Inventory and Raw Materials

(TCO 1) Which of the following is NOT a difference between Financial Accounting and Managerial Accounting?

To be efficient and effective in management, certain tasks must be performed by all managers. Managers must be able to plan, organize, lead, and control. Manager’s tasks are important no matter the level of the manager. Managers must be able to use and improve these skills depending on their position within the organization.

1. Review the definition of management at the beginning of the chapter and briefly define each of the 4 functions. What are the challenges in carrying out these functions in today’s hyper-competitive marketplace?

1-Describe the company that you currently work for, have previously worked for, or would like to work for in the future. Determine at least two (2) compelling reasons that this company should prepare and manage a budget. Predict the two (2) most likely positive and negative financial outcomes for this company if it properly or improperly performs effective budgeting.

Planning is the foundation of all the functions of management upon which the other three areas should be built. During planning, management must evaluate the company’s current situation and then developing strategies to achieve these goals, this is called strategic planning.

Q1. Contrast financial and managerial accounting on the basis of user orientation, purpose of information, level of aggregation, length of time period, orientation toward past or future, conformance to external standards, and emphasis on objective data.

Planning is defined as choosing a goal and developing a strategy to attain that goal.

Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oil fields. (The Norwegian currency is the krone, which is denoted by Nkr.) The company uses a sob-order costing system arid applies manufacturing overhead cost to jobs on the basis of direct labor-hours. At the beginning of the year, the following estimates were made for the purpose of computing the predetermined overhead rate: manufacturing overhead cost, Nkr360,000; and direct labor-hours, 900.

Compare and contrast financial accounting and managerial accounting by answering the following questions in the matrix provided. Cite any sources you use in accordance with APA guidelines.

19 One of the specific purposes of management accounting system is to provide information useful to help the enterprise achieve its goals, objectives, and mission.

* High quality of whisky due to the unusual iron-free spring water used in the distillation process and the specially prepared fire-charred white oak barrels used in the aging process.

3. Managerial Accounting deals with procuring of data for the organisation's management i.e. to serve the internal users with necessary accounting information to carry out the management tasks of planning, organising, actualising and controlling. " Management Accounting is the presentation of accounting Information in such a way as to assist management in creation of policy and in the day to day operations of an undertaking". 4. Financial Management deals with the process adopted by an organisation for taking financial decisions through analysing and interpretation of financial data for meeting the organisations objectives.

Planning enables decision-making as it involves a choice among alternative courses of action, evaluating it and then selecting the best course of action.

The fundamental purpose of management accounting is to help an organization achieve its strategic objectives. Meeting these objectives satisfies the

Another main difference between the two different styles of accounting is their relevance of information. Accounting4management.com states that financial accounting mainly is concerned with data that is “objective and verifiable” where managerial accounting is concerned more with information that is relevant to the