of new programs and formats.
Domestic Production: controlling investment, planning and optimizing the production capacity.
Foreign Production: selecting and controlling the production companies that produce content for the company.
3. If you had to decide whether to continue making a component part or to begin buying the part from an overseas supplier, what quantitative or qualitative factors would influence your decision?
The decision of continuing making a component part or to begin buying the part from an overseas supplier involves qualitative and quantitative factors. Qualitative considerations include product quality and the necessity for long-run business relationships with subcontractors. Quantitative factors deal with cost. To make a decision I would compare the costs and benefits of manufacturing a product component against purchasing it. If the purchase price is higher than what it would cost the manufacturer to make it, or if I as the manufacturer have excess capacity that could be
1. How does managerial accounting differ from financial accounting?
The essential difference between managerial accounting and financial accounting is that managerial accounting attends the needs of managers inside the organization, while financial accounting serves the needs of those outside the organization. There are also specific guidelines that are used (GAAP/IFRS) in financial accounting and is mandatory whereas there are no guidelines in managerial accounting and is not mandatory.
2. Pick any major television network and describe some planning and control activities that its managers would engage in.
The Fox Broadcasting Company (FOX), is an American commercial broadcasting television network that is owned by the Fox Entertainment Group division of 21st Century Fox.
Some of the planning and control activities that its managers would engage in are:
R & D (research and development) planning and controlling the introduction of new programs and formats.
Domestic Production: controlling investment, planning and optimizing the production capacity.
Foreign Production: selecting and controlling the production companies that produce content for the company.
3. If you had to decide whether to continue making a component part or to begin buying the part from an overseas supplier, what quantitative or qualitative factors would influence your decision?
The decision of continuing making a component part or to begin buying the part from an overseas supplier involves qualitative and quantitative factors. Qualitative considerations include product quality and the necessity for long-run business relationships with subcontractors. Quantitative factors deal with cost. To make a decision I would compare the costs and benefits of manufacturing a product component against purchasing it. If the purchase price is higher than what it would cost the manufacturer to make it, or if I as the manufacturer have excess capacity that could be