Bus 630 Week 1 Discussion

1014 Words Mar 22nd, 2013 5 Pages
BUS630 WEEK 1 Ashford University MANAGERIAL ACCOUNTING:
This week students will: 1. Explain the primary ethical responsibilities of the management accountant.

2. Illustrate the key principles of managerial accounting including cost concepts. 3. Distinguish between the behavior of variable and fixed cost. 4. Explain the significance of cost behavior to decision making and control. 5. Determine the necessary sales in unit and dollars to break-even or attain desired profit using the break-even formula.
FINANCIAL VS MANAGERIAL ACCOUNTING-
Financial accounting is the branch of accounting that organizes accounting information for presentation to interested parties outside of the organization. The primary financial
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It may be possible that the manager elected to spend his variable expense advertising dollars during a time period where they would produce the most sales, and then tapered off his advertising dollars during a time period of steady business flow. Lastly, the cancellation of high visibility events may have been due to the determination that cost was not yielding substantial sales or visibility. Despite this fact, it stands to reason that a store manager would inform a regional manager of any choices having a broader impact to the overall company. If there was a lack of communication here, I believe it is to the detriment of the store manager’s credibility.
What are the ethical implications of the scenario?
Variable Cost defines the cost of a single assembled product based on the materials consumed and labor invested directly in unit production. To illustrate our point, we can say that making a single baked potato with all of the fixings will cost $3.00 to produce (potato, sour cream, chives, plate, fork, napkin and labor). If we decide to go into the baked potato business, we must then sell these potatoes for at least $3.00 per unit. Any less would cause us to lose money on the endeavor. This cost cannot be made up by increasing volume of sales. Judy Koch discussed the fact that bulk purchases can benefit you reduce these variable costs. If we decided to purchase potato-making materials in larger quantities and hired more workers to produce these products, we could
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