Of the managerial accounting topics learned this semester, cost-volume-profit (CVP) analysis and standard cost accounting are most useful for careers. CVP helps with decisions like break-even point, make or buy choices, order acceptance, relevant costs, opportunity costs, and optimal product mix. The standard cost system identifies issues with work center performance so management can take quick action to address problems.

1. Of all of the managerial accounting topics that you learned about this semester, which one(s) do
you think you might use in your career? Why is this important, and how do you see using this
managerial accounting information? Participate in discussion by providing suggestions for other
uses of managerial accounting information or by asking questions regarding classmates
Solution
Most important aspect of managerial accounting is Cost Volume Profit analysis and standard
cost accounting system.
CVP is much important while deciding a firms breake even sales, making decision regarding
make or buy, accepting or rejecting an order, relevent cost, Opportunity cost, finding out
profitable product mix, Optimal use of scarce resources, etc.
Standard Cost accounting system on the other indicates the problems areas where performance of
a certain work center lacks, accordingly management can take immediate action.