Decision Making with Managerial Accounting
Managerial accounting is essential for decision making. Making the best choice depends on the manager's goals, the anticipated results from each alternative, and the information available when the decision is made (Schneider, 2012). The different techniques associated with managerial accounting are very helpful in the decisions that need to be made. In order to truly understand decision making with managerial accounting one must first discern exactly what managerial accounting means and some of the techniques associated with it. The definition of managerial accounting will be discussed along with the techniques of cost management techniques, budgeting, and quality control. Definition of Managerial Accounting
Managerial Accounting is the branch of accounting that meets managers' information necessities it is designed to assist the firm's managers in making business decisions, relatively few restrictions are imposed by regulatory bodies and generally accepted accounting principles, consequently, a manager must explain which data are significant for a particular purpose and which are not (Schneider, 2012). Managerial accounting provides the crucial data with which organizations are truly run (Folk, Garrison, & Noreen, 2002). Managerial accounts are responsible for preparing several different types of reports. These reports include reports that tell how well the business units have performed, give updates on key indicators, are used to investigate specific problems, and analyze a developing business situation or opportunity (Brewer, Garrison, & Noreen, 2005).
Role of Managerial Accounting and the Management Accountant
Management accounts are not only responsible for putting together the types of reports previously listed, their role is much bigger than that. The role of managerial accounting itself is to aid in the decision making process. The role of the management accountant is maintaining accounting records, preparing financial statements, generating managerial reports and analyses, and coordinating budgeting efforts (Schneider, 2012) The management accountant is an advisor, an internal consultant, and an essential part of management (Schneider, 2012). Ethical Issues/Concerns for the Management Accountant
For management accountants being an essential part of management comes with a lot of ethical responsibility. Having ethical responsibility means that management accountants must have integrity and be honest in the information that they present, it also means that they have a responsibility to report any unethical activities that they are aware of (Schneider, 2012). Some ethical concerns for the management account include the areas of competence, confidentiality, integrity, and credibility. These four areas make up the four components of the Standards of Ethical Conduct for Practitioners of Management Accounting and Financial Management, issued by The Institute of Management Accountants (Schneider, 2012). Ethical behavior is important for management accountants and all parts of business because it is the lubricant that keeps the economy running (Brewer et al, 2005).
Managerial Accounting Techniques and their Application to Business Management decisions are basically based on some techniques that include financial statement analysis, activity-based cost, and marginal costing (Mazumder, 2007). These are just a few of the techniques used by management accounts to base management decisions. All three of these techniques have an application to business. Financial statement analysis is a historical document that delivers organized data according to rational and consistent accounting process and conveys an understanding of some financial aspects of a business firm (Mazumder, 2007). Financial statement analysis involves careful selection of data from financial statements in order to forecast the financial health of the company (Folk et al, 2002)....
...Week 6 FinalPaper
BUS630: Managerial Accounting
April 15th, 2013
Managerial accounting is an internal business function that deals with the day‐to‐day operation of a business. A managerial accountant gathers and reports information that helps managers in decision making and unlike financial accounting it does not have to follow established standards and principles. It is concerned with such matters as profitability in relation to both cost and volume of sales, budgeting, making decisions about pricing, and the general productivity of the business (Schneider, 2012). This information is of value to managers and helps them to make decisions about projects, new products or services, reorganization of departments, and other internal matters. How important are the new approaches such as just in time, activity based costing and flexible forecasting, to managerial accounting?
Definition of managerial accounting
The definition of managerial accounting, also called cost accounting, is that, it is the process of identifying, measuring, analyzing, interpreting, and communicating information within an organization to achieve the organizations goals. Managerial accounting is not subject to the same rules and principles as is financial accounting (Schneider, 2012).
Financial accounting is mandatory and its statements must comply with the generally accepted accounting...
BUS610: Organizational Behavior
Instructor: Miguel Cardenas
December 17, 2012
The organizational behavior analysis is known to be very effective and leads to greater growth and development. Concentrating on Organizational behavior can achieve better results, and it helps the company perform. Organizational behavioral analysis helps in gauging company’s behavior towards different aspects. As a concept, an Organizational behavior is a discipline that looks into the effect that individuals, groups and structures have on behavior within an organization. When examining this it is found to be crucial and tends to make situations well-versed and better than before. The analysis part would turn out to be well-versed and offers with productive outcomes.
It has been recognizedthat uponthe completion of an organizational analysis it could be beneficial in gaining thebest possible knowledge pertaining to the operating systems, behavior of organizational members and forming an understanding with current conditions. All of these factors are determined to be vitally importantin order to handle situations with proper effectiveness. It would be effective in attempting toexecute the organizational practices with the best magnitude possible. With all of this, it can be ensured that the organizational behavior analysis would support in working towards improvement in deficient areas. Not only this, the running conditions can also be made...
Oscar De La Hoya
BUS311: Business Law I
May 2, 2013
When it comes the laws of business there are a broad range of categories and topics. A topic that we would find when studying business law is contracts. “A contract is a legally enforceable agreement between two or more people.” (Rogers, 2012) In the world we live in learning about contract laws is very vital when entering into one. We must be aware that there is more than just on type of contract and there are several steps that both parties must follow before any contract can be legal.
There are several types of contracts that individuals can enter. These types are expressed, implied, bilateral, unilateral, simple, formal and quasi contracts. An express contract are “formed by the express language of the parties—the actual words they use in their agreement—and can be either written or oral.” (Rogers, 2012) This type of contract does not have to be in writing. An expressed contract contains the offer, acceptance and consideration elements of a contract. Express contracts are usually compared to implied contracts.
Implied contacts are “formed not by the express words of the parties, but rather by their actions.” (Rogers, 2012) With this type of contract the agreement is implied by actions. There are no expressed words within an implied contract. It can be either implied in fact or in law. If a contract will result in inequity or harm it will not be...
Managerial Accounting FinalPaperBUS630, Managerial Accounting
“The accounting system generates the information that satisfies two reporting needs that coexist within an organization: financial accounting and managerial accounting” (Schneider, 2012, ch 1.1, para 1). Managerial accounting is the process of preparing reports and accounts required by management to make business decisions for daily, weekly, monthly, and yearly projects. Financial accounting is the branch of accounting that organizes accounting information for presentation to interested parties outside of the organization. Financial accountants produce annual reports for external stockholders. Managerial accounting is a vital component in managing. Management accounting is concerned with providing financial information to managers to plan and control activities (Garrison, Noreen, & Brewer, 2010). The purpose of this paper is to define managerial accounting, the role of the management accountant, and management accounting techniques.
Management accounting is used to evaluate a business’s results beyond what the financial statements are telling. Management accounting reports show the amount of available cash, sales revenue, status of accounts payable and accounts receivable, outstanding debts, and inventory. Management...
...Applying Information Systems and SDLC to Business
March 4, 2013
Applying Information Systems and SDLC to Business
Founded in 1995 by Jeff Bezos, Amazon.com has become one of the largest known online stores in the world. In 1995, Amazon.com sold its first book online, which was shipped from Bezos’s garage in Bellevue, Washington (Amazon.com Mission Statement, 2012). Many may not know that Amazon.com had a slow start because their online layout was not appealing. Within a few years Bezos attracted a few investors who took interest in his venture and invested approximately $140,000. Bezos decided to use the money to create a more appealing website to attract more customers. The sales for the next three years surpassed Bezos’s expectations. After analyzing the sales data, he found that people were not only purchasing domestically, but also from around the world. Amazon.com has grown from a small company to a worldwide business in just a few short years. This rapid growth requires a company to reevaluate how it does business if it plans to expand or maintain its marketplace for the future.
Amazon.com continues to grow, and they stand behind their mission statement, “Our vision is to be the earth’s most customer centric company; to build a place where people can come to find and discover anything they might want to buy online” (Amazon, 2012, Company facts). Amazon.com is accomplishing their mission. From that first sale in 1995, they went from selling...
...an effective manager you have to possess the skill of outstanding decision making skills. In order for one to be successful within their personal life they may also need to possess an understanding of effective decision making. The decision- making process should be one that makes a positive change. Can the decision making process work for organization as well as individuals. In the present global market, firms compete for market share and the demand from consumers using many strategies and systems. In this paper we will analyze how the companies take effective managerial decisions. We will analyze company current financial position, its economic environment, effect of government regulation of the company and company PEST circumstances. I am going to analysis the Acer Computer is a pioneer in the manufacture of optical laptops and has done extensive research and developed an optical notebook which is almost five times faster than traditional chip-based computers. In this paper, this writer creates a set of pricing and non-pricing strategies designed to enable Acer to maximize its economic profits in different market structures. This writer also discusses how Acer could justify investment in technology, research and development, and economic efficiency to maximize its economic profits within different various market structures.
Acer is the first company to enter the market with notebooks with the patent rights of optical computers. This means...
...using tests as selection method is to assess the personality and abilities of each candidate for the jobs. The personality test is to focus on the feelings, thoughts, and behavior of candidates as they relates to the type of enthusiasm and motivation employer is looking for in a candidate while the aptitude and ability test is to assess the intellectual performance of candidates. Interview method on the other hand, is a crucial preliminary part of recruiting process because it afford face-to-face meeting with candidates because it combines a detailed understanding of organizational requirements with a distinctive understanding of the responses, talents, qualifications, personality and character of prospective employee’s in order to make a final decision.
Using interview and tests in the selection of candidate for the Operations Manager position will be most appropriate because it will afford the recruiter to be able to observe candidates attributes that will affect the job performance which include the abilities to communicate, reason and understand. This will also give the interviewer an opportunity to compare the strengths and weaknesses of each applicant.
It is clear that to hire the best individual to fill a position it is important the analysis of the position be done and a written job description should be made to include the tasks, tools and knowledge, educational requirements, and the skills and abilities required to be successful at the job is...
BUS 670 Legal Environment (NAF1215B)
May 21, 2009 made up so that it can be seen things can go on here at any point and time...
In order for a corporation to be successful it should produce products that are effective and reliable. To create a product that is high quality and a low price is the idealistic procedure that any business should operate on. High profits for corporations do not always develop as planned. Problems find there way into the market for several reasons. There can be several reasons why problems find their way into the market. When products have a defect may hurt a consumer products get recalled. A product is supposed to be recalled when the company finds out it is dangerous to the consumer because of a defect, or has killed or injured from the defect, or does not met government set requirements (May, 2009). Companies, when these problems arise, have to decide to recall the item in question or to allow it to stay in the market. Product recalls would continue without companies being held to ethical standards, thus encouraging companies to ignore when they build unsafe items that could harm or kill innocent people possibly.
When a consumer or manufacturer finds a product with a defect that has or may cause injury to others using or consuming a product a product recall occurs. Product recalls are not limited to individual...