Chapter 1 Managerial Accounting: Tools for Decision Making Discussion QUESTIONS Q1-1. Financial accounting is oriented toward external users and is concerned with general-purpose financial statements. These financial accounting statements are highly aggregated‚ report on relatively long time periods‚ are oriented toward the past‚ and must conform to external standards. These standards emphasize the use of objective data. Management accounting is oriented toward internal users and is
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The Manager and Management Accounting BUSI 0028 Sem 2‚ 2012/13 Dr. Olivia Leung © 2012 Pearson Education. All rights reserved. Accounting Discipline Overview Managerial accounting—measures‚ analyzes‚ and reports financial and nonfinancial information to help managers make decisions to fulfill organizational goals. Managerial accounting need not be GAAP compliant. Financial accounting—focus on reporting to external users including investors‚ creditors‚ and governmental
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Exercise 2-2 | | |Product |Period Cost | | | |(Inventoriable) Cost | | |1. |Depreciation on salespersons’ cars | |X | |2. |Rent
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Managerial Accounting and the Business Environment Chapter 1 © 2010 The McGraw-Hill Companies‚ Inc. Learning Objective 1 Understand the role of management accountants in an organization. McGraw-‐Hill/Irwin Slide 2 Organizational Structure Decentralization is the delegation of decisionmaking authority throughout an organization. Corporate Organization Chart Board of Directors President Purchasing Personnel Vice President Operations Chief Financial Officer Controller
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making across the various functional areas of an organization Managerial accounting: the form of accounting concerned with providing information to managers for use in planning and controlling operations and for decision making Financial accounting: the form of accounting concerned with providing information to shareholders‚ creditors‚ and others outside the organization The work of managers and their need for managerial accounting information Every organization has managers – someone must be
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Chapter 4 Case 2: Greetings Inc.: Activity-Based Costing Solution: 1. An activity-based costing system may be appropriate for Wall Décor‚ when overhead allocation based job-order costing provides product cost distortion. As seen on previous case‚ this distortion happens when one product is manufacturing in high volume and the others are manufacturing in complexity as well as in low volume. In this situation Wall Décor should change its costing system for selling its high volume produced
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Managerial accounting chapter 13 garison Question 13-11 Project A Initial Cost = $15‚000 Life of the project = 10 years Annual net cash inflow = $4‚000 Salvage Value = $0 Required rate of return = 16% Item Years Amount of cash flow 16% factor Present Value of Cash flow Annual net cash flow 1 to 10 $4‚000 4.833 $19‚332 Intial Investment Now $15‚000 1 $15‚000 Net Present Value (a-b) $4‚332 Project B Initial
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Chapter 1 Managerial accountingis the process of identifying‚ measuring‚ analyzing‚ interpreting‚ and communicating information in pursuit of an organizations goals. Managerial accounting is an integral part of the management process‚ and managerial accountants are important strategic partners in an organizations management team. Four fundamental management processes that help organizations attain their goals Decision making‚ Planning(developing a detailed financial and operational description of
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Managerial Accounting Chapter # 01 Homework 1 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
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Management Accounting Managerial accounting is the process of identifying‚ measuring‚ analyzing‚ interpreting‚ and communicating information in pursuit of an organization’s goals. Managerial accounting is an integral part of the management process‚ and managerial accountants are important strategic partners in an organization’s management team. The relation between accounting and management has been commonly expressed by the phrase‚ “Accounting is a tool of management”. Accounting practice has
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