Accounting-managerial V.S. Financial Questions And Answers – Flashcards

providing information and analysis to managers inside an organization.

1. Determining the cost of providing a service or making a product 2. Assist management in profit planning and formalizing the plans into budgets 3. Determine the behavior of costs and how profit will change as sales and production volumes change 4. Compare actual costs and financial results with budgeted costs and results 5. Providing cost and sales information necessary for management to use to make a decision.

prepare reports and analyze data which is often related to parts/departments/functions of the company rather than reporting on the entire organization as a whole.

Reports are provided outside the organization - external reports Reports past activities - based on a historical perspective Reliability of data is emphasized - reports take more time to provide Focus on precise information since they are used outside the company Summarized data for entire company as a whole Must follow GAAP which has specific required external reports

Does not follow GAAP and there are no reporting regulations Prepares reports only for management's internal use Provides information to make decisions regarding the future Relevance of data is emphasized over reliability Focuses on timeliness of information Nothing is required to be reported, reports what management needs to see Reporting is focused on parts of the organization such as departments or divisions and not on the organization as a whole.

managerial accounting reports are used exclusively by management.

general ledger.

the financial summary of all transactions of the company.

1) planning 2) directing/motivating 3) controlling 4)decision making.

-look ahead and project resources needed to accomplish profit goals. - Identify objectives the company wants to accomplish which will add value to the company and increase profits. - Discuss ways to accomplish the objectives - Prepare budgets to accomplish the profit objective

-Coordinating the activities to produce a smooth running operation. -Oversee day to day activities and keep the organization functioning smoothly -Assign jobs/tasks - answer questions - solve problems

-Make sure the plans are being followed and objectives are accomplished -Performance reporting - compare actual results to the budget - Implement changes when objectives and goals are not being accomplished

-make changes to operations to improve total company profitability. -evaluate management performance. - Use all information provided to make good business decisions.

1) be familiar with the systems that are in place to collect financial info, sales and customer info and other operating data. 2)understand types of costs common to the company (stated in general ledger) and how costs change as volume changes. 3)know the cost of one unit of the company's product or service(stated on the cost sheet) and how the cost will change as volume changes. 4) understand the flow of costs through inventory and be familiar inventory reports 5)understand each mangers functional responsibility.

is responsible for all financial accounting and reporting and strategic planning for the company. *often one of the most trusted advisors to executive management and serves as the internal financial consultant.

(controller in smaller companies) is responsible for securing the company's assests, properly accounting for all transactions and preparing financial statements. -the controller is typically assisted by a financial manager and managerial accountant.

is responsible for recording all transactions of the company, maintaining general ledger accounts, managing accounts receivable and paying liabilities. *manager often supervises several people who carry out the day to day activities. (general ledger provides a listing of all accounts and total expenditures for each type of cost during period for the financial accountant).

make adjusting entries at the end of the period to properly account for inventory and cost of goods sold. (the general ledger is used by managerial accountant to analyze the results of operations and prepare analysis that is used by manager for decision making).

general ledger, cost sheets, inventory reports, and sales reports.

-minimize the cost of production while maintaining quality. -minimize inventory levels while meeting customer demands. *most knowledgeable about the cost for each product and are responsible for DM used, DL efficiency, and IDL and facility to make the product. *involved in making the product and is directly responsible for how much material is used and how many direct labor hours it takes to make one product.

-make sure the company has adequate levels of direct materials. -minimize the cost of direct materials while maintaining quality.

-determine a competitive price. -make price adjustments to maximize sales. -minimize costs associated with salespeople.

-determines standard for direct labor costs. -hire the most qualified employees. -minimize labor costs. -provide quality employee benefits at the lowest cost. -ensure the company follows all government regulations related to employees.

-meet the information needs of the company at the lowest possible cost. Store and secure data.

-set short term and long term strategic goals. -obtain resources necessary to meet company goals. -evaluate the performance of functional managers. -increase profits.

the organization that is primarily responsible for sharing general guidelines for management accountant.

to assist those working in managerial accounting positions to develop professionally. *the institute provides general guidelines and assistance for managerial accountants and sponsors the Certified Managerial Accountant (CMA) certification.

"Standards for Ethical Conduct for Practitioners of Management Accounting and Financial Management" to assist the managerial accountant with making ethical decisions.

1) COMPETENCE: managerial accountants should be professionally competent to perform duties of providing relevant and reliable information. 2) CONFIDENTIALITY: managerial accountants should not disclose confidential info or use confidential info to their own advantage. 3) INTEGRITY: managerial accountants should avoid conflicts of interest and should be objective and unbiased. They should NOT be involved in activities that would discredit the profession. 4) OBJECTIVITY: managerial accountants should communicate information fairly and objectively and disclose any and all relevant information.

1st - follow the established procedures within your organization 2nd - if the issue is not resolved to your satisfaction, - present problems to the next higher management level -- if you are not clear on the issues, discuss with an objective advisor to clarify your alternatives and solutions 3rd - if the issue can not be resolved, resign from your position

shows who reports to who for each major piece of the company which are formal lines of authority.