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Financial and Managerial Accounting
Differences between financial and managerial accounting
Financial and managerial accounting are distinct
accounting processes that determine the success of an
enterprise. Though the terms are different, many people with
little accounting information use them synonymously. Financial
accounting is a branch of accounting that specializes majorly on
maintaining an organization’s financial transactions (Weygandt
& Kieso, 2015). The branch thus focuses on keeping track of
financial records of an organization from the transactions done.
Managerial accounting is also a branch of accounting, but it
focuses mainly on identification, evaluation, interpretation, and
communication of information between managers within an
organization with the aim of accomplishing the organization’s
objectives (Weygandt & Kieso, 2015). Managerial accounting
thus focuses on ensuring that the organization achieves its set
goals by ensuring that relevant information is available to aid
the organization managers in making management decisions
effectively.
Normally, managerial accounting information is used by
the internal management of an organization to make managerial
decisions, while financial accounting statements are used
externally by outsiders such as customers, investment analysts,
and competitors to guide them in making decisions on whether
to do business with the organization. While financial accounting
provides financial statements on the profitability of the
enterprise, managerial accounting reports on the issues
hindering the organization’s goal accomplishment, and proposes
remedies for rectifying the issues (Weygandt & Kieso, 2015).
Another difference is that financial accounting reports require
to be maintained at particular levels of precision, and the
accuracy of the financial statements have to be confirmed while
managerial accounting deals with estimates and propositions.
Also, financial accounting requires the accountants to comply
with particular accounting rules since the information is
compiled for external purposes while managerial accounting
does not require the involved parties to comply with specific
accounting rules because the information is used internally for
decision making.
Rules that need to be followed under either method
Accountants in managerial accounting use different
procedures in accounting for the managerial decisions, and thus
there no specific rules or regulations that ought to be followed.
Also, different businesses have different operations, requiring
different rules, and thus no specific rules or standards exist in
managerial accounting. Conversely, financial statements from
financial accounting are used by different categories of people
to assess the organization’s value for themselves, and thus there
are common rules known as accounting standards and General
Acceptable Accounting Principles (GAAP), that ensures that
companies provide accurate, comparable, and reliable
information to the outsiders (Horngren et al., 2012).
The accounting rules under financial accounting include the
following:
· The regularity principle: Accountants must adhere to all the
GAAP regulations.
· The consistency principle: Accountants should comply with
the application of similar standards during the entire reporting
process to avoid errors and inconsistencies (Horngren et al.,
2012). This principle expects accountants to explain any reason
that might have caused them to change any standard.
· The sincerity principle: According to this principle,
accountants should provide accurate information about the
organization’s financial position.
· The consistency principle: This principle requires accountants
to use consistent financial reporting procedures.
· The non-compensation principle: This principle requires
accountants to adhere to transparency while reporting the
positives and negatives in the financial statements without debt
compensation expectations (Horngren et al., 2012).
· Prudence principle: The financial statements should not be
overestimated or underestimated.
· Continuity principle: After the valuation of the organization’s
assets, this principle assumes that the organization will continue
in operation for the next fiscal year.
· Materiality principle: Accountants should always strive to
disclose all the financial data in the financial reports fully.
· The principle of utmost good faith: This principle is applied
within the insurance industry whereby it presumes that all
parties will remain loyal in the financial transactions (Horngren
et al., 2012).
References
Horngren, C., Harrison, W., Oliver, S., Best, P., Fraser, D., &
Tan, R. (2012). Financial accounting. Pearson Higher Education
AU.
Weygandt, J. J., Kimmel, P. D., & Kieso, D. E.
(2015). Financial & managerial accounting. John Wiley & Sons.
Week-2
Week - 2 Discussion
COLLAPSE
Top of Form
There are many different accounting certifications which can be
used to enhance a person’s career and contribute to the
achievement of career goals. Each of these accounting
certifications is slightly unique and they address particular
career focuses depending on the career objectives of an
individual. Types of accounting certifications include Certified
Public Accountant (CPA), Certified Management Accountant
(CMA), Certified Financial Analyst (CFA), and Certified
Internal Auditor (CIA) among others. CPA is the oldest, most
popular, and most respected accounting certification in the
accounting industry. A CPA certification is only given to a
licensed accountant who is allowed to write audit reports and
advice on the financials of a company. On the other hand, CMA
certification focuses on accounting management for companies
covering topics such as financial planning, decision-making,
performance, and control (Ng, 2019). These topics are never
covered in a CPA certification and thus this designation is
important for candidates who pursue company internal
management and the executive roles.
What is the difference between the two?
Each of these certifications is unique and has different career
paths. CPA areas of focus include accounting and auditing,
financial accounting, regulation, and reporting. CMA has a
different focus since professionals specialize in asset,
performance, and financial management. Another difference
between the two certifications related to the requirements
needed for one to be qualified to pursue the certifications. An
individual who wants to become a CMS needs to have a
bachelor’s degree in business, economics, or accounting and
should be a member of the Institute of Management Accountants
(IMA) (Boyd, n. d). This is different for a CPA whereby one
can enroll in a CPA program without necessarily having an
undergraduate degree.
Which one is more applicable to Managerial Accounting?
A person who has a CMA certification has an edge in
Managerial Accounting as compared with one who has a CPA.
This is because CMA emphasizes building skills which are
needed in financial decision making, financial reporting, and
planning and management of performance. A CMA certification
improves the management skills of a professional which
improves a person’s ability to make strategic business decisions
which affect a company’s performance and financial decisions
as well.
Which one is more applicable to Financial Accounting?
CPA is more applicable in Financial Accounting since it focuses
on public accounting and general accounting whereby
professionals are expected to work on financial reporting,
income taxes, and audits for individuals and public and private
companies. A person which a CPA can perform different roles
in Financial Accounting including providing financial advice to
clients, auditing and preparing financial reports, and ensuring
that regulations and laws are followed in accounting.
References
Kenneth W. Boyd, (n. d).CMA vs CPA | which is Better for
Your Career, Salary, and Wallet?Retrieved
from https://www.ais-cpa.com/cma-vs-cpa/
Stephanie Ng, (2019). CMA vs CPA: Which Qualification is
better?Retrieved from https://ipassthecmaexam.com/cpa-vs-cma/
Bottom of Form
Week-3 Discussion
COLLAPSE
Top of Form
Requirement 1
The first alternative involves Jackson doing nothing regarding
the issue. This course of action is not appropriate. Why? As an
accountant, the most basic ethical trait is honesty, and this is
evident in Jackson’s initial reaction of pointing out the issue to
Mary Brown, the corporate controller. From the foregoing, not
taking action concerning the under applied overhead is not
ethical as it will lead to dishonest values both to the external
auditors as well as the Audit Committee of the Board of
Directors.
The second alternative involves making attempts to convince
Brown to make adjustments as well as informing the external
auditors of her actions. Attempting to convince Brown to make
adjustments is an appropriate action. This is because Jackson
will be communicating to his direct superior without
overstepping her authority. In addition, diagonal communication
is good for any business and this case would not be different.
On the other hand, Jackson informing the external auditors of
Brown’s actions is not an appropriate action. This is because by
doing so, Jackson might jeopardize the job or even career of
Brown, fellow employee, as well as the existence of the
business itself. Jackson should therefore desist from informing
the external auditors of Brown’s actions.
The third alternative involves informing the Audit Committee of
the Board of Directors and giving appropriate accounting data.
This course of action is appropriate. First, the issue of under
applied overhead needs to be addressed as it results in less
income as well as incorrect information to external auditors.
Therefore, Jackson should inform the Audit Committee of the
Board of Directors and by doing so it will result in both solving
the problem as well as keeping the problem internal. This action
will also ensure that Brown’s actions are corrected without
necessarily denting her job or career.
Requirement 2
The first step Jackson should take is to compute the accounting
data again for confirmation purposes and gather the appropriate
accounting information that supports his findings. Jackson
should then approach the next level of authority, in this case the
Audit Committee of the Board of Directors, and present them
with the gathered data. In addition, Jackson should explicitly
explain the effects of the under applied manufacturing overhead
and the need for its adjustment. By following these steps,
Jackson will not only have reported the matter to the correct
authority, the Audit Committee of the Board of Directors, who
will make the final decision on the way forward, but also helped
in keeping the matter internal to the company.
References
McLaughlin, I. A. (2016). Corporate Governance. Case study
and analysis.
Bottom of Form
Week -4 Discussion
COLLAPSE
Top of Form
The publicly traded manufacturing company in consideration is
Dean Foods Company (DFC). DFC Company is a food and
beverage company that focuses mainly on dairy products – it is
one of the largest dairy companies in the United States. DFC
produces several products at both a regional level and national
level. The product we are concerned with is the Creamland
brand that produces ice cream products. Based on the ice cream
products from my research, DFC Company uses product costing
to allocate the total cost of production - the subsequent
discussions will serve to justify this claim as well as expound
on both the production of ice cream products and the process
costing concepts learned.
To begin with, process costing is a method that allocates
production costs to a sequence of steps or departments in
production. With this in mind, note that the production of ice
cream involves a series of steps in which the factors of
production (labor, raw materials and overhead) are applied
differently at each stage (Fisher & Krumwiede, 2015). The basic
stages include preparation of the ice cream mixture, adding
liquid flavors, colors and freezing and adding fruits and bulky
flavorings and then packaging as desired. In this procedure,
different materials, labor and overhead are introduced
differently (in terms of quantity and type) in the distinct
processes of the entire manufacturing process. From the
foregoing discussion, process costing is the ideal method for
allocating costs; it is able to attribute the costs to the different
production processes involved in the production. In addition,
different departments, whereby the output of one department is
the input of another department, handle the different processes.
In so doing, the costs in terms of raw materials, labor and
overhead are easily accounted for department wise or process
wise – justifying why the DFC Company uses process costing in
the production of ice cream.
The nature of ice cream production is such that the costs
associated with individual products is difficult and not
economically feasible to obtain. In this case, process costing;
weighted average costing method in particular, comes in handy.
How? The weighted average costing method involves the
analysis of the costs of goods available for sale and the number
of units available for sale (Weygandt, Kimmel & Kieso, 2015).
Through process costing, the accumulated costs in each
department in terms of labor, material and overhead can be
calculated and summed up to obtain the costs of goods available
for sale. The weighted average method, which involves dividing
the costs of goods available for sale by the number of units
available for sale, obtains an estimate of the cost of each good
produced. From the explanation on the weighted average costing
method, it is evident that DFC Company ought to use process
costing since the costs of individual ice cream product cannot
be obtained otherwise.
In the production process, there is the need to account for the
costs incurred by each department in terms of raw materials
used, labor and overhead. Process costing enables this through
the cost per equivalent unit calculation. By accounting the costs
incurred in the different processes in the departments, budgeting
for the next production processes is possible.
Briefly, process costing is a method of allocating costs to a
production process in which costs are assigned to the series of
steps or processes. In the production of ice cream products by
the Dean Food Company, the production process consists of a
series of steps that result in homogenous products, which is an
ideal case for using process-costing method.
References
Fisher, J. G., & Krumwiede, K. (2015). Product costing
systems: finding the right approach. Journal of Corporate
Accounting & Finance, 26(4), 13-21.
Weygandt, J. J., Kimmel, P. D., & Kieso, D. E.
(2015). Financial & managerial accounting. John Wiley & Sons.
Bottom of Form
week-5 Discussion
COLLAPSE
Top of Form
Activity Based Costing
This is a method of assigning costs to products. Activity-based
costing helps to assign these costs by drawing a relationship
between costs, activities which are classified as overheads and
manufacturing outputs (Bahnub, 2010). This is a method that
has been adopted over the traditional methods of assigning costs
which focused more on machine hours since it provides a more
rational way of assigning these costs.
This method of costing yields more accurate results as
compared to traditional methods of costing because the basis of
cost assignment is the definite consumption level of each
separate product. On top of the accuracy advantage, this method
of costing is not very complicated because its process only
involved identifying overhead activities and assigning costs to
each of these activities and then taking these costs and
assigning them to products on the basis of whether the product
makes use of that activity (Bahnub, 2010). If the product does
not consume that activity then the cost is not assigned.
The only complication that comes with assigning costs using
this method is the assigning of costs for various overhead
activities especially the indirect costs. Costs such as salaries
and wages to employees can be difficult to assign to a product
and for this reason, it is best suited for manufacturing activities
alone (Goektuerk,2007). The use of this costing method for
manufacturing processes of any organization can be very
beneficial because it produces more reliable information on
costs compared to traditional methods and it became a lot easier
to classify various costs in the production process when this
method is used (Goektuerk, 2007).
Case Study
1. Is the controller, Erin Jackson, acting ethically?
Yes. The controller is being ethical manly because his decision
and the actions he is taking are guided by the ethical principle
of integrity. First, he discovers the inaccuracy in the costing
numbers of the electric motor and the first action he takes is
revealing the truth and this shows his value for honesty. His
morality is however greatly displayed in his conversation with
his friend where he refuses his friends offer to manipulate the
numbers does not only show his value for honesty but also
shows that he holds hold moral principles which are strong
since despite the persuasion he stands by his truth. Offering to
check his calculation one more time to ensure accuracy is also a
show of care and honesty.
2. Is the production manager, Alan Tyler, acting ethically?
The production manager, in this case, is the one who is not
acting ethically. This is seen first in the fact that he is pretty
upset by the discovery of the truth. It seems like he knows about
the inaccuracy in costing for the electric motors but had made
the decision to keep them that way and was distorting the costs
on purpose so that he could not lose his job. Further, he makes
the request to Erin for him to manipulate the numbers since no
one will know. All these acts show that Alan is deceptive and
this is not an ethical value.
3. What are Jackson’s ethical obligations? To the president?
To her friend?
According to the law and probably organizational policies,
accuracy and truthfulness in reporting are a requirement.
Employees are expected to practice honesty and transparency in
reporting and for this reason, Jackson has the ethical obligation
of showing compliance by correcting inaccuracies in cost
reports which give misleading information that the production
process is profitable whereas it is not. His ethical obligation to
the president is to uphold the legal and ethical standards of
reporting. To his friend, the only ethical obligation that Jackson
has s to ensure that the figures he produced on his analysis are
accurate to ensure that he does not put Alan in trouble for no
reason.
References
Bahnub, B. (2010). Activity-based management for financial
institutions : driving bottom line results. Hoboken, N.J: John
Wiley.
Goektuerk, H. (2007). Activity-Based Costing (ABC) -
advantages and disadvantages How ABC can be applied to
institutions of higher education. MĂŒnchen: GRIN Verlag GmbH.
Bottom of Form
week-6 Discussion
COLLAPSE
Top of Form
As was mentioned in the Week 4 discussion, Dean Foods
Company is a food and beverage organization which mainly
focuses on manufacturing dairy products. It is considered as one
of the largest dairy firms across the United States. The company
is known to produce numerous products both at the national and
regional level. Some of the main products of Dean Foods
include milk, ice cream, juice, teas, and dairy products. In the
United States, milk is processed both under a national and
regional brand. They have more than 50 regional and local
brands. In addition to fluid milk, the company is also
distributing bottled water, refined products, and other essential
products (Dean Foods Inc., 2019).
For the organizational leaders of the company, cost accounting
is crucial for measuring and analyzing the cost associated with
the products, projects as well as production to ensure that
correct amount are reported on the financial statements of the
company. With an appropriate cost accounting, the leaders will
be aided in the decision-making process by enabling easy
calculation, evaluation and monitoring of the associated costs.
Some of the related expenses that the company would incur
include the following:
Direct cost – this is the costs incurred in the production of their
goods and services. The company produces numerous products
and services that it distributes to the consumers across the
country. A direct cost includes labor, materials, expense or the
distribution cost associated with producing its products (Drury,
2014). These costs can be easily traced to a product. For
example, the company’s employee may spend 2 hours preparing
ice cream. The direct costs associated with the ice cream are the
wages that the employees are paid and the components used to
produce the ice cream.
Indirect cost – this is the costs unrelated to the production of
the goods or services. The cost cannot be easily traced to a
given product or service, activity, or project. For Deans Food
Company, it is important to note that there is an electricity bill
for all the products made in the company. When the bill is paid,
no single products can be associated with it (Garrison et al.,
2014).
Fixed cost is another cost that accounting leaders must be aware
of. In most cases, fixed costs do not vary with the number of
goods or services that Dean Foods produce over a short period.
For example, if the Dean Foods leases a machine for production
for say, one year, it would be obliged to pay the monthly cost of
hiring the machine irrespective of how many products the
machine makes (Horngren et al., 2015). Therefore, the lease
payment is regarded as a fixed cost, and it remains unchanged
whether the company makes a loss or profit.
Variable costs are the expenses that fluctuate as the level of
output production changes. It changes with regard to the number
of products that the company produces. As the production
volume increases, the variable cost also increases and falls as
the production cost also decreases. Dean Foods must package its
milk products before distributing them out to various stores.
This is regarded as a variable cost because as the company
produces more milk products, the cost of packaging also
increases (Drury, 2014). But if the number of products produced
decreases, the variable cost associated with packaging also
reduces.
There are also operating costs which entail the expenses
associated with the every-day business activities but cannot be
traced back to one product. It is essential to note that the
operating cost can be fixed or variable. Dean Foods have
numerous stores across the country; as a result, they are pay
rent and utilities. Operating costs are the day-to-day expenses
but separately classified from indirect costs. They are the cost
associated with the production.
References
Dean Foods Inc. (2019) Brands. Retrieved
from http://www.dairyease.com/brands.aspx
DRURY, C. M. (2014). Management and cost accounting.
Springer.
Garrison, R. H., Noreen, E. W., Brewer, P. C., & McGowan, A.
(2014). Managerial accounting. Issues in Accounting
Education, 25(4), 792-793.
Horngren, C. T., Foster, G., Datar, S. M., Rajan, M., Ittner, C.,
& Baldwin, A. A. (2015). Cost accounting: a managerial
emphasis. Issues in Accounting Education, 25(4), 789-790.
Bottom of Form
SOCI 1311 Introduction to Sociology
Overview
In recent years, the mass media have given widespread attention
to claims that U. S. citizens are often compelled to buy
consumer items because of subliminal advertising. For this
discussion, you will find examples of subliminal advertising and
evaluate the existence and effectiveness of such advertising.
Beginning with a book by Brian Wilson Key in 1973 entitled
Subliminal Deception, the common themes of the argument that
subliminal advertising exists and is effective have been
systematized by many authors. The claim is that subliminal
embeds are placed into ads where the embeds are
representations of stimuli whose character is related to
sexuality, aggression, or death. The argument continues that
such ads are particularly effective because the Freudian
superego (conscience) of normal people prevents them from
being consciously aware of the embeds. It is said that for this
reason such ads can bypass a person’s rational and conscious
evaluation, and compel people to buy products based on the
arousal of powerful, primitive urges of sex and/or aggression .
For this discussion, collect the best three examples of
advertising that seem to contain embedded material of the type
described above, i.e., deliberately embedded images or symbols
of male or female sexual organs, or skulls for death imagery.
Directions
Task 1
On a separate Word document, cut and paste the three examples
you find. Remember that you are trying to find sexual imagery
that will not be seen consciously by most viewers, not just
sexually provocative ads.
With each image that you submit, add the following
information:
1. What in the picture represents subliminal embeds?
2. What is the subtext, the implied message that the advertiser
intended?
3. Explain how you believe the advertiser thought this
subliminal embed would sell more of a product or commodity.
Task 2
On the same Word document, after the task above and write a
short essay of 750-1000 words that contains:
1. A statement about whether you believe subliminal advertising
exists and impacts consumers, that is, the mind of the viewer
must repress material consciously and yet be strongly
influenced to buy a product. Is this possible?
2. In answering, use at least four scholarly journal articles or
book chapters, and cite these sources carefully. Consult the
APA document in the resources section of this course. Develop
a scholarly position of your own by citing the relevant evidence
and arguments both pro and con.
Below appear some references you may wish to consult. Both
pro and con articles are listed so that you can begin to decide
what your own informed opinion is regarding the existence and
effectiveness of subliminal advertising.
Sources:
Adams, V. (1958, January 14). Subliminal ads shown in capital.
New York Times, p. 66.
Block, M. P., & Vandenbergh, B. G. (1985). Can you sell
subliminals to consumers? Journal of Advertising, 14(3), 59-62.
Bornstein, R. F. (1989). Subliminal techniques as propaganda
tools: Review and critique. Journal of Mind and Behavior,
10(3), 231-262.
Brody, J. E. (1982, August 17). Subliminal persuasion a
menace? Evidently not. New York Times, p. C1.
Danzig, F. (1962, September 17). Subliminal advertising: Today
it's just historic flashback for researcher Vicary. Advertising
Age, pp. 72-73.
Emery, Jr., C. E. (1996). When the media miss meal messages
in subliminal stories. Skeptical Inquirer, 20(2), 16.
Godbout, O. (1957, November 13). 'Subliminal' ads over air
studied. New York Times, p. 70.
Godbout, O. (1957, November 4). Video group bans 'subliminal'
ads. New York Times, p. 70.
Godbout, O. (1958, January 22). Subliminal test planned in
west. New York Times, p. 54.
Godbout, O. (1958, March 7). Subliminal ads blocked on coast.
New York Times, p. 49.
Haber, R. N. (1959). Public attitudes regarding subliminal
advertising. Public Opinion Quarterly, 23(2), 291-293.
Harrington, R. (1991, January 6). In defense of heavy metal:
The trials of Rob Halford, soft-spoken lead screamer of Judas
Priest. Washington Post, p. G1.
Huxley fears new persuasion methods could subvert democratic
procedures. (1958, May 19). New York Times, p. 45.
Kalish, D. (1988, May). Now you hear it...subliminal
advertising. Marketing & Media Decisions, pp. 32-33.
Key, W. B. (1973). Subliminal seduction: Ad media's
manipulation of a not so innocent America. Upper Saddle River,
New Jersey: Prentice Hall.
Key, W. B. (1980). The Clam-Plate Orgy: And other subliminals
the media use to manipulate your behavior. Upper Saddle River,
New Jersey: Prentice Hall.
Moore, T. E. (1992). Subliminal perception: Facts and fallacies.
Skeptical Inquirer, 16(3), 273-281.
Moore, T. E. (1996). Scientific consensus and expert testimony:
Lessons from the Judas Priest Trial. Skeptical Inquirer, 20(6),
32-38, 60.
Packard, V. (1957). The Hidden Persuaders. New York: David
McKay Company.
Pratkanis, A. R. (1992). The cargo-cult science of subliminal
persuasion. Skeptical Inquirer, 16(3), 260-272.
Psychic Hucksterism stirs call for inquiry. (1957, October 6).
New York Times, p. 38.
Reuters. (1990, August 25). Band cleared in suicides blamed on
hidden message.
Riley, K. (1991, June 13). Not-so-subliminal spoofs give truth
in advertising a new twist. Washington Times, p. C1.
Subliminal TV cited as danger to youth. (1958, January 29).
New York Times, p. 29.
Talese, G. (1958, January 12). Most hidden persuasion. New
York Times Magazine, pp. 22, 59-60.
The ad that isn't there [Editorial]. (1958, January 23). New
York Times, p. 26.
TV message fruitless. (1958, February 8). New York Times, p.
35.
Weir, W. (1984, October 15). Another look at subliminal 'facts'.
Advertising Age, p. 46.
Zanot, E. J, Pincus, J. D., & Lamp, E. J. (1983). Public
perceptions of subliminal advertising. Journal of Advertising,
12(1), 39-45.
Task 3
Post your document in the discussion thread. Respond to at
least two other students’ examples of subliminal adverstising
and essays.
Rubric
Use this rubric to guide your work on your Module 4 Discussion
Tasks.
Tasks
Expert
Points Earned (10)
Acceptable
Points Earned (5)
Unacceptable
Points Earned (0)
Task 1
Provides 3 clear examples—not just erotic ads per se---of
advertising with explanations of the subliminal embed(s), the
implied message, and the advertiser’s intention. (4)
Provides 2 examples---not just erotic ads per se---of advertising
with explanations of the subliminal embed (s), the implied
message, and the advertiser’s intention. (2)
Failed to provide any or adequate examples of subliminal ads.
Fails to differentiate between true subliminal embeds and
simply “sexy ads.” (0)
Task 2
Essay of 750 to 1000 words makes a claim about the concept of
subliminal advertising and supports that claim with research
from 4 scholarly journals. (4)
Essay of 500 words makes a claim about the concept of
subliminal advertising and supports that claim with research
from 2 scholarly journals. (2)
Essay of less than 500 words with no support from scholarly
research journals. (0)
Task 3
Provides an insightful critique of other two other students’
responses. (2)
Provides an adequate critique of one other student's answers. (1)
Fails to make a serious effort to reply as specified to two other
students’ answers. (0)
Week 4 Discussion: Subliminal Advertising
©2009 University of Texas at Arlington
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  • 1. Financial and Managerial Accounting Differences between financial and managerial accounting Financial and managerial accounting are distinct accounting processes that determine the success of an enterprise. Though the terms are different, many people with little accounting information use them synonymously. Financial accounting is a branch of accounting that specializes majorly on maintaining an organization’s financial transactions (Weygandt & Kieso, 2015). The branch thus focuses on keeping track of financial records of an organization from the transactions done. Managerial accounting is also a branch of accounting, but it focuses mainly on identification, evaluation, interpretation, and communication of information between managers within an organization with the aim of accomplishing the organization’s objectives (Weygandt & Kieso, 2015). Managerial accounting thus focuses on ensuring that the organization achieves its set goals by ensuring that relevant information is available to aid the organization managers in making management decisions effectively. Normally, managerial accounting information is used by the internal management of an organization to make managerial decisions, while financial accounting statements are used externally by outsiders such as customers, investment analysts, and competitors to guide them in making decisions on whether to do business with the organization. While financial accounting provides financial statements on the profitability of the enterprise, managerial accounting reports on the issues hindering the organization’s goal accomplishment, and proposes remedies for rectifying the issues (Weygandt & Kieso, 2015). Another difference is that financial accounting reports require to be maintained at particular levels of precision, and the accuracy of the financial statements have to be confirmed while managerial accounting deals with estimates and propositions. Also, financial accounting requires the accountants to comply
  • 2. with particular accounting rules since the information is compiled for external purposes while managerial accounting does not require the involved parties to comply with specific accounting rules because the information is used internally for decision making. Rules that need to be followed under either method Accountants in managerial accounting use different procedures in accounting for the managerial decisions, and thus there no specific rules or regulations that ought to be followed. Also, different businesses have different operations, requiring different rules, and thus no specific rules or standards exist in managerial accounting. Conversely, financial statements from financial accounting are used by different categories of people to assess the organization’s value for themselves, and thus there are common rules known as accounting standards and General Acceptable Accounting Principles (GAAP), that ensures that companies provide accurate, comparable, and reliable information to the outsiders (Horngren et al., 2012). The accounting rules under financial accounting include the following: · The regularity principle: Accountants must adhere to all the GAAP regulations. · The consistency principle: Accountants should comply with the application of similar standards during the entire reporting process to avoid errors and inconsistencies (Horngren et al., 2012). This principle expects accountants to explain any reason that might have caused them to change any standard. · The sincerity principle: According to this principle, accountants should provide accurate information about the organization’s financial position. · The consistency principle: This principle requires accountants to use consistent financial reporting procedures. · The non-compensation principle: This principle requires accountants to adhere to transparency while reporting the positives and negatives in the financial statements without debt compensation expectations (Horngren et al., 2012).
  • 3. · Prudence principle: The financial statements should not be overestimated or underestimated. · Continuity principle: After the valuation of the organization’s assets, this principle assumes that the organization will continue in operation for the next fiscal year. · Materiality principle: Accountants should always strive to disclose all the financial data in the financial reports fully. · The principle of utmost good faith: This principle is applied within the insurance industry whereby it presumes that all parties will remain loyal in the financial transactions (Horngren et al., 2012). References Horngren, C., Harrison, W., Oliver, S., Best, P., Fraser, D., & Tan, R. (2012). Financial accounting. Pearson Higher Education AU. Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2015). Financial & managerial accounting. John Wiley & Sons. Week-2 Week - 2 Discussion COLLAPSE Top of Form There are many different accounting certifications which can be used to enhance a person’s career and contribute to the achievement of career goals. Each of these accounting certifications is slightly unique and they address particular career focuses depending on the career objectives of an individual. Types of accounting certifications include Certified Public Accountant (CPA), Certified Management Accountant (CMA), Certified Financial Analyst (CFA), and Certified Internal Auditor (CIA) among others. CPA is the oldest, most
  • 4. popular, and most respected accounting certification in the accounting industry. A CPA certification is only given to a licensed accountant who is allowed to write audit reports and advice on the financials of a company. On the other hand, CMA certification focuses on accounting management for companies covering topics such as financial planning, decision-making, performance, and control (Ng, 2019). These topics are never covered in a CPA certification and thus this designation is important for candidates who pursue company internal management and the executive roles. What is the difference between the two? Each of these certifications is unique and has different career paths. CPA areas of focus include accounting and auditing, financial accounting, regulation, and reporting. CMA has a different focus since professionals specialize in asset, performance, and financial management. Another difference between the two certifications related to the requirements needed for one to be qualified to pursue the certifications. An individual who wants to become a CMS needs to have a bachelor’s degree in business, economics, or accounting and should be a member of the Institute of Management Accountants (IMA) (Boyd, n. d). This is different for a CPA whereby one can enroll in a CPA program without necessarily having an undergraduate degree. Which one is more applicable to Managerial Accounting? A person who has a CMA certification has an edge in Managerial Accounting as compared with one who has a CPA. This is because CMA emphasizes building skills which are needed in financial decision making, financial reporting, and planning and management of performance. A CMA certification improves the management skills of a professional which improves a person’s ability to make strategic business decisions which affect a company’s performance and financial decisions as well. Which one is more applicable to Financial Accounting? CPA is more applicable in Financial Accounting since it focuses
  • 5. on public accounting and general accounting whereby professionals are expected to work on financial reporting, income taxes, and audits for individuals and public and private companies. A person which a CPA can perform different roles in Financial Accounting including providing financial advice to clients, auditing and preparing financial reports, and ensuring that regulations and laws are followed in accounting. References Kenneth W. Boyd, (n. d).CMA vs CPA | which is Better for Your Career, Salary, and Wallet?Retrieved from https://www.ais-cpa.com/cma-vs-cpa/ Stephanie Ng, (2019). CMA vs CPA: Which Qualification is better?Retrieved from https://ipassthecmaexam.com/cpa-vs-cma/ Bottom of Form Week-3 Discussion COLLAPSE Top of Form Requirement 1 The first alternative involves Jackson doing nothing regarding the issue. This course of action is not appropriate. Why? As an accountant, the most basic ethical trait is honesty, and this is
  • 6. evident in Jackson’s initial reaction of pointing out the issue to Mary Brown, the corporate controller. From the foregoing, not taking action concerning the under applied overhead is not ethical as it will lead to dishonest values both to the external auditors as well as the Audit Committee of the Board of Directors. The second alternative involves making attempts to convince Brown to make adjustments as well as informing the external auditors of her actions. Attempting to convince Brown to make adjustments is an appropriate action. This is because Jackson will be communicating to his direct superior without overstepping her authority. In addition, diagonal communication is good for any business and this case would not be different. On the other hand, Jackson informing the external auditors of Brown’s actions is not an appropriate action. This is because by doing so, Jackson might jeopardize the job or even career of Brown, fellow employee, as well as the existence of the business itself. Jackson should therefore desist from informing the external auditors of Brown’s actions. The third alternative involves informing the Audit Committee of the Board of Directors and giving appropriate accounting data. This course of action is appropriate. First, the issue of under applied overhead needs to be addressed as it results in less income as well as incorrect information to external auditors. Therefore, Jackson should inform the Audit Committee of the Board of Directors and by doing so it will result in both solving the problem as well as keeping the problem internal. This action will also ensure that Brown’s actions are corrected without necessarily denting her job or career. Requirement 2 The first step Jackson should take is to compute the accounting data again for confirmation purposes and gather the appropriate accounting information that supports his findings. Jackson should then approach the next level of authority, in this case the Audit Committee of the Board of Directors, and present them with the gathered data. In addition, Jackson should explicitly
  • 7. explain the effects of the under applied manufacturing overhead and the need for its adjustment. By following these steps, Jackson will not only have reported the matter to the correct authority, the Audit Committee of the Board of Directors, who will make the final decision on the way forward, but also helped in keeping the matter internal to the company. References McLaughlin, I. A. (2016). Corporate Governance. Case study and analysis. Bottom of Form Week -4 Discussion COLLAPSE Top of Form The publicly traded manufacturing company in consideration is
  • 8. Dean Foods Company (DFC). DFC Company is a food and beverage company that focuses mainly on dairy products – it is one of the largest dairy companies in the United States. DFC produces several products at both a regional level and national level. The product we are concerned with is the Creamland brand that produces ice cream products. Based on the ice cream products from my research, DFC Company uses product costing to allocate the total cost of production - the subsequent discussions will serve to justify this claim as well as expound on both the production of ice cream products and the process costing concepts learned. To begin with, process costing is a method that allocates production costs to a sequence of steps or departments in production. With this in mind, note that the production of ice cream involves a series of steps in which the factors of production (labor, raw materials and overhead) are applied differently at each stage (Fisher & Krumwiede, 2015). The basic stages include preparation of the ice cream mixture, adding liquid flavors, colors and freezing and adding fruits and bulky flavorings and then packaging as desired. In this procedure, different materials, labor and overhead are introduced differently (in terms of quantity and type) in the distinct processes of the entire manufacturing process. From the foregoing discussion, process costing is the ideal method for allocating costs; it is able to attribute the costs to the different production processes involved in the production. In addition, different departments, whereby the output of one department is the input of another department, handle the different processes. In so doing, the costs in terms of raw materials, labor and overhead are easily accounted for department wise or process wise – justifying why the DFC Company uses process costing in the production of ice cream. The nature of ice cream production is such that the costs associated with individual products is difficult and not economically feasible to obtain. In this case, process costing; weighted average costing method in particular, comes in handy.
  • 9. How? The weighted average costing method involves the analysis of the costs of goods available for sale and the number of units available for sale (Weygandt, Kimmel & Kieso, 2015). Through process costing, the accumulated costs in each department in terms of labor, material and overhead can be calculated and summed up to obtain the costs of goods available for sale. The weighted average method, which involves dividing the costs of goods available for sale by the number of units available for sale, obtains an estimate of the cost of each good produced. From the explanation on the weighted average costing method, it is evident that DFC Company ought to use process costing since the costs of individual ice cream product cannot be obtained otherwise. In the production process, there is the need to account for the costs incurred by each department in terms of raw materials used, labor and overhead. Process costing enables this through the cost per equivalent unit calculation. By accounting the costs incurred in the different processes in the departments, budgeting for the next production processes is possible. Briefly, process costing is a method of allocating costs to a production process in which costs are assigned to the series of steps or processes. In the production of ice cream products by the Dean Food Company, the production process consists of a series of steps that result in homogenous products, which is an ideal case for using process-costing method. References Fisher, J. G., & Krumwiede, K. (2015). Product costing systems: finding the right approach. Journal of Corporate Accounting & Finance, 26(4), 13-21. Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2015). Financial & managerial accounting. John Wiley & Sons. Bottom of Form
  • 10. week-5 Discussion COLLAPSE Top of Form Activity Based Costing This is a method of assigning costs to products. Activity-based costing helps to assign these costs by drawing a relationship between costs, activities which are classified as overheads and manufacturing outputs (Bahnub, 2010). This is a method that has been adopted over the traditional methods of assigning costs which focused more on machine hours since it provides a more rational way of assigning these costs. This method of costing yields more accurate results as compared to traditional methods of costing because the basis of cost assignment is the definite consumption level of each separate product. On top of the accuracy advantage, this method of costing is not very complicated because its process only involved identifying overhead activities and assigning costs to each of these activities and then taking these costs and assigning them to products on the basis of whether the product makes use of that activity (Bahnub, 2010). If the product does not consume that activity then the cost is not assigned. The only complication that comes with assigning costs using this method is the assigning of costs for various overhead activities especially the indirect costs. Costs such as salaries and wages to employees can be difficult to assign to a product and for this reason, it is best suited for manufacturing activities alone (Goektuerk,2007). The use of this costing method for manufacturing processes of any organization can be very beneficial because it produces more reliable information on costs compared to traditional methods and it became a lot easier
  • 11. to classify various costs in the production process when this method is used (Goektuerk, 2007). Case Study 1. Is the controller, Erin Jackson, acting ethically? Yes. The controller is being ethical manly because his decision and the actions he is taking are guided by the ethical principle of integrity. First, he discovers the inaccuracy in the costing numbers of the electric motor and the first action he takes is revealing the truth and this shows his value for honesty. His morality is however greatly displayed in his conversation with his friend where he refuses his friends offer to manipulate the numbers does not only show his value for honesty but also shows that he holds hold moral principles which are strong since despite the persuasion he stands by his truth. Offering to check his calculation one more time to ensure accuracy is also a show of care and honesty. 2. Is the production manager, Alan Tyler, acting ethically? The production manager, in this case, is the one who is not acting ethically. This is seen first in the fact that he is pretty upset by the discovery of the truth. It seems like he knows about the inaccuracy in costing for the electric motors but had made the decision to keep them that way and was distorting the costs on purpose so that he could not lose his job. Further, he makes the request to Erin for him to manipulate the numbers since no one will know. All these acts show that Alan is deceptive and this is not an ethical value. 3. What are Jackson’s ethical obligations? To the president? To her friend? According to the law and probably organizational policies, accuracy and truthfulness in reporting are a requirement. Employees are expected to practice honesty and transparency in reporting and for this reason, Jackson has the ethical obligation of showing compliance by correcting inaccuracies in cost reports which give misleading information that the production process is profitable whereas it is not. His ethical obligation to the president is to uphold the legal and ethical standards of
  • 12. reporting. To his friend, the only ethical obligation that Jackson has s to ensure that the figures he produced on his analysis are accurate to ensure that he does not put Alan in trouble for no reason. References Bahnub, B. (2010). Activity-based management for financial institutions : driving bottom line results. Hoboken, N.J: John Wiley. Goektuerk, H. (2007). Activity-Based Costing (ABC) - advantages and disadvantages How ABC can be applied to institutions of higher education. MĂŒnchen: GRIN Verlag GmbH. Bottom of Form
  • 13. week-6 Discussion COLLAPSE Top of Form As was mentioned in the Week 4 discussion, Dean Foods Company is a food and beverage organization which mainly focuses on manufacturing dairy products. It is considered as one of the largest dairy firms across the United States. The company is known to produce numerous products both at the national and regional level. Some of the main products of Dean Foods include milk, ice cream, juice, teas, and dairy products. In the United States, milk is processed both under a national and regional brand. They have more than 50 regional and local brands. In addition to fluid milk, the company is also distributing bottled water, refined products, and other essential products (Dean Foods Inc., 2019). For the organizational leaders of the company, cost accounting is crucial for measuring and analyzing the cost associated with the products, projects as well as production to ensure that correct amount are reported on the financial statements of the company. With an appropriate cost accounting, the leaders will be aided in the decision-making process by enabling easy calculation, evaluation and monitoring of the associated costs. Some of the related expenses that the company would incur include the following: Direct cost – this is the costs incurred in the production of their goods and services. The company produces numerous products and services that it distributes to the consumers across the country. A direct cost includes labor, materials, expense or the distribution cost associated with producing its products (Drury, 2014). These costs can be easily traced to a product. For example, the company’s employee may spend 2 hours preparing ice cream. The direct costs associated with the ice cream are the wages that the employees are paid and the components used to produce the ice cream.
  • 14. Indirect cost – this is the costs unrelated to the production of the goods or services. The cost cannot be easily traced to a given product or service, activity, or project. For Deans Food Company, it is important to note that there is an electricity bill for all the products made in the company. When the bill is paid, no single products can be associated with it (Garrison et al., 2014). Fixed cost is another cost that accounting leaders must be aware of. In most cases, fixed costs do not vary with the number of goods or services that Dean Foods produce over a short period. For example, if the Dean Foods leases a machine for production for say, one year, it would be obliged to pay the monthly cost of hiring the machine irrespective of how many products the machine makes (Horngren et al., 2015). Therefore, the lease payment is regarded as a fixed cost, and it remains unchanged whether the company makes a loss or profit. Variable costs are the expenses that fluctuate as the level of output production changes. It changes with regard to the number of products that the company produces. As the production volume increases, the variable cost also increases and falls as the production cost also decreases. Dean Foods must package its milk products before distributing them out to various stores. This is regarded as a variable cost because as the company produces more milk products, the cost of packaging also increases (Drury, 2014). But if the number of products produced decreases, the variable cost associated with packaging also reduces. There are also operating costs which entail the expenses associated with the every-day business activities but cannot be traced back to one product. It is essential to note that the operating cost can be fixed or variable. Dean Foods have numerous stores across the country; as a result, they are pay rent and utilities. Operating costs are the day-to-day expenses but separately classified from indirect costs. They are the cost associated with the production.
  • 15. References Dean Foods Inc. (2019) Brands. Retrieved from http://www.dairyease.com/brands.aspx DRURY, C. M. (2014). Management and cost accounting. Springer. Garrison, R. H., Noreen, E. W., Brewer, P. C., & McGowan, A. (2014). Managerial accounting. Issues in Accounting Education, 25(4), 792-793. Horngren, C. T., Foster, G., Datar, S. M., Rajan, M., Ittner, C., & Baldwin, A. A. (2015). Cost accounting: a managerial emphasis. Issues in Accounting Education, 25(4), 789-790. Bottom of Form SOCI 1311 Introduction to Sociology Overview In recent years, the mass media have given widespread attention to claims that U. S. citizens are often compelled to buy consumer items because of subliminal advertising. For this discussion, you will find examples of subliminal advertising and evaluate the existence and effectiveness of such advertising. Beginning with a book by Brian Wilson Key in 1973 entitled Subliminal Deception, the common themes of the argument that subliminal advertising exists and is effective have been systematized by many authors. The claim is that subliminal embeds are placed into ads where the embeds are representations of stimuli whose character is related to sexuality, aggression, or death. The argument continues that
  • 16. such ads are particularly effective because the Freudian superego (conscience) of normal people prevents them from being consciously aware of the embeds. It is said that for this reason such ads can bypass a person’s rational and conscious evaluation, and compel people to buy products based on the arousal of powerful, primitive urges of sex and/or aggression . For this discussion, collect the best three examples of advertising that seem to contain embedded material of the type described above, i.e., deliberately embedded images or symbols of male or female sexual organs, or skulls for death imagery. Directions Task 1 On a separate Word document, cut and paste the three examples you find. Remember that you are trying to find sexual imagery that will not be seen consciously by most viewers, not just sexually provocative ads. With each image that you submit, add the following information: 1. What in the picture represents subliminal embeds? 2. What is the subtext, the implied message that the advertiser intended? 3. Explain how you believe the advertiser thought this subliminal embed would sell more of a product or commodity. Task 2 On the same Word document, after the task above and write a short essay of 750-1000 words that contains: 1. A statement about whether you believe subliminal advertising exists and impacts consumers, that is, the mind of the viewer
  • 17. must repress material consciously and yet be strongly influenced to buy a product. Is this possible? 2. In answering, use at least four scholarly journal articles or book chapters, and cite these sources carefully. Consult the APA document in the resources section of this course. Develop a scholarly position of your own by citing the relevant evidence and arguments both pro and con. Below appear some references you may wish to consult. Both pro and con articles are listed so that you can begin to decide what your own informed opinion is regarding the existence and effectiveness of subliminal advertising. Sources: Adams, V. (1958, January 14). Subliminal ads shown in capital. New York Times, p. 66. Block, M. P., & Vandenbergh, B. G. (1985). Can you sell subliminals to consumers? Journal of Advertising, 14(3), 59-62. Bornstein, R. F. (1989). Subliminal techniques as propaganda tools: Review and critique. Journal of Mind and Behavior, 10(3), 231-262. Brody, J. E. (1982, August 17). Subliminal persuasion a menace? Evidently not. New York Times, p. C1. Danzig, F. (1962, September 17). Subliminal advertising: Today it's just historic flashback for researcher Vicary. Advertising Age, pp. 72-73. Emery, Jr., C. E. (1996). When the media miss meal messages in subliminal stories. Skeptical Inquirer, 20(2), 16. Godbout, O. (1957, November 13). 'Subliminal' ads over air studied. New York Times, p. 70. Godbout, O. (1957, November 4). Video group bans 'subliminal' ads. New York Times, p. 70. Godbout, O. (1958, January 22). Subliminal test planned in west. New York Times, p. 54. Godbout, O. (1958, March 7). Subliminal ads blocked on coast. New York Times, p. 49. Haber, R. N. (1959). Public attitudes regarding subliminal
  • 18. advertising. Public Opinion Quarterly, 23(2), 291-293. Harrington, R. (1991, January 6). In defense of heavy metal: The trials of Rob Halford, soft-spoken lead screamer of Judas Priest. Washington Post, p. G1. Huxley fears new persuasion methods could subvert democratic procedures. (1958, May 19). New York Times, p. 45. Kalish, D. (1988, May). Now you hear it...subliminal advertising. Marketing & Media Decisions, pp. 32-33. Key, W. B. (1973). Subliminal seduction: Ad media's manipulation of a not so innocent America. Upper Saddle River, New Jersey: Prentice Hall. Key, W. B. (1980). The Clam-Plate Orgy: And other subliminals the media use to manipulate your behavior. Upper Saddle River, New Jersey: Prentice Hall. Moore, T. E. (1992). Subliminal perception: Facts and fallacies. Skeptical Inquirer, 16(3), 273-281. Moore, T. E. (1996). Scientific consensus and expert testimony: Lessons from the Judas Priest Trial. Skeptical Inquirer, 20(6), 32-38, 60. Packard, V. (1957). The Hidden Persuaders. New York: David McKay Company. Pratkanis, A. R. (1992). The cargo-cult science of subliminal persuasion. Skeptical Inquirer, 16(3), 260-272. Psychic Hucksterism stirs call for inquiry. (1957, October 6). New York Times, p. 38. Reuters. (1990, August 25). Band cleared in suicides blamed on hidden message. Riley, K. (1991, June 13). Not-so-subliminal spoofs give truth in advertising a new twist. Washington Times, p. C1. Subliminal TV cited as danger to youth. (1958, January 29). New York Times, p. 29. Talese, G. (1958, January 12). Most hidden persuasion. New York Times Magazine, pp. 22, 59-60. The ad that isn't there [Editorial]. (1958, January 23). New York Times, p. 26. TV message fruitless. (1958, February 8). New York Times, p.
  • 19. 35. Weir, W. (1984, October 15). Another look at subliminal 'facts'. Advertising Age, p. 46. Zanot, E. J, Pincus, J. D., & Lamp, E. J. (1983). Public perceptions of subliminal advertising. Journal of Advertising, 12(1), 39-45. Task 3 Post your document in the discussion thread. Respond to at least two other students’ examples of subliminal adverstising and essays. Rubric Use this rubric to guide your work on your Module 4 Discussion Tasks. Tasks Expert Points Earned (10) Acceptable Points Earned (5) Unacceptable Points Earned (0) Task 1 Provides 3 clear examples—not just erotic ads per se---of advertising with explanations of the subliminal embed(s), the implied message, and the advertiser’s intention. (4) Provides 2 examples---not just erotic ads per se---of advertising with explanations of the subliminal embed (s), the implied message, and the advertiser’s intention. (2) Failed to provide any or adequate examples of subliminal ads. Fails to differentiate between true subliminal embeds and
  • 20. simply “sexy ads.” (0) Task 2 Essay of 750 to 1000 words makes a claim about the concept of subliminal advertising and supports that claim with research from 4 scholarly journals. (4) Essay of 500 words makes a claim about the concept of subliminal advertising and supports that claim with research from 2 scholarly journals. (2) Essay of less than 500 words with no support from scholarly research journals. (0) Task 3 Provides an insightful critique of other two other students’ responses. (2) Provides an adequate critique of one other student's answers. (1) Fails to make a serious effort to reply as specified to two other students’ answers. (0) Week 4 Discussion: Subliminal Advertising ©2009 University of Texas at Arlington 1