Managerial Accounting 222 Week 1 Questions 1-1 How does managerial accounting dissent from financial accounting? Managerial accounting and financial accounting dissents in who the reporting is for and for what subject-matter. Managerial accounting is for posse managers to use to pur-pose, curb, and fashion decisions in-reference-to peculiar strategies. Financial accounting is compliant for owners, stakeholders, creditors, and synod authorities and is used to demonstrate advice in-reference-to the economic possession of a posse.
There are as-well peculiar guidelines that are used (GAAP) in financial accounting and is mandatory inasmuch-as there are no guidelines in managerial accounting and is not mandatory. 1-4Why do companies arrange budgets? Preparing budgets gives a posse a indispensable pur-pose that procure be used to perfect a purpose or government. A budget is a guideline for which media are used and can be compared for achievement reports when determining the competency and profitability of a government. 1-13Why do companies that instrument Lean Genesis contribute to possess minimal inventories?
Companies that instrument Lean Genesis possess minimal inventories owing they usually instrument a just-in-span genesis government where genesis is simply triggered by customer call-for. Therefore, the total of list is usually bar or correspondent to customer control creating minimal, if any, leftover list. 8-2Discuss some of the elder benefits to be gained from budgeting. Budgets are wholesome owing they can illusion the construction what strategies government is using to achieve their vocation intents.
They prepare command for employees to achieve job duties towards the ultimate outcome and allows them to perceive which government is more main through the total of media that is allocated towards it. Budgets as-well secure that the full construction is producting towards the identical intent and prepares a starting subject-matter for achievement evaluations. 8-5Why is the sales expect the starting subject-matter in budgeting? Sales expecting is the primitive stride in determining the required needs for forthcoming genesis.
In classify to engender a budget that includes all costs cognate to pliant a consequence for sale, government must designate how abundant units are expected to vend so that an diffuse total of consequence is manufactured to confront call-for externally undue costs. 8-9How can budgeting benefit a posse in pur-posening its productforce staffing levels? When a budget is engenderd, the total of product and units to be manufactured is as-well fitted. With this advice, a posse can pur-pose for its drudge productforce externally having unlocked-for drudge overages or shortages at any dedicated span.