(1)

(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 × × × 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 × (3/6) = 1,250 Units for
Product B: 2,500 × (2/6) = 833 Units for Product C: 2,500 × (1/6) = 417 Units
*Proof: A : B : C : Total Sales (1,250×60) : (833×180) : (417×200) 75,000 : 149,940 : 83,400 –
Variable Cost (1,250×30) : (833×60) : (417×140) 37,500 : 49,980 : 58,380 = Contribution Margin
37,500 : 99,960 : 25,020 :162,500 (ap.) – Fixed
... Get more on HelpWriting.net ...

Managerial Accounting Testbank
Chapter 1 Introduction: The Role, History, and Direction of Management Accounting MULTIPLE
CHOICE C 1. 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 D 2. 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 C 17. 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 A 18. 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
B 19. 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 B 20. 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 C 21. Historically, management accounting information has been

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 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

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
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

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 Information 3 1.1 Contact Information and
Communications 3 1.2 Course Description 3 1.3 Learning Outcomes 3 Identification of
Course/Reading Materials 3 2.1 Text and Materials 3 2.2 Internet Access 4 2.4 Web–CT / Open
Campus 5 2.5 Log on Instructions 5 Course Requirements 5 3.1 Class Calendar (Due Dates and
Testing Schedule) 5 3.2 Assignments / Homework 5 3.3 Chapter Assignments 6 3.4 Readings 6 3.5
Chapter Quizzes 6 3.6 Tests 6 3.7 Final Exam 6 Instructor Policies 7 4.1 Chapter ... Show more
* "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 2.4
Web–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

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 accountants and 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

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
Case 4–32 Breakeven for individual products in a multiproduct company: The overall break–even
sales can be determined using the CM ratio. Velcro Metal Nylon Total Sales 165,000 $ 300,000 $
340,000 $ 805,000 $ Variable expenses 125,000 $ 140,000 $ 100,000 $ 365,000 $ Contribution
margin 40,000 $ 160,000 $ 240,000 $ 440,000 $ Fixed expenses 400,000 Net operating income
40,000 $ 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 Dark Viet Select Number of purchase orders 80,000
pounds ÷ 20,000 pounds per order 4 orders 4,000 pounds ÷ 500 pounds per order 8 orders Number
of batches 80,000 pounds ÷ 5,000 pounds per batch 16 batches 4,000 pounds ÷ 500 pounds per
batch 8 batches Number of setups 16 batches × 2 setups per batch 32 setups 8 batches × 2 setups per
batch 16 setups Roasting hours 80,000 pounds × 1.5 roasting hours per 100 pounds 1,200 roasting
hours 4,000 pounds × 1.5 roasting hours per 100 pounds 60 roasting hours Blending hours 80,000
pounds × 0.5 blending hours per 100 pounds 400 blending hours 4,000 pounds × 0.5 blending hours
per 100 pounds 20 blending hours Packaging hours 80,000 pounds × 0.3 packaging hours per 100
pounds 240 packaging hours 4,000 pounds × 0.3 packaging hours per 100 pounds 12 packaging
hours Using the activity figures, manufacturing overhead costs can be assigned to the two products
as follows: Kenya Dark Activity Rate Expected Activity Amount Purchasing 280 per order 4 orders
1,120 $ Material handling 193 per setup 32 setups 6,176 $ Quality control 180 per batch 16 batches
2,880 $ Roasting 11 per roasting hour 1,200 roasting hours 13,200 $ Blending 6 per blending hour
400 blending hours 2,400 $ Packaging 5 per packaging hour 240 packaging hours 1,200 $ Total
overhead cost 26,976 $ Viet Select Activity Rate Expected

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

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 ... Show more content on Helpwriting.net ...
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

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

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 entry DEBIT CREDIT a Raw Materials Inventory $190000 Accounts Payable
$190000
1.b
b Work 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.
e Work 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

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

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
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

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

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

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

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

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
(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:
Velcro Metal Nylon Total
Sales $165,000 $300,000 $340,000 $805,000
Percentage of total sales 20.497% 37.267% 42.236% 100.0%
Allocated common fixed expense* $49,193 $ 89,441 $101,366 $240,000
Product fixed expenses 20,000 80,000 60,000 160,000
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) ÷ (b) 172,983 211,801 268,943
*Total common fixed expense × 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.
Velcro Metal Nylon
Normal annual sales volume 100,000 200,000 400,000
"Break–even" annual sales 172,983 211,801 268,943

"Strategic" decision drop drop retain
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

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 ...
Variable cost 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

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

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

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

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

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 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 of budgets 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

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
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 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
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

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
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

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

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 Helpwriting.net ...
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,

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.

1. Basic Concepts
Product cost = Direct Labor (DL) + Direct Materials (DM) + Manufacturing Overhead (MOH)
Financial accounting Managerial 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 Customer vs Low Profit Customers
– Low attention needed High attention needed
– Don't require customer service Lots of customer service
– No on–site support On–site support needed
– Bulk order Small orders
– Pay cask Pay on credit
– Repeat customers One–time customers
– Standard products High–customization
– Standard price

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

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

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

(1)

Recommended

Recommended

More Related Content

More from Traci Webb

More from Traci Webb (20)

Recently uploaded

Recently uploaded (20)

(1)