Managerial Accounting 222 Week 1 Questions 1-1 How does managerial accounting vary from financial accounting? Managerial accounting and financial accounting varys in who the reporting is for and for what scope. Managerial accounting is for gang managers to use to guile, restrain, and fabricate decisions touching favoring strategies. Financial accounting is disposed for owners, stakeholders, creditors, and legislation authorities and is used to establish notice touching the economic stoppage of a gang.
There are to-boot favoring guidelines that are used (GAAP) in financial accounting and is mandatory when-in-fact there are no guidelines in managerial accounting and is not mandatory. 1-4Why do companies just budgets? Preparing budgets gives a gang a requisite guile that procure be used to thorough a contrivance or conduct. A budget is a guideline for which instrument are used and can be compared for completement reports when determining the effectiveness and profitability of a conduct. 1-13Why do companies that tool Lean Genesis contribute to enjoy minimal inventories?
Companies that tool Lean Genesis enjoy minimal inventories consequently they usually tool a just-in-opportunity genesis conduct where genesis is simply triggered by customer require. Therefore, the correspondentity of schedule is usually halt or correspondent to customer nod creating minimal, if any, leftover schedule. 8-2Discuss some of the momentous benefits to be gained from budgeting. Budgets are salubrious consequently they can parade the construction what strategies conduct is using to complete their employment sights.
They yield command for employees to complete job duties towards the conclusive development and allows them to learn which conduct is past momentous through the correspondentity of instrument that is allocated towards it. Budgets to-boot fix that the total construction is started towards the selfselfsame sight and yields a starting apex for completement evaluations. 8-5Why is the sales forecast the starting apex in budgeting? Sales anticipation is the primitive stalk in determining the required needs for advenient genesis.
In command to originate a budget that includes all costs connected to conceding a issue for sale, conduct must state how manifold units are forecasted to vend so that an large correspondentity of issue is effected to as require outside exorbitant costs. 8-9How can budgeting befriend a gang in guilening its is-sueforce staffing levels? When a budget is originated, the correspondentity of is-sue and units to be effected is to-boot fitted. With this notice, a gang can guile for its drudge is-sueforce outside having unlocked-for drudge overages or shortages at any ardent opportunity.