Managerial Accounting Essays (Examples)

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Managerial Accounting
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Managerial Term
Managerial Accounting

FINAL EXAMINATION

Please complete the following by typing your answer letter next to "ANS" (example "ANS: c) and return to your Instructor via Blackboard by midnight, August 1, 2012:

A (n) ____ is a review to determine whether the policies and procedures specified by top management have been implemented.

A) management audit

B) internal audit

C) internal control

D) internal accounting control

2) Variances

A) are quantitative expressions of plans of action

B) ignore areas that are problem areas

C) are deviations from a plan

D) ignore areas that are presumed to be running smoothly

3) Which of the following costs is a variable cost?

A) rental expense for factory building for manufacturer of electronics

B) lease cost for factory machine for manufacturer of electronics

C) fuel for airplane for airline

D) depreciation expense of airplane for airline

ANS: C

4) On Fire Company, a producer of electronic devices, has the following information:

Selling price per unit $5.00

Variable cost per unit $3.00

Total fixed costs $90,000.00

The contribution-margin ratio….

Managerial Accounting
Managerial accountants are charged with all financial matters that do not pertain to the financial accounting statements. ithin their company, they ensure that the company has good financial security, they perform analysis on costs and revenues, they perform budgeting, handle taxes, and their work is frequently used in strategic planning, whereby they provide the financial analysis to management to help make better decisions (No author, 2012). Some of the ways in which the job contributes have changed, especially with the advent of computerized decision-support systems, information systems and dashboards, each of which provides real time information to the managers, including cost information. The integration of these systems with managerial accounting has only served to make the managerial accounting role even more important over time.

This role has not changed over time, although arguably the management accountant role has become more prominent. Management accountants have always performed their existing functions, so….

Managerial Accounting
Accounting

Managerial accounting is different from financial accounting because it is used primarily by companies and organization to generate weekly, daily and monthly reports to help them forecast future financial events (Birnberg, 1992). The profession of managerial accounting looks at the many ways managers can help facilitate increased revenues over defined times, and the future in general. It is not concerned with investments as much as it is concerned with the overall profitability of the company in which the manager works with. Managerial accounting once began as a method of simply keeping track of an organizations time and finances, much like a treasurer might. Over time however, and especially given the current global state of the economy, managerial accounting is now concerned with the profitability and future success of organizations not just domestically but also globally. The use of the internet and technology has dramatically changed the way organizations conduct….

Managerial Accounting
Elkay is a manufacturer of sinks. The company has three plants, serving different markets. The Ogden plant is high-volume, low-margin production. The company has new technology that makes it an innovator in efficiency. The Lumberton plant focuses on high margin items. Broadview is for commercial, institutional and specialty products. The company's information provides feedback about profits that indicates one customer type provides all of the profits, and the other customer types are significant money-losers.

Assessment of Problems and Issues

The company faces a few issues in the marketplace. Elkay now has new competition entering the market from China, and this new competition is going to drive down the price on poorly-differentiated products at the low end. This is a natural consequence of new competition in a market that was previously in an equilibrium state. The new competition is going to challenge some of Elkay's customers to drop the company.

Another issue in….

That we do not find out about cost overruns until the project is completed creates a climate where managers are motivated to overlook past transgressions yet are powerless to address future ones. Lastly, I would tie performance-based bonuses either to non-financial measures or to ones based on financial accounting, subject to GAAP and other defined rules and procedures. In general, financial incentives are only necessary when there are competing incentives (Jensen, 1994); that is not the case here.
1. Sue faces multiple challenges. She has cost overruns on her major project; her incentives do not correspond with what is best for the company (agency problem); and she may embarrass the company if the project comes in over budget. She has few tools with which to work. She has basic financial statements and managerial accounting statements. There were no interim statements to help her gauge the financial status of K3 or….

Managerial Accounting
E-Company

Income Statement

Contribution Margin

For Period Ended Dec 31, 20XX

Revenue

less V Mfg Cost

less V Op/Selling Cost

Gross Profit (Contribution Margin)

Fixed Mfg Overhead

Fixed S&A Exp

Total Fixed Costs

Net Income

$4,765,000

E-Company Income Statement

Absorption Method

For Period ended Dec 31, 20XX

Revenue

Less Mfg Cost

Less Op/Selling Cost

Less S&A Exp

Net Income

$5,485,500

The gross profit margin is 75.6%. This is calculated as the (revenue -- cogs) / revenue (Investopedia, 2011). The contribution margin is similar, but does not include costs associated with goods still sitting in inventory. It would be more easily calculated as (29 -- 1.2 -- 4.9) / 29 = 78.9%.

The net margin should be calculated on the basis of the GAAP income statement, so in that case it would be $4,765 / $10,005 = 47.6%. If the net margin was calculated on the basis of the absorption income statement, the net margin would be (5485.5 / 10005) = 54.8%.

There are a few points of difference between the two methods that….


2. Research the answers to management tax or auditing questions- once an accountant understands their job, they must be prepared to answer very specific questions concerning the accounting information that is provided (Johnstone & Biggs, 1998). hile most CEO's and people in various departments have some understanding of accounting, there are some very intricate financial details that only accountants fully understand (Johnstone & Biggs, 1998). ith this understood, successful accountants will be prepared to answer complicated questions related to management tax and auditing questions. If the accountant does not have the capacity to answer these questions correctly the decisions that the business managers make may be incorrect.

3. Convey the results to colleagues- not only do successful mangers have to be able to understand and answer questions; they also must have the capacity to convey results with colleagues (Johnstone & Biggs, 1998). This means that successful managers must have good communications….

Managerial Accounting
According to Investopedia, management accounting is "the process of identifying, measuring, analyzing, interpreting, and communicating information for the pursuit of an organization's goals." The essence of managerial accounting is that managers blend and merge accounting information into realistic and practical goals and objectives. Ultimately, mangers should try to incorporate the three E's of efficiency, economy and effectiveness. This essay will address three methods that attempts to address these three principles and compare them to determine which one is the most important.

One method of maximizing the use of accounting management is to become aware of the benefits of efficiency. Chandler (1977) revealed that the coordinating efforts accomplished at the managerial level can have a profound and deep impact on the efficiency of an organization. These principles are revealed in this author's five benefits discussed in his argument for the rigid coordination inherent in a staff and line organization. Efficiency is….

Managerial accounting intended provide managers information make decisions run company successfully. The information reliable, timely complete. Its provision,, dictated accounting management information system place.
Managerial accounting

The fastest growing and developing field in today's society is indubitable the IT sector, which has transformed from a closely regulated and controlled experiment into a force impacting every aspect of the daily life, from the preparation of breakfast to the completion of complex professional chores. Within the business community, technological development has been represented through a wide array of elements, one of the more common ones being the development and implementation of EP -- enterprise resource planning. EP is generically defined as "a system which brings all the decision making information from all the departments in a company into one single place in order to increase efficiency, productivity and profit of the company" (EP Definition, 2010).

The introduction of the EP is as such expected to….

Managerial and Financial Accounting
Case Managerial Accounting - Variable Costing Managerial accounting emphasizes short-term profit analysis, income statement important. Consequently, 'll examine discuss income statements case.

Managerial and Financial Accounting

Financial and managerial accounting basic difference comes on the uses. While, financial accounts are prepared for use by external parties, managerial accounts are prepared for use internally. The process of preparing the accounts in both financial and managerial accounting use similar source for data their emphasis differs. Managerial accounting has a measure to guide and direct the mangers orientation on future perspectives of a firm. Financial accounts primarily provide information on the firms past performance and transactions in summary. The managerial accounting aspect gives a detailed reflection of constantly monitored performances and a reflection for projected estimates (achchh, 2011).

Objectivity and validity of financial accounting information is an expectation of the users. Managerial accounting information need only to be relevant its verifiability is not….

Managerial Accounting -- Budgeting: Differential Analysis
This assignment considers variable costing as a decision-making tool for evaluating whether to accept an order to manufacture Product C, which is a product proposed by an existing customer for whom Lewis Company is manufacturing Product B. Two general methods for valuing inventory and for determining the cost of goods sold are absorption costing and variable costing. The data in this case study is presented in the absorption costing format. Absorption costing is typically associated with financial reports, as in this case, with the Absorption Income Statement. Managers prefer variable costing as a tool for making business decisions ("Accounting for Management," 2012). Variable costing must be employed when the contribution margin format is used in an income statement ("Accounting for Management," 2012). To say that these two methods are simply alternative approaches would be a misstatement since the two costing systems can generate substantively different….

Managerial Accounting -- Budgeting 1 &
(1) Is this a static or flexible budget?

Since many of the budget line items are based on student enrollment, this budget format is considered to be a flexible budget. The costs of providing instructors and associated benefits is fixed by the state with regard to the ratio of students to teachers, and students per classroom (which is more a function of fire codes and building codes, but it is still a determinant with regard to budget flexibility). The expenses associated with the school facility are fixed and generally cannot deviate in response to increases or decreases in enrollment. Personnel and plant costs are two major items in the school budget, and neither provides options for flexibility. That said, much of the proposed budget is based on student enrollment scenarios -- of which there are three at 120 students, 100 students, and 66 students. As we….

Managerial Accounting
Why do you think the division was profitable immediately under the new ownership?

An organization uses cost allocation methods to determine the cost of one unit of its product. Cost allocation refers to the process of linking all the cost incurred during the production process to the product. Direct costs and indirect costs are the cost associated with production of a product. Direct costs are those that are traceable to the product such as the price of wool in the production of shirts. Indirect costs are not traceable to the final product directly as taxes charged. Cost allocation enables the organization to determine the cost of its products by ensuring that a profit margin allocated to every unit produced.

In the case study, the manufacturer found that a component of the company was producing losses thus decided to sell. A group of workers bought the division and realized profit immediately after….

Managerial Accounting
Cost-volume-profit analysis is a tool used in managerial accounting that helps companies to determine the level of production (and sales) required by the company to break even. In CVP analysis, costs are separated into fixed and variable costs. The assumption is that the fixed costs do not change, while the variable costs do change with the level of production. Once sales are taken into account, so are variable costs, with the leftover being the contribution to fixed costs. The point where the contribution equals the fixed costs is the breakeven point. The basic CVP formula, therefore, is as follows:

Profit = total revenue -- variable costs -- fixed costs

There are a couple of main reasons why CVP analysis is valuable. The first is that this form of analysis can help guide production/sales decisions. CVP analysis can, for example, help a company know when a product should be cut from its….

Managerial Accounting
The company taken for analysis is: Microsoft Corporation. The company has a history as follows: The revenue comes from developing a wide range of software products and services for all types of computing devices. The software products include operating systems like the Windows Series for personal computers, servers, and many other business solutions applications. The company also sells some hardware and gaming products like Xbox 360 gaming and even digital music and internet services like Bing, Windows Live, Microsoft Office Web Apps, and also the recent online advertising through the adCenter platform. Microsoft has consistently remained the top company in the industry with stake holder support seen through the higher value of the stock and ratings.

Did the company perform well? Why or why not?

To manage a portfolio it is necessary to look at the cash flow situation, and the profitability of the company and the ratios that are indicative….

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3 Pages
Essay

Business

Managerial Accounting

Words: 1219
Length: 3 Pages
Type: Essay

Managerial Term Managerial Accounting FINAL EXAMINATION Please complete the following by typing your answer letter next to "ANS" (example "ANS: c) and return to your Instructor via Blackboard by midnight, August 1,…

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4 Pages
Essay

Accounting

Managerial Accounting Managerial Accountants Are Charged With

Words: 1110
Length: 4 Pages
Type: Essay

Managerial Accounting Managerial accountants are charged with all financial matters that do not pertain to the financial accounting statements. ithin their company, they ensure that the company has good financial…

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2 Pages
Essay

Accounting

Managerial Accounting Managerial Accounting Is Different From

Words: 607
Length: 2 Pages
Type: Essay

Managerial Accounting Accounting Managerial accounting is different from financial accounting because it is used primarily by companies and organization to generate weekly, daily and monthly reports to help them forecast future…

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4 Pages
Essay

Business

Managerial Accounting Elkay Is a Manufacturer of

Words: 1116
Length: 4 Pages
Type: Essay

Managerial Accounting Elkay is a manufacturer of sinks. The company has three plants, serving different markets. The Ogden plant is high-volume, low-margin production. The company has new technology that makes…

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2 Pages
Term Paper

Accounting

Managerial Accounting Sue Davis Is

Words: 612
Length: 2 Pages
Type: Term Paper

That we do not find out about cost overruns until the project is completed creates a climate where managers are motivated to overlook past transgressions yet are powerless…

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2 Pages
Essay

Accounting

Managerial Accounting E-Company Income Statement Contribution Margin

Words: 676
Length: 2 Pages
Type: Essay

Managerial Accounting E-Company Income Statement Contribution Margin For Period Ended Dec 31, 20XX Revenue less V Mfg Cost less V Op/Selling Cost Gross Profit (Contribution Margin) Fixed Mfg Overhead Fixed S&A Exp Total Fixed Costs Net Income $4,765,000 E-Company Income Statement Absorption Method For Period…

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8 Pages
Thesis

Accounting

Managerial Accounting Has Long Been

Words: 2200
Length: 8 Pages
Type: Thesis

2. Research the answers to management tax or auditing questions- once an accountant understands their job, they must be prepared to answer very specific questions concerning the accounting information…

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6 Pages
Essay

Business - Management

Managerial Accounting According to Investopedia Management Accounting

Words: 1508
Length: 6 Pages
Type: Essay

Managerial Accounting According to Investopedia, management accounting is "the process of identifying, measuring, analyzing, interpreting, and communicating information for the pursuit of an organization's goals." The essence of managerial accounting…

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3 Pages
Essay

Business - Management

Managerial Accounting Intended Provide Managers Information Make

Words: 1033
Length: 3 Pages
Type: Essay

Managerial accounting intended provide managers information make decisions run company successfully. The information reliable, timely complete. Its provision,, dictated accounting management information system place. Managerial accounting The fastest growing and developing…

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5 Pages
Essay

Business - Management

Managerial and Financial Accounting Case Managerial Accounting

Words: 1739
Length: 5 Pages
Type: Essay

Managerial and Financial Accounting Case Managerial Accounting - Variable Costing Managerial accounting emphasizes short-term profit analysis, income statement important. Consequently, 'll examine discuss income statements case. Managerial and Financial Accounting Financial and…

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4 Pages
Essay

Business

Managerial Accounting -- Budgeting Differential Analysis This

Words: 1369
Length: 4 Pages
Type: Essay

Managerial Accounting -- Budgeting: Differential Analysis This assignment considers variable costing as a decision-making tool for evaluating whether to accept an order to manufacture Product C, which is a product…

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5 Pages
Essay

Teaching

Managerial Accounting -- Budgeting 1 & 1

Words: 1445
Length: 5 Pages
Type: Essay

Managerial Accounting -- Budgeting 1 & (1) Is this a static or flexible budget? Since many of the budget line items are based on student enrollment, this budget format is considered…

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2 Pages
Term Paper

Business - Management

Managerial Accounting Why Do You Think the

Words: 677
Length: 2 Pages
Type: Term Paper

Managerial Accounting Why do you think the division was profitable immediately under the new ownership? An organization uses cost allocation methods to determine the cost of one unit of its product.…

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4 Pages
Essay

Business

Managerial Accounting Cost-Volume-Profit Analysis Is a Tool

Words: 1099
Length: 4 Pages
Type: Essay

Managerial Accounting Cost-volume-profit analysis is a tool used in managerial accounting that helps companies to determine the level of production (and sales) required by the company to break even. In…

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4 Pages
Essay

Business

Managerial Accounting the Company Taken for Analysis

Words: 1578
Length: 4 Pages
Type: Essay

Managerial Accounting The company taken for analysis is: Microsoft Corporation. The company has a history as follows: The revenue comes from developing a wide range of software products and services…

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