Managerial Accounting Essays (Examples)

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Managerial Finance and Accounting

Words: 502 Length: 2 Pages Document Type: Essay Paper #: 74543946

Managerial Accounting: Organizations and Expectations

The profession and practice of accounting has become increasingly prominent and increasingly scrutinized over the past decade or so, in the wake of major scandals and upsets in the business world that can be traced in part to nebulous and unethical accounting practices or outright frauds. Because of this increased prominence, accountants today need to be more concerned than ever with not only the standards to which they hold themselves and their work, but also the appearance of these high standards and performance capabilities. This is one of the major benefits, along with many others, of belonging to a professional organization. The authority and austerity that the right professional organization carries provides these abstract as well as concrete benefits to member accountants, from increasing confidence and camaraderie to detailing the actual expectations and requirements of the task of accounting.

The Institute of Management Accountants is…… [Read More]

Reference

IMA. (2012). Institute of Management Accountants. Accessed 10 January 2011.

 http://www.imanet.org/
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Accounting Is the Basic Function

Words: 1515 Length: 5 Pages Document Type: Essay Paper #: 74934849

Yet, financial statements and managerial accounting reports can be highly effective nonetheless. Sometimes they will merely confirm what the proprietor already knows, but there are inevitably going to be times when they will reveal that the proprietor's assumptions about the nature of the business are false. Moreover, accounting can act as essentially a second opinion. The proprietor may feel one thing is true, but the numbers can reveal something different.

Overall, accounting is an essential component of any business. Sole proprietorships often make less use of accounting, in part because the law does not obligate them to engage in any more than the most rudimentary accounting. However, proprietors should not overlook the value of accounting. Accounting helps to reveal the business' past performance, but can also be used to enact organizational controls today and to help plant for more effective operations in the future. By understanding the firm's cost structure…… [Read More]

Works Cited

Marshall, David H.; McManus, Wayne W & Viele, Daniel F. (2008). Accounting - What the Numbers Mean. McGraw-Hill/Irwin, New York, 2008.
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Managerial Analysis Managers Use Various Analysis for

Words: 604 Length: 2 Pages Document Type: Essay Paper #: 54710917

Managerial Analysis

Managers use various analysis for various reasons. The comparative analysis compares line items in statements to past statements that detects changes in the accounts, which could indicate problem areas in operations. The ratio analysis detects emerging trends, weaknesses, and strengths of the business. The cost-volume-profit (CVP) analysis evaluates cost factor behaviors and shows how profits can be affected by the factors.

The comparison analysis is especially important to keep expenses in check. y comparing line items on the financial statements against previous period statements, changes can be detected and investigated. For example, where labor is one of the highest expenses, if labor is higher for this period with approximately the same sales volume, it shows a sign of wasted labor hours that would need to be investigated. Labor may not be being utilized in ways to prevent waste, which cuts into the profits. Another high area of waste…… [Read More]

Bibliography

Brewer, P.G. (2010). Introduction to Managerial Accounting. New York, NY: McGraw-Hill/Irwin.
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Accounting Information a Senior Executive in a

Words: 580 Length: 2 Pages Document Type: Essay Paper #: 7128783

Accounting Information

A senior executive in a Fortune 500 firm along with their colleagues on the company's management team are dependent on accurate, timely, and pertinent financial information regarding the health of the organization. Accounting information has aptly been described as "the language of business, which is used in the management, planning, control, and decision- making processes integral to achieving organizational objectives" (Marshall, D. & McManus, W. 1996). In this regard accounting information falls into distinct categories: financial and managerial accounting; yet with considerable overlap in their utilization by management. Explication of these accounting areas provides considerable insight into their utility in providing effective quantitative data for analysis.

Financial and Managerial Accounting

Financial accounting concerns itself with the "preparation and reporting of financial statements for an entity" (Marshall, D. & McManus, W. 1996); while managerial accounting "is concerned with providing information to managers- that is, to those who are inside…… [Read More]

Likewise, managerial accounting also utilizes financial data to reach conclusions as to how the company is operating and what if any corrections are necessary to enhance profitability. In this vein managerial accounting concerns itself with the analysis of costs, budgeting, performance, and capital expenditures. Managerial accounting information is highly detailed and provides a platform from which to judge the company's revenue creation and its cost controls. As examples, an executive management team might take considerable time analyzing activity based-costing; a "system identifying the activity that causes the incurrence of a cost" (Marshall, D. & McManus, W. 1996). This data could lead to a discussion on the company's operating leverage based on their orientation of fixed or variable costs. While both financial and managerial accounting provides detailed data concerning company performance, managerial accounting has a distinctive narrowness to its scope of focus.

Communication of Information

With volumes of financial information generated by a Fortune 500 firm's accounting department, the question becomes how
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Accounting Function for a Chosen

Words: 6160 Length: 23 Pages Document Type: Essay Paper #: 22760906

"Management believes that the accounting estimates employed are appropriate and the resulting balances are reasonable; however, due to the inherent uncertainties in making estimates actual results could differ from the original estimates, requiring adjustments to these balances in future periods."

ased on the data retrieved and the projections made, the accounting division will proceed to the development of the consolidated statements for all of GM subsidies and the overall group. There are 24 consolidated statements, as follows: Discounted Operations; Asset Impairment; Investment in Nonconsolidated Affiliates; Marketable Securities; Variable Interest Entities; Finance Receivables and Securitization; Inventories; Equipment on Operating Leases; Income Taxes; Property - Net; Goodwill and Intangible Assets; Other Assets; Accrued Expenses, Other Liabilities and Deferred Income Taxes; Long-Term Debt and Loans Payable; Pensions and Other Postretirement enefits; Commitments and Contingent Matters, Stockholders' Equity; Earnings per Share Attributable to Common Stocks; Derivative Financial Instruments and Risk Management; Fair Value of…… [Read More]

Bibliography

1. 2007 General Motors Annual Report. Page 9. On the Internet at http://www.gm.com/corporate/investor_information/docs/fin_data/gm07ar/download/gm07ar_full.pdf.Last retrieved on February 15, 2009

2. General Motors Mission Statement, 2009, on the internet at http://www.samples-help.org.uk/mission-statements/general-motors-mission-statement.html. Ast retrieved on February 16, 2009

3. Supplier Diversity, Website of General Motors, 2009, on the internet at http://www.gm.com/corporate/dealers/diversity/index.jsplast retrieved on February 16, 2009

4. Management's Discussion and Analysis, Website of General Motors, 2009, on the internet at http://www.gm.com/corporate/investor_information/docs/fin_data/gm07ar/content/financials/mda/mda_10.htmllast retrieved on February 16, 2009
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Accounting - FedEx and UPS

Words: 3140 Length: 9 Pages Document Type: Essay Paper #: 69265327



Another factor that should be taken into consideration is that of overall strategy. Financial statements are snapshots, and sometimes it can be difficult to discern from looking at a small sample of them the firm's overall direction. Key strategic decisions can have a significant impact on the financial statements for a limited period of time. For example, during the period studied FedEx was having trouble absorbing Kinko's which it had purchased. These difficulties are not fully reflected on the income statements for 2005 and 2006. Instead, they appear as an unusual item (a writedown) in 2008. Likewise, UPS took a $6.1 billion writedown in 2007, which made the financial figures for that year look terrible. There is always strategic context in financial statements. That context is not always readily apparent, but it should be taken into consideration when analyzing the financial statements.

The potential impact of mergers and acquisitions should…… [Read More]

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Accounting A I Using Direct Labour Hours

Words: 1350 Length: 5 Pages Document Type: Essay Paper #: 101465

Accounting

a) i) Using direct labour hours as the cost driver for the overhead costs, the following table presents the net profit calculation for each line of motorcycle:

Vroom plc

Total Profit

Driver:

Direct labour

Sunshine

oadster

Fireball

Output

DL

P

Materials

evenue

less DL

less Materials

Gross Profit

Less Overhead

Net Profit

Activity-based costing is designed to allocate overhead costs based on the resources that each activity consumes (The Economist, 2009). The key to activity-based costing is that the cost drivers are assigned differently, and in a manner that should better reflect actual resource usage than a cost driver that may be picked almost at random (Investopedia, 2013). Using ABC, the following are the net profit calculations for the three different products at Vroom.

Vroom plc

Total Profit

Driver:

ABC

Sunshine

oadster

Fireball

Output

DL

100000

110000

40000

250000

P

Materials

Deliveries

Set-ups

Purchase orders

evenue

7

8

2800000…… [Read More]

References

The Economist. (2009). Activity-based costing. The Economist. Retrieved November 12, 2013 from  http://www.economist.com/node/13933812 

Investopedia. (2013). Activity-based costing. Investopedia. Retrieved November 12, 2013 from  http://www.investopedia.com/terms/a/abc.asp
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Managerial Accountant ACC403 Module 4 Threaded Discussion

Words: 744 Length: 2 Pages Document Type: Essay Paper #: 99096624

Managerial Accountant

ACC403 Module 4 Threaded Discussion Managerial Accounting 21st Century The purpose management accounting organization support competitive decision making collecting, processing, communicating information helps management plan, control, evaluate business processes company strategy.

The importance of management accounting within an organization:

Changes and evolution of the managerial accountant's role

The distinctive feature of managerial accountancy is that members of the profession work for one specific company on a consistent basis, versus being employed by a variety of clients. "The role of the management accountant is to perform a series of tasks to ensure their company's financial security, handling essentially all financial matters and thus helping to drive the business's overall management and strategy" (ole of the managerial accountant, 2012, Business Careers). Depending on the seniority of the accountant, these duties may include budgeting, tax advice and policy, managing assets within benefits packages and other forms of strategic planning (ole of…… [Read More]

References

Accounting. (2012).Wet Feet. Retrieved:

http://www.wetfeet.com/careers-industries/industries/accounting

Cooper, Phillip & Dart, Eleanor. (2009). Changes in the managerial accountant's role: Drivers and diversity. The University of Bath School of Business. Working Paper. Retrieved:

http://teambath.bath.ac.uk/management/research/pdf/2009-06.pdf
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Accounting Process and Financial Statements A Reliable

Words: 1533 Length: 5 Pages Document Type: Essay Paper #: 62404570

Accounting Process and Financial tatements.

A reliable internal system of accounting is an essential element of a solvent profit or nonprofit business entity. By recording virtually every business activity or endeavor, with regards to the creation of monetary inflows of sales revenue and monetary outflows of expenses resulting from operating activities; an accounting system should provide the financial information needed to evaluate the profitability or effectiveness of past and operations. Along with maintaining data for reporting purposes, an effective accounting system will effectively report the status of asset resources, creditor liabilities, and ownership equities of the business entity. With today's rapid and ever expanding technological developments have lead to increasing operating speeds, convenient data storage capabilities, reliability and significantly reduced costs.

Historically, maintaining an effective accounting system involved extensive manual labor which was described as tedious, aggravating, and time exhaustive. Recording transactions, adding subtracting, summarizing, and checking for errors were…… [Read More]

Sources

BASIC FINANCIAL ACCOUNTING REVIEW: media.wiley.com/product

Smith; Outlines & Highlights for Financial Accounting Basics. AIPI; 3 edition (October 19, 2006).

Stickney, Clyde P., Weil, Roman L.; Financial Accounting: An Introduction to Concepts Methods, and Uses. South-Western College Pub; 10 edition (July 2, 2002).

Maher, Michael W., Stickney, Clyde P., Weil, Roman L.; Managerial Accounting: An Introduction to Concepts, Methods and Uses. South-Western College Pub; 10 edition (March 13, 2007)
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Accounting Systems Their Tradeoffs and Discusses the

Words: 936 Length: 2 Pages Document Type: Essay Paper #: 32923663

accounting systems, their tradeoffs, and discusses the differences between countries in their approaches.

Each of the cost accounting systems discussed in the articles accomplishes some management goals better than other systems, but there are tradeoffs involved with each. Different nations approach their cost accounting systems differently due at least in part to differences within cultures. For instance, GP is more suited to countries where the culture is one of uncertainty avoidance, one of the five dimensions of Hofstede's taxonomy. GP offers the most uncertainty avoidance because there is relatively little ambiguity in the assignment of costs; GP is characterized by narrowly defined cost centers and strict cost center criteria. Cultures such as Germany's are characterized by a management environment that includes highly skilled workers and technical expertise among managers. This is in contrast to the U.S. where workers tend to have more generalist skill sets and managers have been educated…… [Read More]

Krumwiede, Kip & Suessmair, Augustin, (2008). A closer look at German cost accounting methods: a survey of the cost management systems used by companies in Germany, Switzerland, and Austria. Management Accounting Quarterly. Retrieved July 26, 2010, from http://findarticles.com/p/articles/mi_m0OOL/is_1_10/ai_n31370936/?tag=r bxcra.2.a.55

Lockhart, Julie & Taylor, Audrey, (2007). Environmental considerations in product mix decisions using ABC and TOC. Management Accounting Quarterly. http://proquest.umi.com/pqdweb?index=0&did=1411673321&SrchMode=1&sid=9&Fmt=3&VInst=PROD&VType=PQD&RQT=309&VName=PQD&TS=1301590287&clientId=29440

Portz, K. & Lere, J.C. 2010. Cost Center Practices in Germany and the United States: Impact of Country Differences on Managerial Accounting Practices. American Journal of Business. Muncie: Spring, 2010. Vol. 25, Iss. 1; pg. 45. http://proquest.umi.com/pqdweb?index=25&did=1992507361&SrchMode=1&sid=6&Fmt=2&VInst=PROD&VType=PQD&RQT=309&VName=PQD&TS=1315214891&clientId=29440
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Managerial ACCT Mastercard's Budgeting Process

Words: 560 Length: 2 Pages Document Type: Essay Paper #: 84321755

It sheds light on why the financial results deviated from expectations and what remedies can be included in the next strategic plan in order to ensure that the company improves performance in the next period.

There are differences among budgeting techniques in different companies and it may well be that some generalizations can be made between the budgeting techniques in different countries. In the Netherlands, for example, budgets are often a compilation of departmental budgets set by lower-level managers (De ith & Dijkman, 2008). Yet within that country, there is considerable divergence among public companies. The same is true for companies in other major estern nations as well -- a wide range of techniques is used in any given sample of companies.

It should be noted that in the U.S., there is a move towards post-budgeting techniques, such as Beyond Budgeting, Activity-Based Costing or the Balanced Scorecard (Becker et al.,…… [Read More]

Works Cited:

Becker, S., Messner, M. & Schaffer, U. (2010). The evolution of a management accounting idea: The case of beyond budgeting. WHU Otto Beisheim Graduate School of Management.

De With, E. & Dijkman, A. (2008). Budgeting practices of listed companies in the Netherlands. Management Accounting Quarterly. Retrieved November 3, 2011 from http://findarticles.com/p/articles/mi_m0OOL/is_1_10/ai_n31369438/?tag=r%20bxcra.2.a.33
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Managerial vs Financial Accounting

Words: 1854 Length: 7 Pages Document Type: Essay Paper #: 29041982

Allocations

hat drives consumption of costs?

In Activity-Based Costing (ABC), consumption of costs is driven by a company's activities (Investopedia, LLC, n.d.), such as production, administration and sales (Cokins, 2010, p. 9). The company's product consumes activities, whether main or supporting activities, and those activities consume company resources (Cokins, 2010, pp. 9, 11). In that context, a cost driver is something that drives the cost of a company's activity (Investopedia, LLC, n.d.); it is a "factor which generates occurrence of resource (capacity) expenses" (Cokins, 2010, p. 8). For example, a manufacturing business may have an activity of running machinery, which will have cost drivers such as machinery operating hours, labor, maintenance and power consumption (Investopedia, LLC, n.d.). That same manufacturing company may also have the activity of release into production, which will have cost drivers such as the number of products (Cokins, 2010, p. 13). Cost drivers are chosen according…… [Read More]

Works Cited

Cokins, G. (2010). Cost drivers. Evolution and benefits. Theoretical and Applied Economics, XVII, 8(549), 7-16.

Hermanson, Edwards, & Ivancevich. (2011). Accounting principles: Managerial Accounting. Retrieved February 28, 2015 from www.textbookequity.org Web site: http://www.textbookequity.org/oct/Textbooks/TBQ_PA_Accounting_managerial.pdf

Investopedia, LLC. (n.d.). Activity cost drivers. Retrieved February 28, 2015 from www.investopedia.com Web site:  http://www.investopedia.com/terms/a/activity-cost-driver.asp 

Investopedia, LLC. (n.d.). Irrelevant cost. Retrieved February 28, 2015 from www.investopedia.com Web site:  http://www.investopedia.com/terms/i/irrelevantcost.asp  jseattle. (2014, December 8). What they're saying about Capitol Hill's Starbucks Roastery: $20M price tag, chi-chi Hill, 'a gathering spot for the well-to-do'. Retrieved February 28, 2015 from www.capitolhillsearttle.com Web site:  http://www.capitolhillseattle.com/2014/12/what-theyre-saying-about-capitol-hills-starbucks-roastery-20m-price-tag-chi-chi-hill-a-gathering-spot-for-the-well-to-do/
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Accounting Financial Accounting Is an

Words: 571 Length: 2 Pages Document Type: Essay Paper #: 2417987

The management accounting leads candidates into finance, risk management and even production management. hile CMA certification is not necessary to pursue a career in management accounting, it is recommended. The IMA claims that certified management accountants earn on average $25,000 more per year than non-certified peers (IMA, 2011).

As with the accounting profession in general, there is increased demand for management accountants. CMAs are in demand because of their ability to contribute to the profitability of businesses, and demand for CMAs is expected to grow in coming years. Because CMA job duties are less structured than those of financial accountants or auditors, CMAs enjoy greater career flexibility.

Both types of accounting positions are poised to enjoy significant growth. There is also a trend in business, particularly since Sarbanes-Oxley, of looking to accounting professionals to lead firms. More CEOs are coming from the accounting stream than ever before, which highlights the…… [Read More]

Works Cited:

Bureau of Labor Statistics. (2011). Occupation outlook handbook 2010-2011: Accountants and auditors. BLS. Retrieved March 20, 2011 from http://www.bls.gov/oco/ocos001.htm

IMAnet.org, various pages. (2011). Institute of Management Accountants. Retrieved March 20, 2011 from  http://www.imanet.org/ ima_home.aspx

Taub, S. (2003) Now playing: CFO as CEO. CFO Magazine. Retrieved March 20, 2011 from http://www.cfo.com/article.cfm/3007934
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Accounting Credibility the Accountability Failures

Words: 1413 Length: 5 Pages Document Type: Essay Paper #: 17956493

(5) Auditors and CPAs should consider several ways that the Sarbanes-Oxley Act and SEC implementation rules as a whole impact accountants and work closely with regulators to address these effects. (6) Public accounting firms need to reconsider external auditors' participation with their client's internal audit function and control structure. This reporting on the internal controls can be very useful and add value to the integrity and quality of the financial reporting process. However, management accepts full responsibility for the design and maintenance of the adequate and effective internal control system. (7) Auditors should advise their clients and make recommendations for the appropriate disclosures of financial information. A more timely, relevant, objective, and transparent financial reporting process should improve the quality, integrity, and reliability. (8) it is necessary to use more effective and objective audit procedures and related standards to improve audit efficiency. The role of independent auditors on financial statements…… [Read More]

Journal of Accountancy. 199(2) p. 74-75.

Rezaee, Z. (2004) Restoring public trust in the accounting profession by developing anti- fraud education, programs, and auditing Managerial Auditing Journal. 19(1): 134-148

Walker, D.M. (2005) Reclaiming public trust in the wake of recent corporate accountability failures International Journal of Disclosure and Governance 2(3):.. 264-271-279
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Managerial Finance - Johnson &

Words: 3790 Length: 10 Pages Document Type: Essay Paper #: 86395992

76), ROE has ranged from 21.6% to 28.3% in recent years, with the 2007 figure being 25.6%. This reflects outperformance of both the industry and the market. The ROA has exhibited similar outperformance of both industry and market. The return on assets for JNJ over the past several years has ranged from 13.1% in 2007 to 17.l% in 2005. The industry five-year average is 8.85% and the market five-year average is 7.50%.

SWOT Analysis

Strengths

Net Income increased despite decline in revenues

Growth in each business segment

R&D expense growing slower than revenues

2-year upward trend in net income

Upward trend in cash levels

Upward trend in cash flow from operations

Current ratio 46.36% higher than industry

Interest coverage 80.09% higher than industry

Net margin 14.04% higher than industry

Return on Equity 1414.79% higher than industry

Return on Assets 48.02% higher than industry

Weaknesses

Decline in revenue this year (1st…… [Read More]

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Accounting Software Inherent in the

Words: 841 Length: 2 Pages Document Type: Essay Paper #: 58950861

Further, Oracle also has templates and process definitions for the electronics components market as well. Lastly the financial modules with Oracle can also be used for local government reporting in addition to SOX compliance.

For the small business of $2M their needs are drastically different than the $100M distributor that has offices across multiple geographies. The $2M company for purposes of this example is a manufacturer of air conditioning spare parts and is heavily manufacturing based. Their customer base is primarily throughout the U.S. Their primary need is for an accounting system that can has Accounts eceivable, Accounts Payable, General Ledger, Billing, Inventory Management, distributed order management and sales order management, all core functions of an accounting system (Collins, 2006). In addition this small manufacturer also needs support for Debt Collection, electronic payment processing, online payroll, timesheets and purchase requisition as well. All of these features can be found in…… [Read More]

References

Susan B. Anders. (2006). Website of the Month: Accountant.intuit.com. The CPA Journal, 76(11), 70-71.

Phillip G. Armour. (2005). Sarbanes-Oxley and software projects. Association for Computing Machinery. Communications of the ACM, 48(6), 15-17.

J Carlton Collins. (2006). Small Business Software Grows Up. Journal of Accountancy, 201(3), 50.

Ivancevich, S., Ivancevich, D., & Elikai, F. (2010). Accounting Software Selection and Satisfaction. The CPA Journal, 80(1), 66-72.
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Accounting a Static Budget Is Defined as

Words: 1158 Length: 4 Pages Document Type: Essay Paper #: 3774204

Accounting

A static budget is defined as a budget that is "planned ahead of time based on the owner's best guess about future actual activity." This type of budget is therefore put together for the upcoming time period, and is often based on the data from past time periods, plus or minus different adjustments that management thinks will be necessary. In contrast, a flexible budget is one where the business management can make changes in the midst of an accounting period. Flexible budgeting allows for management to make better decisions on the fly, because the information used in those decisions is kept more up-to-date. Static budgeting relies only on the ability of management to analyze the numbers after the period in order to determine the magnitude and direction of variance, along with the causes of variance. For a flexible budget, management can identify issues with the budget right away, and…… [Read More]

Works Cited:

Mueller, D. (2012). Static budget vs. flexible budget. eHow. Retrieved September 12, 2012 from http://www.ehow.com/info_7784641_static-budget-vs.-flexible-budget.html

Bigelow, L. (2012). Static vs. flexible budgets for new businesses. Houston Chronicle. Retrieved September 12, 2012 from http://smallbusiness.chron.com/static-vs.-flexible-budgets-new-businesses-20879.html
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Managerial Prerogative

Words: 1144 Length: 3 Pages Document Type: Essay Paper #: 18881408

Managerial Prerogative Has Gone Too Far?

Whenever an organization is founded and the objectives for its existence have been established, the founders and management of said organization are expected to ensure the continuity, viability, and resilience of the enterprise. This is done via the allocation of needed resources (i.e. capital, human, financial, etc.) and formulation of strategies in order to achieved set and target organizational goals. Once operational, there are other duties, responsibilities, accountabilities, rights and privileges management can and must exercise to achieve continued operational success and efficiency. One of these management principles or concepts is known as managerial prerogative, which "includes the right to organize operations and methods of working, issue detailed instructions on the circumstances in which work is performed, and take in matters relating to working hours in so far as these are not rigidly regulated by collective agreement (Eurofound, 2009)." Often, managerial prerogative is institutionalized…… [Read More]

Bibliography:

Bado, J. & Logue, J. (1991). Hard hats and hard decisions: The evolving role in employee-owned firms. Employee Ownership Law and Finance, 4: 1-19. Retrieved May 13, 2011 from  http://dept.kent.edu/oeoc/OEOCLibrary/Preprints/BadoLogueHardHatsAndHardDecisions1991.pdf 

Ellis, A. (2008). The strain between managerial prerogative and contractual principles in English labour law. Retrieved May 13, 2011 from http://www.workplacebullying.co.uk/manperog.html

European Foundation for the Improvement of Living and Working Conditions (Eurofound). (2009, August 14). Limits to the employer's managerial prerogative. Retrieved May 13, 2011 from http://www.eurofound.europa.eu/emire/FINLAND/ANCHOR-DIREKTIOVALLANRAJATGR-Auml-NSERNAF-Ouml-RDIREKTIONSR-Auml-TT-FI.htm

Greenfield, K. (2008). Reclaiming corporate law in a new gilded age. Harvard Law & Policy Review. Retrieved May 13, 2011 from  http://www.hlpronline.com/Greenfield_HLPR.pdf
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Accounting Two

Words: 1060 Length: 4 Pages Document Type: Essay Paper #: 98871348

Accounting II

ABC Overall risk profile

The ABC Company may face series of risks based on the current industry and economic issues. First, the company is operating in a competitive market environment making the company to face a fierce competition from other companies producing similar products. Thus, the ABC Company may likely to lose some of its customer to competitors if the price per product is too high.

Moreover, the current recession may affect the purchasing power of customer, which may affect the company annual revenue. Moreover, inflation is likely to increase the cost of production. Another risk issue is that the company should satisfy its shareholders by declaring high dividends and failure to satisfy the shareholder may make some shareholders to disinvest their fund from the company, which may make the company to lose the public image. (Daniel, Njikizana, . & Chamboko, 2011).

Current ABC cash flow using Direct…… [Read More]

Reference

Bragg, S.M. (2011). The Controller's Function: The Work of the Managerial Accountant, (Fourth Edition) UK. Wiley .

Daniel, B.M. Njikizana, C.T. & Chamboko, R. (2011). Interpretation and Application of International Financial Reporting Standards.UK. Wiley.
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Managerial Analysis R& D Activities Fall Into Four

Words: 806 Length: 3 Pages Document Type: Essay Paper #: 70426115

Managerial Analysis

&D activities fall into four pools with the following annual costs.

Market analysis $1,050,000

Product design 2,350,000

Product development 3,600,000

Prototype testing 1,400,000

Total

Activities Cost Drivers Estimated Drivers

Market analysis Hours of analysis 15,000 hours

Product design Number of designs 2,500 designs

Product development Number of products 90 products

Prototype testing Number of tests 500 tests

(a) Compute the activity-based overhead rate for each activity cost pool

Activity-based overhead rate = total budget overhead / basis

= 1,050,000 / 15,000

= $70 per hour (Market Analysis)

Activity-based overhead rate = total budget overhead/basis

= 2,350,000 / 2,500

= $940 per design (Product Design Number)

Activity-based overhead rate = total budget overhead/basis

= 3,600,000 /

=$40,000 per product (Product development number)

Activity-based overhead rate = total budget overhead/basis

= 1,400,000 / 500

= $2,800 per test (Number of tests)

(b) How much cost charged to an in-house manufacturing…… [Read More]

References

Lutilsky, I., & Dragija, M. (2012). Activity-Based Costing As A Means To Full Costing

Possibilities And Constraints For European Universities. Management: Journal Of

Contemporary Management Issues, 17(1), 33-57.

Ittner, C.D., Lanen, W.N., & Larcker, D.F. (2002). The Association between Activity-
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Managerial Decision Making Finance Department Always Plays

Words: 3200 Length: 10 Pages Document Type: Essay Paper #: 4320773

Managerial Decision Making

Finance department always plays a dominating role in the long run productivity in an organization and hence the reasons why the organizations strive try to strengthen this strategic function (Andrew, 2009). Organizations primary objective is to increase the level of surplus by taking effective strategies and mitigating the expenses.

There are numerous challenges which the organizations face during its day-to-day operations but to combat with those challenges are the actual bravery of the organization (Andrew, 2009). During the operations, an organization faces number of challenges like financial challenge, capital challenges, economical challenges, and political challenges (Bish, 2005). Appropriate strategies and tactics are more than necessary to cope up with these challenges comprehensively (Brown & Kate, 2001). For this piece of work, we have to perform the risk analysis of a chosen company. While doing this assignment, one has to consider it as an expert consultant in multinational…… [Read More]

References

Andrew, G (2009), Operation Management, Saga Publications

Bish, E, (2005) Managing Flexible Capacity in a Make-to-Order Environment Management Science, Prentice Hall Publications

Brown, S & Kate, B (2001), Operation Management: Policies and Procedures, Pearson Group Publications

Bettley, A & David, M (2005), A Strategic Approach to Operation Management, McGraw Hill Publications
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Accounting Ratios the Financial Statements

Words: 2089 Length: 5 Pages Document Type: Essay Paper #: 78170223

An unaware analyst may think the second company to be better but in reality its low encouraging level is due to the fact that it is unable to secure additional funding. The companies may possess different capital structures and to attempt comparison of performance when one is all equity financed and another is a geared company may not suffice for a good analysis. The chosen application of government incentives to several companies may also twist the inter-company evaluation. There may be the possibility of providing a company with the tax holiday while the other within the same line of business not, and evaluation of such two enterprises may be misleading. (Session 15: Limitation of atio Analysis)

As a matter of principle, the accounting strategies are required to be applied persistently. Changes are required to be emphasized and the influence of variations from an original policy revealed. This is applicable when…… [Read More]

References

Accounting and decision making - Ratio analysis. Retrieved from http://www.learn.co.uk/cima-mc/lesson4/page4.htm Accessed on 22 April, 2005

Basic Financial Statement Analysis: Objective 3: Explain the limitations of ratio analysis. Retrieved from http://www.wu-wien.ac.at/usr/h93/h9352467/Limitations%20on%20Ratio%20Analysis/limitationonra.html Accessed on 22 April, 2005

Cars, Andreas. 2002. The Dynamic Current Ratio. 3 September. Retrieved from  http://www.investopedia.com/articles/02/090302.asp  Accessed on 22 April, 2005

Covers Information from Accounting 200 and 201. Retrieved from http://www.everettcc.edu/emplibrary/Financial%20Ratios.pdf Accessed on 22 April, 2005
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Accounting Information and Insights Into

Words: 572 Length: 2 Pages Document Type: Essay Paper #: 51336267



The second question is the cost per unit to produce a given product or deliver specific service. Just as the total cost of revenues for a business, this figure will also provide a business owner with insights into how their business is operating, from the supply chain through pricing and distribution of gross margin assumptions (Hall, 2010). The cost per unit to produce is also a good measure of how well the efficiency of a given company is running at. Often a business owner will evaluate these from the standpoint over the long-term, looking for trends in hwo their business is operating at an efficiency level that makes the entire company profitable. For services business, the cost per service event or services deliver (as a plumber making a house call) needs to have a minimum charge level as costs are allocated across all forecasted calls in a given month. This…… [Read More]

References

Hall, M. (2010). Accounting information and managerial work. Accounting, Organizations and Society, 35(3), 301.

Jansen, E.P. (2011). The effect of leadership style on the information receivers reaction to management accounting change. Management Accounting Research, 22(2), 105.