(a) The following are actions associated with a firms accounting information system: No Action 1. Preparing financial...
Question:
(a) The following are actions associated with a firm’s accounting information system:
No | Action |
1. | Preparing financial reports that comply with generally accepted accounting principles. |
2. | Preparing a report that details profit by products. |
3. | Preparing a budget for direct materials purchases. |
4. | Voluntary reporting environmental costs to potential and existing investors. |
5. | Reporting on the trends in product defect rates to the plant manager. |
6. | Determining the cost of producing a new product. |
7. | Preparing a report that compares the actual costs of quality with the expected costs of quality. |
8. | Depreciating an asset used in manufacturing using its historical cost. |
9. | Determining how to consolidate the financial reports of two subsidiaries. |
10. | Assessing the cost of making versus buying a component of a product. |
Required:
classify each of the actions as belonging to either managerial accounting or financial accounting.
(Your answer should be stated as follows: Example: 12 – Managerial or 13 – Financial)
(b) Management accounting can be used to enhance the values of customers. Choose a management accounting technique or method, describe the chosen method and explain how the values can be improved using the chosen technique or method.
(c) Is management accounting relevant for not-for-profit organizations such as charitable bodies? Discuss.