Managerial vs. Financial Accounting Define how managerial accounting differs from financial accounting. Be sure to address the diverse users of
Managerial vs. Financial Accounting
Define how managerial accounting differs from financial accounting. Be sure to address the diverse users of managerial and of financial accounting and how each would use accounting information. Additionally, explain how the Sarbanes-Oxley Act (SOX) affects management accountants specifically and answer this question: In your opinion, is SOX enough to deter unethical accounting practices internally? Be specific.
Cost Classifications
Answer each of the following within your essay.
Define direct costs and indirect costs.
Explain why managers consider direct costs to be more accurate than indirect costs.
Name at least two factors that affect a cost's classification as direct or indirect.
Define variable and fixed costs, and provide at least two examples of each.
Process Costing
Explain the accounting differences in process costing versus job-order costing and answer the following questions:
How are manufacturing costs accounted for in process costing?
How are labor and overhead costs applied in a process costing system?
Why is the cost per equivalent unit determined separately for direct materials and for conversion costs?
What is the reason for determining the cost per equivalent unit?
What is the most important purpose of the cost of production report?
Are there different ways of determining the cost of completed and transferred out units, and the cost of ending work in process inventory?
Additionally, provide an example of a product environment most suitable to employ a process-costing system.
Activity-Based Costing
Define Activity-based costing (ABC) systems. What benefits does implementing an ABC system bring to the company?
Read the following article: "Rethinking Activity-Based Costing" and answer these questions:
Do you agree or disagree with the analysis of the ABC drawbacks expressed in the article?
Would the proposed changes make ABC a universally applicable costing method? Why or why not?
Outsourcing Decision
From a triple bottom line perspective (people, planet, and profit), what factors are relevant to a company's decision to outsource its technical support center? Be sure to discuss both quantitative and qualitative factors. Be specific.
The Budgeting Process
Describe how and why managers use budgets. What type of budget approach is typically used in for-profit companies? Is a personal budget similar to a company's budget in any way? Explain your answer.
Note: You must use and cite at least one resource.
Standard Costs
Select at least two of the following types of organizations and describe what type of standards may be used:
Hospitals
Law firms
Accounting firms
Auto repair shops
Additionally, explain the advantages and/or disadvantages a company might experience if it adopts ideal standards as compared to practical standards.
