Managerial Accounting Is A Discipline Within The Accounting

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

Accounting : The Accounting System
Kyana Campbell
Debora Constable
Accounting 2101
April 6, 2015
The Accounting System
Dear Mr. Smith,
Accounting is a subject that it is very hard to grasp, if I say so myself. In order to run a successful
and confident business, accounting is very necessary. Fortunately im here to help make your
business and understanding of the accounting system as easy as possible. There are a number of
benefits for companies that create and maintain an accounting system. All businesses are involved in
three different types of activity. These three activities are financing, investing, and operating. The
accounting information system keeps track of the results of each of these business activities.
Maintaining these accounting systems are very helpful to ... Show more content on Helpwriting.net
...
Having an accounting system it plays such a big role in the decision being made in your business.
The accounting system helps you form a financial analysis, which is what helps to show your
business growth, profit and cash flow. Having these thing helps you to gage where your current
financial condition stands and also to guide you towards the next step you need to take in your
business.
The accounting system has a basic structure that consist of three things: assets, liabilities, and
stockholder's equity. The basic equation of accounting is that assets equal liabilities plus
stockholder's equity. An asset is what you own such as cash which is an economic resource.
Anything tangible or intangible that is capable of being owned or controlled to produce value and
that is held to have positive economic value is considered an asset. A liability is what you owe.
Obligations of the company and amounts owed to creditors for a past transaction are liabilities. On a
list of accounts titles ending in "payable" are usually liabilities. Stockholder's equity is what
something is worth. It represents the interest of a company 's shareholders in the net assets of the
company.
There are four basic financial statements in accounting. The balance sheet, the income statement,
retained earnings statement, and the statement of cash flows. The balance sheet is what reports
assets and claims to assets at a specific point in time. It identifies the basic equation of accounting,

In The World Of Accounting, Cost Accounting Serves As...
In the world of accounting, cost accounting serves as managers go to system for cost information.
As previously mentioned, cost accounting is a specialized subset of accounting that collects,
determines, classifies, and interpret the cost of products or services. In addition, the concepts of cost
accounting are to account for the incurrence and control of cost and measure the operating efficiency
of a company on a periodical basis. "Cost accounting, as defined here, deals with the rest when, and
if, such measurement helps management drive the organization to work better and cost less."
(Geiger, 1995, pg. ).
Hence, cost accounting provides management with substantial, compelling, and relevant data that
they can use to make firm and ... Show more content on Helpwriting.net ...
The primary methods of cost accounting include activity–based costing (ABC), performance
measures method, and the standard accounting method and each method involves different
processes, measurement capabilities, cost benefits, and potential costing issues, companies
experience.
Activity–based costing (ABC) Method
While analyzing how companies within the service industry utilize activity–based cost (ABC), Onat,
Anitsal, & Anitsal, (2014), stated that "Activity–based costing (ABC) focuses on the idea that
activities create costs, while products use activities to gain value added." (pg. 150). In general, this
means that the theory behind activity–based costing (ABC) method is that merchandises or services
consume activities and activities consume resources. When used, activity based costing first
recognizes key activities that create overhead costs. Secondly, the activities that have similar cost
drivers are then categorized into cost pools, and finally allocates the total overhead costs for
products and services by computing absorption rate of each cost pool, respectively. Some issues
associated with activity–based costing (ABC) is that it is expensive to implement and data can easily
be misrepresented. One of the critical issue company encounter while utilizing the activity–based
costing method is that it is difficult to separate some overhead costs the CEO of the company

Cost Accounting
Chapter 1
Basic Cost Concepts
Learning Objectives
To understand the meaning of different costing terms to understand different costing methods
To have a basic idea of different costing techniques
To understand the meaning of cost sheet
In order to determine and take a dispassionate view about what lies beneath the surface of
accounting figures, a financial analyst has to make use of different management accounting
techniques. Cost techniques have a precedence over the other techniques since accounting treatment
of cost is often both complex and financially significant. For example, if a firm proposes to increase
its output by 10%, is it reasonable to expect total cost to increase by less than 10%, exactly 10% or
... Show more content on Helpwriting.net ...
are also given due consideration by management before deciding upon the price but the cost plays a
dominating role.
Determining and Controlling Efficiency
Cost accounting involves a study of various operations used in manufacturing a product or providing
a service. The study facilitates measuring the efficiency of an organization as a whole or
department–wise as well as devising means of increasing efficiency.
Cost accounting also uses a number of methods, e.g., budgetary control, standard costing etc. for
controlling costs. Each item viz. materials, labour and expenses is budgeted at the commencement
of a period and actual expenses incurred are compared with budget. This greatly increases the
operating efficiency of an enterprise.
Facilitating Preparation of Financial and Other Statements
The third objective of cost accounting is to produce statements whenever is required by
management. The financial statements are prepared under financial accounting generally once a year
or half–year and are spaced too far with respect to time to meet the needs of management. In order
to operate a business at a high level of efficiency, it is essential for management to have a frequent
review of production, sales and operating results. Cost accounting provides daily, weekly or monthly

volumes of units produced and accumulated costs with appropriate analysis. A developed cost
accounting system provides immediate information regarding stock of raw

Differences Of Cost Accounting And The Advantage Of...
Differences of Cost Accounting and the Advantage of Activity Based Accounting
Cost and management accounting is an integral element in preparation of an entity's financial
reports. Cost accounting consists of various branches, including; job and process costing, absorption
costing, traditional costing and activity based costing. An efficient costing system allows managers
and other users of financial reports to make decisions to better the company, in reducing and
streamlining costs, to improve overall profits. The way in which managers achieve this can be a
rigorous and time consuming task, however, if a costing system can be perfected, productivity and
general cost reduction can be achieved and an overall more efficient operation of the business will
ensue. This essay will critically discuss factors in which a business consider in deciding on a costing
system to implement and operate when establishing a costing system. In this article I will describe
the different methods of costing, explain why I believe activity based costing is the most efficient
method, and provide a real world example to support my claim.
A costing system, by definition:"Costing system is that system in which we calculate different costs
with different methods and also monitor cost for reducing wastage and misuse of resources."
(SVtuition.org, 2014) A costing system is made up of different elements which best suits a
company's operations. They have many elements that can be meshed into one

Management Accounting
Running Head: MANAGEMENT ACCOUNTING
The Management Accountant in Business
[Name of the Writer]
[Name of the Institution]
The Management Accountant in Business
Introduction
Tesco Public Limited Company is a merchandising retailer and a grocery retailer multinational chain
which has it's headquarter in Cheshunt in the United Kingdom. Tesco as compared to its
counterparts, Walmart and Carrefour, is the world's third largest retail store with regard to the
revenues that it generates. Tesco stands as the second largest retail stores of the world with regard to
its profits, with Walmart being the first. Tesco has its retail stores spread across almost 14 countries
of the world of Asia, North America and Europe. Tesco public limited company is ... Show more
The research center facilitates the identification of the research areas and the areas of concern in the
profit centers. The customer feedback collected enables Tesco to make changes to the business
processes so that they better meet the customer needs.
Tesco also works closely with its suppliers to develop the best brands and also bring in a variety of
offers for the customers. Tesco works with a number of suppliers including the FMCG companies
and the local suppliers providing goods for the regional retail stores.
Management Accounting Functions at Tesco
Management Accounting is distinguished from Financial Accounting as being an accounting
constituent that is concerned with the measurement, analysis and the reporting of information
regarding the financial and non–financial operations of the business, and taking decisions which are
necessary for the attainment of goals of the organization (Bhimani & Langfield, 2007).
Management accounting is concerned with the attainment of organizational goals and for serving the
strategies of the organization (Durden, n.d, p. 2). Hence, management accounting is concerned with
the accounting information which is intended to be used within the organization and for the
achievement of the goals of the organization. Management accounting is used in organizations to
make decisions regarding the competitiveness of the business by the collection, processing, and the
communication of the information which will hence

Accounting
The basic principles of an accounting information system include all of the following except | | |
Student Answer: | | cost effectiveness. (Cost effectiveness is one of the basic principles of
accounting information systems.) | | | | flexibility. (Flexibility is one of the basic principles of
accounting information systems.) | | | | useful output. (Useful output is one of the basic principles of
accounting information systems.) | | | | periodicity. (Correct! Periodicity is not one of the basic
principles of accounting information systems.) | | | | Points Received: | 1 of 1 | | Comments: | | | |
2. | Question : | All of the following statements are true except | | | Student ... Show more content on
Helpwriting.net ...
| Question : | Two accounts with subsidiary ledgers are | | | Student Answer: | | accounts receivable
and cash receipts. (Accounts receivable has a subsidiary ledger, but cash receipts do not.) | | | |
accounts payable and cash payments. (Accounts payable has a subsidiary ledger, but cash payments
do not.) | | | | accounts receivable and accounts payable. (Correct! Accounts receivable and accounts
payable both have subsidiary ledgers.) | | | | sales and cost of goods sold. (Sales or cost of goods sold
do not have subsidiary ledgers.) | | | | Points Received: | (not graded) | | Comments: | | | |
7. | Question : | Cash sales of merchandise are recorded in the | | | Student Answer: | | cash payments
journal. (This journal is used to record cash flowing out, not flowing in ("Cash Payments Journal").)
| | | | cash receipts journal. (Correct! Cash sales of merchandise go in the cash receipts journal
("Sales Journal").) | | | | general journal. (The general journal is used for all transactions that do not
get recorded in one of the special journals ("Special Journals").) | | | | sales journal. (Sales on
account, not cash sales, are recorded in the sales journal ("Sales Journal").) | | | | Points Received: |
(not

Accounting
Question 1: * Proficient–level: * There are several important functions performed in an
organization, among which accounting is one of them. Define the accounting function and discuss
how it differs from double–entry bookkeeping. Answer: According to the Dictionary of Accounting
Terms, Accounting is defined as a one step process of recording, measuring, interpreting and
communicating financial data by preparing financial statements in order to reflect financial
condition and operating performance whereas Double–entry bookkeeping is the record of
transactions that require entries in at least two accounts. * What types of information are critical to
the performance of the accounting function in an organization? ... Show more content on
Helpwriting.net ...
* Distinguished–level: * For each of the selected opportunities, state the education and certification
requirements necessary to be considered for employment. Answer: CPA – CPA's need to pass an
exam prepared and graded by the American Institute of Certified Public Accountants (AICPA). They
must also meet other requirements such as obtaining a state license and may vary from state to state.
CMA's are management accountants that pass an exam prepared and graded by the ICMA and also
meet other requirements. Other management accountants can become a CIA and do internal audits
and must complete the IIA exam given by the Institute of Internal Auditors or IIA. Many CPA's
work in governmental accounting and they have essentially the same educational background as
accountants in public accounting and management accounting. For academic accounting it is
essentially the same testing and qualifications for CPA's but the accountants work for a two year or
four year university. Question 3: * Proficient–level: * The field of accounting can be divided into
two distinct, but sometimes overlapping categories. Describe the similarities and differences
between the two categories and provide examples of the users of each type of data that are the result
of the work in each category. Answer: The two categories are financial accounting and managerial
accounting. For financial accounting, information appears in financial statements that are

Differences Between Management Accounting and Financial...
MIDDLESEX UNIVERSITY 2008/2009 MODULE NUMBER ACC1130 MODULE TITLE
Introduction to Managerial Finance Coursework 1 STUDENT NAME ................................
STUDENT NO: ................................. SEMINAR TUTOR ................................. Introduction
Accounting is concerned with providing both financial and non–financial information that will help
decision makers to make good decisions. An understanding of accounting therefore requires an
understanding of the decision making process and an awareness of the users of accounting
information. The major purposes of accounting are to formulate overall strategies and long–run
plans. Resource allocation decisions such as product, pricing and customer emphasis. Cost planning
and control of ... Show more content on Helpwriting.net ...
[7] Functions of Management Accounting Management accountants contribute to the company's
decisions about strategy, planning, and control, by scorekeeping, attention directing and problem
solving.[8] Scorekeeping: It refers to the accumulation of data and the reporting of reliable results to
all levels of management. Examples of scorekeeping are the recording of actual revenues and
purchases relative to budgeted amounts.[9] Attention Directing: Helping managers focus on
opportunities and problems. Attention directing means getting managers to focus on all
opportunities that would add value to the company and not to focus only on cost reduction
opportunities. An example is highlighting rapidly growing markets where the company may be
under funding its investment. [10] Problem Solving: It refers to the comparative analysis undertaken
to identify the best alternatives in relation to the organisation's goals. An example is comparing the
financial advantages of leasing a fleet of motorcycles rather than owning those motorcycles.[11]
Different decisions place different emphasis on these three roles. For strategic decisions and
planning decisions, the problem solving role is most prominent. For control decisions (which
include both actions to implement planning decisions and decisions about performance evaluation),
the scorekeeping and attention keeping and attention directing roles are most prominent because
they provide feedback to

Managerial Accounting
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

Management in business and human organization activity, in simple terms means the act of getting
people together to accomplish desired goals. Management comprises planning, organizing, –
>resourcing, leading or directing, and controlling an organization (a group of one or more people or
entities) or effort for the purpose of accomplishing a goal. Resourcing encompasses the deployment
and manipulation of human resources, financial resources, technological resources, and natural
resources. Management can also refer to the person or people who perform the act(s) of
management. Basic functions of management Management operates through various functions,
often classified as planning, organizing, leading/motivating and controlling. ... Show more content
on Helpwriting.net ...
innovative management accounting practices In the late 1980s, accounting practitioners and
educators were heavily criticized on the grounds that management accounting practices (and, even
more so, the curriculum taught to accounting students) had changed little over the preceding 60
years, despite radical changes in the business environment. Professional accounting institutes,
perhaps fearing that management accountants would increasingly be seen as superfluous in business
organizations, subsequently devoted considerable resources to the development of a more innovative
skills set for management accountants. The distinction between 'traditional' and 'innovative'
management accounting practices can be illustrated by reference to cost control techniques. Cost
accounting is a central method in management accounting, and traditionally, management
accountants' principal technique was variance analysis, which is a systematic approach to the
comparison of the actual and budgeted costs of the raw materials and labor used during a production
period. While some form of variance analysis is still used by most manufacturing firms, it nowadays
tends to be

Eco Accounting
Treatment of Consolidated Environmental Accounting
The business activities of companies and other organizations in the modern socio–economic system
have expanded in scale, diversified, and become globalized to a degree not experienced previously.
A great number of companies have been established corresponding to each purpose, and group
management is practiced.
In a group management system, the independent decision–making ability of group companies is
limited. At the same time, the primary objective becomes management of the group, limiting the
environmental impact of the holding company itself, which essentially consigns functions such as
production, sales, and distribution. In such cases it becomes difficult to perceive the actual ... Show
more content on Helpwriting.net ...
(1) Aggregation of Environmental Conservation Cost
The double booking of environmental conservation cost through internal transactions conducted
among members of the same business group should be eliminated to the greatest extent possible.
(2) Calculation of Environmental Conservation Benefit
In principle, the environmental conservation benefit calculated for each member of the same
business group is to be combined. Benefit clearly double booked is to be eliminated.
(3) Calculation of Economic Benefit Associated with Environmental Conservation Activities
In principle, the economic benefit calculated for each member of the same business group is to be
combined. Benefit clearly double booked is to be eliminated.
Treatment of Equity Ratio in Aggregation
Methods for aggregating the environmental accounting data for related companies include
aggregating the total or gross amount, or aggregating amounts or volume multiplied by the equity
ratio of each related company.
Disclosure of Environmental Accounting Information
The Guidelines recommend the voluntary disclosure of environmental accounting information from
the standpoint of the external functions of environmental accounting, by means of the environmental
report.
While the Guidelines provide consideration of a simple approach

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

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

Accounting
Campbellsville University
School of Business and Economics
SYLLABUS
Course Title: ACC 601 Managerial Accounting
Semester/Dates: Graduate Term 1: August 29, 2011 – October 23, 2011 (Traditional MBA)
Meetings: Thursday (6:00 PM – 10:00 PM), AD 25
Faculty: Dr. Sunny Onyiri Office: AD 29–b Phone: (502) 365 4424 Email:
soonyiri@campbellsville.edu Office Hours: Posted
Required Materials: Textbook: Noreen/Brewer/Garrison. Managerial Accounting for Managers,
With Connect ... Show more content on Helpwriting.net ...
Course Overview: A manager needs a general understanding of accounting which is the process of
recording, classifying, reporting and interpreting the financial data of an organization. Discussion,
case examples and analysis of double–entry bookkeeping techniques lead to a foundation for
analysis of basic financial statements. Managerial accounting concepts then provide the analytical
tools necessary for day–to–day management of the business enterprise. Ideally, the student will learn
how to evaluate current accounting information and how to make the accounting system a better
contributor to the management process.
A continuation of Accounting Principles I & II, Managerial Accounting concentrates on the
development and analysis of accounting information for managerial planning and control. Looking
at the accounting information needs inside a company, this course covers the concepts of cost
accumulation, cost behavior patterns, cost–volume–profit relationships, profit planning, budgeting,
pricing decisions and capital decisions. Students completing this course are expected to be able to
differentiate between financial and managerial accounting and apply managerial accounting
concepts to internal financial decision making scenarios. In addition to learning about accounting
information, students will be expected to perfect their learning, thinking, communication and
teamwork skills.
KEY MANAGERIAL ACCOUNTING TOPICS

Ethics in Accounting
Ethics in Accounting
By
Pace University – New York
Accounting for Decision Making, MBA 640
Fall 2011
Required Research Paper
Page 1 of 11
Table of Contents
Number Content Page Number
1 Introduction 3
2 Ethics in Accounting 4 3 Enron Scandal 6
4 Satyam Scandal 8
5 Conclusion 10
6 References 11
Page 2 of 11
Introduction
What is "Ethics"?
Ethics, also known as moral philosophy, is a branch of philosophy that addresses questions about
morality–that is, concepts such as good and evil, right and wrong, virtue and vice, justice and crime,
etc.
Source: http://en.wikipedia.org/wiki/Ethics
What is "Accounting"?
Accounting is basically maintaining and providing ... Show more content on Helpwriting.net ...
Governments loses great amount of taxes and investors lose their hard earned money which they
invest in a firm to get benefits and profits in the future.
Accounting associations around the world are coming up with strict rules and guidelines to prevent

accounting frauds. They suggest internal audits and controls to prevent any fraud or unethical
behavior by a firm's employees and higher authorities.
The Enron scandal in USA and Satyam scandal in India are considered to be one of the most noted
scams.
Source: http://www.top–term–paper–sites.com/essays/ethics–of–accounting.html
Page 5 of 11
ENRON Scandal
ENRON was a multinational company founded in 1985 in Omaha, Nebraska in USA. It was mainly
an energy company that was also into petro–chemicals, plastics etc. Merger of two companies,
namely, Houston Natural Gas and InterNorth Inc. formed ENRON. Soon after the merger ENRON
became the ace of Natural Gas Industry. It spread its operations across the globe including India.
Though in India, it failed due to political issues, but ENRON succeeded great in USA.
The ENRON scandal is considered to be one of the most notorious scams in the history of USA. It
shocked the USA and world. So, what did ENRON do? ENRON got deregulated by the government
because ENRON showed fake and inflated accounts. It mislead its investors and employees. By
misrepresenting earnings

Accounting Analysis On Management Accounting Essay
Management Accounting Introduction: Management accounting technique is the procedure of
understanding, analyzing, exam, calculating, deciphers, and transfers the verbal data to chase of
company objectives. The section of bookkeeping is called as cost accounting. The difference
between the financial and managerial bookkeeping data is the goal at assist the administrators inside
the corporation to create choice as per their situations. Even as economic bookkeeping is intended at
giving data to gathering inside the company. (Klinowski, Marcin, 2015) Management accounting
consists the types also idea for effectual preparation, selecting with change company proceedings,
also organize during the interpretation and assessment characteristics. Definition of Management
Accounting: Management Accounting might be indicated as "the appearance of bookkeeping data
instance a path while to help the organization in the formation of the strategy and everyday process
of responsibility." (López & Lavia, 2015) Anglo American states that "Management Accounting is
facilitating a company towards be behavior more competence could be observed as management
accounting." (Busco, Cristiano, 2015) Aim of Management Accounting: The fundamental aim of
Management Accounting it to help the administration in transferring exhaust the responsibilities
effectively. The gathering of arrangements and spending plans conceal all parts of the company.
(Gerard, Joseph A, 2015) Such as, creation, offering,

Pastel Accounting Software: Advantages And Disadvantages...
2. LITERATURE REVIEW
This literature review offers a commentary on what Pastel accounting software and QuickBooks
accounting software specifically is, preferences on both accounting systems, who uses the
accounting systems, advantages and disadvantages of each accounting system and includes a brief
history on accounting systems.
Accounting software refers to a form of application software or computer programs that records and
processes accounting transactions within practical components such as accounts payable, accounts
receivable, payroll and trial balance. Accounting software functions as an accounting information
system recording and reporting an organisation's financial transactions (AllBusiness, 2015). Cory
Janssen (2015) states, accounting tasks were previously required to be performed by hand ... Show
2014. Quickbooks vs Pastel. [Online] Available from: http://accounting–
services.co.za/quickbooksvspastel [Accessed: 2015–04–20].
Eamonn, R. 2012. The evolution of accounting software: past, present and future. [Online] Available
from: http://www.gaaaccounting.com/author/gaablog/ [Accessed: 2015–04–19].
Janssen, C. 2015. Accounting Software. [Online] Available from:
http://www.techopedia.com/definition/982/accounting–software [Accessed: 2015–04–19].
Miller, K. 2015. Quickbooks Online Review. [Online] Available from:
http://www.merchantmaverick.com/reviews/quickbooks–online–review/ [Accessed: 2015–04–20].
Patel, N. 2011. Accounting Software Review. [Online] Available from:
https://www.saica.co.za/News/Technobuzz/SoftwareReviews/tabid/2267/itemid/3038/language/en–
ZA/Default.aspx [Accessed: 2015–04–21].
QuickBooks. 2014. Accounting software: a Quick history. [Online] Available from:
http://www.quickbooks.co.za/product/accounting–software/accounting–software–quick–history/
[Accessed: 2015–04–20].
Sage. 2015. Sage Pastel Corporate Profile. [Online] Available from:
https://www.pastel.co.za/About–Pastel–Accounting–Software.asp [Accessed:

Accounting : Basis Of Accounting
Crystal Ziemer Professor Valenzuela ACCT 465 CASE 2 A. Basis of Accounting Both require an
accrual accounting method and use historical cost basis for their accounting but IFRS allows
revaluation to fair value in certain cases which is prohibited in GAAP. There was sufficient
information provided to determine that conversion is required. He will have to figure out which
accounting principles to use that are in accordance with IFRS. B. Cash and Cash Equivalents Under
IFRS bank overdrafts can be included in cash and cash equivalents, this is not permitted under
GAAP. Chris would have to find out if the bank overdrafts are ''repayable on demand that form an
integral part of an entity's cash management.'' If they do then they would be under ... Show more
The amount of any reversal of any write–down of inventories, rising from an increase in net
realizable value, shall be recognized as a reduction in the amount of inventories recognized as an
expense in the period in which the reversal occurs.'' Also required for IAS2.36 would be the
disclosure of; carrying amount of any inventories carried at fair value less costs to sell amount of
any write–down of inventories recognized as an expense in the period amount of any reversal of a
write–down to NRV and the circumstances that led to such reversal carrying amount of inventories
pledged as security for liabilities cost of inventories recognized as expense (cost of goods sold) D.
Property, Plant, and Equipment The company is currently using a cost method for property plant and
equipment which can be moved over to IFRS without needing any conversion, or they could change
to the revaluation model. Since revaluation is allowed under IFRS the company could choose to use
this model. However, Chris would need to find this value at the date of revaluation less subsequent
depreciation and impairment, provided that fair value can be measured reliably. He would also need
to

Accounting Analysis : Management Accounting
MANAGEMENT ACCOUNTING Author's Name Course Name Professor's Name Due Date
MANAGEMENT ACCOUNTING Accounting is a way of measuring a business 's financial
performance through maintaining records and analyzing them. Financial accounting system
produces reports that are generally intended for external stakeholders to evaluate a business.
Management accounting is used to provide internal information that management uses in order to
assess performance toward goals and objectives. Financial accounting uses Generally Accepted
Accounting Principles (GAAP), to produce the financial statements, such as an Income Statement,
Statement of Cash Flows and Statement of Financial Position. Financial Accounting Standards
Board (FASB) publishes the Generally Accepted Accounting Principles. Management accounting is
often used by the management of a business to keep track of performance and identify areas of
improvement. Management accounting reports can be prepared for the business as a whole, a
division or a cost center, and usually include variances from budget and forecast, as well as financial
metrics that are specific to the individual business. Management accounting typically does not
follow or is based on any national or international accounting standards. Management accounting
system is designed according to specifications of each industry or according to a company's own
business structure, operations and needs. There are several advantages of management accounting.

The Accounting Principles Of Accounting
Introduction
Measurement of accounting elements is the most significant factors that entail the process of
preparing financial statements. Accounting measurements presents the vital economic objectives for
various accounting entities (Horngren, 2009). Fair value refers to a financial reporting approach
operating under the accepted accounting principles (GAAP). This accounting method is also referred
to as Mark–market accounting practice. In united Sates majority of the public and private companies
uses fair value accounting approach to measure and report value chains of various business assets
and liabilities calculated from the actual or the estimated current fair market prices (Barth, 2014). It
is evident that any changes that occur in ... Show more content on Helpwriting.net ...
Likewise, fair value entails the replacement and also the cost of substitutes. For instance, the fair
value of an asset is expressed as the given amount at which a specified asset is bought and sold in
the current transaction involving willing parties, other than in the process of liquidation. On the
other side, when dealing with a company's balance sheet, the fair value of liability is the state at
which the liability is likely to be incurred or settled in the agreed transaction between various
willing parties. In this case, if the fair value is available, the quoted market price in the given active
market remains the best evidence of the fair value, and it is usually expressed as the basis for the
measurement. In any active market, fair value is more liquid with small bids which makes the
difference between the sell and the product purchase prices. Fair value is different from the carrying
value in that; the carrying value is expressed as the current asset or liability value commonly based
on the company's balance sheet, while the fair value of an asset or liability is mostly expressed as
the market–to–market value different from the carrying value which accounts to the figures of the
particular asset on the company's balance sheet. Estimates of company's fair value are made using
either the quoted market price or using the best information available in a given circumstance
(Barlev & Haddad, 2013).). If the two factors are not available,

Cost Accounting
Multiple Choice Questions
16. Which terms would make the following sentence true? Manufacturing companies that benefit the
most from activity–based costing are those where overhead costs are a _________ percentage of
total product cost and where there is ___________ diversity among the various products that they
produce. A) low, little B) low, considerable C) high, little D) high, considerable
17. Would factory security and assembly activities be best classified at an appliance manufacturing
plant as unit–level, batch–level, product–level, or organization–sustaining?
| |Security |Assembly |
|A) |Product |Unit | ... Show more content on Helpwriting.net ...
39. Refining a cost system includes: A) classifying as many costs as indirect costs as is feasible B)
creating as many cost pools as possible C) identifying the activities involved in a process D) seeking
a lesser level of detail
42. ABC systems create: A) one large cost pool B) homogenous activity–related cost pools C)
activity–cost pools with a broad focus D) activity–cost pools containing many direct costs
44. ABC systems: A) highlight the different levels of activities B) limit cost drivers to units of
output C) allocate costs based on the overall level of activity D) generally undercost complex
products
45. A single indirect–cost rate may distort product costs because: A) there is an assumption that all
support activities affect all products B) it recognizes specific activities that are required to produce a
product C) costs are not consistently recorded D) it fails to measure the correct amount of total costs
46. Traditional cost systems distort product costs because: A) they do not know how to identify the
appropriate units B) competitive pricing is ignored C) they emphasize financial accounting
requirements D) they apply average support costs to each unit of

Accounting
ukessays.com
http://www.ukessays.com/essays/accounting/accounting–goodwill.php
Free Essays – Accounting Essays
Accounting for Goodwill Under IFRS 3
In this essay I will be discussing the underlying problems with accounting for goodwill as a result of
business combinations, which will include the comparison between the requirements of FRS 10 and
IFRS 3 and also how this International standard affects the preparers and shareholders. IFRS 3
defines goodwill as: "future economic benefits arising from assets that are not capable of being
individually identified and separately recognised". The definition effectively confirms that the value
of the business overall is more than the sum of the accountable and identifiable net assets. ... Show
IFRS has changed the rules. IFRS 3 is introduced due to the rising significance of intangible assets
as an economic resource. As businesses in the UK turn into increasingly service–orientated,
intangible assets will make up a growing percentage of
the value of many acquired businesses. Nevertheless IFRS 3 is much more than an accounting
convention. The transparency promoted by this standard will allow analysts extraordinary insight
into the performance of the purchased business. Shareholders will be in a better position to
understand what they have actually got for their money. The implications for preparers are that they
must understand and be ready to meet the challenges that IFRS 3 signifies, by making sure they
have the necessary provisions in place such as training and equipment. One of the main concerns is
that measuring intangibles is not simply a one–off process. When a business is purchased, a process
known as a purchase price allocation is necessary to assign the purchase consideration across the
assets of the business. Only once the fair values are calculated for the intangibles, the preparers can
determine the extent of the goodwill. Business will now as a result have to carry out impairment
tests to check and, if necessary, correct the value of goodwill and long–life intangibles. For example,
if a

Accounting Scandals And Enron Accounting Scandal
Introduction:
In this research paper I will be examining accounting scandals, specifically the Enron Accounting
Scandal. First, I will be exploring the history of Enron. Then I will be going into further depth on
what accounting issues Enron faced and then I will be explaining what a derivative is. Finally yet
importantly, I will consider the different types of Accounting Fraud following a conclusion.
Accounting Scandals are born due to collective greed and corporate arrogance. In the case of Enron
there was a lot of euphoria before the downfall. Stock prices soared and Enron was seen as one of
the most innovative companies in the world. However, things seemed too good to be true.
Eventually the company was exposed for its wrongdoing which led to the collapse. Many more of
such cases were exposed during the 2008/2009 recession such as the Lehmann Brothers scandal. As
mentioned earlier, many financial scandals have happened in the past but none of those are nearly as
bad as the scandals when it gets to trading in derivatives.
Summary of the Enron Accounting Scandal:
In the year of 1985 after the federal deregulation of natural gas pipelines, Enron was born. The
company was formed by merging the following two companies: Houston Natural Gas and
InterNorth, a Nebraska pipeline company.
In the process of the merger, Enron incurred massive debt and, as the result of deregulation, no
longer had exclusive

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

Accounting Ethics
Accounting Ethics 2
1. Given the corporate ethical breaches in recent times, assess whether or not you believe that the
current business and regulatory environment is more conducive to ethical behavior.
The ethical breaches in recent times, Weygandt, Kimel, Kieso( 2012) researched that "financial
press open full articles and documents facts about financial scandals at Enron, WorldCom,
HealthSouth, AIG, Adelphia Communication and Cable and more. As the scandal came to light
people did not play the stock market if they believe that the stock prices were rigged."
Weygandt, Kimel, Kieso (2012) researched that; "the United States ... Show more content on
Helpwriting.net ...
In one case listed in the complaint, in August of 2000, Timothy Rigas and his friends used an
Adelphia jet to fly to Africa for a safari. Timothy Rigas prevented Adelphia employees from keeping
records of family's air travel and the company's board never approved family used of the planes, the
complaint said. The company also paid for two apartments in Manhattan –– one used rent–free by
John's daughter and son–in–law, according to the complaint."
Accounting Ethics 5
4. Analyze the accounts impacted and/or accounting guidelines violated and the resulting impact to
business operation.
Leonard, Harrington & Burke researched that "the Rigases didn't have any sources of income
outside Adelphia. They never sold their stock, and it didn't pay a dividend. Cohen was pretty sure

Advanatges of Computerized Accounting
The Advantages of Computerized Accounting System
Speed and accuracy
Computerized accounting system for invoicing make the accounting process run faster and more
efficiently. Instead of using the old–fashioned manual paper and pen, you can print professional–
looking invoices fast. You even can send out invoices via e–mail. The faster invoices get out, the
faster you are likely to get paid. Many invoicing or billing software packages interface with the rest
of your accounting software, making the process of preparing invoices and recording them seamless,
fast and automatic. Computerized accounting programs are quicker as far as entering information is
concerned.
End–of–Period Reports
Computerized accounting packages will ... Show more content on Helpwriting.net ...
Danger of computer fraud if proper level of control and security whether internal and external are
not properly been instituted. Computer systems are prone to damage like hardware malfunctions,
virus, etcetera, plus the data can be far more easily tampered with than the one written on hard
media, like paper records. Additionally, you need specialized personnel to handle these systems.
Facts
Companies using computerized accounting systems often face high implementation and
maintenance costs. Most business owners and managers are unable to update these systems on their
own, so they must contract with an outside agency to set up the system. Ongoing technical support
costs may also be necessary for these systems.
Training
When getting a new accounting system, there is always time and energy spent in training. After a
system is bought, then about every year new versions are released with changes that may need some
extra training getting used to. Some folks are just not "computer people" and take them lots of time
to be able to use a system.
Dependency
Computerized accounting is dependent on machines and other software to work properly. Often
enough if one thing is wrong with the computer, then there is no access to the software and work
cannot be done. Then time and expense are involved in getting all the system and software up and
running. But then, maybe the printer stops working.

Features
Computerized accounting systems typically require

Contents
1. Introduction 3
2. Traditional costing system and its limitations 3
3. Activity–Based Costing 4
4. Case Question 4
5. Analysis of the different result between traditional costing system and ABC system 5
6. Limitations of ABC system 6
7. Conclusions and Recommendations 6 8. References 7 ... Show more content on Helpwriting.net
...
But it is impossible to sustain competitiveness without an more accurate cost calculation
mechanism. (Ozbayrak, Akgun and Turker, 2004) As an alternative method to take the place of
traditional cost accounting methods, ABC assigns costs to several activities with multiple cost
drivers. (Copper and Kaplan, 1988) The costs of each product are based on each product's use of
these activities. Using multiple activities as cost drivers instead of single one, it can effectively
reduce the risk of distortion and provides more accurate cost information. (Kim, Park and Kaiser,
1997)
In the ABC system, the total cost of a product equals the cost of the raw materials and direct labor
plus the sum of cost of all value adding activities to produce it. The usage of organization resources
are linked with these activities to produce. (Gunasekaran and Sarhadi, 1998) Each product needs a
number of activities such as designing, engineering purchasing, quality control and transportation.
Each activity uses resources of different kinds such as the working time of manager. Cost drivers are
measures of activities performed such as number of units produced, labor hours, number of orders
and so on. In this case, the cost drivers consist of setup labor, equipment, rent, billing clerical and
other. As the cost drivers are related to the activities, they occur on certain level. For example, the
setup labor cost in this case is based on batches level. Most the other are using

Information Technology and Accounting
International Journal of Trade, Economics and Finance, Vol. 1, No. 1, June, 2010 2010–023X
Information Technology roles in Accounting Tasks – A Multiple–case Study
Maria do Céu Gaspar Alves accounting, the relationship between IT and accounting has been
studied relatively little" (Granlund, 2007:3). Based on a literature review of earlier research and
empirical studies we conclude that there is a very limited knowledge about the impact of the most
recent IT developments in the accounting field (Granlund, 2007). Although IT clearly plays an
important role in accounting (Efendi et al., 2006) and management control (Dechow et al., 2007),
this relationship has not been studied enough. Existing research has focused mostly on the relation
Thus, IT and accounting systems would be a major component of accounting research. "While it is
widely acknowledged that IT plays an important role (and increasingly so) in the field of
II. LITERATURE REVIEW The impact of modern information technologies in companies is broad
and manifested in the most varied ways. Integrated systems, such as ERP systems, Internet, Intranet,
and so on, walk hand in hand with the most recent developments in company know–how. Some of
these technologies, with their widespread use, especially the Internet, have altered the way
companies work and their accounting organization (Granlund, 2007). "Prior to the emergence of this
environment, the presence of IT in the organization has typically taken the form of specific
computer application systems, such as accounts payable and financial reporting systems, which
either automate specific operational procedures or support certain managerial processes" (Teng &
Calhoun, 1996:674). It is usually argued that the first use of an information system was in relation to
103
International Journal of Trade, Economics and Finance, Vol. 1, No. 1, June, 2010 2010–023X
accounting (Rom & Rohde, 2007), because often IT was about the firm's financial ledgers and
reporting systems (Granlund &

[pic]
Submitted to: Dr. James Tong MBA 507: Management Accounting
Submitted by: Rajvinder Brar
Student Id–0910183
Definition – Historical cost
In accounting, historical cost is the original financial or monetary value of any economic item. It is
based on a stable measuring assumption of a unit. Sometimes under some circumstances, assets and
liabilities on a balance sheet can be shown at their historical or the original value at the time of
purchase can be shown, as if there has been no change since it has been bought until after sometime.
But they are however too likely to focus on the costs when they take part in appropriate price
strategies. Marketing experts focus on a group of customers i.e. the certain market segment and their
own needs considering each as possible target market. The company then will decide which segment
to target with different product and marketing mix. Each of these approaches will be highly
important in pricing. We can take an example of a restaurant, which has different number of
customers coming in at different hours of the day. Now the customers coming in at the peak hours
are too many and it creates problem for the restaurant staff and the place available . The owner will
hire extra staff and furniture to solve the problem but his cost in expenditures will go up. To make
the restaurant profitable and to serve the customers better he takes all these actions and make them
feel special by providing extra facilities to the customers. But at the same time he has made a point
that these expenditures will be born by the customers to get those extra waiters and furniture for
them. This way the customers are informed about this and the owner gets the money back in form of
profit .
groups of customers, each with their own needs, and considering each as a possible target market.
The firm will then decide which segments to target and will provide the selected

Difference Between Financial Accounting And Cost Accounting
(iv) Financial Accounting versus Cost Accounting
To understand the concept of cost accounting to the core, it is important to recognise initially as to
what makes cost accounting different from financial accounting.
The major differences between financial accounting and cost accounting are as follows:
Basis of Distinction Financial Accounting Cost Accounting
Objective The objective of financial accounting is to provide information about the overall financial
position and performance of the business organisation. The objective of cost accounting is to
ascertain cost of any particular product or service or activity. Cost accounting aims at cost
controlling and provides information in decision–making process.
Usability It is used for determining overall profit/loss of any organisation. ... Show more content on
Helpwriting.net ...
Outsiders usually do not have any access to cost records.
Type of information recorded Financial accounts record only monetary information. Cost accounts
record both financial and non–financial information.
Analysis of profit In financial accounting, profit is disclosed for the whole business. In cost
accounting, profitability is shown for every process, product or operation for revealing the areas of
profitability.
Table 1.1.1: fFinancial aAccounting versus Ccost Accounting
Despite the above differences, both financial and cost accounting work in agreement and provide the
desired data to the organisations. Determination of value of stock and cost of goods sold is done in
cost accounting. This value of stock and cost of goods sold is used for determining the gross profit,
which is a part of financial accounts. In addition, a financial accountant receives a lot of data from a
cost accountant for the preparation of financial reports. Thus, despite of the differences, both cost
accounting and financial accounting facilitate each other in meeting the overall goal of the
organisation.
(v) General Principles
1. Cause–Effect

Difference Between Management Accounting And Financial...
Task 1 P1) Management Accounting is a branch of accounting which refers to accounting
information useful for management and acts as a decision–making support system. Its functions
include planning, controlling, and decision–making in an efficient and effective manner.
(Bhattacharyya, 2011) Management Accounting vs. Financial Accounting Management accounting
and financial accounting are different in many ways. To begin with, the oldest difference between
these two is that Management accounting provides information to internal users which include
managers and employees. Whereas, financial accounting provides information to external users such
as shareholders, government, bank and so on. (ACCA, 2016) Financial accounting records past or
historical ... Show more content on Helpwriting.net ...
To begin with, the company must have excellent dealings with the suppliers. The staffs have to be
multi–skilled and flexible to changes. The equipment must be versatile. JIT can become more
successful if correct forecast are created and latest IT equipment be utilized. Excellent company and
employee relationships are also important. Finally, quality ought to be the top most main concern.
Through the use of just–in–time systems, there's a greatly reduced dependence on recyclables and
work–in–process, while done goods inventories should be near non–existent. The usage of just–in–
time inventory gets the following advantages. There is a nominal amount of inventory which is
outdated, because the higher rate of inventory turnover maintains any items from staying in stock
and becoming outdated. Since production works are extremely brief, it is much easier to halt
production of 1 product type and turn to another product to meet changes in customer demand. Also
the low inventory levels imply that inventory positioning costs, such as warehouse space, are
reduced. The business is investing much less profit its inventory, since fewer inventories is

Accounting Analysis On Financial Accounting
Accounting has many branches that it can be divided into. It can be divided into several areas of
activities. Accountings main branches are financial accounting, Management accounting, Cost
accounting, Auditing, Tax accounting, Accounting systems, Fiduciary accounting and Forensic
accounting.
Financial accounting: This branch of accounting measure's and records the transactions of a
business. Financial accounting focuses on the preparation of the five basic financial statements
namely statements of financial position, statements of comprehensive income, statements of cash
flows, statement of changes in equity and notes to financial statements. At the end of a period
usually a year a profit and loss account and a balance sheet is prepared ... Show more content on
Helpwriting.net ...
It is governed by the internal revenue code and has specific instructions that should be followed by
individuals and companies when preparing tax returns. Accounting Systems: Accounting systems
involves the implementation, installation, development and monitoring of accounting procedures
and the systems used in the accounting process. This includes the gathering of accountable financial
data, software management, accounting personnel directing and the designing of business forms to
be used in the data– gathering process. This branch is linked to management advisory services. To
be successful in this field technical knowledge and skills in information technology is needed.
Fiduciary Accounting: Fiduciary accounting is the accounting and evaluation of a third party's
business, property and possessions maintained under the guardianship by an entrusted individual. A
few examples of fiduciary accounting include receivership, trust accounting and estate accounting.
Forensic Accounting: This branch involves the investigation of embezzlement or fraud using
accounting skills and analysing financial information to be used in legal proceedings. Forensic
accounting deals with court and litigation cases, fraud investigation, claims and dispute resolution
and other areas that involve legal matters. This area is a popular trend in

Art of Msnsgement Accounting
Pushing the art of management accounting Despite the many strides the profession has made over
the years, some still believe that management accounting practices haven't taken as strong a hold in
organizations as they should. FCMAAlexander Mersereau describes the challenges that are slowing
the adoption of critical management accounting tools in broader business By Alexander Mersereau,
CMA, FCMA M anagement accounting practice has developed substantially over the past century,
but recent studies suggest that the practice is no longer making the strides that it once did. Unless
management accountants take a hard look at the effectiveness of current practice, this situation isn't
likely to improve. In some companies, radical ... Show more content on Helpwriting.net ...
A similar study by Accenture/Economist Intelligence Unit reported a significant gap between
potential and actual practice.3 These indications of a slowing pace of management accounting
change may be due to a range of factors. In some cases, new management accounting tools aren't
adapted to organizational strategy or structure and can't be used. And in some cases, innovation has
failed due to implementation–related factors. However, the main problems aren't technical or
structural; they lie in the need for a better management of the management accounting process itself.
Getting involved At the heart of the management accounting process is a communications system, or
a set of communications systems, that provide information to managers. The ability of management
accountants to improve the scope, timeliness or quality of the information they provide depends on
how well they understand and manage these systems. There are three main areas in management
accounting systems in which communication problems can occur, which are illustrated here using
the tale of The Three Monkeys. The three monkeys that most people know are Speak No Evil, Hear
No Evil and See No Evil. In this medieval Japanese illustration, a trio of monkeys is depicted with
one having his hands over his mouth, another covering his ears and a third his eyes. The original use
of this image seems to have been to illustrate wisdom. The three wise monkeys, as they were
referred to, counselled

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
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

Accounting
Acct 340–Midterm Review
Multiple Choice
Identify the choice that best completes the statement or answers the question.
____ 1. Which of the following is NOT a process associated with an accounting information
system?
|a. |auditing existing data |
|b. |collecting and recording data |
|c. |providing information to users |
|d. |analyzing and managing data |
____ ... Show more content on Helpwriting.net ...
|a. |cost information in accordance with GAAP |
|b. |cost information about processes and activities |
|c. |financial information for external users |
|d. |cost information about products, customers, and services |
____ 5. Cost accounting
|a. |is concerned with assigning costs to various cost objects. |
|b. |attempts to satisfy the costing objectives of both financial accounting and management
accounting. |
|c. |provides cost information that supports planning, controlling, and decision making. |
|d. |all of these. |
____ 6. Which of the following activities is associated with the cost management information
system?
|a. |preparing reports for division managers |
|b. |preparing reports for the IRS |
|c. |preparing reports for the

Computerised Accounting
CHAPTER ONE 1.1 INTRODUCTION It is known that, movement of information and
effectiveness of information, timely reporting for internal and external use is one of the key aspects
in success of services and goods provided by the organisation to its customer. Before the
development of computerised system in Tanzania most of public sectors, government sectors ,social
service providers sectors and different business organisations, used manual method of recording and
control over any transaction relating to financial and other activities. With the expansion of those
sectors the number of transactions increased. The manual method of recording, manipulation,
producing, distributing and maintaining records found as to be ... Show more content on
Helpwriting.net ...
iv. However, the study is conducted to enable the researcher to be awarded Bachelor of Business
Administration in Finance and Accounting as it is the compulsory study at Saint Augustine
University 1.4 Objectives of the study 1.4.1 General objective The general objective of the study is
to find out the contributions of computer in day to day activities, as the purpose of the study, is to
find the contribution of computer and application in accounting activities especially to public
sectors, simplification and production of understandable, relevance, reliable reports. Also the study
aims to find out the difference in performance and reports quality produced when manual methods
were in use and that when computer and computerised accounting system were introduced. 1.4.2
Specific objectives The research is aiming at observing the following from PPF Mwanza Branch as
the case of study. i. Tracing in detail the importance of computerised accounting system at PPF ii. To
find out t the contribution of computerised accounting system in day to day operations. iii. To find
out problem facing the accounts departments due absence of proper computerised accounting
system. iv. To find out the step taken by public sector to implant the computer knowledge to its staff
so as to examine importance, contribution and problem facing in the use of computerised accounting
system. 1.5 Research questions The

accounting
Costs assigned to the building of a house should appear on the income statement when
Answer
a. the purchase order to manufacture the house is received. b. the house is sold. c. cash is collected
for the sale of the house. d. the house is completed.
The basic document for keeping track of costs in a job order costing system is a
Answer
a. labor time card. b. job order cost card. c. process cost report. d. materials requisition form.
The following information is available at the end of May:
Balance in work in process on May 1 $141,800
Direct materials costs for May 174,500
Direct labor costs for May 162,500
Overhead applied at rate of 140% of direct labor dollars Jobs completed during May: Job 84 ...
Show more content on Helpwriting.net ...
The cost of goods manufactured is
Answer
a. $63,600. b. $61,600. c. $62,600. d. $59,600.
The following partially completed T accounts summarize the transactions of Carlton Company for
last year: Materials Inventory Beg Bal 5,000 20,000 (2) (1) 17,000 Work in Process Inventory Beg
Bal 9,000 63,600 (7) (2) 13,000 (4) 16,000 (6) 29,000 Overhead (2) 7,000 29,000 (6) (3) 14,000 (4)
6,000 (5) 3,000 Cost of Goods Sold Accounts Payable 17,000 (1) 3,000 (5) Finished Goods
Inventory Beg Bal 16,000 (7) 63,600 End Bal 13,000 Payroll Payable 5,000 Beg Bal 31,000 (4)
Office Salaries Expense (4) 9,000 Accumulated Depreciation (Factory) 80,000 Beg Bal 14,000 (3)
At the end of the year, the company closes out the balance in the Overhead account to Cost of
Goods Sold. The cost of goods sold (after adjusting for under– or overapplied overhead) is
Answer
a. $66,600. b. $65,600. c. $64,600. d. 67,600
The following partially completed T accounts summarize the transactions of Carlton Company for
last year: Materials Inventory Beg Bal 5,000 20,000 (2) (1)

Managerial Accounting Is A Discipline Within The Accounting

Recommended

Recommended

More Related Content

Similar to Managerial Accounting Is A Discipline Within The Accounting

Similar to Managerial Accounting Is A Discipline Within The Accounting (16)

More from Trina Jackson

More from Trina Jackson (20)

Recently uploaded

Recently uploaded (20)

Managerial Accounting Is A Discipline Within The Accounting