chapter explains why managerial accounting is important to the future careers of all business students. It answers three questions: (1) What is managerial accounting? (2) Why does managerial accounting matter to your career? and (3) What skills do managers need to succeed? It also discusses the importance of ethics in business and corporate social responsibility. I. What is managerial accounting? A. Examine the difference between Financial and managerial accounting • Financial
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Relevant Costs for Decision Making Solutions to Questions 13-1 A relevant cost is a cost that differs in total between the alternatives in a decision. 13-2 An incremental cost (or benefit) is the change in cost (or benefit) that will result from some proposed action. An opportunity cost is the benefit that is lost or sacrificed when rejecting some course of action. A sunk cost is a cost that has already been incurred and that cannot be changed by any future decision. 13-3 No. Variable costs are relevant
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Depreciation is the decline in the future economic benefits of a depreciable non-current asset through wear and tear and obsolescence. It is an allocation process. It can be calculated by two main methods‚ each reflecting in a distinct prospect in the way the asset is used. Depreciation is to be treated as an estimated expense that does not set aside cash for the replacement of a non-current asset. In determining the cost of acquisition of the lathes‚ any capital expenditure made must be added
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the efficiency of operations and to reduce costs. Each individual partner in a supply chain‚ from supplier to buyer in this case‚ can benefit when both partners work closer together. Successful inventory management involves balancing the costs of inventory with the benefits of inventory. Many companies however fail to appreciate the true costs of carrying inventory‚ which include not only direct costs of storage‚ insurance and taxes‚ but also the cost of money spent in inventory. Keeping inventory
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#5: In Advertising‚ Truth is Irrelevant I think the statement “In Advertising‚ truth is Irrelevant” means that advertisers are more concerned with selling products to consumers. This is because the point of an advertisement is to attract the audience’s attention to the product the company is selling and to make the consumer feel the need to purchase that product. For example commercials for alcohol products‚ the advertisers make it seem like drinking is safe and fun but if you look at the bottom
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Creating Shared Value is a principle for doing business founded on the conviction that shareholder interests and the interests of society must be aligned in order to achieve long-term business success. Creating Shared Value which is integrally linked to our core business strategies and operations means going beyond sustainability‚ to create value for shareholders and society. which distinguish Nestlé from other companies: [pic] Figure 1 Source: Nestlé (2008)Management Report 2008 Available
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In her article “Innocence is Irrelevant‚” Emily Yoffe‚ a contributing editor at The Atlantic‚ argues that plea bargains control the justice system. According to Yoffe‚ plea bargains make it easy for prosecutors to convict defendants who may not be guilty but at the same time‚ pleas bargains offer leniency. Yoffe supports her position by providing examples of previous cases. Yoffe uses the case of Terrance Graham to illustrate capricious and coercive nature of plea bargains. In the year of 2003
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My Most Important Decision On November 19th 2005‚ a day after having surgery‚ I was diagnosed with sqamous cell carcinoma cancer. I would compare receiving the news to going to the dentist and being numbed. However‚ this numbed my whole body. For twenty minutes I rushed through all kinds of thoughts and emotions – shock‚ anger‚ why me‚ sadness. After the twenty minutes‚ I made a big decision. I decided to live. I decided that all of the emotions and thoughts I was experiencing were not supporting
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Two common costing systems used in business are traditionally cost accounting system (job costing‚ process costing and operating costing) and activity-based costing system (ABC). There are some similarities and differences between these systems. Regarding the similarities‚ both accumulate product costs throughout the production process and assign those costs to individual units of production. Additionally‚ product cost under two costing systems consists of direct materials‚ direct labor and manufacturing
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Depreciation of Fixed Assets Depreciation A business may acquire fixed assets such as land‚ buildings‚ machinery‚ office equipment‚ delivery equipment and natural resources (e.g. a piece if mining land)to help in the process of its operations to earn revenue in order to make a profit. Such assets‚ by their very nature‚ provide benefits to the business for more than one financial year or period. In fact‚ when a business buys a fixed asset at a certain cost (say $10‚000)‚ it is actually buying
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