Three Characteristics Of Managerial Accounting Vs....

Three Characteristics Of Managerial Accounting Vs....
Management and Financial accouting are both important tools for a business. However, Managerial Accounting and Financial Accounting have many
differences. The primary users of the Managerial Accounting is internal users such as managers while the Financial Accounting is external users such
as creaditor, stockholder and government regulators. The purpose of Managerial Accounting is to help managers fulfill their three responsibilities that
are planning, directing and controlling. Planning is plan the business operations involve developing detailed financial and operational descriptions of
anticipated operations. Directing operational activities simply means running the organization on a day–to–day operation. The day–to–day operation of
management... Show more content on Helpwriting.net ...
Managerial accounting is focusing on providing information within the company to help manager more effectively in operating the company.
Managerial accounting also provide instruction at a manufacturing enterprise about the computing cost of products. Then these costs will be used in the
external financial statements. Managerial accounting is also referred to as "strategic finance" (Principles of accounting: Volume II, 2012). Besides this,
managerial accounting will also include cost behavior, operational budgeting, capital budgeting, activity based costing, break–even point, profit
planning, relevant costs for decision making and standard costing. Based on Managerial Accounting third edition, cost behavior is how cost change as
volume changes. The three most common cost behavior is variable, fixed cost and mixed cost. Capital budgeting is the process of making capital
investment decision. Capital investment is including buying new euipment, building new plants, automating production and developing major
commercial website. An operating budget is a combination of known expenses, expected future costs, and forecasted income over the course of a year.
The break–even point is a point where total sales and total cost are equal. Break–even point can be described as a point where there is no net profit or
... Get more on HelpWriting.net ...

Managerial Accounting Case Study
1)INTRODUCTION:
BACKGROUND:
Management or managerial accounting refers to the use of accounting and financial information in assisting managers to decide on matters of
management and performance of control functions within their organizations. Management A
According to the Institute of Management Accountants (IMA):
"Management accounting is a profession that involves partnering in management decision making, devising planning and performance management
systems, and providing expertise in financial reporting and control to assist management in the formulation and implementation of an organization's
strategy".
Essence of managerial accounting lies in constant improvement of the effectiveness of both the management planning and control functions.
Management accountants play significant roles especially in planning, controlling and maintain coordination with production, marketing and financial
functions.
MANUFACTURING COMPANIES IN PAKISTAN:
Industries which are indulged in either manufacturing or processing items which may result in new commodities or value addition is referred as
Manufacturing Industries. The manufacturing industry accounts for a significant share of the industrial sector in developed countries. Manufacturing
industries are typically classified into following:
a)Engineering
b)Construction
c)Electronic
d)Chemical
e)Textile
f)Food and ... Show more content on Helpwriting.net ...
Managerial Accounting do practices on the limited resources not on the High level resources because its gave accurate information and by being

getting well defined information market competitors are increases and its results on technology it would be also increase and from all above
managerial accounting came directly proportional to the labor relations its means higher the labor relation advance innovation and great deal being
with market

Managerial Accounting
H. Xue Managerial Accounting 2015 Spring
Homework 1
(Individual Assignment, Due on 02/11)
1. Das Doors Inc. has recorded the following costs at various volumes of production:
Production
Volume
Total
Costs
600,000 $700,000
400,000 500,000
200,000 300,000
Determine the fixed cost and per–unit variable cost using High–Low method.
2. Adams Company sells a single product. The product sells for $100 per unit. The company's variable expenses are 80% of sales and its fixed
expenses total $150,000 per year. a: What is the company's contribution margin ratio? b: What is the company's break–even point? (Give answer in
dollars and in units.)
3. Jefferson Company reported $4,000,000 of sales during the month and incurred variable ... Show more content on Helpwriting.net ...
Why or why not?
5. (More difficult)
Pendleton Engineering makes cutting tools for metalworking operations. It makes two types of tools: R3, a regular cutting tool, and HP6, a
high–precision cutting tool. R3 is manufactured on a regular machine, but HP6 must be manufactured on both the regular machine and a
high–precision machine. The following information is available. Additional information includes the following:
Pendleton faces a capacity constraint on the regular machine of 50,000 hours per year. Notice that both products need some regular machine time.
The capacity of the high–precision machine is not a constraint.
Of the $550,000 budgeted fixed overhead costs of HP6, $300,000 are lease payments for the highprecision machine. This cost is charged entirely to
HP6 because Pendleton uses the machine exclusively to produce HP6. The lease agreement for the high–precision machine can be canceled at any time
without penalties.
All other overhead costs are fixed and cannot be changed.

a. What product mix–that is, how many units of R3 and HP6–will maximize Pendleton's operating income? Show your calculations.
b. Suppose Pendleton can increase the annual capacity of its regular machines by 15,000 machinehours by leasing more machines at a cost of
$150,000. Should Pendleton increase the capacity of the regular machines by 15,000 machine hours? By

1. Basic Concepts
Product cost = Direct Labor (DL) + Direct Materials (DM) + Manufacturing Overhead (MOH)
Financial accountingManagerial Accounting
+ Sales+ Sales
– COGS– Variable Costs
= Gross Profit= Contribution Margin
– SG&A– Fixed Costs
= Net Profit= Net Profit
COGS (Cost of Goods Sold) is an "inventoriable cost" ( recorded in the Balance Sheet as inventory and expensed (Income Statement) when goods are
sold
SG&A (Selling, General & Administrative) are periodical costs ( expensed as incurred directly in the Income Statement
Economic Value: ROCE– WACC (ROCE = Return on Capital Employed)
2. Seligram Case and Anagene Case – Effective cost systems
Classical cost systems: Overhead allocated ... Show more content on Helpwriting.net ...
Apparently, flow controllers enjoy the highest margins, based on the current cost allocation

– Problem: Increased competition with same quality; margin on pumps are very low; trend of decreasing price; lately priced were on flow controllers,
but no impact on demand was observed!!! ( hint for some problem!
– Solution: replace the actual cost system (allocation of MOH based on DL$) with an ABC system. 5 activities are identified (machine related,
machine setup, receiving and production control, engineering, and packaging/shipping. The new system reveals that Wilkerson is losing money on
flow controllers, while valves and pumps are not so bad in terms of profit margins
– Limitations of the analysis: ABC is expensive (5 cost pools instead of 1!); SG&A not considered in the case; communication issues
4. Kanthal Case
High Profit CustomervsLow Profit Customers
– Low attention neededHigh attention needed
– Don't require customer serviceLots of customer service
– No on–site supportOn–site support needed
– Bulk orderSmall orders
– Pay caskPay on credit
– Repeat customersOne–time customers
– Standard productsHigh–customization
– Standard price

Describe the Difference in Managerial Accounting vs. Cost...
Describe how managerial accounting is different from cost accounting. Cost accounting is the process of tracking, recording and analyzing costs
associated with a company's product or project. Internal managers are the ones who normally use cost accounting information. Direct Costs, Indirect
Costs and Overhead/Absorbed Costs are usually what are measured in Cost Accounting. This information is then used by managers when decisions are
made dealing with company costs and how to improve the profit. (Wild & Shaw) Management accounting provides the other managers information on
the business decisions that allow them to keep their management and control functions equipped. Management accounting is used within an
organization and is ... Show more content on Helpwriting.net ...
The financial bonuses should be tied to how much the team saves this year. Often companies tend to cut individuals who do not have top priority
tasks. Keeping the ones who are important understand and will help you save a lot of money. Dr. White has to prepare to implement cost reductions
in her organization; she must be open, honest and be sincere with all the staff about reducing the cost and how this will affect the organization. She
should reduce the headcount in proportion in the difference within the work load. If the community center generally treats more cases that the
outpatient sections then the cuts could be made from outpatient. Service contracts are easy to work with as long as the current provider or new
provider is reasonable. Normally travel, consultation and professional budgets are cut. What is the hardest has to cut people that work closely with a
manager, it is important for the manager to budget responsibly. The employee should be notified immediately of such actions so they are prepared
and can have time to look for something new. Sometimes this is not the case, as for a friend of mine who showed up to work one day and they
informed her they had to let her go. Usually an outgoing employee should be provided with a departure package, lump sum payment or package with
benefits to help them with the sudden change.
With the first budget below, it has been reduced $94,000. There has been an

Managerial Accounting Essay
Quiz Questions for Chapter 1
1.Waverly Company paid $5,000 cash for wages of production workers. This business event would: a.increase total assets and total equity. b.increase
one asset account and decrease another asset account. c.decrease total assets and total equity. d.decrease one asset account and increase an equity
account.
2.Warren Company makes candy. During the most recent accounting period, Warren paid $3,000 for raw materials, $4,000 for labor, and $2,000 for
overhead costs that were incurred to make candy. Warren started and completed 10,000 units of candy, of which 7,000 were sold. Based on this
information, Warren would recognize which of the following amounts of expense on the income... Show more content on Helpwriting.net ...
zero. b.$3,000 c.$2,500 d.$2,000
6.Which of the following items is not a product cost? a.Cash paid for wages of production workers. b.Cash paid for salary of production supervisor.
c.Cash paid for wages of a maintenance crew that cleans the manufacturing facility. d.All of the above are product costs.
7.Consolidated Company makes cardboard boxes. During the most recent accounting period Consolidated paid $60,000 for raw materials, $48,000 for
labor, and $52,000 for overhead costs that were incurred to make boxes. Consolidated started and completed 400,000 boxes. Based on this information,
what is the average manufacturing cost per box? a.$0.40 b.$0.56 c.$0.50 d.$0.27
8.Consolidated Company makes cardboard boxes. During the most recent accounting period Consolidated paid $60,000 for raw materials, $48,000
for labor, and $52,000 for overhead costs that were incurred to make boxes. Consolidated started and completed 400,000 boxes. Consolidated desires
to earn a gross margin that is equal to 40% of product cost. Based on this information the selling price per box is: a.$0.40 b.$0.56 c.$0.50 d.$0.70
9.Which of the following is a characteristic of managerial accounting information? a.It is historically based. b.It involves continuous reporting. c.

Managerial Accounting Quizes and Midterm Essay example
| Question :| (TCO 2) Bubba's Crawfish Processing Company uses a traditional overhead allocation based on direct labor hours. For the current year
overhead is estimated at $2,250,000 and direct labor hours are budgeted at 415,000 hours. Actual overhead was $2,200,000 and actual direct labor
hours worked were 422,000. (a) Calculate the predetermined overhead rate. (b) Calculate the overhead applied. (c) Determine the amount of overhead
that is over/underapplied.| | | Student Answer:| | a) Calculate the predetermined overhead rate. 2250000/415000 = 5.4217 per hour (b) Calculate the
overhead applied. 422000 x 5.4217 = 2287952 (c) Determine the amount of overhead that is over/under applied. 2287952–2200000 = 87952 over...
Show more content on Helpwriting.net ...
Beginning balance in Finished Goods $ 17,000 Ending balance in Finished Goods 15,200 Beginning balance in Work in Process 2,500 Ending
balance in Work in Process 1,836 Selling expenses 123,000 General and administrative expenses 89,000 Direct material cost 54,500 Direct labor cost
66,000 Manufacturing overhead 21,400 Sales 385,000 Prepare a schedule of cost of goods manufactured. | | | Student Answer:| | Snappy's Surgical
shears Company Cost of Goods Manufactured Schedule For the Month Ending in January 31, 20XX Direct Material $54,500 Direct Labour $66,000
Manufacturing Overhead $21,400 Total manufacturing cost $141,900 Add : Work in process inventory (Beginning) $2,500 Less : Work in process
inventory (Ending) –$1,836 Cost of goods manufactured for the month $142,564 | | Instructor Explanation:| Sappy's Surgical Shears Schedule

Managerial Accounting Chapter 18
CHAPTER 18
PROCESS COSTING
OVERVIEW OF BRIEF EXERCISES, EXERCISES, PROBLEMS, AND CRITICAL
THINKING CASES
Brief
Exercises
B. Ex. 18.1
B. Ex. 18.2
B. Ex. 18.3
B. Ex. 18.4
B. Ex. 18.5
B. Ex. 18.6
B. Ex. 18.7
B. Ex. 18.8
B. Ex. 18.9
B. Ex. 18.10
Topic
Selecting a cost accounting system
Real World: Walmart and J & J
Selecting a cost accounting system
Understanding cost flows
Process costing journal entries
Computing equivalent units
Computing cost per equivalent unit
Solving for missing information
Determining departmental unit costs

Interpreting a production cost report
Interpreting a production cost report
Exercises
18.1
Topic
Accounting terminology
18.2
18.3
18.4
18.5
18.6
18.12
18.13
Calculating equivalent units
Process costing in a ... Show more content on Helpwriting.net ...
30 Medium
18.4 A,B
Toll House/Snack Happy
A process cost problem involving three processes and an explanation of the usefulness of different unit costs. Does not include equivalent unit
calculations. 30 Medium
18.5 A,B
Badgersize Company/Balfanz Company
Determine the cost per equivalent unit with partially complete beginning and ending work in process.
35 Medium

18.6 A,B
Badgersize Company/Balfanz Company
Prepare a cost of production report based on information in P18.5.
35 Medium
18.7 A,B
Hound Havens/Delray Industries
A comprehensive process costing problem with two production departments. 50 Strong
18.8 A,B
Wilson Dynamics/Thompson Tools
A comprehensive process costing problem with two production departments. 50 Strong
Copyright © 2015 McGraw–Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGrawHill
Education.
Critical Thinking Cases
18.1
Shouldn't We Do Things Differently?
Students are to evaluate recommendations for changing a company's cost accounting methods. Requires judgment and perspective. Very
challenging–best as a group assignment to be discussed in class.
30 Strong
18.2
Metal Products, Inc.
Students are asked to analyze changes in unit costs from one month to the next and speculate why these changes may have occurred.
20 Medium

18.3
Process Costing at PepsiCo
Ethics, Fraud & Corporate Goverance
25 Easy
Students review the processes involved in

Similarities Between Financial Accounting And Managerial...
1. Differentiate broadly between financial accounting and managerial accounting.
Financial accounting is the process of recording, summarizing and reporting business transactions over a period of time in order to prepare company
financial reports for use by both internal and external parties such as investors and creditors. On the other hand, managerial accounting is the process of
identifying, measuring, analyzing, and communicating financial information needed by management in order to plan, control, and evaluate a
company's operations.
2. Differentiate between "financial statements" and "financial reporting."
Financial statements are the principal means through which a company communicates its financial information to those outside it. They ... Show more
content on Helpwriting.net ...
These documents are reported usually for authoritative pronouncement, regulatory rule, or custom.
3. How does accounting help the capital allocation process?
Accounting provides relevant and reliable financial information of a company, which in turn can help investors and creditors with the capital allocation
process and attract investment capital.
4. What is the objective of financial reporting?
The objective of financial reporting is to provide financial information about the reporting entity that is useful to present and potential equity investors,
lenders, and other creditors in decisions about providing resources to the entity.
5. Briefly explain the meaning of decision–usefulness in the context of financial reporting.
Financial reporting provides financial information that is useful for investors in making decisions in terms of assessing the company's ability to
generate net cash inflows and management's ability to protect and enhance the capital providers' investments, which is also known as
decision–usefulness.
6. Of what value is a common set of standards in financial accounting and

Case 4–32 Breakeven for individual products in a multiproduct company: The overall break–even sales can be determined using the CM ratio.
VelcroMetalNylonTotal Sales165,000 $300,000 $340,000 $805,000 $ Variable expenses125,000 $140,000 $100,000 $365,000 $ Contribution
margin40,000 $160,000 $240,000 $440,000 $ Fixed expenses400,000 Net operating income40,000 $ CM ratio =(Contribution margin)/Sales =
(440,000)/(805,000) = 0.5466 Break–even point in total sales dollars =(Fixed expenses)/(CM ratios) = (400,000)/(0.5466) = 732,000 $ (Rounded)
What to do with the common fixed cost when computing the break–evens for the individual products. The correct approach is to ignore the common
fixed costs. If... Show more content on Helpwriting.net ...
The necessary computations follow: Kenya DarkViet Select Number of purchase orders 80,000 pounds Г· 20,000 pounds per order4 orders4,000
pounds Г· 500 pounds per order8 orders Number of batches80,000 pounds Г· 5,000 pounds per batch16 batches4,000 pounds Г· 500 pounds per
batch8 batches Number of setups16 batches Г— 2 setups per batch32 setups8 batches Г— 2 setups per batch16 setups Roasting hours80,000 pounds
Г— 1.5 roasting hours per 100 pounds1,200 roasting hours4,000 pounds Г— 1.5 roasting hours per 100 pounds60 roasting hours Blending hours80,000
pounds Г— 0.5 blending hours per 100 pounds400 blending hours4,000 pounds Г— 0.5 blending hours per 100 pounds20 blending hours Packaging
hours80,000 pounds Г— 0.3 packaging hours per 100 pounds240 packaging hours4,000 pounds Г— 0.3 packaging hours per 100 pounds12 packaging
hours Using the activity figures, manufacturing overhead costs can be assigned to the two products as follows: Kenya Dark Activity RateExpected
ActivityAmount Purchasing280 per order4 orders1,120 $ Material handling193 per setup32 setups6,176 $ Quality control180 per batch16 batches2,880
$ Roasting11 per roasting hour1,200 roasting hours13,200 $ Blending6 per blending hour400 blending hours2,400 $ Packaging5 per packaging
hour240 packaging hours1,200 $ Total overhead cost26,976 $ Viet Select Activity RateExpected

Difference Between Financial And Managerial Accounting
The similarity and differences between financial and managerial accounting, Management accounting is only used for internal operations and the
financial is more external which is the overall financial picture and data collected by an organization that may have accountability towards the public,
IRS and partners. Both are similar functions, but one is perhaps more in depth. The Target company purpose is design the show, review the project,
inputs and outputs, expenses, and review all necessary steps involved with designing the shoes. There are a number of production methods in
accounting and different systems that Target Company can use. The accounting system–managerial accounting is mainly used for internal purposes.
Here are some... Show more content on Helpwriting.net ...
Manufacturing overhead (also known as factory overhead, factory burden, production overhead) involves a company 's factory operation. It includes the
costs incurred in the factory other than the costs of direct materials and direct labor. This is the reason that manufacturing overhead is often classified
as an indirect cost. The general professional accounted has accepted accounting principles require that cost of direct material cost, direct labor, and
manufacturing overhead be considered as the costs of products for valuing inventory and for determining the cost of creating these shoes. An example,
of manufacturing overhead include the depreciation or the rent on the factory building, depreciation on the factory equipment, supervisors in the
factory, the factory quality control department, factory maintenance employees, electricity and gas for the factory, indirect factory supplies. The
method of cost accumulation is detailed accumulation of production costs attributable to specific units or groups of units which is all expenses related
to the production of said item. For example, the entire process of producing a shoe is the cost accumulation which encompasses all expenses involved
with the making of the shoe. Within an organization remains a certain amount of control which allows for environmental changes, limiting the
accumulation of error, coping with organizational complexity. Cost information is vital to any business. It is the

Managerial Accounting Is A Discipline Within The Accounting
Managerial accounting is a discipline within the accounting community that focuses on providing valuable information to the leaders of their
organization. The importance of the community relies on its ability to provide information that is not readily found in traditional financial statements
developed in the accounting department for reporting to outside agencies. Activity–based management utilizes information developed using
activity–based costing (ABC) to accurately determine product costs. Accurate and detailed information is required for an organization to reliably budget
for the upcoming quarter or year. A complete understanding of the significance of activity–based costing and thorough knowledge of budget concepts
are critical ... Show more content on Helpwriting.net ...
ABC provides a path to assign the overhead to the product requiring the overhead. In the above scenario, 75% of the production efforts are for product
A, so 75% of the overhead can be assigned to product A. "Activity–based costing attempts to overcome the perceived deficiencies in traditional costing
methods by more closely aligning activities with products. This requires abandoning the traditional division between product and period costs, instead
seeking to find a more direct linkage between activities, costs, and products"(Walther, 2010). ABC is very beneficial to organizations that produce
many products. ABC applies all costs (direct and indirect) to a product's cost. To apply the principles of ABC, and organization must first gather all of
the available cost information for the organization. Once this is complete, the organization must identify activities. This is an important step because
too many activities will become too large an undertaking to manage while too few will not yield the desired results. Once the activities are identified,
the organization must identify traceable costs. These are costs that can be directly related to a product. At this point, one must assign the remaining
costs. These are costs, such as janitorial services that cannot be tied to a specific product. Once all costs are assigned, the organization must determine
the per activity allocation rates. For instance, if it costs a company $10,000 to

Reflection On Managerial Accounting
REFLECTING JOURNAL ON MANAGERIAL ACCOUNTING COURSE
By Name
Course
Instructor
Institution
Location
Date Reflecting Journal on Managerial Accounting Course
Introduction
The first impression of the course managerial accounting for managers was that it would involve learning how to manage operations of a firm,
especially in relation to its financial records and activities to ensure efficient and successful operation of a firm. I expected to learn how to deal with
the final financial records and using them to perform an analysis of the records which will help to make informed decisions. It would also involve
learning how to deal with the accounting records to make effective budget plans in considerations of resources available. My expectations of the course
... Show more content on Helpwriting.net ...
For instance, the concept of cost estimation which assists in estimating future expenditure as the expenditure depends on the cost of the respective
activities can be applied in the setting of a budget which is simply an estimate and schedule of all costs required to be assigned to an activity. One can
make an estimation of the resources required for an activity by applying the cost estimation techniques. Since there are limiting factors to each activity
such as scarcity of resources for activities, the concept of constraints can be applied together with the concept of cost volume profit analysis to ensure
that maximum benefits are driven from the scarce resources and the number of activities that are available. This facilitates the allocation of resources
that most equitable and profitable. The theory of constraints is also applicable in the process of setting up budgets. In setting up budget one considers the
amount of resources that are available and cannot therefore set a budget plan that exceeds the amount of resources that are available. This implies that
the budget is constrained by the amount of

accounting for managerial decisions
Topic 5 Homework Questions – Solution
1. Resources that are used in operations for more than one year with no physical
substance are called:
a. current assets
b. intangible assets
c. non–current assets
d. property, plant and equipment
2. Able Company purchased land and incurred the following costs:
Purchase price $1 000 000
Excavation costs 100 000
Removing old building 25 000
Broker fees 20 000
Cost of a parking lot 50 000
What is the cost of the land?

a. $1 100 000
b. $1 195 000
c. $1 145 000
d. $1 125 000
3. Which of the following costs related to the purchase of production equipment
incurred by ABC Company during 2013 would be considered an expense (revenue ... Show more content on Helpwriting.net ...
not be amortised, but should be reviewed annually for impairment
b. be reported on the statement of retained earnings in the year in which acquired
c. be amortised over a reasonable period of time, not to exceed 40 years
d. be debited to an expense account entirely in the year in which acquired
6. Information for Everett Evacuators for 2013 and 2012 is presented below. Everett
uses the straight–line depreciation method.
2013 2012
Non–current assets $250 000 $190 000
Accumulated depreciation 100 000 85 000
Depreciation expense 62 500 47 500
Total revenues 1 000 000 900 000
Total assets 625 000 475 000

Using the data for 2013, determine the average useful life of Everett 's non–current assets
rounded to one decimal place.
a. 1.6 years
b. 2.5 years
c. 4.0 years
d. 10.0 years
7. On 1 July 2013, XYZ sold a piece of equipment for $30 000 which it had used for
several years. The equipment had cost $45 000 and its accumulated depreciation
amounted to $20 000 at the time of the sale. What are the net effects on the
accounting equation of selling the equipment?
a. Assets and equity increase $30 000
b. Assets decrease and equity increases $5 000
c. Assets and equity increase $5 000
d. Assets and equity decrease $5 000
8. Wong purchased equipment at the beginning of

Managerial Accounting And The Certified Management
Managerial accounting is used by an organization to ensure informed decisions are made regarding current and future operations. Businessmen and
women must have the ability to comprehend financial information provided to properly determine the correct course of action. In the global market of
today, an organization's inability to accurately determine the best course of action can lead to financial ruin for the company. Uninformed decisions by
leadership can derail a business' prospects for success in the future. Business leaders must understand the differences between managerial and financial
accounting, additional information needed for internal purposes, the evolution of managerial accounting, and the Certified Management (CMA)... Show
more content on Helpwriting.net ...
An example of this is preparing next year's budget in the current year so leaders are informed of any constraints in the upcoming year. Documents
created in financial accounting must adhere to regulations such as GAAP and IFRS. Once completed, these documents are verified by a certified
public accountant (CPA) annually. These reports are summaries of the organization's performance as a unit and concentrate on sufficient disclosure of
required information. Managerial accounting documents are not regulated by guiding principles. They are generally presented in a cost benefit analysis
format. There is no audit of these documents as they are for internal use only. These reports are more detailed than the documents in financial
accounting and often provide performance information on each department and shift of an organization over a relatively short time frame. The goal of
this information is to provide any course corrections before issues or problems become out of control. These differences in the sectors of accounting
lead to a difference in the need and use of information for internal purposes.
Since managerial accounting is intended for different recipients than financial accounting, the type of information needed and used in managerial
accounting is different. Managerial accounting involves cost management, activity management, and investment management. Cost accounting is a
shared input between financial and management accounting. The information

Managerial Accounting Quiz
3.Which of the following is not a "principle" of financial accounting?
A.Historical cost
B.Revenue recognition
C.Continuity
D.Matching
E.Full disclosure 4.Accounts receivable (net) increased by $500,000 during the year. This increase has what effect on cash flow?
A. Reduces it
B. Increases it
C. No effect
5.In 20X4, Olentangy Health Care (OHC)'s cost of capital was 6%. Its investments on a historical cost valuation basis are $80,000, on a replacement
cost basis are $100,000, and on a current market value basis are $110,000. If you were on OHC's board, what minimum level of annual cash flow would
you require in order to continue operations and proceed with planned significant new investments?
$6,000. ... Show more content on Helpwriting.net ...
Assume now that the average cost per case drops only to $95. What is the new required

Questions On Managerial Accounting : Module 3
Managerial Accounting: Module 3 M. Peter
Aspen University: BSU510
10–26–14
Exercise E3–28A, page 144: Recording journal entries
1.Journal entry for Dutch fabricators: As indicated on page 119,120,121 and 122 below are the journal entries.
1 .A. Accounts entryDEBITCREDIT aRaw Materials Inventory$190000 Accounts Payable$190000
1.b
bWork in Process Inventory$152000 Manufacturing Overhead$22000 Raw Materials Inventory$174000
1.c. c Work in Process Inventory$190000 Manufacturing Overhead$35000 Payable Wages$225000
1.d. d Manufacturing Overhead$30000 Depreciation pant/equipment$20000 Payable Utilities$10000
1.e.
eWork in Process Inventory$81000 Manufacturing Overhead$81000
2.
Actual manufacturing overhead $87000
Allocated manufacturing overhead $81000
By end of January manufacturing overhead cost has been under allocated by $6000
Exercise S4–19, page 209: Quality Initiative Decision
1.Based on the explanation on page 201 below are the details of each cost and respective category:
a.Prevention costs:
i.Negotiating with and training suppliers to obtain higher–quality material and on–time delivery. ii. Redesigning the speakers to make them easier to

manufacture
b.Appraisal costs:
i.Additional 20 minutes of testing for each speaker. ii. Avoid inspection of raw material
c.Internal failure costs:
i.Rework avoided because of fewer defective units. ii. Lost production

The Purpose Of Managerial Accounting
Managerial accounting is helpful to the managers in of identifying, measuring, analyzing, interpreting and communicating information for the pursuit of
organization's goals. It contrast with financial accounting in that later is aimed to provide information to external user of accounting information while
managerial accounting it's aimed at helping the mangers to make decision in the organization. Purpose of managerial accounting The purpose of
management accounting in the organization is to support competitive decision making by gathering, processing, and reporting information that assists
the management planning, controlling, and evaluating business processes and company strategy. Example of information communicated by
managerial accounting is cost of the organizations products and services, this helps the manager for instance to set the selling prices, inventory
valuation as well as income valuation. Nature of managerial accounting It has its own special characteristics that make it distinct from other areas of
accounting. Some of the essential characteristics possessed by managerial accounting include; i.Use of special techniques like standard costing,
budgetary control, marginal costing among others. These techniques are used to compose accounting information and data more accurately and make it
relevant to help the managers make decision more easily and quickly. ii. It's mainly for internal use unlike others accounting like financial that provides
information for

The Key Role Of Managerial Accounting
The focus of Managerial Accounting is to identify, interpret, measure and communicate both information and data relevant to help the organization
pursue and achieve its goals. It is also referred to as Cost Accounting and is used to help managers within a company make decisions. It is different than
Financial Accounting which is used predominately by outside sources such as; creditors, stockholders, financial institutions, government agencies and
perspective employees. The key role of managerial accounting is to inform managers on the status of operational metrics in the business. These metrics
can vary from one organization to another based on the individual needs of each company but normally would include, but not limited to, such things
as; budgets (defined as a quantitative expression of the company's overall business plan), performance reports (as a dashboard to review deviations,
trends and changes), sales trending reports, product costing, manufacturing capacity, and variance reports. Management accountants are also referred to
as corporate accountantsand normally work for one company. They are responsible for tracking internal costs for a variety of areas within the
company and help managers view up to date information on how efficiently key areas such as budgets are doing. Their role includes the collection,
organization and reporting of critical financial data, as needed by decision makers to meet the organizations goals. A management accountant will

Fine Foods Inc. Managerial Accounting
Rozet Eisavitazehkandi Case #1 Fine Foods Inc. Managerial Accounting February 11, 2016 Case 1: Fine Foods Fine Foods Inc., a company
owned by Great Plains Capital, is a private equity firm rooted in the upper Midwest of the Unites States and it produces a variety of food products
in a heavily competitive industry. It is recognized for its high quality and has a loyal customer based. Many of its products can be found in
grocery stores or convenience shops. Fine Foods Inc. also branches out and sells frozen, refrigerated, canned, boxed, or packaged individual packets
of products to fast food restaurants, for example products such as ketchup packets. To reach institutional users such as large food services they sell
these similar products in bulky half gallon containers as well. Fine Foods is broken down to three Strategic Marketing Units called SMUs and each
section is based on the market they service. A majority of the corporate activities are all taken care of at the same facility where the products are
manufactured for all three units. A respected food scientist at Fine Foods, Kay Smith, who also happens to be the manager of Strategic Marketing Unit
Two, believes that there is inaccurate product costing in her unit. She has had education on process engineering but has little accounting knowledge.
She feels that the method that Fine Foods is carrying out to calculate operating profit does not reflect the true performance of her SMU, and that the

Course Syllabus: Managerial Accounting
fffffffffffffffffCOURSE SYLLABUS Spring 2013 Frank Stearns Riverside Community College Spring 2013 MANAGERIAL ACCOUNTING– 1B
COURSE SYLLABUS MANAGERIAL ACCOUNTING– 1B Table of Contents General Information3 1.1Contact Information and Communications3
1.2Course Description3 1.3Learning Outcomes3 Identification of Course/Reading Materials3 2.1Text and Materials3 2.2Internet Access4 2.4Web
–CT
/ Open Campus5 2.5Log on Instructions5 Course Requirements5 3.1Class Calendar (Due Dates and Testing Schedule)5 3.2Assignments / Homework5
3.3Chapter Assignments6 3.4Readings6 3.5Chapter Quizzes6 3.6Tests6 3.7Final Exam6 Instructor Policies7 4.1Chapter... Show more content on
Helpwriting.net ...
* "Business Connection Videos" – Video clips of business which are applying the principles and discussions. * "Exercise Demos" – Example exercises
with audio lectures. * Games which incorporate the terms and concepts from the chapter. * Crossword * Quiz bowl (like Jeopardy) * Accounting
Game * "At a Glance" – Summary pages for the text. * Flashcards * Key Terms 2.4Web–CT / Open Campus All of my courses incorporate the use of
the Web–Tutor. This is a product provided by the publisher and maintained by Open Campus @ RCC. You will be able to access this service using
the access code provided with the WebTutor Advantage. A temporary access code is provided for the fifteen days. Your personal access code must be
purchased at either the book store or on–line. Access code – if you buy the book brand new from the Riverside Campus bookstore: The access code is
in with the textbook on the back. It is a little booklet; inside the little booklet is the access code for this course. The little booklet is called
"WebTutor". It is a little blue book in the back of your textbook. If you bought a used book from the bookstore or from an online source such as
Amazon, eBay or other online textbook sellers they may or may not sell the access code with the book, so be aware that you may need to buy one. If you

CHAPTER 1 (Introduction to Management Accounting)
P–1–4A
The following data were taken from the records of Clarkson Company for the fiscal year ended June 30, 2014.
Raw Materials
Factory Insurance
$ 4600
Inventory 7/1/13
$ 48000
Factory Machinery
Raw Materials
Depreciation
16,000
Inventory 6/30/14
39,600
Factory Utilities

27,600
Finished Goods
Office Utilities Expenses
8,650
Inventory 7/1/13
96,000
Sales Revenue
534,000
Finished Goods
Sales Discounts
4,200
Inventory 6/30/14
75,900
Plant Manager's Salary
58,000
Works in Process
Factory Property Taxes
9,600
Inventory 7/1/13
19,800
Factory Repairs

1,400
Work in Process
Raw materials Purchases
96,400
Inventory 6/30/14 ... Show more content on Helpwriting.net ...
Both products require 1.5 hours of direct labor for completion. Therefore, total annual direct labor hours are 96,300 or {1.5hrs.X (54,000+10,
2000)}.Expected annual manufacturing overhead is $1,557,480.Thus, the predetermined overhead rate is $16.17 OR ($1,557,480 /96,300) per direct
labor hour. The direct materials cost per unit is $18.50 for the home model and $26.50 for the commercial model. The direct labor cost is $ 19 per unit
for both the home and the commercial models.
The company's managers identified six activity cost pools and related cost drivers and accumulated overhead by costs pool as follows.
Expected Use of Drivers by Product
Activity Cost Pools
Cost Drivers
Estimated
Overhead
Expected use of cost drivers
Home
Commercial
Receiving
Pounds
$ 70350
335,000

215,000
120,000
Forming
Machine hours
150,500
35,000
27,000
8,000
Assembling
Number of parts
412,300
217,000
165,000
52,000
Testing
Number of tests
51,000
25,500
15,500

10,000
Painting
Gallon
52,580
5,258
3,680
1,578
Packing and shipping
Pounds
820,750
335,000
215,000
120,000
Instructions
a) Under traditional product costing, compute the total unit cost of each product. Prepare a simple comparative schedule of the

Decision Making With Managerial Accounting
Decision Making with Managerial Accounting Accounting is the process charged with the identification, measurement and the communication of
economic information in the aim of allowing the desired users in making the correct decisions and judgments. Accounting has two branches depending
on the users. Managerial accounting isuseful to core users unlike financial accounting which is more essential to exterior users. Management
accounting is, therefore, the identification, analysis, record keeping and presentation of financial and non–financial information for internal use in
planning, decision–making, and control. The managerial system not only offers past financial information on transactions, but it also enables the
management... Show more content on Helpwriting.net ...
It determines budgetary procedures and prepares a timeline for the business to ensure the harmonization of all plans. In determining who to carry out
which activities and who to carry them, managers use managerial accounting records for organizing the business. The report allows managers to
prepare internal reports for better organization structuring after evaluating the existing organization structures. This is after determination of
responsibilities and lines of authority of the business. Managerial accounting seeks to design and implement the accounting system to strengthen the
connections between the authority, experts, and their responsibilities to ensure performance achievement. It, therefore, identifies the most relevant and
essential elements of an organization and suggests ways of improvements (IOANA–DIANA, 2013). Managerial accounting helps in the motivation of
staff. The reports indicating the performance of the organization influences the behavior of the staff in embracing the organization goals and making
decisions aligning with the goals. The reports also have the intention to motivate the managers in fulfilling the objectives of the business. If individuals
do not perform by the set targets, the report motivates them to achieve the goal in the next report, and if the goals are achieved, they make them adjust
the goals upwards to perform even better. The areas dwindling in performance are identified with the staff

Managerial Accounting Analysis of Concepts and Techniques
Managerial Accounting Analysis of Concepts and Techniques Managerial Accounting BUS 630 Managerial Accounting Analysis of Concepts and
Techniques Introduction/Thesis Statement Managerial accounting is a concept used in businesses to manage internal systems. Understanding the
importance of effective decision making, planning and control creates a foundation for value within the company on a more in depth level. Planning
and controlling is measured by performance based on budgeting accounts. Understanding the concepts and techniques used in managerial accounting
helps to insure functioning operations within each department and has the ability to create a completive edge. Competitively speaking, managerial
accounting gives... Show more content on Helpwriting.net ...
Therefore, management decides it would be much more beneficial to be a citywide organization instead. Role of Managerial Accounting The role of
managerial accounting serves many purposes such as financial reporting, budgets, forecasting, internal controls and management support. The
accounting department also supports management in different business operations, providing analysis and support for different decisions and
investments (Vitez, 2013). Management accountants work at the beginning of the accounting cycle, recording the financial transactions of a company
as they occur (2013). This business role ensures that companies have a good understanding of their financial health, giving executive management the
ability to make informed decisions. Companies use budgets to ensure that they do not spend more money on business operations than is necessary to
generate profits (2013). Management accountants will prepare budgets for each department and then add them together to create one companywide
budget. Tracking expenses that over exceeds the budgeted amount is an important step in the managerial process to insure the company is within the
profit and loss guidelines. Capital improvements are also included in the budgeting process so businesses can plan on improving current facilities
(2013). Forecasting is based on past information and is used to remove random variations within each

Difference Between Managerial And Financial Accounting
Question 1
The main difference between managerial and financial accounting is who the end–users are. Financial accounting is concerned with producing
information for external users based on historical data. External users for financial accounting would include investors, creditors, and government
agencies among others. Financial accounting must also adhere to strict rules that have been put in place to monitor the financial documents that are
created within it. These policies are enforced and monitored by various external agencies such as the Securities and Exchange Commission (SEC).
Financial accounting information is used when making decisions regarding investments, stewardship evaluations, or regulatory measures.
Managerial accounting is focused on the internal user and has no mandatory rules that it must follow. The information gathered and produced within
managerial accounting does not always pertain to financial information, as the possibility to have nonfinancial information is prevalent. This type of
accounting also focuses on the future, which is identified by the information being gathered, is used to make internal decisions on planning, controlling,
and decision–making. Managerial accounting provides detailed information for which these decisions to be made while also maintaining a broad and
multidisciplinary approach.
Question 2
Three types of product costs are defined and used within managerial accounting. Direct material is a type of product cost and it can be

Managerial Accounting- Cheryl Montoia
Cheryl Montoya picked up the phone and called her boss, Wes Chan, the vice president of marketing at Piedmont Fasteners Corporation: "Wes, I'm not
sure how to go about answering the questions that came up at the meeting with the president yesterday:'
"What's the problem?"
"The president wanted to know the break–even point for each of the company's products, but I am having trouble figuring them out:'
"I'm sure you can handle it, Cheryl. And, by the way, I need your analysis on my desk tomorrow morning at 8:00 sharp in time for the follow–up
meeting at 9:00."
Piedmont Fasteners Corporation makes three different clothing fasteners in its manufacturing facility in North Carolina. Data concerning these
products appear below: Total ... Show more content on Helpwriting.net ...
(We usually take a tally of how many students allocated the common fixed costs using each possible allocation base before proceeding.) For example,
the common fixed costs are allocated on the next page based on sales.
Allocation of common fixed expenses on the basis of sales revenue:
VelcroMetalNylonTotal
Sales$165,000$300,000$340,000$805,000
Percentage of total sales20.497%37.267%42.236%100.0%
Allocated common fixed expense*$49,193$ 89,441$101,366$240,000
Product fixed expenses20,00080,00060,000160,000
Allocated common and product fixed expenses (a)$69,193$169,441$161,366$400,000
Unit contribution margin (b)$0.40$0.80$0.60
"Break–even" point in units sold (a) Г· (b)172,983211,801268,943
*Total common fixed expense Г— percentage of total sales
If the company sells 172,983 units of the Velcro product, 211,801 units of the Metal product, and 268,943 units of the Nylon product, the company will
indeed break even overall. However, the apparent break–evens for two of the products are higher than their normal annual sales.

VelcroMetalNylon
Normal annual sales volume100,000200,000400,000
"Break–even" annual sales172,983211,801268,943
"Strategic" decisiondropdropretain
It would be natural for managers to interpret a break–even for a product as the level of sales below which the company would be financially better off
dropping the

Role Of Managerial And Managerial Accounting
The role of managerial accounting has played a significant role in the success of businesses dating as far back as the 19th century. Service and
production operations during the days of the industrial revolution were not nearly as sophisticated then as they are today. The current initial purpose of
managerial accounting is comparable to its purpose throughout history. Managerial accounting has historically been useful in assisting managers with
the information they need to make important decisions about their business' processes and operations (Fleischman 2006). Managerial accounting is still
true to its sole purpose, however; myriad changes in growth of the economy, technological advances, legal changes and the overall growth of the ...
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In contrast, other areas in accounting particularly financial and tax accounting focus on external reporting. Financial accounting is used to provide
stakeholders with a representation of the organization's financial health. Tax accounting focuses on organizations' financial legal compliance. Financial
and tax accounting present information about a period of time in the past. A business' stakeholders are concerned with public accounting information
and are not necessarily concerned with the daily business functions (Francis 2014). The most significant difference is that managerial accounting is
internally focused while other disciplines focus on the external financial reporting.
According to recent publications issued by the Institute of Managerial accounting, the role of managerial accounting has shifted simultaneously with
the shift of business leaders toward strategic management. "Management accountants (1) provide the conceptual framework for converting data into
information and (2) fulfill the role of enabler and strategic business partner (IMA 2008)." Technological advances have made it possible to record and
share more information. These advancements have given managerial accountants more information to work with than in the past which has helped to
restructure the role of management accountants. Managers have turned to managerial accountants for more than a

Research on Managerial Accounting Ethical Issues
While I was looking for an appropriate topic for research, I found an interesting publication, which fitted best to the subject (ethics in managerial
accounting issues) and also included 5 good examples examples of possible problems associated with the field. The method of the study seemed
unclear, especially considering the connection between the serial number of a dollar bill and the question to which the respondent had to answer in
the end (in my work I will constantly refer back to the text, and in the end there will be a link to the document for review), though the examples given
in the text seem to be really appropriate.
Here's the info about these 5 issues and the first one given: "The five issues selected for study all come from ... Show more content on Helpwriting.net ...
armed forces under cost–plus contracts. They note that if the manufacturer "could shift indirect costs away from (fixed–price) commercial customers
and to the cost–plus contracts," then the manufacturer would increase its revenues."
Maybe it's not the best example of ethical problem because it doesn't violate nor GAAP, neither any agreements with purchasers, but it's still a question
of ethics, especially some aspects of just price theory (it's a theory of ethics in economics that sets standards of fair transactions. It came from ancient
Greek philosophy, it was based on an argument against usury, which in that time referred to the making of any rate of interest on loans.) As for me, it's
not a real problem nowadays. Issue #3 looks like: "Issue #3: Estimating Equivalent Units
The third issue involves a misrepresentation about an estimate that has an impact on the reported profit. In slightly different contexts dealing with
budgeting situations, the studies mentioned earlier have shown that when a subordinate's information is used as a basis for his performance evaluation,
the subordinate has incentives to misrepresent information. This phenomenon is tested in Issue #3, which involves estimating the percentage of
completion of ending work in process inventory in a process costing situation. By overestimating the degree of completion, a

Significant Role Differences In Managerial Accounting And...
There are significant role differences when it comes to management accounting and financial accounting. Both types have important requirements and
expectations. Not one has more significance than the other because large businesses in particular have a need for both. Both types will be discussed
and then how managerial accounting will help to improve both operational and financial performance.
Management accounting is designed to be more of an internal control than an external control. What is meant by an internal control is managerial
accounting is designed more for a work center or specific department within a business. Reports are created to assist managers in determining what the
best path would be for their specified work area. The accountants that are focused in managerial accounting will be generating daily, weekly, and/or
monthly reports assisting the managers to gain insight on any changes that need to be made whether it's with employee hours to be used or pricing of
inventory for profits. The reports that are developed simply to help provide a pathway guiding the manager's decisions. Managerial accounting doesn't
simply apply to lower level management. Upper management will also use the reports from managerial accountants to identify if there are any trends in
sales whether up or down, budget requirements, consolidation reports, and any studies that may have been accomplished. The big difference between
managerial accounting and financial accounting is managerial

Managerial accounting concepts and principles
Chapter 16 Managerial accounting concepts and principles
1) Direct costs are identified with and can be traced to a cost object.
Indirect costs cannot be identified with or traced to a cost object.
2) Costs by function:
A) Product costs consist of manufacturing costs: direct materials, direct labor and factory overhead.
B) Period costs consist of selling and administrative expenses.
3) A) Prime costs which consist of direct materials and direct labor costs.
B) Conversion costs which consist of direct labor and factory overhead costs.
4) Materials inventory – consist costs of direct and indirect materials which have not entered the manufacturing process.
Work in process inventory – consist direct materials, direct labor and ... Show more content on Helpwriting.net ...
Variablecost includes only variable cost in cost of finished goods (product cost) and fixed cost in period cost.
2) Examples of Income statements for Absorption and variable costs
Absorption
Sales ............................... _________
Cost of goods sold:
Beginning inventory ................ __________
Add cost of goods manufactured .............. _____________
Goods available for sale ................. _____________
Less ending inventory ............... __________
Cost of goods sold ..................... __________
Gross margin .......................... ____________
Less selling and administrative expenses:
Variable selling and administrative ............. ____________
Fixed selling and administrative .............. __________ ___________
Net operation income .................. ___________
Variable
Sales ........................ __________

Less variable expenses:
Variable cost of goods sold:
Beginning inventory ...................... _______________
Add variable manufacturing costs................ __________________
Goods available for sale ......................... _________________
Less ending inventory

Sample Resume : Managerial Accounting
MASTERS IN PROFESSIONAL ACCOUNTANCY STUDENT NAME:Shilpa Thakran
STUDENT ID:17909848
UNIT NUMBER:530
REPORT:
MANAGERIAL ACCOUNTING
TUTOR NAME:CHEOW WING WONG
DUE DATE :September 12, 2014
TABLE OF CONTENT INTRODUCTION...........................................................................................3
1.0 PRODUCT COSTING..................................................................................4
1.1 JUST IN TIME APPROACH.....................................................................................4
1.2JUST IN TIME APPROACH IS DISTINCT FROM PRODUCT COSTING....................4
1.3 USES OF PRODUCT COSTING..................................................................................5
1–4 IMPORTANCE OF... Show more content on Helpwriting.net ...
Product costing emphasizes on cost allocation which incurred at the time of manufacturing to the final product and Just in time approach involves
ordering of material as per need and have no inventories at the end. Traditional costing based on manufacturing and assumptions. Activity based costing
is time consumable and is suitable for both manufacturing and non–manufacturing businesses.
If companies reports are showing less profit for most efficient products and more profit for the product the company is not efficient in making then
there is a need to adopt product costing.
The report also covers how managerial accounting and financial accounting differ and why managerial accounting cannot be replaced by financial
accounting. These branches of accounting differ in various ways like managerial accounting is more future–oriented while financial accounting based
on past records. Also, managerial accounting is made for internal users like managers while financial accounting focus more on external users.
The purpose of the report is mainly to through light on various aspects of managerial accounting like the uses and purpose of managerial accounting
and how its different approaches helps in increasing profits and controlling costs and wastages that incur during production. The company in the given

issue is not following product costing due to which the company has little influence over the product price and in a competitive environment

Managerial Accounting Testbank
Chapter 1 Introduction: The Role, History, and Direction of Management Accounting MULTIPLE CHOICE C1.One of the objectives of management
accounting is to provide a.stockholders and potential investors with useful information for decision making b.banks and other creditors with
information useful in making credit decisions c.management with information useful for planning and controlling operations d.the Internal Revenue
Service with information about taxable income p. 004 D2.Management accounting is concerned with which kind of decision? a.product costing and
pricing b.continuous operational improvement c.financial control d.all of the... Show more content on Helpwriting.net ...
c.The management accounting information system uses objective information; the financial accounting system uses subjective information. d.none of
the above p. 008 C17.Which of the following does NOT describe management accounting? a.internally focused b.emphasis on the future c.externally
focused d.detailed information p. 008 A18.When using information for internal purposes, management is more concerned with information that is
a.timely, relevant, and reliable b.completely objective and verifiable c.exclusively internally generated d.externally focused p. 008 B19.Financial
accounting is primarily concerned with providing information to all of the following EXCEPT a.creditors such as banks and other financial institutions
b.the management of the firm c.the Securities and Exchange Commission d.the stockholders of the company p. 008 B20.Publicly–traded companies
preparing financial accounting reports must follow the accounting procedures established by a.the SEC and the IRS b.the SEC and the FASB c.the IRS
and the FASB d.none of the above p. 008 C21.Historically, management accounting information has been

(1)
(1) – Managerial Accounting: The branch of accounting that focuses on information for internal decision makers of an organization. Management
accounting provides information to help managers plan and control operations as they lead the business. Managerial accounting help to calculate cost of
goods sold and cost of goods manufactured, helps in prepare budget and if you have the budget, you can compare between it and the accrual to make
variance analysis.
– In case study, helps you to determine cost for each product, the suitable selling price, the contribution margin, the perfect mix production, the profit
margin for each product. So, if you can determine the cost, you can decrease the cost, you can create competitive ... Show more content on
Helpwriting.net ...
: 180–60 : 200–140 30 : 120 : 60 Г— Г— Г— Sales Mix in Units: 3 : 2 : 1 ( = 6 ) Contribution margin Per Unit: 90 : 240 : 60 ( = 390 )
*Weighted–Average CM = 390/6 = 65$ BEP (Units) = Fixed Cost / Contribution Margin = 162,500 / 65 = 2,500 Units For Product A: 2,500 Г
— (3/6) =
1,250 Units for Product B: 2,500 Г— (2/6) = 833 Units for Product C: 2,500 Г— (1/6) = 417 Units
*Proof: A : B : C : Total Sales (1,250Г—60) : (833Г—180) : (417Г—200) 75,000 : 149,940 : 83,400 – Variable Cost (1,250Г—30) : (833Г—60) :
(417Г—140) 37,500 : 49,980 : 58,380 = Contribution Margin 37,500 : 99,960 : 25,020 :162,500 (ap.) – Fixed

Managerial Accounting Interview Paper
I interviewed a family friend who has several years of accounting experience under his belt, having done accounting for industries in the past such as the
oil industry, the food produce industry, and construction industry. During our conversation we went over a few of the techniques used in managerial
accounting. Such as budgeting, variances, cost volume product, and activity based costing.
We began the conversation of the interview on the topic of budgeting. Having done several different types ofbudgets in the past. He first started off
with explaining several of the operation budgets he had done throughout his career, estimating the possible expenses and revenues for the companies.
Another type of budget technique he performed were rolling ... Show more content on Helpwriting.net ...
He explained that cost volume products were used when a new product was introduced. He explained that during the process when trying to find the
cost volume product for a large corporation it was hard to allocate the fixed cost evenly. Generally he didn't focused on these type of accounting
techniques.
As for activity based costing, it identifies activities within an organization and assigns the cost of each activity. Only companies with a thin margins
focus on this managerial accounting technique. The company would have to be pretty cost conscience, to use activity based costing. The companies
he worked for didn't really use activity based costing, since their profits were decently large that they could take small hits financially. It was also a
time consuming effort for the accountants to do activity based accounting. Towards the end of the interview, he asked me to guess how Dell allocated
their manufacturing overhead. I told him I personally couldn't say, I had no clue. He told to me to think outside of the box, on the possible ways
manufacturing overhead could be allocated. He then went onto explaining how Dell during the assembly line, every time an employee came in contact
(touch) with the Dell product manufacturing overhead was allocated.
We then came to a close with the interview and I thanked him for his

Difference Between Managerial Accounting And Financial...
Alston Manufacturing has very unique products, but none of the various owners throughout this case place enough emphasis on the key success
factors to creating valuable products. These key factors are cost and efficiency, quality, time, and innovation (Datar, Horngren, & Rajan, 2012). The
original owners of Alston along with Jeff, the second owner, fail to place enough importance on the cost and efficiency of operations. Joe, who
purchased the right to produce a product Alston could not produce efficiently, also exhibited some of the same issues. To be specific, he failed to
realize the importance of cost, efficiency and the quality of his product as well. The case of Alston Manufacturing illustrates how damaging it can be to
a company when information presented does not remain true to the conceptual framework of accounting. This paper will discuss all of the various
owners, their key decisions, and how those decisions affected others. Before we discuss this in further detail, it is important to explain the difference
between managerial accounting and financial accounting, as both will be used explain information relevant to Alston. "Managerial accounting
measures, analyzes, and reports financial and nonfinancial information that helps managers make decisions to fulfill the goals of an organization."
(Datar, Horngren, & Rajan, 2012, p. 4) It is a type of accounting that helps managers decrease costs, improve processes, and increase profit. Financial
accounting's goal is much

Strengths And Weaknesses Of Managerial Accounting
Weaknesses
1.The raw materials may be removed from storeroom upon oral authorization from the production supervisor
2.Alden's practice of monthly physical inventory counts does not compensate for the lack of perpetual inventory system. The quantities of inventory at
hand and at month end may not be sufficient to last until the next month's count.
And if the company has taken this into consideration while establishing reorder levels, then it may be carrying too much investment on inventory.
3.The raw materials are being purchased at predetermined reorder level as well as and in predetermined quantities. However, demands on production
levels may vary during the year, and quantities of inventory ordered may either be too small or large for the current production demand levels.
4.The merchandises received are not inspected to certify quality. And since high–cost electronic components must usually meet certain specifications,
the inventory should be tested by quality control personnel to adequately certify the specification requirements before receiving into the storeroom.
5.The company has no receiving department, nor receiving report, and for proper separation of duties, the employee responsible for receiving should
have been separate from the storeroom personnel clerks.
6.Raw materials are purchased always from the same vendor.
7.The clerk in charge of accounts payable handles the purchasing function and at same time makes payment of all invoices. This does not justify

Difference between Financial and Managerial Accounting
The primary difference between financial and managerial accounting is that financial accounting is used for external members of the company; they do
not control or run the businesses' operations. An example of external members would be customers and shareholders of the business. On the other hand,
managerial accounting is used for internal members in the company such as managers and officers. The internal members use managerial accounting to
increase efficiency and effectiveness within their company. According to accounting4management.com, financial accounting and managerial
accounting have several differences, but they both depend on the same data.
A major difference between financial accounting and managerial accounting is their differing uses in regards to present and future data for
decision–making. Financial accountants prepare data from transactions that have already occurred and managerial accountants prepare statements in
regards to future decision making for their company. According to countingtools.com, the economy is always changing and not everything can be
predicted, therefore, managerial accounting could only be useful to a certain degree.
Another main difference between the two different styles of accounting is their relevance of information. Accounting4management.com states that
financial accounting mainly is concerned with data that is "objective and verifiable" where managerial accounting is concerned more with information
that is relevant to the

Managerial Accounting and the Business Environment
Prologue Managerial Accounting and the Business Environment Study Suggestions ( The prologue describes important aspects of the contemporary
business environment. While there are no written assignments, you should be familiar with the major ideas as background for your study of
managerial accounting. HIGHLIGHTS A.In many industries, a company that does not continually improve will find itself quickly overtaken by
competitors. The text discusses four major approaches to improvement–Just–In–Time (JIT), Total Quality Management (TQM), Process Reengineering,
and the Theory of Constraints (TOC). These approaches can be combined. B.The Just–In–Time (JIT) approach is based on the... Show more content on
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2.The Plan–Do–Check–Act (PDCA) Cycle is a systematic, fact–based approach to continuous improvement. Exhibit 1 in the text illustrates the PDCA
Cycle. a.In the Plan phase, the current process is studied, data are collected, and possible causes of the problem at hand are identified. A plan is
developed to deal with the problem. b.In the Do phase, the plan is implemented and data are collected. This is done on a small scale if possible since
at this point the team is rarely sure that the plan will work. c.In the Check phase, the data collected in the Do phase are analyzed to verify whether the
expected improvement actually occurred. d.In the Act phase, the plan is implemented on a large scale if it was successful. If the plan was not
successful, the cycle is started again with the Plan phase. 3.Perhaps the most important characteristics of TQM are that it empowers front–line workers
to solve problems and it focuses attention on solving problems rather than on finger pointing. F.Process Reengineering is a more radical approach to
improvement than TQM. It involves completely redesigning business processes and it is often implemented by outside consultants. 1.In Process
Reengineering, all of the steps in a business process are displayed as a flowchart. Many of the stops are often unnecessary and are called
non–value–added activities. 2.The process is then completely redesigned,

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