Bus 630 Week 1 Discussion

BUS630 workweek 1 Ashford University MANAGERIAL ACCOUNTING This week students provide 1. Explain the first-string ethical responsibilities of the management accountant. 2. Illustrate the key principles of music directorial account statement including address concepts. 3. Distinguish between the behavior of versatile and fixed damage. 4. Explain the conditional relation of court behavior to decision making and control. 5. Determine the necessary gross revenue in unit and dollars to break-even or attain desired profit exploitation the break-even formula. FINANCIAL VS MANAGERIAL ACCOUNTING-Financial accounting is the beginning of accounting that organizes accounting study for presentation to interested parties outside of the organization. The primary financial accounting reports be the balance sheet (often called a statement of financial purview), the income statement, and the statement of immediate payment flows. The balance sheet is a summary of assets, liabilities, an d sh beholders equity at a specified point in time. The income statement reports revenues and expenses resulting from the companys trading operations for a particular time close.The statement of cash flows shows the sources and uses of cash oer a time period for operating, investing, and financing activities. Managerial accounting is the branch of accounting that meets carriages information needs. Be aim managerial accounting is designed to assist the crockeds managers in making business decisions, relatively few restrictions are imposed by regulatory bodies and generally accepted accounting principles. Therefore, a manager must define which data are relevant for a particular purpose and which are non. In managerial accounting, however, the segment is of major(ip) importance.Segments whitethorn be harvest-feasts, projects, divisions, plants, branches, regions, or any other subset of the business. Tracing or allocating greets, revenues, and assets to segments creates difficult issues for managerial accountants. Two important similarities do exist. The transaction and accounting information systems discussed earlier are used to generate the data inputs for some(prenominal) financial statements and management reports. Therefore, when the system accumulates and classifies information, it should do so in formats that wedge both types of accounting.Discuss a possible negative managerial scenario that the regional manager may be sensing. The Regional Manager is piecing together trends and abnormalities in ensnare to predict the near future of barge in 9. At a glance, we posit that terminal 9 run by an impressive manager with a successful track record. However, the lack of investment in training signals an hear to cut overhead cost in order to show a big store profit. Cutting employee training may be an effective tool for the short term but may create issues in the future. Additionally, we see that the hold on has decided to withdraw from several cos tly, but high up visibility events.Again, this may be a reduction in shifting cost in order to reduce store overhead in the short term and increase profitability. The Regional Managers have-to doe with is that the entire company profits from these community events, not just the case-by-case store, and in that locationfore, the impact may be detrimental to sales in triple areas. Lastly, we see that store 6 has increased its operating be since the store manager in question departed. This signals an issue consistent with the concerns preceding(prenominal) that this manager simply aims to reduce overhead as low as possible in order to increase the overall store profit.Might the manager of Store 9 be an exceptional manager? Although on the surface, the three trends above may appear to be negative this store manager may in fact be a very effective manager. For causa Perhaps instead of accounting for the trainees hours as overhead in training costs, he has put that individual in a position to learn-on-the-job, therefore, making the employees working hours into a direct labor cost and minimizing overhead. When it comes to advertising, we saw the manager spent nearly of his advertising dollars early in the year.It may be possible that the manager elected to spend his variable expense advertising dollars during a time period where they would produce the most sales, and then tapered off his advertising dollars during a time period of steady business flow. Lastly, the asscellation of high visibility events may have been cod to the determination that cost was not yielding substantial sales or visibility. Despite this fact, it stands to reason that a store manager would inform a regional manager of any choices having a broader impact to the overall company.If there was a lack of communication here, I believe it is to the detriment of the store managers credibility. What are the ethical implications of the scenario? Variable Cost defines the cost of a single asse mbled product based on the materials consumed and labor invested right away in unit production. To illustrate our point, we can say that making a single baked murphy with all of the fixings will cost $3. 00 to produce (potato, sour cream, chives, plate, fork, napkin and labor). If we decide to go into the baked potato business, we must then sell these potatoes for at least $3. 00 per unit.Any less would cause us to lose money on the endeavor. This cost cannot be make up by increasing volume of sales. Judy Koch discussed the fact that bulk purchases can benefit you reduce these variable costs. If we decided to purchase potato-making materials in larger quantities and hired more workers to produce these products, we could then possibly produce our product for a lower Variable Cost based on the untried price. Fixed cost will remain the same no affair how our potato shop does. As an example, our potato restaurant rental costs will be the same whether we sell one hundred potatoes or zero potatoes per month.The electricity, the heating costs, the managers salary. All of these factors will halt consistent no matter how many units we sell. Judy Kochs statement is in reference to the fact that these costs are indeed changeable, however, they do not vary per unit sold. We can decide to upgrade our successful restaurant and pay higher rental fees, the government can increase our assess liability and we can hire more management. None of these costs will increase if we sell more potatoes. They are independent of unit sales.