100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
Previously searched by you
Test Bank for Managerial Accounting 4th Edition By Charles Davis & Elizabeth Davis, ISBN: 9781119577669, All 13 Chapters Covered, Verified Latest Edition$18.99
Add to cart
Test Bank for Managerial Accounting 4th Edition By Charles Davis & Elizabeth Davis, ISBN: 9781119577669, All 13 Chapters Covered, Verified Latest Edition
Test Bank for Managerial Accounting 4th Edition By Charles Davis & Elizabeth Davis, ISBN: 9781119577669, All 13 Chapters Covered, Verified Latest Edition Test Bank for Managerial Accounting 4th Edition By Charles Davis & Elizabeth Davis, ISBN: 9781119577669, All 13 Chapters Covered, Verified Latest...
There are several formal definitions of managerial accounting. A simple one is “th
VP VP VP VP VP VP VP VP VP VP VP VP
egeneration of relevant information to support management’s decision-
P
V VP VP VP VP VP VP VP
making activities.” VP
2. Describe the differences between managerial and financial accounting
VP VP VP VP VP VP VP V
P
(Unit 1.1) VP
Managerial accounting’s primary users are managers and decision makers within an or
VP VP VP VP VP VP VP VP VP VP VP
ganization, whereas financial accounting is aimed primarily at external users. Unlike G
VP VP VP VP VP VP VP VP VP VP VP
AAP that guides financial accounting, there are no mandated rules in managerial accou
VP VP VP VP VP VP VP VP VP VP VP VP
nting. Managerial accounting reports focus on operating segments, while financialacco
VP VP VP VP VP VP VP VP VP P
V
unting statements report results for the organization as a whole. Managerial accountin
VP VP VP VP VP VP VP VP VP VP VP
g is concerned more with projecting future results than reporting past results. Manage
VP VP VP VP VP VP VP VP VP VP VP VP
rial information is prepared to take advantage of a window of opportunity, evenif som
VP VP VP VP VP VP VP VP VP VP VP VP P
V VP
e accuracy must be sacrificed. Financial accounting information is balanced to the pen
VP VP VP VP VP VP VP VP VP VP VP VP
ny and is delivered after the end of the accounting period.
VP VP VP VP VP VP VP VP VP VP
3. List and describe the four functions of managers (Unit 1.1)
VP VP VP VP VP VP VP VP VP
Planning means setting a direction for the organization. Long-
VP VP VP VP VP VP VP VP
term, or strategic planningprovides direction for a five- to ten-year period. Short-
VP VP VP P
V VP VP VP VP VP VP VP VP
term or operational planning provides more detailed guidance for the coming year; it t
VP VP VP VP VP VP VP VP VP VP VP VP VP
ranslates the company’s strategy into action steps. Controlling is the monitoring of day
VP VP VP VP VP VP VP VP VP VP VP VP
-to-
day operations to identify any problems that require corrective action. Evaluating is th
VP VP VP VP VP VP VP VP VP VP VP VP
e process of comparing a particular period’s actual results to planned results, for the p
VP VP VP VP VP VP VP VP VP VP VP VP VP VP
urpose of assessing managerial performance. Decision making means choosing betwee
VP VP VP VP VP VP VP VP VP
n alternative courses of action.
VP VP VP VP
4. Explain how the selection of a particular business strategy determines th
VP VP VP VP VP VP VP VP VP VP
einformation that managers need to run an organization effectively (Unit
V
P VP VP VP VP VP VP VP VP VP V
1.2)
P
To run a business effectively, managers need information that shows how well ope
VP VP VP VP VP VP VP VP VP VP VP VP
rations are meeting the organization’s strategic goals. For instance, if the organizati
VP VP VP VP VP VP VP VP VP VP VP
on’s strategy is to be a low-
VP VP VP VP VP VP
cost producer, information about product costsand cost variances will be more usef
VP VP VP VP VP P
V VP VP VP VP VP VP
ul to managers than information about researchand development.
VP VP VP VP VP VP P
V VP
, 1-4 Test Bank for Davis & Davis, Managerial Accounting, 4/
VP VP VP VP VP VP VP VP
e
5. Discuss the importance of ethical behavior in managerial accounting (Unit
VP VP VP VP VP VP VP VP VP V
P
1.3)
Ethical behavior means knowing right from wrong and then doing the right thing. Ma
VP VP VP VP VP VP VP VP VP VP VP VP VP
nycompanies and most professional organizations have codes of conduct to guide em
P
V VP VP VP VP VP VP VP VP VP VP VP
ployees’ actions. Acting unethically can lead to illegal activity and ultimately to the de
VP VP VP VP VP VP VP VP VP VP VP VP VP
struction of the firm. Furthermore, research has shown that a public commitment toe
VP VP VP VP VP VP VP VP VP VP VP VP P
V
thical behavior can lead to superior financial performance.
VP VP VP VP VP VP VP
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller nipseyscott. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $18.99. You're not tied to anything after your purchase.
