Accounting 241 Ch 1 HW Dallmus

Managerial AccountingSystems report on various segments or business units of the company
When Managers evaluate the company’s performance compared to the plan,They are performing the controlling role of management
Information on a company’s past performance is provided toExternal parties by financial accounting
Managerial Accounting systems are chosen byComparing the costs versus the benefits of the system and are not restricted by GAAP or IFRS
CPAs audit the Financial AccountingStatements of public companies
Financial Accounting develops reports for external parties such asCreditors & Shareholders
Companies must follow GAAP or IFRS in theirFinancial Accounting systems
Managers are theDecision makers in a company
Choosing goals & the means to achieve them isThe planning function of management
Managerial Accounting differs from Financial Accounting in that Managerial AccountingEmphasize data relevance over data objectivity
Which corporate positions is responsible for raising capita & investing funds?Treasurer
What skills are needed by today’s management accountants?-Knowledge of both managerial & financial accounting

-knowledge of how a business functions

-oral & written communications skills

Research & DevelopmentResearching & developing new or improved products or services,
& the processes for producing them
DesignDetailed engineering of products & services,
& the processes for producing them
Direct MaterialsThe primary raw materials that become a physical part of the finished product
Direct LaborThe cost of compensating employees who physically convert raw materials into the company’s products
Manufacturing OverHeadIncludes all manufacturing costs other than direct materials & direct labor
MarketingPromotion & advertising of products or services
DistributionDelivery of products or services to customers
Customer serviceAssistance for customers to ensure satisfaction
Delivery ExpenseDistribution