Question

What concepts have you learned in managerial accounting course? Specifically, how can you use these concepts in future courses and in your career?

Answer 1

The concept which i learned from management accounting course are (1)cost volume profit analysis or break even point (2) budgeting and (3) decision making on the basis treatment of cost under different decision making situations. These learning helps in better decision making in our daily life and as well in our career. Like concept of break even point helps us to understand the minimum level of sales revenue required to cover all cost so any project with less sales level from break even point would not be considered for selection for investment.

Budgeting helps up in planning for expenditure and sources of income and accordingly we can plan and make necessary arrangement for the shortfall. for example if a cash budget is prepared this will help us to know the cash requirement in future and from this we can have control over cash balance etc.

Another concept of cost of variable and fixed cost which help us to understand the pricing of the product manufactured for setting of final price of the product.