Which of the following is the best definition of an internal user of accounting information? Labor unions who use accounting information to examine the ability of the company to pay increased wages and benefits. Investors who use accounting information to decide whether to buy or sell stock. Managers who use accounting information to plan‚ organize‚ and run a business. Creditors like banks that use accounting information to evaluate the risk of lending money.
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Chapter 1 An Introduction to Managerial Accounting and Cost Concepts Introduction to Managerial Accounting MSc. Mohammad Hicham Khalil Objectives 1. Comparison of Financial and Managerial 2. 3. 4. 5. 6. 7. 8. Accounting. General Cost Classifications. Product Cost versus Period Cost. Cost Classifications on Financial Statements. Cost Classifications for Predicting Cost Behavior. Cost Classification for Assigning Costs to Cost Objectives. Cost Classification for Decision Making. Review
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sold 2630 * Merchandise inventory 2630 Sales 3900 Cost of merchandise sold 2630 Gross profit 1270 Ending inventory 3250 B. * Jan 4 acc rec 3900 * Sales 3900 * Jan 4 cost of merchandise sold 2660 * Merchandise inventory 2660 Sales 3900 Cost of merchandise sold 2660 Gross profit 1240 Ending inventory 3220 Inventory system 1. Perpetua: record sales and cost of merchandise sold uses FIFO LIFO 2. Periodic: records sales only
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that there was big problem in the headquarters’ overhead cost allocation when he was preparing for the branch operation report. Taejon was a rapidly growing city. with the hard work Kim‚ the Taejon branch raised insurance revenues. However‚ the net income of the Taejon branch was much lower than for the prior year. And this attributed to the inappropriate cost accounting systems. For the underlying cause of applying this accounting method‚ it was believed that the Korean government imposed
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Management Accounting PART-A Q. 1. State three points of similarities between financial accounting and cost accounting. Ans. Both financial and cost accounting are interdependent and their co-existence enables businesses to compute costs and sales realistically‚ properly and most importantly helps them to avoid loss some of similarities are mentioned below 1 Reports Financial accounting is used to produce reports that include financial statements‚ including the balance sheet‚ income
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that assigns value to each activity resource to all products and services according to the cost of its usage. it gives indirect costs (overhead) into direct costs so that an organization can correctly estimate the cost of its individual products and services to identify and eliminate the unprofitable and lower the prices of the overpriced. Normally‚ it is used as a tool for understanding product and customer cost and profitability. But ABC has also been used to support strategic decisions like pricing
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provide arguments for and against accounting flourished capitalism. Then discuss the role of double-entry in the economic expansion. Topic 2 – Week 4 1. Accounting theory may be defined as logical reasoning in the form of a set of broad principles that (1) provide a genera frame of reference by which accounting practice can be evaluated‚ and (2) guide the development of new practice and procedures. a) State the three (3) purposes of Accounting Theory that can be derived from the
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published This page intentionally left blank Preface Management in India increasingly realises the use of accounting information for efficient management of business enterprises. Accounting is the science of measurement‚ analysis and communication. The designing of accounting systems‚ generating information and transmitting it to the management has expanded the scope of accounting and financial management. This book has been written with a specific aim i.e.‚ to cater to the needs of I.T. professionals
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MARKETING FINANCE- NOTES Marketing is the management process responsible for identifying‚ anticipating and satisfying customer requirements profitably.’ The new one is: ‘The strategic business function that creates value by stimulating‚ facilitating and fulfilling customer demand. It does this by building brands‚ nurturing innovation‚ developing relationships‚ creating good customer service and communicating benefits. By operating customer-centrically‚ marketing brings positive return on investment
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questions whether the overhead allocation base of direct labor hours accurately reflects the cost incurred in the production of each product. Initial report by the cost accountant shows that Creamy Crunch is profitable whereas Almond Dream is at a loss. Both the marketing manager and the cost accountant believe that Almond Dream performs very well at its current market price and that their current cost accounting system is at fault. They have employed a management consultant to assess the process. Problem
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