Analysis of Wal-Mart Managerial Accounting Process

2124 Words Nov 26th, 2012 9 Pages
Analysis of Wal-Mart Managerial Accounting Process

Table of Contents

Company Description of Wal-Mart Page 3

Budgeting Process Page 3

Management Accounting System Page 4

Costing System Page 5

Capital Decision Making Process Page 6

Capital Structure Page 6

Project Conclusion Page 7

Information Sources and Methodology Page 8

References Page 8

Company Description
For the final project of managing finance Wal-Mart Stores Inc is chosen as the discussion target. Being one of the grocery retail shop leaders in the world, Wal-Mart (WM) operates business with 10,000 retail units in 27 countries with about USD444 million of sales in 2012 (Wal-Mart homepage 2012).
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The accounting information from MAS of WM helps in planning, controlling and other managerial activities. Their system also able to come up all kind of alternatives with integrated accounting information which assist management to find out the best strategy for organizational effectiveness improvement (Wal-Mart homepage 2012). WM disseminate managerial accounting information through budgets for all departments which help all departments to facilitate proper integration in all kind of activities within the company.

WM currently uses Vision Suite accounting software that includes different aspects of finance like AR/AP, general ledger, check writing and external accounting integration. This software is faster and relatively cheaper and generates accounting documents automatically. Through this, many types of useful reports can be generated for management to make decisions. On the other side, it can be susceptible for computer viruses and hackers. In absence of proper control and security, it can create problems for the confidentiality of the company (Gilbertson & Lehman, 2008, p. 6, 437 ).

Costing System
In term of costing process, WM is focus on inventory control since that is the most important part of their business to determine its profitability. To determine the cost of inventory, WM uses several costing method. In order to reduce inventory cost as well as determining accurate cost of

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