Question

Reflect on the past two week’s lecture, material from readings and discussions. In at least 150 words, describe the main points or ideas you learned and how your interactions with classmates and/or your instructor built upon your learning. Describe which main point you found most important and how you believe it can be related to your life/career. for accounting principles II

Answer 1

The development of accounting concepts and principles is closely related to the economic growth of the United States, as businesses grew in size, and outsiders increased their demand for financial information. Accounting principles focus on the users of accounting information. Principles have developed over a long period of time, and are continuously subject to revision as information needs change. It is the
responsibility of accounting professionals, teachers and accounting organizations to keep accounting principles up-to-date, relevant and useful.

Managerial accounting gives management the information to perform the functions of control and planning. The control function is concerned with the process of directing the operations of an enterprise to achieve its goals. Planning is concerned with developing and setting goals for the use of company resources and formulating methods to achieve these goals. Control and planning decisions are the responsibility of management. The controller of a company gives advice but assumes no responsibility for managerial decisions. Results of management decisions are continuously compared to the goals, and the goals themselves are periodically revise

When all major planning and operating decisions are made by one or a few individuals of a business, it is considered to be a centralized organization. The larger a business becomes, the more difficult it is to remain centralized. When an organization becomes decentralized, it is divided into separate units. Each of these units is delegated responsibilities for planning and control. Managers are not required to seek approval from upper management for normal operating decision. The level of decentralization varies greatly among companies because each one has specific and unique circumstances. Managerial accountants assist managers of decentralized
organizations.