Week 1: Introduction to Managerial
Accounting - Discussion
Managerial and Financial Accounting (graded)
Flexibility, timeliness, and forward looking is said to be the prominent trait of modern management accounting,
whereas standardization and consistency describe financial accounting. Explain why the focus on these two
accounting systems differs.
Responses
Responses are listed below in the following order: response, author and the date and time the
response is posted.
Response
Author
Date/Time
Class
Professor Backman
10/18/2012 4:29:46 AM
Let's start off by discussing the goal of managerial accounting.
What is the goal of managerial accounting?
How do managerial goals differ from the goals of financial accounting?
What are the differences between managerial and financial accounting?
RE:
Class Leon Kiyonga
11/3/2012 11:30:29 PM
When we take internal decision then all information is provided by
managerial accounting and this all is done with proper planning and with
strict purpose. All decisions are done with the help of mangers as they take
information from accounts. When we deal with financial accounts they never
give exact knowledge of the internal decision made by the company. Manager
should know all the small details like value of the product and the cost of the
service. In this way manager decide the future of the company by seeing all
the details in full form. Every smaller detail is needed to forecast the future of
the company for this managerial accounting is the best as compared to
financial accounting. To form a product line as well as to deal with the
pricing of the product, buying new tools and replacing the old one, all is done
as internal decision of the company.
RE:
Class Nicole Rochester
11/4/2012 7:15:41 PM
Managerial accounting deals with the internal users of information of a
company and financial accounting deals with the external users of
information such as investors, creditors, and the like.
The goals differ in that managerial accounting
1. is optional
2. relays information to internal managers
3. reports nonmonetary information
The differ in the financial accounting
1. is requred
2. information is presented in summarized formation
3. relays information externally
(Jiambalvo, 2010)
Jiambalvo, J. (2010). Managerial accounting, 4th edition. John Wiley and
Sons, Inc., page 4
RE:
Class Irene Turay
10/31/2012 7:56:41 PM
The goal of a managerial accounting is to analyze and process informations
that can help managers in an organization to make decisios.
RE:
Class Stacey Wilson
10/31/2012 6:34:04 PM
The primary goal of managerial accounting is to provide information that is
needed for planning, control and decision making.
The main difference between managerial and financial accounting is that
managerial accounting is aimed at internal users while financial accounting is
for external users of accounting information like investors.
RE:
Class Irene Turay
11/2/2012 7:16:39 PM
This is true Stacey the difference between managerial and financial
accounting is that the managerial accounting is mostly use for
internal organization which provides analyzing and communicating
informations. Then financial accounting focuses on external things.
RE:
Class Ashley Taylor
10/31/2012 9:20:57 PM
The goal of managerial accounting is to provide information needed for planning,
control, and decision making. Financial accounting is more about procedures for
preparing external reports. While managerial accounting is used to create reports for
internal use. Financial accounting is concerned with past transactions while
managerial accounting is used to focus on future decisions.
According to the book the main differences are:
1. Managerial accounting is directed at internal rather than external users of
accounting information.
2. Managerial accounting may deviate from generally accepted accounting principles
(GAAP).
3. Managerial accounting may present more detailed information.
4. Managerial accounting may present more nonmonetary information.
5. Managerial accounting places more emphasis on the future. (Jiambalvo 7)
Jiambalvo. Managerial Accounting, 4th Edition. John Wiley & Sons.
Ashley Professor Backman
11/1/2012 4:11:01 AM
How would economic factors like interest rates, inflation,
unemployment and competition impact planning?
RE:
Ashley Thomas Ponce
11/2/2012 7:47:33 PM
Haha I have to say that all those mentioned would greatly affect planning. I would
imagine that an account planner would have to look at all these factors before
implementing any decisions. Interest rates have a direct affect with loans and thus
affecting marketing expenditures. Inflation is also another staller key, watching the
dollar fall and rise affects decision making when it comes to costs. As far as
unemployment goes account planning must be precise and layoffs could be required
to save money, of course that goes with the increase of productivity from other
employees. If done carefully you can make quite a turn-around, or just simply cause a
disaster.
RE:
Ashley Cadette Batie
11/1/2012 9:00:36 PM
Prof;
Economic factors would greatly influence planning
because such things as interest rates and inflation would
affect the firms ability to borrow and loan money out. High
Interest rates at banks affect the firms payments to the bank
and other lenders for funds borrowed for future expansion
projects and research and development. Additionally the
firm may need to charge high interest rates to companies and
individuals who borrow from the firm. Unemployment can
affect planning because the company usually used may have
hit a hard bump in the road and had to let go some of its
workers that usually did work for your firm and now you
either have to wait for a new team that is just as good or
better or hope that the firm rehires the team back or just go
with another company altogether. On the other hand at the
firm itself,you could suffer losses that require you to let
employes go which would affect you ability to produce or
provide the usual serve that you normally did before.
RE:
Ashley Ashley Taylor
11/4/2012 9:55:51 AM
Interest rates can impact the companies planning because if interest is too
high then they have to find ways to cut cost and spending to pay high interest
rates. Also, with them spending more company cost can go up. Also, with too
many expenses companies may have to let employees go due to the inability
to make a profit. Inflation can cause companies to adjust based on how much
goods and services cost also. Unemployment can impact the company
because they have to layoff people and try to keep production up. It has to be
done in a way that other employees do not feel too stressed and will not loose
there productivity because they feel over whelmed. Competition impacts
planning because you have to make decisions to attract customers to you and
not your competition. If you have little competition then you are safe you can
focus on other problems but if you are surrounded by competition you have to
work and make your company stand out against the others and attract
customers to you!
RE:
Ashley Leon Kiyonga
11/4/2012 8:44:58 PM
An economy will be healthy when there is a well circulation
of money in the market of the country. The purchasing
power of the people increases and people have a good
standard of living. Both inflation and unemployment have an
adverse effect of the economy. Interest rates influence the
sources of business and consumer income like the values of
loans, investments etc. Lower interest rate makes borrowing
cheaper for the customers can manage to pay to buy more
and business can afford to invest further. Higher
consumption and higher investment levels create additional
demand for goods and services in the economy, which
effects inflation and unemployment. Competition is also the
factor which affects the price of the good s and services in
the market and subsequently affects the purchasing power of
the consumer and inflation. Therefore we have to plan
accordingly by keeping in mind the entire factor like
interest, inflation, unemployment and competition.
RE:
Class Britney Womble
10/31/2012 10:58:01 AM
1. The goal of managerial accounting is to provide the information they need for planning,
control, and decision making. If your goal is to be an effective manager, a thorough
understanding of managerial accounting is essential. (P.4)
2. Financial accounting is primarily concerned with presenting the results of past
transactions. Managerial accounting, however, places considerable emphasis on the future.
(P.8)
3. Financial accounting reports are aimed primarily at external users, and managerial
accounting reports are aimed primarily at internal users. (P.8)
Jiambalvo (). Managerial Accounting [4] (VitalSource Bookshelf), Retrieved from
http://online.vitalsource.com/books/9781118091050/id/P1-14
RE:
Class Mike Beckta
10/31/2012 9:39:13 AM
The goal of managerial accounting is to study managerial accounting by focusing on tools
and approaches that are useful for internal users of financial statements.
RE:
Class Thomas Ponce
10/31/2012 12:56:07 PM
The goal of managerial accounting is to provide information for internal
decision making, primarily for planning and control purposes. The types of
decisions made by managers rely substantially on accounting information.
Because financial accounting information does not provide enough detail for
internal decisions, it must be broken into more detail of the individual
products or services provided by a company. Though as said before financial
accounting reports are prepared for the use of external parties such as
shareholders and creditors, whereas managerial accounting reports are
prepared for managers inside the organization.
http://accounting4management.com/financial_accounting_vs_managerial_accounting.htm#T5QLOFRCoTFYAr9R.99
Thomas
I Agree Professor Backman
11/1/2012 4:12:21 AM
Who benefits from having a uniform set of standards like GAAP?
What are some other reasons for having companies file their
financial statements in the same way?
RE:
Thomas Nicole Rochester
I Agree
11/4/2012 7:25:51 PM
GAAP is not required for managerial accounting. However
it is necessary for large publicly traded companies. Some
reasons for having companies file their financial statements
in the same way is to prevent fraud.
RE:
Thomas Alison Richards
I Agree
11/3/2012 8:43:23 PM
In addition to, when companies follow there set of rules,
methods, processes, and as well as procedures these
company can remain consistent across these various
industries for these said statements. Therefore, one can rest
assure that this accounting system that they have in place is
accurately measuring economic activities as well as
disclosing any information in reference to any transactions
listed as well as reports. Another main purpose of utilizing
the GAAP beside for being consistent the company is able to
reduce their risks associated with fraud and error. The
reason why I feel companies benefits from using GAAP as it
is derived from the traditional ways of accounting. The
company benefit as accurate and consistent financial
information is distributed. The individuals who are in receipt
of such material are the investors, the creditors, and as well
as the stakeholders as there are able to efficiently read,
comprehend, and understand these information given to
them for various decisions. Even if it is not a requirement by
law companies adhere to and do so successfully. If a
company wishing to standardize their company, reduce any
risk or chances evolved around tax problems and issues, and
lastly reduce the risk of erroneous reporting. They should
adhere to GAAP to successfully reach the companies
financial objectives, goals, and achievements.
RE:
Thomas Thomas Ponce
I Agree
11/3/2012 1:59:39 PM
Generally (I’m getting sick of that word) the stockholders
benefit from the GAAP uniform. The GAAP are imposed on
companies so that investors would have a minimum level of
consistency in financial statements they use when analyzing
companies for investment purposes. Sorry I can’t say I
understand your second question…could you clarify?
RE:
Thomas Mike Beckta
I Agree
11/3/2012 6:18:06 AM
The most authoritative source of Generally Accepted
Accounting Principles GAAP developed by the FASAB, and
they set the standards so everyone can benefit from the
accounting principles. In my opinion the reason for GAAP is
to slow down or stop fraud and prevent companies from
entertaining fraudulent activities.
RE:
Class Rachel Hollingsworth
10/30/2012 1:05:48 PM
Modified:10/30/2012 1:06 PM
Managerial Accounting's goal is to provide information needed to make
decisions, control actions, and plan accordingly. The main difference between
managerial and financial accounting is that managerial accounting is focused
on internal users such as managers as opposed to providing information to
investors and government agencies. Also, managerial accounting is more
focused on the detailed planning process for future processes and actions, for
example budgets that contain more than monetary items, but also materials,
labor, time, etc.
Rachel Professor Backman
11/4/2012 3:35:16 AM
Managerial accounting organizes accounting data into variable and
fixed costs so management can make decision.
So what are variable and fixed costs?
Where would you find variable and fixed costs on a financial
accounting income statement?
RE:
Rachel Mike Beckta
11/4/2012 8:02:33 PM
In my opinion the variable and fixed costs will vary from
business to business, companies that have starting capital
and a steady steam of set clientele like Haliburton will
generate profits and have a different fixed cost and a much
higher margin than a company like the one I own. When a
fixed cost of one companies will eclipse a fixed margin of
another the fixed cost will always lose. I have always tried
to extinguish variable costs and make people and companies
commit to a fixed cost, due to the fact of managing a project
doesn't get you very far without fixed costs of goods and
services.
RE:
Class Laurie Claus
10/29/2012 6:01:58 PM
Financial accounting if prepared for external use such as shareholders and creditors.
Managers accounting is prepared for managers inside the organization. One difference in
financial and managerial accounting is the emphasis between the past and the future.
Managerial accounting has strong emphasis on the future, manager's planning is large part
on estimating on what will happen rather then what had happen. Financial accounting is
objective and verifiable, financial accounting is mandatory where as managerial
accounting is not mandatory. Financial accounting reports to those outside the
organization owner, lenders tax authorities and regulators. Lastly a difference is that
managerial accounting information should be flexible.
Difference between Financial and Managerial accounting retrieved on October 29,2012
from:http://accounting4management.com/financial_accounting_vs_managerial_accounting
.htm
RE:
Class Alison Richards
10/29/2012 6:50:28 PM
When we use managerial or management accounting we are basically placing
attention towards the internal usage of the given financial information. This
information being provided assists in making decisions as to what direction
the company wishes to go and thus provide a plan in conjunction to this as
means of getting there. Managerial accounting isn’t only used for the purpose
of planning and making internal decisions it is also utilized for control
purposes. When you use financial accounting in depth detail isn’t provided
for the making of said decisions. In order to fully accomplish decision
making managerial accounting must be performed. Yes both financial
accounting and managerial accounting give individuals information needed to
make decisions. But in the means of financial accounting the information is
given to stockholders, creditors, and individuals who re external to the
company to mke a decision upon. However, managerial accounting places its
attention upon the internal individuals of the company which streams from all
level of management and may vary to employee groups. Managerial
accounting is said to be more flexible s is focus is not fixed upon the
generally accepted account principles. It also tends to be more time and there
is a future with performing managerial account rather than having a past
focus. Managerial accounting reflect on various sections of a company and
provide full details. Instead, of being broad and emphasize on the company
as a whole. In means of emphasis, it also emphasizes on qualitative and
quantitative provided information.
Alison Professor Backman
10/31/2012 1:52:12 AM
What are some of the GAAP rules that must be followed under
financial accounting? What are some reasons for IFRS?
RE:
Alison Rachel Hollingsworth
11/2/2012 6:12:45 PM
The primary reason I found for IFRS - International
Financial Reporting Standards - is so that investors have a
set of standards that are the same or similar across the world
in order to compare and contrast companies.
http://suite101.com/article/ifrs-accounting-standards-a31345
RE:
Class Sharon Garcia
10/29/2012 11:54:50 AM
The primary goal of managerial accounting is to provide
information that helps managers plan and control company activities
and make business decisions
(Jiambalvo 2011 p. 21)
Managerial accounting does not have to abide by the GAAP guidelines,
although from what I read a lot of companies will, or will use it as a
reference. Managerial accounting is prepared for the managers in a company.
This information contained in the report is only information relevant to the
managers. Financial accounting contains information that is for a single
person, or family, any external source.
Managerial goals are goals set for the company as a whole. The managerial
goals would be to obtain a certain max budget amount for the companies to
produce x amount of product and not go over the budget goal. The financial
accounting is prepared for the investors, and creditors.
RE:
Class Elizabeth Erdos
10/28/2012 8:27:53 AM
The goal of managerial accounting is to provide information for internal
decision making. You want to be able to look at your numbers for the
business and ensure that you're heading in the right direction.
Financial accounting helps people outside of the business look at the financial
stand point of the company while managerial helps the people within the
company.
Elizabeth Professor Backman
10/30/2012 5:42:41 AM
Does managerial accounting have to follow GAAP and the rules of
accounting? Why or Why Not?
GAAP Casey Agans
10/30/2012 4:02:26 PM
Managerial accounting is not required to comply with
GAAP as it is concerned with planning, directing, and
controlling the internal affairs of a business.
RE:
Elizabeth Elizabeth Erdos
10/30/2012 4:21:24 PM
They should follow a lot of it because it helps with ethics,
but no they don't have to follow GAAP. GAAP was put into
place because of the fact that financial accounting is put into
place because their reports are shared with the public.
Managerial doesn't have to follow because those reports are
internal.
RE:
Elizabeth Richard Astin
10/30/2012 10:23:14
PM
First, financial accounting is public and focuses on
shareholders as investors. GAAP sets standards for financial
accounting, which is regulated by the government
SEC. Managerial accounting on the other hand is an internal
tool used within the business. There is no internal
regulation to how a business handles reporting from an
outside source (such as the government or the
public). Therefore, only the owners have a say in what is
done internally. After all, not every laundromat needs to
produce managerial account, and the standards between a
laundromat and a restaurant from which internal
performance metrics can be established probably differ
greatly. Clearly, every business functions differently, yet
with the use of standard accounting and ERP software
internal similarities probably exist.
Richard
You
Are
Professor Backman
Exactly
Right
10/31/2012 1:53:18
AM
How does the information/accounting data that is
used in financial accounting differ from managerial
accounting?
How does the income statement differ between
financial and managerial accounting?
RE:
Richard
You
Richard Astin
Are
Exactly
Right
10/31/2012 5:35:17
PM
Good question. I am thinking that the
major differences would be with cost and
Cost of Goods Sold between different
companies, but the layout and format of the
financial statements should be the
same. Except for the fact that with
managerial accounting the statements may
be limited to specific cost centers or
specific area within a company; it does not
have to be all inclusive like a financial
statement does.
RE:
Elizabeth Britney Womble
10/31/2012 11:15:18
AM
"Much of financial accounting information is required. The Securities
and Exchange Commission (SEC) requires large, publicly traded
companies to prepare reports in accordance with generally accepted
accounting principles (GAAP). Even companies that are not under the
jurisdiction of the SEC prepare financial accounting information in
accordance with GAAP to satisfy creditors. Managerial accounting,
however, is completely optional. It stresses information that is useful to
internal managers for planning, control, and decision making. If a
company believes that deviating from GAAP will provide more useful
information to managers, GAAP need not be followed." (Jiambalvo)
Jiambalvo (P.7). Managerial Accounting [4] (VitalSource Bookshelf),
Retrieved from
http://online.vitalsource.com/books/9781118091050/id/P1-111
RE:
Elizabeth Sharon Garcia
11/1/2012 11:17:52
AM
Managerial accounting does not have to follow GAAP.
Managerial accounting is directed is for the purpose of the
managers in the company. Managerial accounting does not
handle the reports fort eh stock holders. Financial
accounting information is revealed to the public, that is why
there are have to follow GAAP, and managerial does not.
Sharon Professor Backman
11/4/2012 3:36:42
AM
How do international accounting standards and
GAAP differ?
RE:
Sharon Alison Richards
11/4/2012 1:24:51
PM
In terms of international accounting
standards and GAAP international
accounting includes two governing
accounting bodies which is inclusion of the
International Accounting Standards Board
as well as the Financial Accounting
Standards Board. It is known that (FASB)
covers all areas of accounting especially
when it is in reflection to the United States
accounting standards. I also researched and
found out that IASB governs accounting in
100 and more in counting countries
worldwide. FASB is held accountable for
the issuing of the GAP for both of domestic
and the international companies as well
have utilized the GAAP when in the midst
of preparing the U.S. 's financial
statements.
RE:
Class Hind Ganz
10/28/2012 9:15:52 AM
The goal for managerial accounting is to provide information needed for
planning, control, and decision making. In order to control you need to
evaluate the performance of your managers and operations. In financial
management, the ultimate goal is to increase the current value per share in a
corporation. Financial accounting ensures the company looks good externally,
for investors, creditors,and for tax purposes. Managerial accounting is all
internal, which is why financial accounting is external, a healthy balance.
RE:
Class Bobbie O'Neal
10/28/2012 9:55:59 AM
Modified:10/28/2012 3:55 PM
What is the goal of managerial accounting? The goal of managerial accounting is to provide
the information they need for planning, control, and decision making. If your goal is to be a
successful and effective manager, a thorough understanding of managerial accounting is
essential.
How do managerial goals differ from the goals of financial accounting? Managerial
accounting helps those people inside an organization who operate as its day-to-day managers
and in other leadership roles. Financial accounting helps those people outside of an
organization or business understand what is going on financially within it the company.
What are the differences between managerial and financial accounting? Managerial
accounting is for internal users and financial accounting is for external users.
Class
Excellent Professor Backman
10/29/2012 4:02:23 AM
Points!!
You are right when you say that managerial accounting helps a
business internally. Managerial accounting data is used to make
decisions.
Who are all of the internal decision makers? What information would
they use to make decision?
How does the accounting information that is used in financial
accounting differ from managerial accounting?
RE:
Class
Excellent Darion Maynor
Points!!
10/29/2012 10:50:55
PM
The internal decision makers are the managers, supervisors,
CEOS, etc. The information they would use to make
decisions would be things like ingredients, labor cost,
productions cost, food cost, or down time. Since I work for
Nestle Purina, I'll use my job as an example to
differentiate between financial accounting and managerial
accounting info. When analyzing dog food, managerial
accounting would be concerned with how much dye we use
for the pieces, how much labor we use to make it, and how
many bags were used to package it. However, financial
accounting would only be concerned with how many
finished products did we sell, did we meet our quarterly
goals, and what is our bottom line.
RE:
Class
Excellent Robert Kampen
Points!!
10/29/2012 7:07:24 AM
Modified:10/29/2012 7:10 AM
According to the readings, the internal decision makers are
the managers. Information is paramount to making good
decisions. Often times this would be "non-financial"
information such as the quantity of material consumed in
production, the number of hours worked by the office staff,
and the number of product defects.
RE:
Class
Excellent Bobbie O'Neal
Points!!
10/29/2012 12:59:28
PM
Modified:10/29/2012 1:35 PM
Robert, I agree a manager would be the internal decision
maker in a business because of all the responsbilities that they
have. The individual who is in charge of certain groups and
tasks or a certain subset of a company. A manager often has a
staff of people who report to him or her. I believe the manager
would also be the one with the last say if a project is a go for
the company.The three main functions of a managers include:
planning, controlling, and decision making.
RE:
Class
Excellent Elizabeth Erdos
Points!!
10/29/2012 2:29:59 PM
I've already touched a little bit on what the information
in financial accounting is used for and what it's used for in
managerial accounting.
The people who use the information
from managerial accounting are usually the people in
charge. CEO's and CFO's. Depending on the size of the
company managers are also brought in on the decision
making financially.
Class Professor Backman
10/30/2012 5:44:21
AM
You have done a nice job providing some of the
differences between financial and managerial
accounting.
What stakeholders would use financial accounting
information and what stakeholder would use
managerial accounting?
What is GAAP?
How does GAAP influence Financial Accounting
and Managerial Accounting?
What are international accounting standards?
RE:
Class Stephanie Motak
11/3/2012 4:40:44
PM
Generally Accepted Accounting
Principles are accounting rules used to
prepare, present and report financial
statements for a wide variety of entities,
including publicly traded and privately
held companies, non-profit
organizations, and government
authorities.
RE:
Class Sharon Garcia
11/4/2012 11:17:12
AM
GAAP is a federally regulated set of rules
and restrictions that financial accounting
has to follow, to help prevent fraud, or
unreal numbers being reported. Managerial
accounting does not have to follow these
rules and guidelines because the account is
made for the managers to follow not for the
stock holders or the public. GAAP is a
good thing to have when it comes to
financial accounting because of all the
fraud that has happened in reads to false
number, such as Enron. This would have
been prevented is the GAAP was followed.
RE:
Class Sharon Garcia
11/4/2012 11:19:33
AM
International accounting is
regulated by the international
accounting board.
RE:
Class Darion Maynor
10/30/2012 11:13:53
PM
Of course, investors would be a stakeholders
who would use financial accounting
information. They are primarily concerned
with the risk and return provided by their
investments. They need information to help
them determine whether they should buy,
trade, or sell. The employees would be
stakeholders who would use managerial
accounting. Employees are interested in
information about the stability and
profitability of their employers. They are also
interested in information which enables them
to assess the ability of the company to provide
retirement benefits and employment stability.
"GAAP stands for "generally accepted
accounting principles," a collection of
commonly followed accounting rules and
standards for financial reporting. GAAP
specifications include definitions of concepts
and principles, as well as industry-specific
rules. The purpose of GAAP is to ensure that
financial reporting is transparent and
consistent from one organization to another."
http://whatis.techtarget.com/definition/GAAPgenerally-accepted-accounting-standards
RE:
Class Laurie Claus
10/30/2012 9:22:32
PM
Generally Accepted Accounting Principles are a set of accounting
principles, standards and produces that companies used to compile their
financial statements. GAAP influences financial accounting by the
standards and procedures it imposing on a company to follow. Investors
have minimum level of consistency in the financial statements they used
when analyzing companies for investment purposes. GAAP covers
revenue recognition balance sheets item classification and understand
share measurements and ensure that consistency in the financial
statements. Whereas managerial accounting is not required to use
GAAP standards and produces,managerial accounting is for internal use
only.
Cited
Work:http://www.investopedia.com/terms/g/gaap.asp#axzz2AqHVfeUG
10/30/2012
4:13:27 PM
Stakeholders Casey Agans
Modified:10/30/2012 4:13 PM
Managerial Accounting stakeholders
consist of an organizations strategic
planning team, such as the CEO, COO,
CFO, CIO, along VPs & middle managers
working for this group. Stakeholders of
Financial Accounting are investors,
employees, creditors, government agencies,
and owners.
Casey Professor Backman
11/1/2012 4:14:11
AM
What influences a business
decision? What specific factors
should be consider when making
decisions?
RE:
Casey Richard Astin
11/2/2012 4:24:08
PM
When I have made
business decisions I
consider two things: 1)
the profitability - how
does the action increase
Shareholder's Equity and
2) the environmental
impact - living in
California much of what
happens gets weighed
against its environmental
impact (both legal and
unregulated). It seems
concern for the
environment is as
important as making a
profit, whenever there is
waste or impact that could
cause a lasting impact
(even just hours) after a
job is finished, the
cleanup is considered as
part of the job. It would
be easier for the company
to operate and leave the
waste behind - as there
often are no laws dictating
a specific action to
follow. However, that
little cost to clean up is
factored into the cost of
the project and passed on
to the customer. The
owners believe that it sets
us apart from other
competitors.
RE:
Stakeholders William Hines Iv
10/30/2012
10:22:08 PM
So then with this type of example
we can say that it was the financial
accounting of Disney that decided
to purchase Lucasfilms with the
managerial intentions of being able
to put out a new Star Wars movie
and profit from the name and
franchise.
10/31/2012
11:37:46 PM
RE:
Stakeholders Casey Agans
William,
I too saw this on CNN and
it came as quite a shock
but yes I would agree, this
would be an investment
for Disney.
William Professor Backman
11/4/2012
3:37:57 AM
What costs are considered
in incremental analysis
decisions?
RE:
William William Hines Iv
11/4/2012
8:57:48 AM
I would imagine
that the cost that
are in the
incremental
analysis would
be:
1. Is it worth
purchasin
g the
rights or
license
from
George
Lucas
2. What will
be the
cost to
film and
release
new Star
Wars
movies
including
the cost to
pay the
actors
3. Will
Disney be
as
successful
with
finding
actors to
portray
the
characters
as well as
Lucas did
4. What is
the
estimated
return on
film,
video
games, an
d
merchandi
se
5. Is Disney
experienc
ed enough
to put out
a
successful
Sci-Fi
productio
n
6. And the
biggest
factor that
I feel
should
have been
looked at
is will the
original
fans be as
interested
in
continuin
g to
support
the Star
Wars
franchise
now that
the
originator
of the
series is
no longer
producing
them
RE:
Bobbie O'Neal
10/30/2012 2:52:09
PM
Class
What is GAAP? GAAP (generally accepted
accounting principles) a collection of
commonly followed accounting rules and
standards for financial reporting.The
purpose of GAAP is to ensure that financial
reporting is transparent and consistent from
one organization to another.
RE:
Class Hind Ganz
10/30/2012 8:51:29
AM
The GAAP is generally accepted
accounting principles. The GAAP
influences managerial and financial
accounting because the SEC requires larger
companies prepare reports in accordance to
GAAP. Financial accounting must ne
prepared in accordance with GAAP, but
managerial accounting does not.
International accounting standards last I
heard are trying to merge with our
standards, eventually having one
accounting standard. through out the world.
RE:
Class Cheryl Hurdle
10/30/2012 11:41:54
AM
GAAP is Generally Accepted Accounting
Standards and procedures that companies
use to compile their financial
statements. GAAP are a combination of
authoritative standards (Set by policy
boards) and simply the commonly accepted
ways of recording and reporting accounting
information.
Financial Accounting must follow GAAP
which has specific required external reports
. Managerial Accounting does not follow
GAAP and there are no reporting
regulations.
International Account Standards: is an
older set of standards stating ow particular
types of transactions and other events
should be reflected in financial statements.
www.investopedia.com
RE:
Class Cadette Batie
10/28/2012 10:04:40 AM
Prof;
I enjoyed both questions posed by you and the discussion topic. The goal
of managerial accounting is to supply information to help plan and organize
the company for future operations. This is also the essential reason that
managerial accounting is different from financial accounting. The key word
is planning for the future. Financial accounting looks at the past and what has
occurred as far as the money goes and is intended more for outsiders looking
in as opposed to managerial accounting which looks to the future and what
the company wants or hopes to do. Also another big difference between the
two is that Financial accounting takes the GAAP into account and must
comply by all times and managerial accounting does not have to take GAAP
into account and information garnered for managers can be taken from almost
any source about the company whereas financial accounting takes
information from the cash and all the financial data provided by the company.
Cadette Professor Backman
11/3/2012 4:47:07 PM
Is there a need to have international accounting standards instead of
GAAP?
RE:
Class Cheryl Hurdle
10/28/2012 3:50:19 PM
The goal of managerial accounting is to identify, measure, analyze, interpret
and communicate information for the pursuit of the organization goals..
Financial accounting reports are prepared for the use of external parties such
as shareholders, and creditors whereas managerial accounting reports are
prepared for managers inside the organization.
Financial and Managerial accounting also differ in their emphasis between
the past and future.
The differences between Financial and Managerial Accounting is as followed:
Since planning is such an important part of the managers job, managerial
accounting has a strong orientation. In contrast financial accounting
primarily provides summaries of past transaction.
Financial accounting is mandatory for parties such as (SEC) and tax
authorities. Managerial Accounting is not mandatory.
http://accountingmanagement.com
Cheryl Professor Backman
10/31/2012 1:54:59 AM
Some Additonal Thoughts: GAAP provides the rules that
corporations must follow under financial accounting.
Managerial accounting does not have to follow GAAP.
What is the purpose behind international accounting standards?
International
Accounting Casey Agans
Stardards
10/31/2012 11:47:47
PM
Modified:10/31/2012 11:48 PM
The SEC notes that the purpose behind international
accounting standards to is make information used by
investors, "comparable, transparent, and reliable" in both the
domestic and international markets. This system appears to
have been put in place for the sake of the global capital
market, in hopes to prevent scandals and or crashes. For a
further detailed synopsis of the SEC's intentions with
international accounting standards, follow on:
http://www.sec.gov/rules/concept/34-42430.htm
IAS,
FASB,
IFRS &
Glen Souder
IASB,
Internation
Standards
11/1/2012 12:15:05
AM
The purpose behind international standards such as IAS,
FASB, IFRS & IASB is to try and provide some common
global language and guidelines. Since we and the rest of the
world are participating in a global economy and business
trade, standard rules and guidelines with participating
countries have to be established. It a standards to assist in
governing commonality and consistency in financial
accounting amongst participating countries. Setting an
internal accounting standard and practice.
RE: IAS,
FASB,
IFRS &
Britney Womble
IASB,
Internation
Standards
11/3/2012 9:14:23
PM
Thanks for posting Glen, wouldn't have guessed this
RE:
Cheryl Hind Ganz
10/31/2012 7:05:09 PM
International accounting standards serve many purposes, one
being it makes it easier for everyone to understand,
essentially having one financial language globally.
Hind Professor Backman
11/4/2012 3:44:26 AM
Do you think there will be a one world accounting
standard one day??
RE:
Class Robert Kampen
10/28/2012 5:18:32 PM
The differences between management accounting and financial accounting
include:
1. Management accounting provides information to people within an
organization while financial accounting is mainly for those outside it,
such as shareholders
2. Financial accounting is required by law while management accounting
is not. Specific standards and formats may be required for statutory
accounts such as International Financial Reporting Standards.
3. Financial accounting covers the entire organization while management
accounting may be concerned with particular products or cost centers.
Managerial accounting is used primarily by those within a company or
organization. Reports can be generated for any period of time such as daily,
weekly or monthly. Reports are considered to be "future looking" and have
forecasting value to those within the company.
Financial accounting is used primarily by those outside of a company or
organization. Financial reports are usually created for a set period of time,
such as a fiscal year or period. Financial reports are historically factual and
have predictive value to those who wish to make financial decisions or
investments in a company. Management Accounting is the branch of
Accounting that deals primarily with confidential financial reports for the
exclusive use of top management within an organization. These reports are
prepared utilizing scientific and statistical methods to arrive at certain
monetary values which are then used for decision making. Such reports may
include:

Sales Forecasting reports

Budget analysis and comparative analysis

Feasibility studies

Merger and consolidation reports
Financial Accounting, on the other hand, concentrates on the production of
financial reports, including the basic reporting requirements of profitability,
liquidity, solvency and stability. Reports of this nature can be accessed by
internal and external users such as the shareholders, the banks and the
creditors.
RE:
Class Jodi Serino
10/28/2012 6:01:49 PM
To add to all of the posts of my classmates, financial accounting deals with
stocks, bonds, loans, debts and decisions that pertain to the future growth of a
company, and the managerial accounting is more detailed in providing
information that is specific to the managers of the various departments within
the company.
RE:
Class Bobbie O'Neal
10/29/2012 1:45:28 PM
Managerial accounting provides the essential data with which
organizations are actually run, it is primarily by those within a
company or organization.
11/4/2012 3:42:47 AM
Jodi Professor Backman
What factors influence a sales forecast?
RE:
Class Darion Maynor
10/28/2012 6:12:09 PM
In any business, whether big or small, managerial accounting is very
important and necessary. Managerial accounting focuses on the goals and
path that the bosses and the managers have outlined for the company
internally. The goal is to help them analyze whether they are on the right
track to attain their goals or not. Financial accounting focuses on the
financial reports that the investors, shareholders, and other outside parties
view to see how the company is prospering. One of the main differences
between managerial and financial accounting is that financial accounting is
required by law while managerial isn't. Also, managerial accounting may
cover only certain products or certain departments while financial accounting
covers the entire organization.
RE:
Class Glen Souder
10/29/2012 12:46:28 AM
Modified:10/29/2012 12:49 AM
The goal of managerial accounting is to prepare and analyze internal financial
information to plan and control operations using decision making.
"managerial accounting stresses accounting concepts and procedures that
are relevant to preparing reports for internal users of accounting information"
(Jiambalvo)
Managerial goals differ from financial accounting goals in that:


Financial goals are to provide information (reports) and visibility to
external customers/ and users or investors.
Managerial Accounting information (reports) for internal planning
and decision making purposes. Managerial accounting reports may
contain information not reported ont he Financial Accounting aspect
like how many products where produced, non-conformances cost,
Financial Accounting usually deals with past or historical information,
Managerial Accounting plans like future cost and forecasted production for
next quarter.
Jiambalvo. Managerial Accounting, 4th Edition. John Wiley & Sons.
Retrieved from <vbk:9781118091050#outline(1)>.
Class
you
are on
Professor Backman
the
right
track
10/29/2012 4:00:49 AM
Remember that financial accounting will also look into the future and make
projections.
What accounting information is necessary/useful in managerial accounting decision
making?
What information is needed to make decisions?
How does GAAP influence financial and managerial accounting?
RE:
Class
you
are on Casey Agans
the
right
track
10/29/2012 10:55:16 AM
The pivotal ideas behind decision making rest in incremental analysis and the
thought, "you get what you measure." Key accounting information will be
found in the cost types that exist such as variable, fixed, direct/indirect,
opportunity, & sunken so an understanding of these is paramount. Finally,
financial accounting is influenced by GAAP to protect outside investors. The
contrary holds true for managerial accounting, which provides information
more so for internal managers and is not require to be prepared in accordance
with GAAP.
RE:
Class
you
are on Marvette Williams
the
right
track
10/29/2012 11:19:05 AM
In managerial accounting they need information that will help with planning
and control to make decisions. Thus making following GAAP optional to
managerial accounting if the more information can be gained by not
following GAAP. One reason following GAAP guidelines are optional is
because managerial accounting information is used internally.
Financial accounting information is used externally creating a greater need to
follow GAAP whether the company is under SEC jurisdiction or not. External
users may be anyone outside of the company for example investors will use
this information to make investment decisions.
Marvette
and
Class
Professor Backman
Great
Points
10/31/2012 1:51:25 AM
What specific cost information would an internal decision maker
need? What is involved in the planning process? What is involved in
the controlling process?
RE:
Class
you
are
Hind Ganz
on
the
right
track
10/31/2012 7:14:21 PM
Marvette you make excellent points. A internal decision maker must
first start by setting a budget and making a plan. The process consists
of making a plan, taking action, seeing results, and evaluating the
process. The control part comes into play when doing a job
performance for instance, or any other type of review. Variable and
fixed costs are also a big factor in the planning process.
RE:
Class
you
are on Cadette Batie
the
right
track
10/29/2012 11:25:23 AM
Prof;
Managerial accounting is mainly focused on planning, decision making
and control. Thus with this duty managerial accounting needs information
that is accurate, timely and more detailed than that of financial
accounting. Financial accounting uses information in a specifically designed
format to present data to external users for the purpose of investing, lending
money and making regulatory decisions. Managerial accounting, on the other
hand does not require such stringent regulatory information as the
information as stated earlier is used internally and will be used internally by
those inside the organization.
RE:
Class
you
are on Jodi Serino
the
right
track
10/29/2012 7:33:25 PM
Accounting information that is necessary/useful in managerial accounting
decision making is knowledge of what the operating cash flow is for the
company - especially as it relates to the specific department.
Mangerial
Accounting
Sandrea Igess
10/29/2012 5:41:02 PM
Managerial Accounting has the responsibility to show
where collecting has taken place and is reported
financially for the purposes of internal information
usage in business affairs. Such as materials costs, cost
of labor etc. Managerial accounting is a requirement for
companies to decide if the way things are handled is the
most effective and if this is efficient cost wise.
Decisions have to be made using managerial accounting.
Class
Professor Backman
10/30/2012 5:41:16 AM
You have made some very good points regarding financial and managerial accounting.
Managerial accounting is all about helping managers manage the future!
External users get information about the past in order to make decision about the
future. GAAP is concerned with accurate reporting of financial information.
Managers need to take that a step further and use that info and other info to predict the
future and make strategic decisions to bring the future they envision into existence.
Class - what kind of information might help managers predict the future and/or make
strategic decisions?
RE:
Class Sandrea Igess
10/30/2012 11:52:03 PM
Financial accounting is intended to meet the needs
of outside users of financial information, and
follows GAAP. Management accounting is intended to
satisfy the various needs of a large group of
decision-makers inside the business, and does not
follow GAAP. A single set of financial statements
satisfies the requirements of GAAP, but management
accounting reports can be tailored for any situation
and user.
Strategic
Decisions Casey Agans
10/30/2012 4:23:03 PM
Professor,
Our course text places a great emphasis on the information age in regards to
managerial accounting decisions. The ERP, SCM, and CRM software
systems have been crucial in data mining which ultimately make an
organization operate more competitively and allow for more long-term
(strategic) decisions.
RE:
Class Angelique Kalnes
10/30/2012 2:49:37 PM
Incremental analysis can help managers make strategic decisions by
calculating the difference between revenues and difference in cost which will
give you the amount of profit. Another detail that helps managers predict the
future is that measuring performance and results will influence managers'
actions.
Angelique
You Are Professor Backman
11/1/2012 4:09:42 AM
Right!!
One of the functions of any business is planning the future by
forecasting sales. The planning process allows a business to reach the
goals of an organization. There are a lot of elements in the planning
process.
What external factor should be considered to determine a plan (sales
forecast) or future performances?
RE:
Class Bobbie O'Neal
10/30/2012 2:57:31 PM
External users must have some assurance that the reports have been prepared in accordance with some common set of
ground rules. These common ground rules enhance comparability and help reduce fraud and misrepresentations, but they do
not necessarily lead to the type of reports that would be most useful in internal decision making.For example, GAAP
requires that land be stated at its historical cost on financial reports. However if, management is considering moving a store
to a new location and then selling the land the store currently sits on, management would like to know the current market
value of the land, a vital piece of information that is ignored under generally accepted accounting principles (GAAP).
http://www.accounting4management.com/financial_accounting_vs_managerial_accounting.htm#D8kqUDWoFTR7Oe2P.99
Managerial
and Financial Angelique Kalnes
Accounting
10/30/2012 2:44:25 PM
Managerial accounting is directed at internal and future instances whereas financial
accounting looks at outside factors such as investors and creditors which use
summarized information. Managerial accounting looks at the details that will help
with planning stages.
RE:
Managerial
and
Britney Womble
Financial
Accounting
10/31/2012 11:16:22 AM
Thanks for posting Angelique
Class
Please
Read and
Professor Backman
10/31/2012 1:54:04 AM
Respond
We need to raise another topic in this thread. This will help you on the module.
Some of the costs discussed in your text are: variable, fixed, sunk, opportunity, direct,
indirect, controllable, non-controllable and
incremental analysis. Give examples.
Also discuss fixed costs, direct costs, indirect costs, controllable costs and noncontrollable costs. Give examples.
Select one of the topics listed above and explain its meaning as well as its relevance to
the managerial decision-making process.
Please give examples when discussing the various topics.
RE:
Class
Please
Bobbie O'Neal
Read and
Respond
10/31/2012 10:28:20 AM
In this week's lecture we find that Direct costs can be traced directly to a particular cost
objective. Examples include raw materials and direct labor. Indirect costs cannot be directly
traced to a particular cost objective, or are not worth tracing. Factory overhead, which
includes costs such as rent, utilities, and insurance, represents an indirect cost. These costs
are not identified with the manufacture of particular products, but rather are common to the
firm's overall business activities.
RE:
Class
Please
Joshua Robinson
Read and
Respond
10/31/2012 12:21:46 PM
Let's look at non-controllable costs. In my line of business which is insurance,
we have several non-controllable costs. These include: Regulation - which
can be changed at a moments notice requiring us to comply and bear the costs
associated with compliance, Catastrophic losses - such as hurricanes,
tornadoes, etc. We can PLAN for these losses by having adequate capital in
reserves, but we can't predict them nor can we always mitigate them.
So basically, non-controllable costs may be forecasted, even mitigated, but
not always expected or budgeted for precisely.
Joshua Professor Backman
11/4/2012 3:33:23 AM
How does volume influence fixed costs and variable costs?
Give some examples of variable and fixed costs?
RE:
Class
Please
Marvette Williams
Read and
Respond
10/31/2012 8:05:00 AM
Sunk cost refers to a cost incurred in the past. So if you have already spent
that money then this is a sunk cost and it's not used in the decision making
process because it doesn't effect the future.
Any cost that can be manipulated or influenced by someone is a controllable
cost. If the cost cannot be influenced are non-controllable cost. One important
that I learned through the text is whether or not a cost is controllable or noncontrollable depends on the level of management. Supervisor's and managers
will have different controllable and non-controllable cost.
Example: Direct material cost will be a controllable cost for supervisors of a
specific department. Direct material cost for the entire company would be an
uncontrollable cost for a supervisor.
RE:
Class
Please
Laurie Claus
Read and
Respond




10/31/2012 8:58:18 AM
Variable cost-changing in proportion to change in the activity level.
Example would be cost of steak for a steak restaurant.
Total fixed cost- are not affected by a change inactivity level such as
rent on a factory.
Sunk cost- is an amount spent in the pat, this cost does not change.
Example is buying a plane ticket for a get-away that cost $350 then
being invited on a vacation with friends for the same dates as your
get-away. The $350 is sunken cost.
Opportunity cost- is the benefit that is given up when one option is
chosen over another- example being invited to a party but in attending
would require you to miss a half-day of work- the lost wages is
opportunity cost





Direct cost- can be traced directly to a particular cost objectiveexample is direct labor
Indirect Cost- cannot be directly traced to a particular cost objectiveexample factory overhead: cost of rent and insurance
Controllable- cost that manager can influence are controllable costexample a production manager's performance evaluation should be
based on costs that he can control
Noncontrollable cost- cost that cannot be influence by manger's
control such as rent and insurance
Incremental analysis- is used to find the impact of changes in cost or
revenues
Work Cited: Incremental Analysis, retrieved from:
http://www.plu.edu/~mgtacctg/incremental_analysi.htm
Work Cited: Week 1: introduction to managerial accounting -Lecture
retrieved from: http;//vizedhtmlcontent.next.ecollege.com
RE:
Class
Please
Robert Kampen
Read
and
Respond
11/1/2012 8:04:19 AM
Thanks for the great positing here. I like the short and simple
"definitions" you provide. As an example of controllable costs and
non-controllable costs from my line of work (Bio-Medical Research),
as lab manager I make sure there is a ready supply of consumables
for the labs such as plastic ware, tubes, flasks..etc. These are
controllable. Conversely, the overhead (utility expenses, cylinder
gases such as CO2 or LN2 )for our department is not set in a fixed
fashion, thus this would be non-controllable.
RE:
Class
Please
Bobbie O'Neal
Read
and
Respond
10/31/2012 10:35:46 AM
Laurie, I also read in this week's lecture that when classifying costs as direct or indirect, we must remember
that the categorization depends upon the cost objective. For example, if a particular production area produces
three products and has one supervisor, then the supervisor's salary is an indirect cost for the various products.
However, if the corporation were categorizing costs for the various factories, then the supervisor's salary
would be a direct cost.
RE:
Class
Please
Tabitha Hofstetter
Read and
Respond
10/31/2012 8:07:44 PM
Sunk cost are cost that are pretty much sunk. They refer to past cost that no
matter what choices are made in the future these cost will not ever change. in
a business aspect the best sunk cost example I can think of is a business plans
to expand and open a new store and then something happens and they decide
they can not open and are not able to get the funds back that have already
gone towards trying to get the expansion. Those funds are now sunk and they
will never get returned or be changed.
Sunk
Costs Casey Agans
11/1/2012 1:26:32 PM
Tabitha,
I'm glad you restated the sunk cost example because while I
understand it, the lecture description does not sit well with me. If Joe
purchases a concert ticket for $30 and is later invited to a party, I
highly doubt he would just ignore what has already been spent as the
examples suggests he should. I know not of a single middle-class
individual who would say, "That $30 doesn't matter." The $30 spent
would more likely be a reason to decline going to the party and
attend the concert instead. So thanks for bringing a new outlook on
the definition.
Tabitha Professor Backman
11/3/2012 4:48:30 PM
So what are variable and fixed costs?
Where would you find variable and fixed costs on a financial
accounting income statement?
RE:
Class
Please
Cheryl Hurdle
Read and
Respond
11/3/2012 4:17:50 PM
The variable cost is the cost that changes in relation to variation in an
activity. In a business, the activity is frequently production volume, with
sales volume being another likely triggering event.
Examples of Variables:
Direct Materials
Piece Rate Labor
Production Supplies
Billable Staff Wages
Commissions
A fix cost is a cost that does not change over the short term, even if a business
experiences changes in its sales volume or other activities levels.
Examples of Fix Cost
Amortization
Depreciation
Insurance
Interest Expense
Property Taxes
Rent
Sunk cost are retrospective(past) cost that have already been incurred and can
not be recovered
Examples of Sunk cost
Product Research
Advertising
Speciality Equipment
Opportunity cost is the cost of any activity measured in terms of the value of
the next best alternative forgone that is not chosen
Examples of Opportunity Cost
Lost Times
Pleasure
Any other benefit that provide utility
Indirect Cost are cost that are not directly accountable to a cost object.
Examples of Indirect Cost
Adminstration Cost
Personnel Security Cost
Overhead
Controllable Cost are the cost which can be influenced by the action of a
specified member of the undertaking
Examples of Controllable Cost
Direct Labor Cost
Direct Material cost
Direct Expense
Noncontrollable Cost an expense that cannot be imiliaterally changed by an
individual, department or business
Examples of Noncontrollable Cost
Employee Rate of Pay
Rent
Incremental Analysis, sometimes called marginal or differential analysis is
used to analyze the financial information need for decision making
Examples of Incremental Analysis
Accepting additional business
Selling production or processing
Eliminating A Segment
www.investopedia.com
www.accountingtools.com
RE:
Class
Please
Stephanie Motak
Read and
Respond
11/4/2012 1:49:41 PM
A fixed cost is a cost that does not change with an increase or decrease in the
amount of goods or services produced. Fixed costs are expenses that have to
be paid by a company, independent of any business activity. It is one of the
two components of the total cost of a good or service, along with variable
cost.
An example of a fixed cost would be a company's lease on a building. If a
company has to pay $10,000 each month to cover the cost of the lease but
does not manufacture anything during the month, the lease payment is still
due in full.
In economics, a business can achieve economies of scale when it produces
enough goods to spread fixed costs. For example, the $100,000 lease spread
out over 100,000 widgets means that each widget carries with it $1 in fixed
costs. If the company produces 200,000 widgets, the fixed cost per unit drops
to 50 cents.
Read more:
http://www.investopedia.com/terms/f/fixedcost.asp#ixzz2BHzR8pXD
WK 1 DQ
2 Response Tabitha Hofstetter
10/31/2012 8:04:32 PM
I believe that they are different because you are ultimately managing your business in
managerial accounting. Financial accounting is focused on consistency because that is
the entire focus of financial accounting just on the finance aspect. Where as with
managerial you have to know a little bit of everything. You need to make goals, set
goals, reach goals, and control the business. Managerial accounting allows you to be
able to focus on how the company is ran and also the future plans of the company to
run effectively.
Class Let's
End The
Week By
Looking At
The
Following:
Professor Backman
11/1/2012 4:07:45 AM
Explain the following positions in a corporation: CFO, CIO, CEO, Controller and
Treasurer.
How does variable cost and fixed costs influence business decisions?
How important is non monetary information in making business decisions?
What is incremental analysis? How is it used?
Incremental
Casey Agans
Analysis
11/1/2012 1:34:25 PM
Our course text defines Incremental Analysis as, "an analysis of the revenues
and costs that will change if a decision alternative is selected." The simplest
way to explain it is to take the revenue, cost, and profit of alternative one and
measure it against the same criteria for alternative two. The difference will
indicate which is the better solution for the organization through incremental
profit.
Casey Professor Backman
11/3/2012 4:49:52 PM
What are fixed costs and variable costs and how are they used in
incremental analysis?
What are opportunity costs and controllable costs?
RE: Class
Let's End
The Week
By
Darion Maynor
Looking At
The
Following:
11/1/2012 10:40:38 PM
I guess I'll take non monetary information! In any business, making financial
business decisions are a no brainer. Making the correct ones can cause profits
to increase and vice versa. However, there are some key non monetary
information that directly affects business decisions. First, employee
satisfaction. Companies who don't care about their employees or who are
perceived as such, will have big problems with their consumer
satisfaction. Therefore, when making business decisions, companies have to
be concerned with employee satisfaction because it is obvious that happy
employees equal happy consumers. Also, businesses must be aware of
competition when making business decisions. If their competitors are making
something ground breaking, it might cause a company to piggy back of the
idea or make decisions that could set them apart from them.
RE: Class
Let's End
The Week
By
Sandrea Igess
Looking At
The
Following:
11/2/2012 5:35:20 PM
Incremental analysis is a technique used in business
decision-making to determine the true cost
difference between alternatives without including
sunk costs as well any cost that may be the same
between them. It only focuses on what the remaining
costs are which may be called the relevant cost
approach or differential analysis.
RE: Class
Let's End
The Week
By
Marvette Williams
Looking At
The
Following:
11/1/2012 8:42:17 AM
Chief Executive Officer (CEO) is responsible for the entire company. This
position manages everyone and is ultimately responsible for the success or
failure of the company.
Chief Financial Officer (CFO) is responsible for all financial and accounting
operations of the company. This position will report to the CEO.
Chief Information Officer (CIO) is responsible for the information
technology and computer systems departments. This position can either report
to the CFO or CEO depending on how the company's organizational chart is
set up.
Controller holds the top management accounting position. Duties of this
position includes compiles and presents information needed to make
management decisions.
Treasurer is responsible for money management and keeping track of the cash
and invested funds. The treasurer will also prepare financial forecasts and
make banking transactions on the company's behalf. This position will report
to the Controller
RE: Class
Let's End
The Week
By
Tabitha Hofstetter
Looking
At The
Following:
11/1/2012 1:13:07 PM
Marvette since you did the explaining of the positions I'll take on the
variable and fixed cost.
Variable cost are cost that are constantly changing. The decisions to
be made based off these are when to add to labor or when to cut back
on labor. If you are noticing a slow down and your labor is still
running the same then you will eventually be paying more for the
labor than you are making which is never a good thing in business.
Fixed cost are cost that aren't changing and probably will never
change. Decisions based on these cost can go into sunk cost.
Financing a new venture or anything like that and having it flop will
be a fixed cost. Or another fixed cost is hold certain licenses in order
to operate the business those are cost that may change with the years,
but it is a fixed cost that you know you will have to pay in order to
operate your business.
RE:
Managerial
accounting
Joshua Robinson
11/1/2012 10:43:40 AM
Management accounting is flexible, timely, and forward looking because the primary
focus of managerial accounting is to evaluate internal decisions being made, support
those decisions, and keep track of management decisions related to the companies
financing. Traditional financial accounting is required to report to Regulators,
Investors, etc. So they must follow strict rules and follow accepted standards.
Class
Professor Backman
11/2/2012 4:36:00 AM
Discuss the difference between timely managerial accounting reports and the tradeoff
for accuracy.
What is meant by the statement "You get what you measure"?
Both financial and managerial accounting are important to a company's success.
Which do you think contributes more to this success and why?
RE:
Class Tabitha Hofstetter
11/3/2012 9:18:15 AM
While I agree that both are important and both cause the business to be
successful I would have to say that Managerial contributes more. Managerial
covers more of the business and has a lot to handle in able to keep the
business successful.
RE:
Class Jodi Serino
11/3/2012 11:16:16 PM
I have just read all of my classmates comments on "you get what you
measure" and I must say wow!
Ive heard a statement similar "you get what you dish out" and the meaning
was simple, that you would get back what you put out.
In other words, if you are being "nasty" in how you interact with others, you
will get the same response back.
If you care for that which you present, you will have things given back to you
the same, etc.
When studying computer language it was called GIGO (garbage in, garbage
out). Its all the same thing, just applied in different ways.
Thus when dealing with accounting reports, the accuracy in which one
prepares the reports will result in an accuracy in results. Its all the same thing.
I apologize for restating all of this, it just seemed that the other definitions
were really technical in reference to something that is really simple.
RE:
Class Robert Kampen
11/2/2012 12:20:29 PM
The old saying “you get what you measure” is used in many contexts all over
the world, and it has had influence on reinforcing interests in
measurements. Measurements are important in all kinds of activities
including managing organizations but their emphasis is very often wrong.
You don’t necessarily get what you measure, and what you get through
measurements is not necessarily good for organization or people being
managed.
RE:
Class Angelique Kalnes
11/2/2012 12:37:42 PM
I think that "you get what you measure" contributes to accurate accounting
that has a checks and balances. If you are diligently working and ensuring
everything is working properly, you are going to get a nice payoff.
Angelique Professor Backman
11/4/2012 3:40:53 AM
How does the job responsibilities of the controller and the
information officer differ?
RE:
Class Joshua Robinson
11/2/2012 3:00:50 PM
Timely Managerial Accounting often requires analysis to be created as
needed, rather than periodically at the end of accounting periods as occurs
with financial accounting. This makes for less accurate reports because in
order to get the estimates in a timely fashion, estimates are used frequently
which may not be as accurate as actual results.
"You get what you measure" means just that. If you focus on what you are
measuring, and assign a target to it, you often achieve that results. But
beware, because you may not be measuring the right thing...
it's really hard to say which contributes more to a companies success... If I
had to argue one over the other I would say Financial Accounting is more
contributory because it not only reflects actual results, but drives the
estimates, etc. that make up Managerial accounting.
RE:
Class Ashley Taylor
11/2/2012 11:39:01 PM
Timely managerial accounting is when your report on the statistics you have
now. It is used to make manegerial decisions on the numbers that are
available to your company ion th present instead of a report run at the end of
the period like in financial accounting. There are errors in timely accounting
because not all the numbers may be present and accounted for.
"You get what you measure" is the idea that companies that use performance
measure influence the way managers behave.
I believe that from an internal standpoint managerial accounting is most
important. The people running the company and making the decisions are
who make the company succeed. While financial accounting can help get
people to invest and keep money coming in from outside sources its the
managers decisions that keep the company running. If they don't spend the
money wisely and make well informed decisions for the company then it
could/will fail.
RE: Class
- "Ya get
what you Glen Souder
measure"
11/3/2012 12:33:38 AM
Modified:11/3/2012 2:29 AM
"You get what you measure" equates to "performance measures greatly
influence the behavior of managers". (Jiambalvo). In other words, from the
various choices of company measurements that can be implemented, what
and where you plan to apply those measurements will directly reflect the
behavior of how a manager or employee will focus their attention towards. If
you implement performance rewards towards cost savings as a measurement,
the behavior of a team member will most likely be more focused on
enhancing their performance in trying to negotiate/save costs. On the other
hand, "you get what you measure" can also cause troubles in that the
manger/team member may spend most of their time trying to save costs as a
measurement and neglect say quality or service just to assure they focus on
the emphasized measurement. Therefore there needs to be balance on what
and how you implement performance measurements.
Jiambalvo. Managerial Accounting, 4th Edition. John Wiley & Sons.
Retrieved from <vbk:9781118091050#outline(1.4.3)>.
RE:
Class "Ya get Britney Womble
what you
measure"
11/4/2012 3:00:33 PM
Thanks for posting. I didnt know this at all, thanks also for putting it
into other words too and explaining it.
Managerial
and Financial William Hines Iv
11/2/2012 6:10:53 AM
Though they are both accounting, these two practices are different. Managerial
accounting is the information used by managers in decision making when it comes to
thoughts about products and trends. They use the information to see how much of
something should be produced or if a product should still be carried or discontinued.
They can analyze the information by trends and patterns. Financial accounting may
also use trend and pattern information, but it is used by outside sources. It is usually
done by investors such as banks or stockholders. They use the financial information
by looking at the companies financial stability and debt to income ratio to see if they
should grant a company a loan.
RE:
Managerial
Rachel Hollingsworth
and
Financial
11/3/2012 4:45:21 PM
Great explanation and examples William! So basically, to re-iterate your
words, financial accounting is a broad view of the companies monetary
successes/failures for such people like investors and banks. Managerial dives
in to the specifics in order to solve failures and promote successes within the
company itself.
RE:
Managerial
William Hines Iv
and
Financial
11/4/2012 9:03:36 AM
Correct. As a previous business owner, I participated in the
managerial accounting part. With selling figures based off of horror
films I was always looking for horror related items. The majority of
the figures seemed to be re-releases of the same characters such as
Jason from Friday the 13th, Freddy from Nightmare on Elm Street,
and a few Leatherface from Chainsaw Massacre. Eventually people
get tired of the same characters so as the owner I had to decide what
to do so I did not have the same figures. I also saw that sales started
to slowly slip away from the repeated characters. This caused me to
have to look for other figures and items to sell, or to hope that the
repeat figures would just sell. This is an example at the way
managerial accounting is used in analysis of products
RE:
Managerial
Britney Womble
and
Financial
11/4/2012 2:59:42 PM
Thanks for posting and explaining it.
managerial
vs.
accounting
Stephanie Motak
11/2/2012 3:47:21 PM
The difference between financial & managerial is the following :
- managerial acct directed at internal rather than external users of accounting
information
- managerial acct. may deviate from generally accepted accounting principles
- managerial acct. present more detailed information
- managerial acct. present more non monetary information
- managerial acct. places more emphasis on the future.
RE:
managerial
Rachel Hollingsworth
vs.
accounting
11/3/2012 4:41:40 PM
Don't take this the wrong way...I see you got this answer directly from the
book...you must cite the book in order to not plagiarize ;)
Here is the citation:
(Jiambalvo 7)
Jiambalvo. Managerial Accounting, 4th Edition. John Wiley & Sons.
<vbk:9781118091050#outline(1.2.5)>.
RE:
managerial
Britney Womble
vs.
accounting
11/3/2012 9:12:49 PM
I think we all need to get used to citing things especially when we do
papers and things.
Managerial
and Financial Leon Kiyonga
Accounting
11/3/2012 1:27:15 AM
The above given statement is correct as flexibility, timeliness and forward looking are
the important factor for management accounting and consistency and standardization
for financial accounting. The management accounting is for internal stakeholders and
are prepared by the managers as they review the management so there can be a lack of
standardization and consistency is not that important too because the manager prepare
the report when they feel the necessary of doing it. Management accounting is done
on the regular basis by the managers to take small and day-to-day decision but
financial accounting is prepared every quarterly. Financial accounting has a set format
but for management accounting there is no such format. Financial accounting has to
be presented to the various stakeholders thus more emphasis is given on the
presentation and these presentation are mandatory as management accounting is
prepared on regular basis is so no set presentation.
Wrap Up On
Financial and
Professor Backman
Managerial
Accounting
11/3/2012 4:45:22 PM
Wrap up on Financial and Managerial Accounting:
Financial accounting information is for external stakeholders such as investors,
stockholders, banks, and government agencies. Financial accounting must abide by
GAAP principles and if the business is a publicly traded corporation must adhere to
the Sarbanes Oxley regulation. Financial accounting is concerned with presenting the
results of past transactions. One of the goals of financial accounting is to maximize
shareholder wealth.
Managerial accounting is for internal users and tends to provide more analysis than
financial accounting. Managerial accounting places considerable emphasis on the
future and will take the same information used in the financial statements and look at
the information differently. In order to make sound business decisions we must look at
both revenue and expenses.
One effective technique that is used is incremental analysis. When using this
technique we find that an analysis of variable costs is very useful in decision making.
The reason is that variable costs change based on the production levels. Fixed costs
are normally not relevant in decision making because they remain fixed over a
relevant range. As a result the total fixed cost does not change in relation to the
production levels. Non-monetary information is also useful in solidifying a decision.
Internal accounting information and reports must be designed for the user and they
must be accurate, reliable, timely, and provide management with the tools to make
decisions.
RE: Wrap
Up On
Financial
Britney Womble
and
Managerial
Accounting
11/3/2012 9:09:53 PM
Thanks for posting this professor. I like having a quick summary of what we
learned this week
goals
of
IFRS
Irene Turay
11/4/2012 7:33:13 AM
The goal with IFRS is to make international comparisons as easy as possible. This
is difficult because, to a large extent, each country has its own set of rules. For
example, U.S. GAAP are different from Canadian GAAP. Synchronizing accounting
standards across the globe is an ongoing process in the international accounting
community
Read more: http://www.investopedia.com/terms/i/ifrs.asp#ixzz2BGSJw28n
RE:
goals
Britney Womble
of
IFRS
11/4/2012 2:57:38 PM
Thanks for porsting, but I dont think this would be considered a source or one
you can use since there is no author