Pretend That Two Different Students

Pretend that two different students answers each of those questions separately, i.e. total four answers (150 words each). For example, student #1 answers first question , student #2 answers first question, etc. Capital budgeting has three phases: (a) identification of potential projects, (b) selection of investments, and (c) post-audit of investments. What is the accountant's role in each phase? (Chapter 11) The accountants role in the first phase of capital budgeting, identification of potential projects, is minimal. The goal of this stage is to find a need or opportunity for the company or organization.

Typically this takes place as a result of the company's vision and a proposal to senior management is made. This proposal includes the identified opportunity but also includes some possible ways to deal with the issue and recommendations. The second phase of capital budgeting, selection of investments includes gathering information to help in the decision making process. Accountants typically help with the gathering of this information and help to make informed decisions about which potential projects seem to best align with the organization's mission and goals.

Post audit investments also known as follow up auditing, allow for active roles on the part of accountants. Accountants function throughout phases two and three as "information specialists" (page 427). Student 2 Answer: Accountants do not play much of a role in the first phase of capital budgeting referred to as the identification of potential projects phase. During the other two phases, accountants are in large part responsible for the information that is being processed by the company.

Accountants provide companies with detailed cost measurement information in order for the company to make strategic decisions. This takes place during phase two, which is the selection of investments phase. Accountants aid company managers in making critical decisions pertaining to capital budgeting and in particular relating to selecting investments and finally post auditing those investments. Specific capital budgeting models help accountants throughout these phases with the organization of an abundance of information.

For example, there are Discounted Cash Flow Models allow for accountants to actively participate in specifically in phases two and three. 2) Distinguish between job costing and process costing. (Chapter 14) Student 1: Job Costing, also known as job order costing provides a cost to a product or item that is typically identified by individual "units or batches" and that each demand a need for a specified skill or degree of attention (page 577). Some examples of companies that typically utilize job costing include printing, furniture, aircraft, and specialized machinery, to name a few.

Process costing, on the other hand, deals with mass production. The possibility and likelihood of mass ordering is feasible due to the.