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managerial accounting chapter 1
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2021 2020 2019 2018 2017sales 600,265 394,911 326,373 229,840 169000
cogs 308,735 203,205 169,950 119,018 86,190
Acct 29,053 23,023 22,324 13,492 11,620
receivable
Compute trend percent’s for the above accounts, using 2017 as the base year. For each of the
three accounts, state whether the situation as revealed by the trend percents appears to be
favorable or unfavorable.
Niantic reported the following financial information (amounts in millions)
Current assets 11,000
Total assets 12,477
Current liabilities 1,100
Net sales 6,400
Net income 276
Current ratio = 10
Profit margin = 4.31
Chapter 1: Introduction to Managerial Accounting
1. Definition of Managerial Accounting
● Managerial Accounting: The process of identifying, measuring, analyzing, interpreting,
and communicating information to managers for the pursuit of an organization’s goals.
● Focuses on providing information to internal users (management) rather than external
users (investors, creditors).
2. Key Differences Between Managerial and Financial Accounting
● Purpose:
○ Managerial: Help managers make informed business decisions.
○ Financial: Provide information to external parties for investment and credit
decisions.
● Regulation:
○ Managerial: No mandatory rules; more flexible and can be tailored to specific
needs.
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