Exam (elaborations)
Chapter 1 Managerial Accounting_ An Overview.
- Course
- Institution
Chapter 1 Managerial Accounting_ An Overview.
[Show more]
Seller
Follow
modockochieng06
Content preview
Chapter 1 Managerial Accounting: AnOverview
Financial Accounting - correct answer-The phase of accounting that is concerned with
reporting historical financial information to external parties, such as stockholders, creditors,
and regulators.
Managerial Accounting - correct answer-The phase of accounting that is concerned with
providing information to managers for use within the organization.
7 key differences b/w financial and managerial accounting - correct answer-
1. Difference between reporting between financial and managerial accounting. - correct
answer-Financial accounting reports to those outside the organization (owners, creditors, tax
authorities, and regulators). Managerial accounting reports to managers inside the
organization for: planning, controlling, and decision making.
2. Emphases differences between financial and managerial accounting - correct
answer-Financial accounting emphasizes financial consequences of past activities.
Managerial accounting emphasizes decisions affecting the future.
3. Emphases differences between financial and managerial accounting - correct
answer-Financial accounting emphasizes objectivity and verifiability. Managerial accounting
emphasizes relevance.
4. Emphases differences between financial and managerial accounting - correct
answer-Financial accounting emphasizes precision. Managerial accounting emphasizes
timeliness.
5. Emphases differences between financial and managerial accounting - correct
answer-Financial accounting emphasizes companywide reports. Managerial accounting
emphasizes segment reports.
6. Following GAAP/IFRS - correct answer-Financial accounting must follow GAAP/IFRS.
Managerial accounting need not follow GAAP/IFRS.
7. External reports - correct answer-Financial accounting: mandatory for external reports.
Managerial accounting: not mandatory.
Segment - correct answer-A part or activity of an organization about which managers would
like cost, revenue, or profit data.
Examples of business segments - correct answer-Product lines, customer groups,
geographic territories, divisions, plants, and departments.
, Managerial accounting helps managers perform 3 vital activities - correct answer-1. Planning
2. Controlling
3. Decision making
Planning - correct answer-The process of establishing goals and specifying how to achieve
them.
Controlling - correct answer-The process of gathering feedback to ensure that a plan is being
properly executed or modified as circumstances change.
Decision making - correct answer-Selecting a course of action from competing alternatives.
Budget - correct answer-A detailed plan for the future that is usually expressed in formal
quantitative terms.
Steps in the Planning process - correct answer-1. Establish goals
2. Specify how to achieve goals by formulating questions
Control Process - correct answer-Involves gathering, evaluating, and responding to feedback
to ensure that expectations are met.
Prepare performance reports.
Performance Report - correct answer-A report that compares budgeted data to actual data to
highlight instances of excellent and unsatisfactory performance.
3 questions decision making revolves around - correct answer-1. What should we be selling?
2. Who should we be serving?
3. How should we execute?
What should we be selling? - correct answer-What products and services should be the
focus of our marketing efforts?
What should we be selling? - correct answer-What new products and services should we
offer?
What should we be selling? - correct answer-What prices should we charge for our products
and services?
What should we be selling? - correct answer-What products and services should we
discontinue?
Who should we be serving? - correct answer-Who should be the focus of our marketing
efforts?
Who should we be serving? - correct answer-Who should we start serving?
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller modockochieng06. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
78310 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now