ACCT-346 Week 1 Discussion: Managerial Versus Financial Accounting, Ethics, and Ethical Behavior (GRADED A)

Week 1: Introduction to Managerial Accounting - Discussion Managerial and Financial Accounting (graded) Flexibility, timeliness, and forward looking is said to be the prominent trait of modern m anagement accounting, whereas standardization and consistency describe financial accounting. Explain why the focus on these two accounting systems differs. Responses Responses are listed below in the following order: response, author and the date and time the response is posted. Response Author Date/Time Class Professor Backman 10/18/2012 4:29:46 AM Let's start off by discussing the goal of managerial accounting. What is the goal of managerial accounting? How do managerial goals differ from the goals of financial accounting? What are the differences between managerial and financial accounting? RE: Class Leon Kiyonga 11/3/2012 11:30:29 PM When we take internal decision then all information is provided by managerial accounting and this all is done with proper planning and with strict purpose. All decisions are done with the help of mangers as they take information from accounts. When we deal with financial accounts they never give exact knowledge of the internal decision made by the company. Manager should know all the small details like value of the product and the cost of the service. In this way manager decide the future of the company by seeing all the details in full form. Every smaller detail is needed to forecast the future of the company for this managerial accounting is the best as compared to financial accounting. To form a product line as well as to deal with the pricing of the product, buying new tools and replacing the old one, all is done as internal decision of the company. RE: Class Nicole Rochester 11/4/2012 7:15:41 PM Managerial accounting deals with the internal users of information of a company and financial accounting deals with the external users of information such as investors, creditors, and the like. The goals differ in that managerial accounting 1. is optional 2. relays information to internal managers 3. reports nonmonetary information The differ in the financial accounting 1. is requred 2. information is presented in summarized formation 3. relays information externally (Jiambalvo, 2010) Jiambalvo, J. (2010). Managerial accounting, 4th edition. John Wiley and Sons, Inc., page 4 RE: Class Irene Turay 10/31/2012 7:56:41 PM The goal of a managerial accounting is to analyze and process informations that can help managers in an organization to make decisios. RE: Class Stacey Wilson 10/31/2012 6:34:04 PM The primary goal of managerial accounting is to provide information that is needed for planning, control and decision making. The main difference between managerial and financial accounting is that managerial accounting is aimed at internal users while financial accounting is for external users of accounting information like investors. RE: Class Irene Turay 11/2/2012 7:16:39 PM This is true Stacey the difference between managerial and financial accounting is that the managerial accounting is mostly use for internal organization which provides analyzing and communicating informations. Then financial accounting focuses on external things. RE: Class Ashley Taylor 10/31/2012 9:20:57 PM The goal of managerial accounting is to provide information needed for planning, control, and decision making. Financial accounting is more about procedures for preparing external reports. While managerial accounting is used to create reports for internal use. Financial accounting is concerned with past transactions while managerial accounting is used to focus on future decisions. According to the book the main differences are: 1. Managerial accounting is directed at internal rather than external users of accounting information. 2. Managerial accounting may deviate from generally accepted accounting principles (GAAP). 3. Managerial accounting may present more detailed information. 4. Managerial accounting may present more nonmonetary information. 5. Managerial accounting places more emphasis on the future. (Jiambalvo 7) Jiambalvo. Managerial Accounting, 4th Edition. John Wiley & Sons. Ashley Professor Backman 11/1/2012 4:11:01 AM How would economic factors like interest rates, inflation, unemployment and competition impact planning? RE: Ashley Thomas Ponce 11/2/2012 7:47:33 PM Haha I have to say that all those mentioned would greatly affect planning. I would imagine that an account planner would have to look at all these factors before implementing any decisions. Interest rates have a direct affect with loans and thus affecting marketing expenditures. Inflation is also another staller key, watching the dollar fall and rise affects decision making when it comes to costs. As far as unemployment goes account planning must be precise and layoffs could be required to save money, of course that goes with the increase of productivity from other employees. If done carefully you can make quite a turn-around, or just simply cause a disaster. RE: Ashley Cadette Batie 11/1/2012 9:00:36 PM Prof; Economic factors would greatly influence planning because such things as interest rates and inflation would affect the firms ability to borrow and loan money out. High Interest rates at banks affect the firms payments to the bank and other lenders for funds borrowed for future expansion projects and research and development. Additionally the firm may need to charge high interest rates to companies and individuals who borrow from the firm. Unemployment can affect planning because the company usually used may have hit a hard bump in the road and had to let go some of its workers that usually did work for your firm and now you either have to wait for a new team that is just as good or better or hope that the firm rehires the team back or just go with another company altogether. On the other hand at the firm itself,you could suffer losses that require you to let employes go which would affect you ability to produce or provide the usual serve that you normally did before. RE: Ashley Ashley Taylor 11/4/2012 9:55:51 AM Interest rates can impact the companies planning because if interest is too high then they have to find ways to cut cost and spending to pay high interest rates. Also, with them spending more company cost can go up. Also, with too many expenses companies may have to let employees go due to the inability to make a profit. Inflation can cause companies to adjust based on how much goods and services cost also. Unemployment can impact the company because they have to layoff people and try to keep production up. It has to be done in a way that other employees do not feel too stressed and will not loose there productivity because they feel over whelmed. Competition impacts planning because you have to make decisions to attract customers to you and not your competition. If you have little competition then you are safe you can focus on other problems but if you are surrounded by competition you have to work and make your company stand out against the others and attract customers to you! RE: Ashley Leon Kiyonga 11/4/2012 8:44:58 PM An economy will be healthy when there is a well circulation of money in the market of the country. The purchasing power of the people increases and people have a good standard of living. Both inflation and unemployment have an adverse effect of the economy. Interest rates influence the sources of business and consumer income like the values of loans, investments etc. Lower interest rate makes borrowing cheaper for the customers can manage to pay to buy more and business can afford to invest further. Higher consumption and higher investment levels create additional demand for goods and services in the economy, which effects inflation and unemployment. Competition is also the factor which affects the price of the good s and services in the market and subsequently affects the purchasing power of the consumer and inflation. Therefore we have to plan accordingly by keeping in mind the entire factor like interest, inflation, unemployment and competition. RE: Class Britney Womble 10/31/2012 10:58:01 AM 1. The goal of managerial accounting is to provide the information they need for planning, control, and decision making. If your goal is to be an effective manager, a thorough understanding of managerial accounting is essential. (P.4) 2. Financial accounting is primarily concerned with presenting the results of past transactions. Managerial accounting, however, places considerable emphasis on the future. (P.8) 3. Financial accounting reports are aimed primarily at external users, and managerial accounting reports are aimed primarily at internal users. (P.8) Jiambalvo (). Managerial Accounting [4] (VitalSource Bookshelf), Retrieved from