Explain the similarities and differences between financial and
managerial accounting, and prepare, use and interpret a
contribution margin income statement using cost, volume, profit and
break-even techniques.
How does managerial accounting differ from financial accounting?
Discuss key differences in the users of the information and what
the information is used for. Why is it important that one of these
use GAAP and the other is not required to, and in fact may be less
useful if it tries to stick to GAAP requirements – like full
absorption vs. variable costing?
Explain the major differences between Financial and Managerial
accounting?
Is one type of accounting more important than the other?
Explain.
For each of the following costs in a rollerblades manufacturing
plant, state whether it would be considered: (1) a period cost or a
product cost; and (2) if it’s a product cost, then state whether it
would be classified as: direct materials, direct labor or
manufacturing overhead
Example: Salaries of janitors in the
factory Answer:
Product cost; mfg overhead
a. Wheels...
Managerial and Cost Accounting concepts: Here we will start to
distinguish between Financial Accounting and Managerial Accounting.
We will begin to look at manufacturing costs since they lend
themselves very well to the new concepts. In Chapter 10 we will
also start to classify the costs of a business as direct material,
direct labor or manufacturing overhead or period costs.
Discussion Topic: Assume you have just taken a position
as controller for a new company that manufactures and sells wrought...
2
Distinguish between management accounting and financial
accounting.
Hint:
- Meaning of
Managerial Accounting and Financial Accounting
- Definitions
of Managerial Accounting and Financial Accounting
- Differences
between ‘Financial Accounting’ and ‘Managerial Accounting’
-
Conclusion
1A.
•Define Financial and Managerial Accounting
•Discuss the differences between Financial and Managerial
Accounting•Discuss the possible uses of and benefits of Managerial
Accounting information in a specific company, or business type you
choose OR in a business you would start yourself•
Also include a description of the possible beneficiaries of this
type of accounting information, and the difference it could make in
the business you choose