Skip to main contentOur WorkShowView Our WorkPower to the ProfessionFor FamiliesHigher EducationPublic Policy and AdvocacyGlobal EngagementResourcesShowView ResourcesBooksYoung ChildrenTeaching Young ChildrenProfessional DevelopmentTopicsBlogPosition StatementsEventsShowView EventsAnnual ConferenceProfessional Learning InstitutePublic Policy ForumWeek of the Young ChildSponsorTrainings & WebinarsAccreditationShowView AccreditationEarly Learning Program AccreditationEarly Learning Accreditation PortalHigher Education Quality Assurance SystemsGet InvolvedShowView Get InvolvedBecome a MemberAdvance your CareerBecome an AdvocateJoin our CommunitiesAlign with UsLeadership OpportunitiesAbout UsShowView About UsPeoplePartnerNews and UpdatesCareers at NAEYCDonateContact UsFacility Rental MenuSearch Running head: MANAGERIAL ACCOUNTING 1 MANAGERIAL ACCOUNTING 2 Financial account and managerial accounts involves career paths that are different. Financial accounting can be described as a combination of all accounting information into the financial statements which includes the statement of financial position, the income statement among other while managerial accounting is described as the processes which are internal which are useful in accounting for the business transactions. Financial accounts provide its report based on the result of the whole business while the managerial account is more detailed and could base its report on the product, profit, geographical region, or a customer. In relation the information used to develop a report, financial accounting uses proven information that can be produced as evidence while needed while managerial accounts mostly deals uses estimates which can neither be proven or verified (Weygandt, Kimmel, & Kieso, 2015,). The other notable difference is about the users of the two information where the financial is used both internally and externally by stakeholders such as managers and investors while reports in managerial accounting are used within the company for management purposes.it is a requirement that financial accounting reports to act in accordance with the accounting standard such as the generally accepted accounting principle ( GAAP) while in the case of managerial accounting the information compiled for internal consumption does not have to comply with any standards thus the reports could be informal. The training for the two types of accounting is also different as the financial accountants are trained as certified public accountants while the managerial accountants are trained as certified management accountants (Pistoni & Songini, 2017). The difference between these two can be explained in the following points: i. Aggregation: the financial accounting reports on the whole business results whereas managerial accounting provides a more detailed report on aspects such as product line, product profits and consumer base. ii. Efficiency: Financial accounting majorly reports of an organiz.

1. Skip to main contentOur WorkShowView Our WorkPower to the
ProfessionFor FamiliesHigher EducationPublic Policy and
AdvocacyGlobal EngagementResourcesShowView
ResourcesBooksYoung ChildrenTeaching Young
ChildrenProfessional DevelopmentTopicsBlogPosition
StatementsEventsShowView EventsAnnual
ConferenceProfessional Learning InstitutePublic Policy
ForumWeek of the Young ChildSponsorTrainings &
WebinarsAccreditationShowView AccreditationEarly Learning
Program AccreditationEarly Learning Accreditation
PortalHigher Education Quality Assurance SystemsGet
InvolvedShowView Get InvolvedBecome a MemberAdvance
your CareerBecome an AdvocateJoin our CommunitiesAlign
with UsLeadership OpportunitiesAbout UsShowView About
UsPeoplePartnerNews and UpdatesCareers at
NAEYCDonateContact UsFacility Rental
MenuSearch
Running head: MANAGERIAL ACCOUNTING
1
MANAGERIAL ACCOUNTING
2
Financial account and managerial accounts involves career
paths that are different. Financial accounting can be described
as a combination of all accounting information into the financial

2. statements which includes the statement of financial position,
the income statement among other while managerial accounting
is described as the processes which are internal which are useful
in accounting for the business transactions. Financial accounts
provide its report based on the result of the whole business
while the managerial account is more detailed and could base its
report on the product, profit, geographical region, or a
customer. In relation the information used to develop a report,
financial accounting uses proven information that can be
produced as evidence while needed while managerial accounts
mostly deals uses estimates which can neither be proven or
verified (Weygandt, Kimmel, & Kieso, 2015,).
The other notable difference is about the users of the two
information where the financial is used both internally and
externally by stakeholders such as managers and investors while
reports in managerial accounting are used within the company
for management purposes.it is a requirement that financial
accounting reports to act in accordance with the accounting
standard such as the generally accepted accounting principle (
GAAP) while in the case of managerial accounting the
information compiled for internal consumption does not have to
comply with any standards thus the reports could be informal.
The training for the two types of accounting is also different as
the financial accountants are trained as certified public
accountants while the managerial accountants are trained as
certified management accountants (Pistoni & Songini, 2017).
The difference between these two can be explained in the
following points:
i. Aggregation: the financial accounting reports on the whole
business results whereas managerial accounting provides a more
detailed report on aspects such as product line, product profits
and consumer base.
ii. Efficiency: Financial accounting majorly reports of an

3. organization's profitability as opposed to managerial accounting
that majorly reports on specific areas that show problems and
provides a solution on how to fix them.
iii. Proven Information: financial accounting demands that there
is precision in the maintenance of records that will provide
proof of the legitimacy of the financial statements whereas
managerial accounting records mainly happen with no order as
deals are made once the offer is on the table and does not
require facts to be proven.
iv. Reporting focus: Financial accounting is used in the
generation of financial statements whereas managerial
accounting is majorly used with estimates that a company can
only speculate.
v. Standards: financial accounting is required by law to adhere
to a certain number of accounting standards whereas managerial
accounting does not have any accounting standards that it has to
follow.
The financial accounting standards provide guidance in which
the accounting transactions are to be recorded and reported.
Examples of the financial accounting standard bodies include
the International Accounting Standard Board (IASB) and
Financial Accounting Standard Board (FASB) that give details
on aspects such as the general principles of financial
accounting, the presentation process, Assets and liabilities
covered in financial accounting, equity, revenue, expenses, and
Brad transactions.
In conclusion, managerial accounting focuses more on internal
process and is used for internal decision making while financial
accounting focuses on external matters and is used by external
stakeholders such as lenders and investors.
References:
Pistoni, A., & Songini, L. (2017). Strategic Managerial Control
for Servitization Strategy. Studies in Managerial and Financial

4. Accounting, 111-224. doi:10.1108/s1479-351220170000032003
Weygandt, J. J., Kimmel, P. D., & Kieso, D. E.
(2015). Financial & managerial accounting.
According to the given scenario, the actions taken by Jack were
effective since when accounting for accounting errors as per
ethics of the job, on should follow certain steps in order to
solve the following. He was right for he had to stick facts which
is following the given accounted reports to pin point where the
error is coming in. Additionally, he had to go through the report
and cross check all documented information on the applying
overhead costs to ensure he has evidence when he starts
handling the issues occurred. Therefore, the action taken by
Jackson of going by facts was appropriate (Garrison et al.,
2010).
Assuming that after Jackson approaching Brown was
unsuccessful, he has to come up with ethics steps applied in
accounting in order to help the situation in the business. The
following steps will help Jackson to solve the situation in the
organization.
· Collecting evidence
· Outlining the ethical problem
· Determining the obligations
· Determining the outcome
· Overlooking at his character and integrity
· Thinking creative on the possible deed
· Checking his guts
· Coming up with appropriate ethical decisions and be ready to
handle the opposing arguments
On realizing that even after approaching Jackson he was no
successful, he has to go by facts in way that he won’t rush for a
conclusion. Jackson has to ask himself various questions like
how, when, why and where did the problem arise in the
accounting process. Although, going by facts as an evidence

5. maybe challenging due to uncertainty always found within
ethical situations. For, instance, in case no available evidence,
Jackson has to gather as much evidence as possible before
proceeding in order to clarify the type of assumptions he might
be making.
It will not be of good for Jackson to rush to a solution without
determining the ethical challenges in the situation. He will have
to focus on various ethical situations one at a time to be able to
handle the issue at hand. At this moment, Jackson has to
determine both direct and indirect stakeholders and try to
consider how they affected by the problem that arose in the
managerial accounting.
It’s upon Jackson to think of the possible negative and positive
outcomes for the affected individuals by the decisions of what
will be the magnitude of the outcome and the possibility that the
outcome will take place. He has to consider both near and long
term outcomes. More so, he has to focus on the consequences if
the action becomes public concerning the situation experienced
in the organization. After, that he should determine relevant
rights, principles and justice on the same. Some of these
principles are that he should not harm and then formulate a
decision making that solely bases on the situation.
Before making up his mind on the issues, Jackson is supposed
to overlook at what his relevant society members would take the
decision, if it be kind decision from a person of integrity in
such situation. When it comes to coming up with the final
solution, he should ensure he hasn’t forced himself into
unnecessary corner. Having the solutions at hand, he should go
a mile and brainstorm in order to come up with an effective
solution that favors the parties engaged in the situation.
Therefore, to ensure whatever kind of decision he takes will be
of help to him and the affected stakeholders, Jackson will have
to ultimately overlook at the actions based on the outcomes,
personality and obligations concepts (Managerial Accounting,
2016).
Reference

6. Managerial Accounting: Creating Value in a Dynamic Business
Environment (Loose-Leaf) 11e (Hilton/Platt) McGraw-Hill
(2016) 9781259727016, Also available in Hardcover ISBN:
9781259569562
Garrison, R. H., Noreen, E. W., Brewer, P. C., & McGowan, A.
(2010). Managerial accounting. Issues in Accounting
Education, 25(4), 792-793.
A Certified Public Accountant is an accounting professional
which is committed to protecting the interests of the members
of the public. As far as their work is concerned, the Certified
Public Accountant provides the financial statement audits and
some other attestation services hence helping in ensuring that
the investors are informed on matters related to the financial
health of their businesses. Moreover, the Certified Public
Accountant provides different families with the required
knowledge and advice so as to enable them to plan their
finances in the best way possible. The families are again
advised on the taxes they pay in different platforms. (Hargadon,
2018)
The occupation is of importance to business because as they are
offered world taxes advisory services as well as financial
reporting services hence driving effective decisions to the
management of the business. This plays significant roles in
facilitating the success of the organizations because they are
able to experience growth in different sectors.
On the other hand, the Certified Management Accountant
(CMA) is a professional certificate which handles the matters of
both financial management fields and management accounting.
The study is carried out to equip the person with knowledge in
planning, analysis, control, decision support, and professional
ethics. As a result of Certified Management Accountant (CMA),
the person having the certificate is able to manage different
businesses in the best way possible as he has the required
knowledge and skills which ensure that the right activities are

7. carried out. The certificate is therefore provided in the Institute
of management accountants. (Cheng, 2018)
Moreover, the knowledge in this field of study helps in ensuring
that the businesses available in the market are managed in the
best way possible. This ensures that the obstacles experienced
by the businesses are handled in an effective manner hence
bring the success of the organization. The person is able to
analyze different activities, therefore, coming up with effective
decisions which enable the business to run in the right
direction.
As far as the differences between the Certified Management
Accountant (CMA) and the Certified Public Accountant are
concerned, it is true that the Certified Management Accountant
is more practical while the Certified Public Accountant is more
prestigious in nature. On the other hand, the Certified Public
Accountant deals with income taxes, audits and financial
reporting in different businesses. However, the certificate is
made to prepare the professionals for roles made to face the
customers in the business. The customer-facing roles range from
the private sector, small businesses and large business which
might be hard to manage the customers.
Again, the Certified Management Accountant (CMA) ensures
that the professionals work in large financial departments due to
the fact they are unable to face the customers in the business.
However, the professionals are subjected to both managerial and
executive roles hence leading the business to its success. The
knowledge acquired from the study enables the professionals to
run and manage different businesses in the best way possible.
Finally, the Certified Management Accountant (CMA) is used in
the managerial accounting in different business while the
Certified Public Accountant (CPA) is more applicable in the
financial accounting as the professionals are able to carry out
auditing exercises for the purposes of ensuring that the
businesses are run in the best way possible. (Looknauth, 2018)
References
i.Cheng, S., Hope, O. K., & Hu, D. (2018). Strategic

8. Entry Deterrence in the Audit Industry: Evidence from the
Merger of Professional Accounting Bodies.
ii. Hargadon, J. M., & Fuller, L. R. (2018). DUAL
CERTIFICATION: It's a Win-win! With this updated nine-step
program, highly motivated undergraduate accounting students
can pass the CMA examination before graduation and the CPA
exam within six months after graduation. Strategic
Finance, 99(9), 40-48.
iii. Looknauth, T., & Bélanger, C. H. (2018).
Accountants’ satisfaction following the unification of Canadian
accounting bodies. Journal of Accounting & Organizational
Change, 14(3), 250-272.
Activity based costing is a type of management accounting
design that identifies activities in an organization and highlight
cost of each activity to products and services in accordance to
the confirmed consumption of each.
Ethics refers to the way persons conduct themselves in relation
to thinking and behaviors which are governed by moral, legal
and personal standards in interpretation of what is right or
wrong. One of the obligations of the accounting profession is
adherence to the set rules and requirements. Professionals in
this field choose to abide by the rules to demonstrate fairness,
accountability, integrity, independence and objectivity,
competence and maintain trust from the public.
Is the controller, Erin Jackson acting ethically?
Erin Jackson is acting ethically in performing her duties.
Integrity demonstration calls for being honest and
straightforward in all profession relations. Morelli Electrical
Motor Corporation’s controller, Erin Jackson shows what
integrity demands from a profession. She is honest to her friend
Alan Tyler on the loss the company has been experiencing from
the deluxe model motor which he happens to be the production
manager. From their conversation, Erin is confident with the
report she has gotten and is ready to present it to the president

9. of the company despite Alan’s plead.
Trustworthiness in accounting requires any executive to be
candid and always put the business interest first. Personnel in
the field supply information to the relevant chain of authority
correcting the misinterpretation of facts. Erin Jackson has a
record of facts about the losses accrued from the deluxe motor.
She does not agree to be corrupted by Alan to edit the
information from her findings to hide the reality.
Is the production manager, Alan Tyler acting ethically?
Alan Tyler is not acting ethically. He lacks accountability in
his work. His line of control has continuously been making
losses which earlier had not been detected. Knowing he would
lose his job, he tries to convince Erin to “massage” the
information to protect him. Corruption by management leads to
the collapse of firms if not curbed in due time. Alan threats of
intimidation to Erin is a sign of a corrupt manager he is upset
with Erin and claims that the product costing was not done the
right way. According to him, the firm has been making profits,
and Erin’s data should not be relied upon.
Erin Jackson’s ethical obligations
Ethical obligations are set qualities that define acceptable
causes of actions and differentiate between right and wrong.
Erin Jackson is obligated to the president in the performance of
her job. She is ethically compelled to give all her effort in the
performance of her duties, and nothing compromises her loyalty
to the company. She does not need supervision to present the
right information. On the other hand, she maintains a
professional relationship with her friend Alan. She makes it
clear that she is supposed to report to the president and not her
friend. She opts to be truthful about her actions
Process costing companies are one of the companies well known
for their ability to handle homogenous goods. Again, the
companies take part in continuous processing for the purposes
of producing quality goods for the customers. On the other

10. hand, the process costing companies ensure that the costs
incurred are accumulated in different departments. The
accumulation of the costs in the departments makes it easy for
the companies to control the activities carried out for the
purposes of facilitating the success of the organization.
However, Chevron Corporation is one of the companies which
make an effective use of process costing as a way of ensuring
that the set goals are achieved within the stipulated time. The
company is among the well know companies handling the
petroleum product in the United States. (Kelly, 2018)
For the success of the company to be achieved, the management
has come up with different strategies in which the labor, the
materials, and the overhead costs are accumulated for the entire
production process. The accumulations of the costs in the entire
production process are allocated to the individual production
units hence enabling the management to control the production
processes accordingly. For the production processes to be
carried out in the best way possible, the leaders in each
department are required to record the rates of production in a
production worksheet hence evaluating the manner in which the
production processes are carried out.
The company has been ranked among the best producers of
petroleum products in the United States. As a result, the
company has been recording high amounts of profits hence
facilitating the motivation of the employees. Moreover, the
success of the company is brought about by the ability of the
management to come up with strategies of ensuring that
different incentives are given to the employees. Again, the high
rates of production by Chevron Corporation is facilitated by the
ability of the management to reward the best performing team as
a way of forcing the other least performing teams to increase
their rates of production. (Popat, 2018)
The company’s capital spending on the matters of developments
and explorations is on 1.7 million net acres of shale and other
resources. In the year 2017, Chevron Corporation took part in
57 nonoperated well hence ensuring that the rates of production

11. are increased. This has played significant roles in ensuring that
the needs of the customers in the market are addressed in an
effective manner, therefore, increasing the number of sales
made within a given period of time. In the 57 nonoperated
wells, 5 of the nonoperated rigs are active all years, therefore,
making it easy for the company to achieve the set targets as far
as the production is concerned.
In 2017, Chevron Corporation was able to record revenue of
more than 141,722 million USD. Again, the company was able
to make a net income of $9,195 million and price per share of
$106.33 million in the same year. In the previous year, the
company recorded $114,472 million revenue. In 2011, Chevron
Corporation is said to have made earnings of $26.9 billion and
annual revenue of $ 257.3 billion. The success of the company
is brought about by the manner in which the employees are
engaged for the purposes of ensuring that they share production
ideas. This has enabled the company to be ranked among the top
companies in the Fortune 500 rankings of the United States
Corporations. (Webster, 2018)
References
Kelly, M., & Shoemaker, N. (2018). Closing Pandora's Box:
Reducing Student Confusion with a Process Costing
Simulation. Journal of Accounting and Finance, 18(7), 56-61.
Popat, K., Gracia, K. A., Guzman, A. B., & Feeley, T. W.
(2018). Using Time-Driven Activity-Based Costing to Model
the Costs of Various Process-Improvement Strategies in Acute
Pain Management. Journal of Healthcare Management, 63(4),
e76-e85.
CHEVRON INCORPORATION COST BEHAVIOR:
Chevron Incorporation is a multinational American based
energy producer. Its main products include a dynamic
production of natural gas, oil, geothermal energy. Other
alternatives products are biofuels, hydrogen, solar, wind power,
as well as fuel cells. According to the review of the business

12. operations and products in the organization, the company incurs
several costs. These are the operational costs, increment costs,
taxation costs, value added costs, and repair and maintenance
costs. This paper would discuss these costs and the appropriate
cost behaviors.
First, Chevron Inc. being one of the largest energy production
organization is at risk of incurring various operational costs
refers to costs that can be associated with administration and
maintenance of day to day business in the company. The main
operational cost for the company is the maintenance of salaries
for large and diverse employees. The company has over 62,000
employees. The organization also run massive projects in its
operational countries — for instance, the Gorgon Gas Project in
Australia which cost the company $43 billion. With the
operational cost, the viable cost behavior would be a variable
cost due to its fluctuating significance. For instance, the
operational costs keep changing over the entire time and depend
on the economy of a relevant country. For Chevron Inc. its
operations in various countries provide a scattered diagram
variable that is depended on changes in units. For instance, the
company requires new machines, additional employees, and new
market entry in a new country, among other factors. Overtime
for employees can also be used. Therefore, there is a significant
relationship between fixed and variable costs of operation in
Chevron (Chevron. Inc, 2019).
Secondly, the company might incur a marginal cost which can
also be referred to as an incremental cost which Chevron incurs
due to the sale of additional products. Being an energy
production company, apart from production of the main
products such as geothermal energy, oil, and such related
products, the company increases its costs due to manufacture of
other additives such as hydrogen gas produced during the
manufacturing process, fuel cells, solar generated as the
operations launch thermal solar-steam, among other products.
Being an additional costs, the cost behavior, in this case,
changes to mixed costs behavior since they are not expected.

13. Graphically, this case is plotted as trough scattered diagram or
least-square regression due to its different units.
Payment of taxes is another relevant costs that the company
incurs in its daily operations. The cost behavior for this is
mixed cost behavior also referred to as semi-variable costs. The
company pays various taxes in different countries differing and
depending on the economy of the country. Taxes might vary or
remain constant thus explaining the mixed variance occurrence
(Chevron.com, 2019).
One of the most outstanding strengths of the company is its
investment in research and development. Chevron Inc. has
invested heavily in research, mainly in new market entry,
minimizing biofuel accidents, the safety of the people and
staying relevant in the market. Through this cost, the
organization uses step cost behavior. Step cost behavior refers
to costs that are incurred for a short range of activities. The cost
is incurred in steps since the management determines the means
and effective mechanisms of cost-effectiveness. For example,
the cost for research is short structured, only implemented when
change is required or a need is identified.
In conclusion, Chevron Incorporation runs a massive operation
across the world in energy production. The company incurs
certain costs such as operational, labor, management and
maintenance of the machinery, among others. These costs have
been associated with various cost behaviors such as fixed,
variable, step, as well as mixed cost behaviors.
References
Chevron. Inc. (2019, February 20). products and services.
Retrieved from Chevron Incorporation:
https://www.chevron.com/operations/products-services
Chevron.com. (2019, February 20). Operations. Retrieved from
Chevron.com: https://www.chevron.com/operations