assignment on management accounting

Acing Your Assignments: Hot Management Accounting Topics That Impress

Introduction

In the academic landscape, mastering the art of management accounting is about understanding theories and choosing topics that leave a lasting impression. This guide explores the significance of management accounting assignments and unveils the hot topics that can elevate your academic journey.

Exploring Management Accounting

Definition and scope.

Management accounting involves the analysis and interpretation of financial information for strategic decision-making. Its scope extends to various industries, making it a critical aspect of business studies.

Connection with Academic Assignments

Assignments in management accounting serve as practical applications of theoretical knowledge. They provide students with the opportunity to showcase their understanding of complex concepts.

Benefits of Acing Assignments

Academic excellence.

Acing management accounting assignments contributes to overall academic excellence. It demonstrates a deep comprehension of the subject and enhances overall performance.

Skill Development

Beyond grades, assignments in this field foster skill development. From critical thinking to problem-solving, students hone valuable skills for their future careers.

Characteristics of Hot Topics

Relevance to industry trends.

Choosing topics aligned with current industry trends adds a dynamic touch to your assignment. It shows an awareness of real-world applications.

Practical Applications

Hot topics in management accounting should offer practical solutions. They go beyond theoretical discussions and address real challenges faced by businesses.

Unveiling Impressive Management Accounting Topics

Budgeting and forecasting techniques.

Explore advanced budgeting and forecasting techniques. Discuss their significance in financial planning and decision-making processes.

Cost Control Strategies

Examine effective cost-control strategies. Showcase how businesses can optimize expenses without compromising quality.

Emerging Technologies in Accounting

Delve into the impact of emerging technologies on accounting practices. Explore the role of AI, blockchain, and data analytics in reshaping the field.

Crafting Engaging Assignments

Incorporating real-life case studies.

Enhance the credibility of your assignment by incorporating real-life case studies. Relate theoretical concepts to actual business scenarios.

Interactive Learning Approaches

Utilize interactive learning approaches. Consider creating simulations or interactive presentations to engage your audience.

Navigating the Complexity

Breaking down complex concepts.

Simplify complex concepts for better understanding. Break down intricate theories into digestible portions.

Leveraging Online Resources

Take advantage of online resources. From scholarly articles to video tutorials, a wealth of information is available at your fingertips.

The Art of Presentation

Effective communication of findings.

Master the art of effective communication. Present your findings, ensuring your audience grasps the essence of your analysis.

Use of Visual Aids

Enhance your presentation with visual aids. Graphs, charts, and infographics can make your assignment visually appealing and more accessible.

Captivating Your Professors

Standing out in a sea of assignments.

Distinguish your assignment from others. Infuse a unique perspective or propose innovative solutions.

Adding a Personal Touch

Add a personal touch to your work. Share insights, experiences, or opinions demonstrating a genuine interest in the subject.

FAQs on Management Accounting Assignments

How do i choose a relevant and impressive topic.

Choosing a topic involves considering current industry trends and selecting subjects with practical applications.

Are there resources for an in-depth understanding of emerging technologies in accounting?

Numerous online resources provide in-depth insights into emerging technologies in accounting. Explore reputable platforms and journals for comprehensive information.

How can I make my assignment stand out from others in terms of presentation?

Ensure effective communication of your findings and enhance your presentation with visual aids. Adding a personal touch or proposing innovative solutions can also set your assignment apart.

Is it necessary to include real-life case studies in my management accounting assignment?

Including real-life case studies adds credibility to your assignment. It demonstrates the practical application of theoretical concepts in real-world scenarios.

What are some common pitfalls to avoid in management accounting assignments?

Common pitfalls include:

• Neglecting practical applications.
• I need more clarity in communication.
• Choosing topics irrelevant to industry trends.

Stay mindful of these aspects for a successful assignment.

In completing your management accounting assignments, the key lies in choosing topics that showcase your knowledge and resonate with current industry demands. Craft your projects carefully, infusing them with practical solutions and a personal touch. Your commitment to excellence will undoubtedly leave a lasting impression on professors and future employers.

Related Posts

Unveiling the iphone 14 pro designer case.

• Zubair Pateljiwala
• August 14, 2023

The launch of the iPhone 14 Pro has created an undeniable buzz in the tech world. With such an exquisite device, many users are on […]

• Uncategorized

How To Extract Business Leads From Google Maps?

• September 26, 2023

To extract business leads from the Google Maps directory, a piece of software known as Google Maps Leads Extractor is employed.

Real Partner in Facilities Repair and Maintenance Company

• September 25, 2023

In the fast-paced world of commercial operations, maintaining the seamless functionality of your facilities is paramount. Enter Maintenance Chef, your trusted partner in comprehensive facilities […]

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

• Search Search Please fill out this field.

What Is Managerial Accounting?

• How It Works
• Managerial vs. Financial Accounting

Types of Managerial Accounting

The bottom line.

• Corporate Finance

Managerial Accounting Meaning, Pillars, and Types

Managerial accounting is the practice of identifying, measuring, analyzing, interpreting, and communicating financial information to managers for the pursuit of an organization's goals.

Managerial accounting differs from financial accounting because the intended purpose of managerial accounting is to assist users internal to the company in making well-informed business decisions.

Key Takeaways

• Managerial accounting involves the presentation of financial information for internal purposes to be used by management in making key business decisions.
• Techniques used by managerial accountants are not dictated by accounting standards, unlike financial accounting.
• The presentation of managerial accounting data can be modified to meet the specific needs of its end-user.
• Managerial accounting encompasses many facets of accounting, including product costing, budgeting, forecasting, and various financial analysis.
• This differs from financial accounting, which produces and disseminates official financial statements for public consumption that conform to prevailing accounting standards.

Investopedia / Jessica Olah

How Managerial Accounting Works

Managerial accounting aims to improve the quality of information delivered to management about business operation metrics. Managerial accountants use information relating to the cost and sales revenue of goods and services generated by the company. Cost accounting is a large subset of managerial accounting that specifically focuses on capturing a company's total costs of production by assessing the variable costs of each step of production, as well as fixed costs. It allows businesses to identify and reduce unnecessary spending and maximize profits.

The pillars of managerial accounting are planning, decision-making, and controlling. In addition, forecasting and performance tracking are key components. Through this focus, managerial accountants provide information that aims to help companies and departments in these key areas.

Managerial Accounting vs. Financial Accounting

The key difference between managerial accounting and financial accounting relates to the intended users of the information. Managerial accounting information is aimed at helping managers within the organization make well-informed business decisions, while financial accounting is aimed at providing financial information to parties outside the organization.

Financial accounting must conform to certain standards, such as generally accepted accounting principles (GAAP). All publicly held companies are required to complete their financial statements in accordance with GAAP as a requisite for maintaining their publicly traded status. Most other companies in the U.S. conform to GAAP in order to meet debt covenants often required by financial institutions offering lines of credit.

Because managerial accounting is not for external users, it can be modified to meet the needs of its intended users. This may vary considerably by company or even by department within a company. For example, managers in the production department may want to see their financial information displayed as a percentage of units produced in the period. The HR department manager may be interested in seeing a graph of salaries by employee over a period of time. Managerial accounting is able to meet the needs of both departments by offering information in whatever format is most beneficial to that specific need.

Managerial accounting does not need to follow GAAP standards because it is used for internal purposes and not for external reports.

Product Costing and Valuation

Product costing deals with determining the total costs involved in the production of a good or service. Costs may be broken down into subcategories, such as variable, fixed, direct, or indirect costs. Cost accounting is used to measure and identify those costs, in addition to assigning overhead to each type of product created by the company.

Managerial accountants calculate and allocate overhead charges to assess the full expense related to the production of a good. The overhead expenses may be allocated based on the number of goods produced or other activity drivers related to production, such as the square footage of the facility. In conjunction with overhead costs, managerial accountants use direct costs to properly value the cost of goods sold and inventory that may be in different stages of production.

Marginal costing (sometimes called  cost-volume-profit analysis ) is the impact on the cost of a product by adding one additional unit into production. It is useful for short-term economic decisions. The contribution margin of a specific product is its impact on the overall profit of the company. Margin analysis flows into break-even analysis, which involves calculating the contribution margin on the sales mix to determine the unit volume at which the business’s gross sales equals total expenses. Break-even point analysis is useful for determining price points for products and services.

Cash Flow Analysis

Managerial accountants perform cash flow analysis in order to determine the cash impact of business decisions. Most companies record their financial information on the accrual basis of accounting. Although accrual accounting provides a more accurate picture of a company's true financial position, it also makes it harder to see the true cash impact of a single financial transaction. A managerial accountant may implement working capital management strategies in order to optimize cash flow and ensure the company has enough liquid assets to cover short-term obligations.

When a managerial accountant performs cash flow analysis, he will consider the cash inflow or outflow generated as a result of a specific business decision. For example, if a department manager is considering purchasing a company vehicle, he may have the option to either buy the vehicle outright or get a loan. A managerial accountant may run different scenarios by the department manager depicting the cash outlay required to purchase outright upfront versus the cash outlay over time with a loan at various interest rates .

Inventory Turnover Analysis

Inventory turnover is a calculation of how many times a company has sold and replaced inventory in a given time period. Calculating inventory turnover can help businesses make better decisions on pricing, manufacturing, marketing, and purchasing new inventory. A managerial accountant may identify the carrying cost of inventory, which is the amount of expense a company incurs to store unsold items.

If the company is carrying an excessive amount of inventory, there could be efficiency improvements made to reduce storage costs and free up cash flow for other business purposes.

Constraint Analysis

Managerial accounting also involves reviewing the constraints within a production line or sales process. Managerial accountants help determine where bottlenecks occur and calculate the impact of these constraints on revenue, profit, and cash flow. Managers then can use this information to implement changes and improve efficiencies in the production or sales process.

Financial Leverage Metrics

Financial leverage refers to a company's use of borrowed capital in order to acquire assets and increase its return on investments. Through balance sheet analysis, managerial accountants can provide management with the tools they need to study the company's debt and equity mix in order to put leverage to its most optimal use.

Performance measures such as return on equity, debt to equity, and return on invested capital help management identify key information about borrowed capital, prior to relaying these statistics to outside sources. It is important for management to review ratios and statistics regularly to be able to appropriately answer questions from its board of directors, investors, and creditors.

Accounts Receivable (AR) Management

Appropriately managing accounts receivable (AR) can have positive effects on a company's bottom line. An accounts receivable aging report categorizes AR invoices by the length of time they have been outstanding. For example, an AR aging report may list all outstanding receivables less than 30 days, 30 to 60 days, 60 to 90 days, and 90+ days.

Through a review of outstanding receivables, managerial accountants can indicate to appropriate department managers if certain customers are becoming credit risks. If a customer routinely pays late, management may reconsider doing any future business on credit with that customer.

Budgeting, Trend Analysis, and Forecasting

Budgets are extensively used as a quantitative expression of the company's plan of operation. Managerial accountants utilize performance reports to note deviations of actual results from budgets. The positive or negative deviations from a budget also referred to as budget-to-actual variances, are analyzed in order to make appropriate changes going forward.

Managerial accountants analyze and relay information related to capital expenditure decisions. This includes the use of standard capital budgeting metrics, such as net present value and internal rate of return , to assist decision-makers on whether to embark on capital-intensive projects or purchases. Managerial accounting involves examining proposals, deciding if the products or services are needed, and finding the appropriate way to finance the purchase. It also outlines payback periods so management is able to anticipate future economic benefits.

Managerial accounting also involves reviewing the trendline for certain expenses and investigating unusual variances or deviations. It is important to review this information regularly because expenses that vary considerably from what is typically expected are commonly questioned during external financial audits. This field of accounting also utilizes previous period information to calculate and project future financial information. This may include the use of historical pricing, sales volumes, geographical locations, customer tendencies, or financial information.

Is Financial Accounting the Same As Managerial Accounting?

While they often perform similar tasks, financial accounting is the process of preparing and presenting official quarterly or annual financial information for external use. Such reports may include audited financial statements that help investors and analysts decide whether to buy or sell shares of the company.

Managerial accounting, in contrast, uses pro forma measures that describe and measure the financial information tracked internally by corporate managers.

Do Managerial Accountants Need to Follow GAAP?

No, managerial accountants are not legally obligated to follow GAAP because the documents they produce are not regulated by GAAP. These documents focus on internal company metrics that focus on company performance.

What Types of Information Does Managerial Accounting Compute?

Managerial accounting is useful for companies to track and craft spending budgets, reduce costs, project sales figures, and manage cash flows, among other tasks.

Managerial accounting is important for drafting accurate and complete financial statements for internal use and crafting a company's long-term strategy. Without good managerial accounting, corporate leadership can struggle to make appropriate choices or misunderstand the firm's true financial picture. Because managerial accounting documents are not official, they do not have to conform to GAAP and can be used internally for a variety of purposes.

CFA Institute. " US GAAP: Generally Accepted Accounting Principles ."

University of Nevada, Reno. " Financial Accounting vs. Managerial Accounting: What’s the Difference? "

• Terms of Service
• Editorial Policy
• Privacy Policy
• Your Privacy Choices

1.1 Define Managerial Accounting and Identify the Three Primary Responsibilities of Management

Financial accounting process provides a useful level of detail for external users, such as investors and creditors, but it does not provide enough detailed information for the types of decisions made in the day-to-day operation of the business or for the types of decisions that guide the company long term. Managerial accounting is the process that allows decision makers to set and evaluate business goals by determining what information they need to make a particular decision and how to analyze and communicate this information. Let’s explore the role of managerial accounting in several different organizations and at different levels of the organization, and then examine the primary responsibilities of management.

Three friends who are recent graduates from business school, Alex, Hana, and Gillian, have each just begun their first postgraduation jobs. They meet for lunch and discuss what each of their jobs entails. Alex has taken a position as a market analyst for a Fortune 500 company that operates in the shipping industry. Her first assignment is to suggest and evaluate ways the company can increase the revenue from shipping contracts by 10 percent for the year. Before tackling this project, she has a number of questions. What is the purpose of this analysis? What type of information does she need? Where would she find this information? Can she get it from a basic income statement and balance sheet? How will she know if her suggestions for pricing are creating more shipping contracts and helping to meet the company’s goal? She begins with an analysis of the company’s top fifty customers, including the prices they pay, discounts offered, discounts applied, frequency of shipments, and so on, to determine if there are price adjustments that need to be made to attract those customers to use the company’s shipping services more frequently.

Hana has a position in the human resources department of a pharmaceutical company and is asked to research and analyze a new trend in compensation in which employers are forgoing raises to employees and are instead giving large bonuses for meeting certain goals. Her task is to ascertain if this new idea would be appropriate for her company. Her questions are similar to Alex’s. What information does she need? Where would she find this information? How would she determine the impact of this type of change on the business? If implemented, what information would she need to assess the success of the plan?

Gillian is working in the supply chain area of a major manufacturer that produces the various mirrors found on cars and trucks. Her first assignment is to determine whether it is more cost effective and efficient for her company to make or purchase a bracket used in the assembly of the mirrors. Her questions are also similar to her friends’ questions. Why is the company considering this decision? What information does she need? Where would she find this information? Would choosing the option with the lowest cost be the correct choice?

The women are surprised by how similar their questions are despite how different their jobs are. They each are assigned tasks that require them to use various forms of information from many different sources to answer an important question for their respective companies. Table 1.1 provides possible answers to each of the questions posed in these scenarios.

The questions the women have and the answers they require show that there are many types of information that a company needs to make business decisions. Although none of these individuals is given the title of manager, they need information to help provide management with the information necessary to make decisions to move the company forward with its strategic plan. The scenarios of the three women are not unique. These types of questions occur every day in businesses across the world.

Some decisions will be more clearly appropriate for higher-level management. For example, Lynx Boating Company produces three different lines of boats (sport boats, pontoon boats, and large cruisers). All three boat lines are profitable, but the pontoon boat line seems to be less profitable than the other two types of boats. Management may want to consider abandoning the pontoon line and using that additional capacity to produce one of the other more profitable lines. They would need detailed financial information in order to make such a decision.

Link to Learning

This short video goes inside a manufacturing process to show you how machines, people, planning, implementation, efficiency, and costs interact to arrive at a finished product.

Service organizations also face decisions that require more detailed information than is available in financial accounting statements. A company’s financial statements aggregate information for the company as a whole, but for most managerial decisions, information must be gathered in a timely manner at a product, customer, or division level. For example, the management of City Hospital is considering the purchase of four new magnetic resonance imaging (MRI) machines that scan three times faster than their current machines and thus would allow the hospital’s imaging department to evaluate eight additional patients each day. Each machine costs $425,000 and will last five years before needing to be replaced. Would this be a wise investment for City Hospital? Hospital management would need the appropriate information to assess the alternatives in order to make this decision. Throughout your study of managerial accounting, you will learn about the types of information needed to make these decisions, as well as techniques for analyzing this information. First, it is important to understand the various roles managers play in the organization in order to understand the types of information and the level of detail that are needed. Most of the job responsibilities of a manager fit into one of three categories: planning, controlling, or evaluating.

The model in Figure 1.2 sums up the three primary responsibilities of management and the managerial accountant’s role in the process. As you can see from the model, the function of accomplishing an entity’s mission statement is a circular, ongoing process.

One of the first items on a new company’s agenda is the creation of a mission statement . A mission statement is a short statement of a company’s purpose and focus. This statement should be broad enough that it will encompass future growth and changes of the company. Table 1.2 contains the mission statement of three different types of companies: a manufacturer, an e-commerce company, and a service company.

Once the mission of the company has been determined, the company can begin the process of setting goals , or what the company expects to accomplish over time, and objectives , or the targets that need to be met in order to meet the company’s goals. This is known as planning . Planning occurs at all levels of an organization and can cover various periods of time. One type of planning, called strategic planning , involves setting priorities and determining how to allocate corporate resources to help an organization accomplish both short-term and long-term goals. For example, one hotel may want to be the low-price, no-frills, clean alternative, while another may decide to be the superior quality, high-price luxury hotel with many amenities. Obviously, to be successful, either of these businesses must determine the goals necessary to meet their particular strategy.

Typically, a strategic plan will span any number of years an organization chooses (three, five, seven, or even ten years), and often companies will have multiple strategic plans, such as one for three years, one for five years, and one for ten years. Given the time length involved in many plans, the organization also needs to factor in the potential effects of changes in their senior executive leadership and the composition of the board of directors.

What types of objectives are part of a strategic plan? Strategic objectives should be diverse and will vary from company to company and from industry to industry, but some general goals can include maximizing market share, increasing short-term profits, increasing innovation, offering the best value for the cost, maintaining commitment to community programs, and exceeding environmental protection mandates.

From a managerial accounting perspective, planning involves determining steps or actions to meet the strategic or other goals of the company. For example, Daryn’s Dairy, a major producer of organic dairy products in the Midwest, has made increasing the market share of its products one of its strategic goals. However, to be truly effective, the goals need to be defined specifically. For example, the goals might be stated in terms of percentage growth, both annually and in terms of the number of markets addressed in their growth projections.

Also, Daryn’s planning process would include the steps the company plans to use to implement to increase market share. These plans may include current-year plans, five-year plans, and ten-year plans.

The current-year plan may be to sell the company’s products in 10 percent more stores in the states in which it currently operates. The five-year plan may be to sell the products internationally in three countries, and the ten-year plan may be to acquire their chief competitor and, thus, their customers. Each of these plans will require outlining specific steps to reach these goals and communicating those steps to the employees who will carry out or have an impact on reaching these goals and implementing these plans.

Planning can involve financial and nonfinancial processes and measures. One planning tool discussed in Budgeting is the budgeting process, which requires management to assess the resources—for example, time, money, and number and type of employees needed—to meet current-year objectives. Budgeting often includes both financial data, such as worker pay rates, and nonfinancial data, such as the number of customers an employee can serve in a given time period.

A retail company can plan for the expected sales volume, a hospital can plan for the number of x-rays they expect to administer, a law firm can plan the hours expected for the various types of legal services they perform, a manufacturing firm can plan for the level of quality expected in each item produced, and a utility company can plan for the level of air pollutants that are acceptable. Notice that in each of these examples, the aspect of the business that is being planned and evaluated is a qualitative (nonfinancial) factor or characteristic. In your study of managerial accounting, you will learn about many situations in which both financial and nonfinancial data or information are equally relevant. However, the qualitative aspects are typically not quantified in dollars but evaluated using some other standards, such as customers served or students advised.

While these functions are initially stated in qualitative terms, most of these items would at some point be translated into a dollar value or dollar effect. In each of these examples, the managerial accounting function would help to determine the variables that would help appropriately measure the desired goal as well as plan how to quantify these measures. However, measures are only useful if tracked and used to determine their effectiveness. This is known as the control function of management.

Controlling

To measure whether plans are meeting objectives or goals, management must put in place ways to assess success or lack of success. Controlling involves the monitoring of the planning objectives that were put into place. For example, if you have a retail store and you have a plan to minimize shoplifting, you can implement a control, such as antitheft tags that trigger an alarm when someone removes them from the store. You could also install in the ceilings cameras that provide a different view of customers shopping and therefore may catch a thief more easily or clearly. The antitheft tags and cameras serve as your controls against shoplifting.

Managerial accounting is a useful tool in the management control function. Managerial accounting helps determine the appropriate controls for measuring the success of a plan. There are many types of controls that a company can use. Some controls can be in the form of financial measures, such as the ratio for inventory turnover, which is a measure of inventory control and is defined as Cost of Goods Sold ÷ Average Inventory, or in the form of a performance measure, such as decreasing production costs by 10 percent to help guide or control the decisions made by managers. Other controls can be physical controls, such as fingerprint identification or password protection. Essentially, the controlling function in management involves helping to coordinate the day-to-day activities of a business so that these activities lead to meeting corporate goals.

Without controls, it is very unlikely a plan would be successful, and it would be difficult to know if your plan was a success. Consider the plan by Daryn’s Dairy to increase market share. The plan for the first year was to increase market share by selling the company’s products in 10 percent more stores in the states in which the company already operates. How will the company implement this plan? The implementation, or carrying out, of the plan will require the company to put controls in place to measure which new stores are successfully selling the company’s products, which products are being sold the most, what the sales volume and dollar value of the new stores are, and whether the sales in these new stores are affecting the volume of sales in current stores. Without this information, the company would not know if the plan is reaching the desired result of increased market share.

The control function helps to determine the courses of action that are taken in the implementation of a plan by helping to define and administer the steps of the plan. Essentially, the control function facilitates coordination of the plan within the organization. It is through the system of controls that the actual results of decisions made in implementing a plan can be identified and measured. Managerial accounting not only helps to determine and design control measures, it also assists by providing performance reports and control reports that focus on variances between the planned objective performance and the actual performance. Control is achieved through effective feedback, or information that is used to assess a process. Feedback allows management to evaluate the results, determine whether progress is being made, or determine whether corrective measures need to be taken. This evaluation is in the next management function.

Managers must ultimately determine whether the company has met the goals set in the planning phase. Evaluating , also called assessing or analyzing , involves comparing actual results against expected results, and it can occur at the product, department, division, and company levels. When there are deviations from the stated objectives, managers must decide what modifications are needed.

The controls that were put into place to coordinate the implementation of a particular company plan must be evaluated so that success can be measured, or corrective action can be taken. Consider Daryn’s Dairy’s one-year plan to increase market share by selling products in 10 percent more stores in the states in which the company currently operates. Suppose one of the controls put into place is to measure the sales in the current stores to determine if selling the company’s products in new stores is adding new sales or merely moving sales from existing stores. This control measure, same-store sales, must be evaluated to determine the effect of the decision to expand the selling of products within the state. This control measure will be evaluated by comparing sales in the current year in those stores to sales from the prior year in those same stores. The results of this evaluation will help guide management in their decision to move forward with their plan, to modify the plan, or to scrap the plan.

As discussed previously, not all evaluations will involve quantitative or financial measures. In expanding market share, the company wants to maintain or improve its reputation with customers and does not want the planned increased availability or easier access to their products to decrease customer perceptions of the products or the company. They could use customer surveys to evaluate the perceived effect on the company’s reputation as a result of implementing this one-year plan. However, there are many ways that companies can evaluate various controls. In addition to the financial gauges, organizations are now measuring efficiencies, customer development, employee retention, and sustainability.

Managers spend their time in various stages of planning, controlling, and evaluating. Generally, higher-level managers spend more time on planning, whereas lower-level managers spend more time on evaluating. At any level, managers work closely with the managerial accounting team to help in each of these stages. Managerial accountants help determine whether plans are measurable, what controls should be implemented to carry out a plan, and what are the proper means of evaluation of those controls. This would include the type of feedback necessary for management to assess the results of their plans and actions. Management accountants generate the reports and information needed to assess the results of the various evaluations, and they help interpret the results.

To put this in context, think about how you will spend your weekend. First, you are the manager of your own time. You must plan based on your workload and on how much time you will spend studying, exercising, sleeping, and meeting with friends. You then control how your plan is implemented by setting self-imposed or possibly group meeting–imposed deadlines, and last, you evaluate how well you carried out your plan by gathering more data—such as grades on assignments, personal fulfillment, and number of hours of sleep—to determine if you met your plans (goals). Not planning, controlling, and evaluating often results in less-than-desirable outcomes, such as late assignments, too little sleep, or bad grades. In this scenario, you did not need a separate managerial accountant to help you with these functions, because you could manage planning, controlling, and evaluating on your own. However, in the business world, most businesses will have both managers and managerial accountants. Table 1.3 illustrates some examples.

Evaluating On-Campus versus Off-Campus Living

The principal purpose of managerial accounting is to deliver information useful for management decision-making. Many of the techniques used in managerial accounting are useful for decisions in your everyday life. In choosing whether to live on campus or off campus, how might you use planning, controlling, and evaluating in your decision-making process? What types of financial and nonfinancial information might you need?

• Creating a list of financial and nonfinancial goals to be accomplished in your next year in college
• Determining how much each alternative will cost, including utilities, food, and transportation, and creating a budget

Controlling:

• Using an expense recording app to monitor your expenses
• Monitoring the effectiveness of your study time as reflected in your grades
• Monitoring your physical health to measure if your living arrangements are conducive to staying healthy

Evaluating:

• Assessing the effectiveness of your living arrangements by measuring your grades, bank account, and general happiness
• Cost of staying in dorm versus the cost of an apartment or house
• Estimate of differences in other costs, such as utilities, food, and additional transportation

Nonfinancial:

• Convenience of location of dorm versus apartment or house
• Quality of living experience including number of roommates, ability to have own room, study environment differences
• Length of rental term of dorm versus apartment or house
• Where you plan to live in the summer, what you plan to do during that time

Think It Through

Us small business administration.

Many students who study managerial accounting will work for a small business, and some may even own a small business. In order to operate a small business, you need an understanding of managerial accounting, among other skills. The US Small Business Administration is an agency within the federal government that has the sole purpose of supporting small businesses. You can find a plethora of information on their website, https://www.sba.gov/.

• What are some of the steps in creating a small business?
• What are the top ten reasons given for a business failure?
• How could an understanding of managerial accounting help a small business owner?
• 1 “Mission and Vision.” DOW. https://www.dow.com/en-us/about-dow/our-company/mission-and-vision
• 2 “Our Starbucks Mission Statement.” Starbucks. https://www.starbucks.com/about-us/company-information/mission-statement
• 3 “About.” Google. https://www.google.com/about/

As an Amazon Associate we earn from qualifying purchases.

This book may not be used in the training of large language models or otherwise be ingested into large language models or generative AI offerings without OpenStax's permission.

Want to cite, share, or modify this book? This book uses the Creative Commons Attribution-NonCommercial-ShareAlike License and you must attribute OpenStax.

Access for free at https://openstax.org/books/principles-managerial-accounting/pages/1-why-it-matters

• Authors: Mitchell Franklin, Patty Graybeal, Dixon Cooper
• Publisher/website: OpenStax
• Book title: Principles of Accounting, Volume 2: Managerial Accounting
• Publication date: Feb 14, 2019
• Location: Houston, Texas
• Book URL: https://openstax.org/books/principles-managerial-accounting/pages/1-why-it-matters
• Section URL: https://openstax.org/books/principles-managerial-accounting/pages/1-1-define-managerial-accounting-and-identify-the-three-primary-responsibilities-of-management

© Dec 13, 2023 OpenStax. Textbook content produced by OpenStax is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License . The OpenStax name, OpenStax logo, OpenStax book covers, OpenStax CNX name, and OpenStax CNX logo are not subject to the Creative Commons license and may not be reproduced without the prior and express written consent of Rice University.

Ask a question from expert

Task 28 LO2: Application of the Management Accounting Techniques

This assignment is about demonstrating an understanding of management accounting systems and different methods used for management accounting reporting.

Added on   2020-01-07

About This Document

   Added on  2020-01-07

End of preview

Want to access all the pages? Upload your documents or become a member.

Management Accounting System and Techniques lg ...

Assignment management accounting- doc lg ..., management accounting : galway plc lg ..., management accounting techniques for innocent drinks lg ..., management accounting and reporting lg ..., management accounting assignment - the berkeley partnership lg ....

Browse Course Material

Course info.

• Prof. Mozaffar Khan

Departments

• Sloan School of Management

As Taught In

• Operations Management

Learning Resource Types

Management accounting and control, assignments.

This course has four types of asssignments: individual case assignments, group case assignments, class participation, and class presentations.

Group Composition

Each group should consist of no more than three members. Please form your group on the first day of class, and then e-mail the names of your group members to the TA. Please sit with your group members in class .

Case Assignments

You will be required to write-up and submit two cases over the semester. One case should be prepared and submitted individually, while another should be prepared and submitted by your group. The class schedule indicates which cases are due to be submitted, and when.

The format of the submitted case analysis should be as follows: typed, double spaced, 12 font, standard margins; first page should be an Executive Summary of your analysis; this should be followed by a maximum of three pages of text, and then any exhibits and / or references. You should identify relevant issues, the objectives and constraints of the decision maker, and your recommendation for how the issues might be resolved. Your recommendation of a course of action for the case protagonist should be the focal point of your analysis. In other words, your analysis and arguments should jointly lead to, and support, your recommendation. In the course of leading up to your recommendation, you should, of course, evaluate the effect of alternative courses of action.

There should be no collaboration among students on cases to be prepared and submitted individually.

Class Participation

A case-based class requires active student engagement in, and ownership of, the class discussions. My role in class will be to facilitate the discussion, to draw out differing perspectives, to challenge you and to manage diversions. In other words, you will be the panel and I will be the moderator. Class participation marks will be awarded to your group, rather than to you individually. The TA will be present in each class to observe your group’s participation and record these marks. You can view your participation marks twice over the semester: the day following the midterm exam (Ses #13), and at the end of the semester. Please note that attendance and participation on the last two days of class (Ses #23 and Ses #24) is especially important, and absence on those days will be penalized.

Class Presentation

Each group will deliver a class presentation on one of the two days reserved for this activity. Your goal is to present an important management accounting issue that was confronted in a company, and how it was addressed. The issue (and company) can be from your own experience, or you may have otherwise heard of it. If it is from your own personal experience, you may choose to withhold the name of the company. In your presentation, clearly identify the issue first (based on the topics we cover during the semester), provide background on the company and its strategic environment, describe how the company responded, and then evaluate the company’s response. The more interesting situations may be ones where you would have responded differently, had you been the decision maker, based on what you have learned in class, and situations that illustrate misalignment of incentives and failure of management control systems. Each presentation will last about 15 minutes, though we might adjust the length of time down depending on the number of groups. Before the presentation, you should submit a hard copy of your slides to the TA. Finally, don’t forget to mention briefly, in the introduction, the source (personal experience, other) of the issue you are presenting.

You are leaving MIT OpenCourseWare

Academia.edu no longer supports Internet Explorer.

To browse Academia.edu and the wider internet faster and more securely, please take a few seconds to  upgrade your browser .

Enter the email address you signed up with and we'll email you a reset link.

• We're Hiring!
• Help Center

Assignment on Management Accounting

•   We're Hiring!
•   Help Center
• Find new research papers in:
• Health Sciences
• Earth Sciences
• Cognitive Science
• Mathematics
• Computer Science
• Academia ©2024

• Mastering Managerial Accounting: A Guide to Applying Concepts in Assignments

From Theory to Practice: Solving Your Managerial Accounting Assignment with Confidence

In the dynamic world of business, understanding and applying managerial accounting concepts is crucial for effective decision-making. As students, translating these theoretical concepts into practical solutions is often a challenging yet essential task. This blog aims to guide you through the process of applying managerial accounting concepts in assignments, offering valuable insights on how to solve your managerial accounting assignment with confidence.

Understanding Managerial Accounting Concepts

Managerial accounting plays a pivotal role in helping organizations make informed decisions by providing internal stakeholders with relevant financial information. To successfully navigate the application of managerial accounting concepts in assignments, it's crucial to grasp the foundational principles that underpin this discipline.

Definition of Managerial Accounting

Managerial accounting, also known as cost, managerial, corporate, or private accounting, is the process of identifying, measuring, analyzing, interpreting, and communicating information to enable an organization's leadership to pursue its goals effectively. Unlike financial accounting, which primarily focuses on reporting to external parties, managerial accounting caters to the internal needs of management.

Key Concepts in Managerial Accounting

1. Cost Behavior:

Understanding how costs behave is fundamental to managerial accounting. Costs can be classified as variable, fixed, or mixed. Variable costs fluctuate with changes in production or activity levels, while fixed costs remain constant. Mixed costs contain both variable and fixed components. Assignments often involve categorizing costs and predicting their behavior under different scenarios.

2. Cost Classification:

Managerial accountants classify costs into direct and indirect categories. Direct costs can be directly attributed to a specific product or service, while indirect costs are shared across multiple products or services. When addressing assignments, be attentive to correctly allocating costs to the relevant categories, showcasing your comprehension of cost classification.

3. Cost-Volume-Profit (CVP) Analysis:

CVP analysis examines the relationships between costs, volume, and profits. It aids in decision-making by providing insights into the impact of changes in production levels, pricing, and sales on profitability. When presented with assignments involving decision scenarios, apply CVP analysis to demonstrate your ability to assess the financial implications of various alternatives.

4. Budgeting:

Budgets serve as a roadmap for achieving organizational objectives. Managerial accountants are responsible for creating budgets that align with the company's strategic plans. When tackling assignments related to budgeting, consider factors such as sales forecasts, production costs, and overhead expenses. Showcase your proficiency in developing comprehensive and realistic budgets.

5. Variance Analysis:

Variance analysis involves comparing actual results with budgeted or expected outcomes. It identifies discrepancies and provides insights into performance. When working on assignments, delve into the reasons behind favorable or unfavorable variances. This demonstrates your analytical skills and ability to assess the effectiveness of budgeted plans.

6. Activity-Based Costing (ABC):

ABC is a method that assigns costs to products or services based on the activities involved in their production. For assignments requiring a nuanced understanding of product costs and profitability, integrate ABC principles. Showcase how ABC can provide more accurate cost information, enhancing the precision of managerial decision-making.

The Significance of Understanding Managerial Accounting Concepts

Understanding these foundational concepts equips you with the tools necessary to dissect complex managerial accounting assignments. It allows you to identify relevant information, make informed decisions, and communicate financial insights to support organizational objectives. As you delve into your assignments, remember that a solid grasp of managerial accounting concepts is not just a requirement—it's the key to unlocking your ability to solve problems with confidence.

Utilizing Cost-Volume-Profit (CVP) Analysis

Cost-Volume-Profit (CVP) analysis is a powerful managerial accounting tool that plays a pivotal role in decision-making processes. Understanding how to effectively utilize CVP analysis is essential when faced with managerial accounting assignments. Let's explore the key aspects of CVP analysis and how you can apply this concept to solve assignments with confidence.

Understanding Cost-Volume-Profit (CVP) Analysis

CVP analysis examines the interplay between costs, volume, and profits within an organization. It helps in understanding how changes in production levels, selling prices, and variable costs impact the overall profitability of a business. The analysis provides valuable insights into the break-even point, contribution margin, and potential profit scenarios.

Applying CVP Analysis in Assignments

1. Calculating Break-Even Point:

When presented with assignments involving break-even analysis, use the CVP formula to determine the point at which total revenue equals total costs. Showcase your ability to interpret the break-even point in relation to sales volume and its significance for the business.

2. Assessing Profitability:

Utilize CVP analysis to assess the profitability of different scenarios. For example, analyze the impact of increasing or decreasing sales volumes, changing selling prices, or adjusting variable costs. Demonstrating a nuanced understanding of how changes in these factors affect profits enhances the quality of your assignment.

3. Sensitivity Analysis:

CVP analysis allows for sensitivity analysis, where you assess how sensitive profits are to changes in key variables. Address assignments that require you to explore the effects of varying production levels or cost structures on the overall financial performance of the business.

4. Decision-Making Scenarios:

Many assignments present decision-making scenarios where management must choose between alternative courses of action. Use CVP analysis to guide these decisions by evaluating the financial implications of each option. This could involve assessing the profitability of introducing new products, changing pricing strategies, or modifying production levels.

Advantages of Using CVP Analysis

1. Strategic Planning:

CVP analysis aids in strategic planning by providing insights into the relationship between costs, volume, and profits. This is invaluable for organizations looking to set realistic goals and make informed decisions.

2. Performance Evaluation:

Evaluate the performance of different segments within the organization using CVP analysis. This can help identify areas of strength and opportunities for improvement.

3. Resource Allocation:

When faced with resource allocation assignments, CVP analysis can guide decisions on where to allocate resources to maximize profitability.

Mastering Variance Analysis

Variance analysis is a critical aspect of managerial accounting that allows businesses to assess the differences between actual and budgeted performance. To excel in solving managerial accounting assignments, it is essential to master the intricacies of variance analysis. In this section, we will explore the significance of variance analysis and provide insights into how you can adeptly apply this concept to your assignments.

Understanding Variance Analysis

1. Definition:

Variance analysis involves comparing actual financial outcomes with the budgeted or expected figures. It provides a detailed examination of the reasons behind the differences, allowing management to identify areas of strength and areas that may require corrective action.

2. Types of Variances:

Favorable and Unfavorable Variances:

Variances can be categorized as favorable or unfavorable. A favorable variance occurs when actual results exceed budgeted expectations, contributing positively to profitability. Conversely, an unfavorable variance indicates that actual results fall short of the budget, potentially affecting profitability negatively.

Price and Quantity Variances:

Price variances result from differences in the actual and budgeted prices of inputs, while quantity variances arise from variations in the actual and budgeted quantities used.

Applying Variance Analysis in Assignments

1. Identifying Causes of Variances:

When solving assignments involving variance analysis, go beyond merely calculating the variances. Dive into the underlying causes. Did changes in market conditions impact prices? Were there production inefficiencies leading to increased costs? Showcasing your ability to identify and analyze the root causes demonstrates a deeper understanding of the subject matter.

2. Linking Variances to Business Operations:

Relate variance analysis to specific business operations. For instance, if a manufacturing variance exists, connect it to the production process. If a sales variance is evident, consider external factors such as market demand or pricing strategies. This contextualization demonstrates a practical application of variance analysis within a business setting.

3. Performance Evaluation:

Variance analysis is instrumental in evaluating the performance of different departments or business segments. Assignments may require you to assess the impact of variances on overall company performance and individual departmental contributions. Use variance analysis to provide insights into areas of excellence and those needing improvement.

4. Continuous Improvement:

Emphasize the importance of continuous improvement in your assignments. If unfavorable variances are identified, discuss strategies for addressing and minimizing them in future periods. This forward-looking approach showcases your proactive problem-solving skills.

Utilizing Tools for Variance Analysis

1. Standard Costing:

Standard costing is a method where predetermined costs are set as benchmarks for evaluating actual performance. In assignments, discuss how standard costing can be used as a basis for budgeting and variance analysis, enabling organizations to set realistic expectations.

2. Flexible Budgets:

Integrate the concept of flexible budgets in your assignments. Unlike static budgets, flexible budgets adjust for changes in activity levels. Discuss how flexible budgets contribute to more accurate variance analysis by considering varying production volumes and their impact on costs.

The Significance of Mastering Variance Analysis

1. Informed Decision-Making:

Variance analysis provides management with valuable insights, enabling informed decision-making. Emphasize in your assignments how a thorough understanding of variances allows businesses to make timely adjustments to achieve financial goals.

2. Strategic Planning:

Link variance analysis to strategic planning. Discuss how the identification of patterns in variances can contribute to the formulation of future business strategies, enhancing overall organizational performance.

3. Effective Communication:

When presenting your assignment, communicate your findings effectively. Use clear language and visual aids to illustrate variances, making your analysis easily understandable for both financial and non-financial stakeholders.

Integrating Activity-Based Costing (ABC)

Activity-Based Costing (ABC) is a managerial accounting methodology that provides a more accurate and detailed understanding of costs within an organization. Mastering the integration of ABC is crucial for solving managerial accounting assignments with precision and insight. In this section, we will explore the key principles of ABC and how to effectively apply them in assignments.

Understanding Activity-Based Costing (ABC)

Activity-Based Costing is a cost allocation method that identifies and assigns costs to activities based on the resources they consume. It offers a more granular view of cost structures compared to traditional costing methods, allowing organizations to allocate overhead costs more accurately.

2. Components of ABC:

Activities:

Activities are tasks or processes that consume resources. These can include production setups, machine hours, or customer service interactions.

Cost Pools:

Costs are grouped into cost pools based on the activities they support. Each cost pool is associated with specific cost drivers.

Applying ABC in Assignments

1. Identifying Activities and Cost Drivers:

Begin by identifying the activities within the organization. In assignments, showcase your ability to discern relevant activities and determine the corresponding cost drivers. This foundational step ensures accurate cost allocation.

2. Calculating Activity-Based Costs:

Utilize ABC principles to calculate activity-based costs. Allocate indirect costs to specific activities based on their consumption of resources. This may involve creating cost hierarchies to account for different levels of activities.

3. Enhancing Product Costing:

ABC is particularly beneficial when assignments involve product costing. Traditional costing methods may inaccurately distribute overhead costs. Discuss how ABC provides a more nuanced approach, allocating costs based on the actual activities and resources associated with each product.

4. Improving Decision-Making:

Emphasize the impact of ABC on decision-making. Discuss how a more accurate understanding of costs allows management to make informed decisions regarding pricing strategies, product lines, and resource allocation.

Overcoming Challenges with ABC

1. Data Collection:

Acknowledge that implementing ABC may require extensive data collection. In assignments, propose strategies for overcoming data collection challenges and ensuring the accuracy of information used in the ABC process.

2. Implementation Costs:

Discuss potential challenges related to the initial costs of implementing ABC. While ABC provides more accurate insights, it may involve additional expenses in terms of time and resources. Evaluate the long-term benefits against the initial investment.

In conclusion, the journey from theory to practice in managerial accounting assignments is a rewarding one that enhances your analytical and decision-making skills. By mastering fundamental concepts such as cost behavior, budgeting, variance analysis, and activity-based costing, and by embracing technology, you can confidently tackle any managerial accounting assignment. Remember to stay attuned to the specific requirements of each assignment and showcase your ability to apply theoretical knowledge in real-world scenarios. Now, armed with these insights, go ahead and solve your managerial accounting assignment with confidence and competence.

Post a comment...

Mastering managerial accounting: a guide to applying concepts in assignments submit your assignment, attached files.

• Introduction to Financial Accounting

(4 reviews)

David Annand, Athabasca University

Henry Dauderis

Copyright Year: 2017

Last Update: 2021

Publisher: Lyryx

Language: English

Formats Available

Conditions of use.

Learn more about reviews.

Reviewed by Katheryn Zielinski, Assistant Professor, Minnesota State University Mankato on 6/14/23

The text reading follows typical financial accounting flow. Beginning with the foundational introduction to what accounting is through the full accounting cycle, while including financial statement analysis towards the end of the book. Students... read more

Comprehensiveness rating: 5 see less

The text reading follows typical financial accounting flow. Beginning with the foundational introduction to what accounting is through the full accounting cycle, while including financial statement analysis towards the end of the book. Students will find the format helpful; the voice is student-friendly. There is online homework help for students. Instructors will find the text format friendly to semester-long class as concepts broken down into 13 chapters. The chapters explain the learning outcomes, use examples to express concepts, with chapter summary at end. The topics included are consistent with intro accounting courses.

Content Accuracy rating: 5

No issues noticed with accuracy. The text includes accurate financial accounting information.

Relevance/Longevity rating: 5

For an introductory accounting class with focus on US the concepts covered are typical.

Clarity rating: 5

The content is presented in a student friendly manner. Answers are provided. The extra information is helpful for students wanting extra practice.

Consistency rating: 5

The format and layout of the book chapters are consistent. All users will quickly understand the format as it is applied the same to each chapter. This helps provide consistency for students learning introductory accounting.

Modularity rating: 5

The content within the chapters can be broken-down and assigned as instructor plans for the course length. The manner is which the material is presented flows easily as reading.

Organization/Structure/Flow rating: 5

The text organization is consistent and coherent. Each chapter is presented in same manner.

Interface rating: 5

No observed tech issues. PDF downloaded and used with ease.

Grammatical Errors rating: 5

No grammar or language issues.

Cultural Relevance rating: 5

No cultural insensitive or offensive context noted.

This is a student friendly text. However, students might find a glossary helpful, as well as an index.

Reviewed by Lawrence Overlan, Part-time Professor, Bunker Hill Community College on 6/4/20

I appreciate how the Statement of Cash Flows has a separate chapter towards the end of the book. Might be better to wait until that chapter instead of also discussing it in Chapter One.....lots of material for opening week.... read more

Comprehensiveness rating: 4 see less

I appreciate how the Statement of Cash Flows has a separate chapter towards the end of the book. Might be better to wait until that chapter instead of also discussing it in Chapter One.....lots of material for opening week....

I sampled several problems...all correct.

Hard to make accounting obsolete. All the required material is present.

Problems are presented clearly and with good font size. Excellent color schemes and graphics.

Yes....no problems detected in this area. Very straightforward.

Chapters contain the right amount of content. Not too long with out breakup diagrams or examples etc.

Standard flow of chapters with excellent subdivisions.

To the contrary, the graphics and flow charts break up the material very nicely.

No issues noticed in this area.

Nice work! I will definitely consider adopting.

Reviewed by Patty Goedl, Associate Professor, University of Cincinnati Clermont College on 3/27/18

The text covers all of the topics normally found in an introductory financial accounting (principles of accounting I) text. The table of contents essentially mirrors the table of contents found in the leading texts in this field. I like that... read more

The text covers all of the topics normally found in an introductory financial accounting (principles of accounting I) text. The table of contents essentially mirrors the table of contents found in the leading texts in this field. I like that this text also covers the classified balance sheet, financial disclosures and partnerships.

Content is error-free, accurate, and unbiased.

Relevance/Longevity rating: 4

The content is up-to-date. Introductory accounting does not change often so future updates should be minimal. The authors used the year 2015 in most of the problem and examples. This might make the text "seem" out-of-date in a few years.

The book is clear and concise. The topics are clearly explained and the technical terminology is appropriate for an introductory level.

The writing, style, and formatting are consistent throughout this text.

The text is divided into topical chapters, which is appropriate considering that the concepts build on each other. The chapters are further subdivided into sub-topics. This makes it easy for an instructor to pick which sub-topics to cover.

Excellent organization and flow. The concepts logically build upon each other and the material is presented in a clear fashion.

The HTML interface is excellent. The book has good graphics, end of chapter content, and even video examples.

I did not notice grammatical errors.

The text is not culturally insensitive or offensive in any way

Excellent book that is comparable to any of the leading financial accounting titles. The authors even provide end of chapter problems, videos, and interactive Excel problems for students. Overall, a great resource! I commend the authors for making something of this caliber freely available.

Reviewed by Margarita Maria Lenk, Associate Professor, Colorado State University on 1/7/16

The content of this textbook matches the content and organization of most introductory financial accounting textbooks. It is written by Canadian authors, but is relevant to US students. The text begins by explaining the role of financial... read more

The content of this textbook matches the content and organization of most introductory financial accounting textbooks. It is written by Canadian authors, but is relevant to US students. The text begins by explaining the role of financial accounting in society, and then describes the underlying structure of double entry accounting systems and the process of recording economic events that impact the value of the organization through the journals and the ledger. The records of these events are then summarized into the primary financial statements. The numeric subtotals and totals on these statements are used to calculate standard financial measures and ratios used to evaluate the organization's performance. The text's organization then proceeds sequentially through the balance sheet accounts, explaining in more detail how the accounting for each category of economic value is recorded and reported. The author's decision to move the most complex content to the end of the book matches how most faculty choose to organize their coverage of these topics.

My reviewed resulted in highest marks regarding accuracy. The only possible concern I would mention here is that the authors use a commonly used technique in chapter two which sometimes leads to students misunderstanding that revenues and expenses are not part of owners' equity until the revenues and expenses are closed at year end to retained earnings. It is my preference to teach introductory students that revenues and expenses are distinct and separate from equity, and then explain that revenues and expenses ultimately get closed to equity. So, this is not an inaccuracy by the authors, just a point that some instructors may want to know before adopting the textbook.

It is my opinion that the content of this textbook will be relevant and current for at least a decade. Any changes made to accounting principles, Canadian or International, will be very easy and straightforward to update.

It is my opinion that the clarity of this text is very high. The authors are succinct and use visuals often to highlight the theoretical structures.

This test is very consistent with the framework that is set up by the authors in the beginning of the text.

The textbook is very clearly divided into separable modules, making it easy for both students to read and for instructors to choose which modules to include in their course.

The content of this textbook matches the content and organization of most introductory financial accounting textbooks. It begins by explaining the role of financial accounting in society, and then describes the underlying structure of double entry accounting systems and the process of recording economic events that impact the value of the organization through the journals and the ledger. The records of these events are then summarized into the primary financial statements. The numeric subtotals and totals on these statements are used to calculate standard financial measures and ratios used to evaluate the organization's performance. The text's organization then proceeds sequentially through the balance sheet accounts, explaining in more detail how the accounting for each category of economic value is recorded and reported. The author's decision to move the most complex content to the end of the book matches how most faculty choose to organize their coverage of these topics.

The online text worked perfectly in my Chrome browser. The end of chapter exercises and problems are perfectly formatted on the screen. All assessment materials (quizzes, exams, etc.) are located on a different site that requires registration to have access.

I found the grammar to be very clear, concise and very effective. Because the book is written by Canadians, expenses are sometimes referred to as revenue expenditures, which does not match how US textbooks refer to expenses, but is perhaps a better learning tool, as the expenses are always recorded in the period in which they match the revenue generation, so I support the authors' choices regarding how they refer to the difference between assets (capital expenditures) and expenses (revenue expenditures).

The textbook adequately refers to the international accounting standards. That is the only cultural relevance which is relevant to introductory financial accounting.

I found this textbook and its exercises to be a useful teaching and learning tool. Instructors and students have access to pre-made PowerPoint slides, exercises and problems, and there is the option to enrol in an online service for online assessments, which seem to have student feedback capabilities in addition to assessment gathering capabilities.

Table of Contents

• The Accounting Process
• Financial Accounting and Adjusting Entries
• The Classified Balance Sheet and Related Disclosures
• Accounting for the Sale of Goods
• Assigning Costs to Merchandise
• Cash and Receivables
• Long-lived Assets
• Debt Financing: Current and Long-term Liabilities
• Equity Financing
• The Statement of Cash Flows
• Financial Statement Analysis
• Proprietorships and Partnerships

Ancillary Material

About the book.

This textbook is an adaptation by Athabasca University of the original text written by D. Annand and H. Dauderis. It is intended for use in entry-level college and university courses in financial accounting. A corporate approach is utilized consistently throughout the book.

The adapted textbook includes multiple ancillary student and instructor resources. Student aids include solutions to all end-of-chapter questions and problems, and randomly-generated spreadsheet problems that cover key concepts of each chapter. These provide unlimited practice and feedback for students. Instructor aids include an exam bank, lecture slides, and a comprehensive end-of-term case assignment. This requires students to prepare 18 different year-end adjusting entries and all four types of financial statements, and to calculate and analyze 16 different financial statement ratios. Unique versions can be created for any number of individual students or groups. Tailored solutions are provided for instructors.

The original Annand/Dauderis version of the textbook including .docx files and ancillary material remains available upon request to D. Annand ([email protected]).

About the Contributors

David Annand, EdD, MBA, CA, is a Professor of Accounting in the Faculty of Business at Athabasca University. His research interests include the educational applications of computer-based instruction and computer mediated communications to distance learning, the effects of online learning on the organization of distance-based universities, and the experiences of instructors in graduate-level computer conferences.

David completed his Doctorate in Education in 1998. His thesis deals with the experiences of instructors in graduate-level computer conferences.

Contribute to this Page

Course Resources

Assignments.

The assignments in this course are openly licensed, and are available as-is, or can be modified to suit your students’ needs. Answer keys are available to faculty who adopt Lumen Learning courses with paid support. This approach helps us protect the academic integrity of these materials by ensuring they are shared only with authorized and institution-affiliated faculty and staff.

If you import this course into your learning management system (Blackboard, Canvas, etc.), the assignments will automatically be loaded into the assignment tool.

You can view them below or throughout the course.

• Module 0: Personal Accounting— Assignment: Creating a Budget
• Module 1: The Role of Accounting in Business— Assignment: Lopez Consulting
• Module 2: Accounting Principles— Assignment: Accounting Principles
• Module 3: Recording Business Transactions— Assignment: Recording Business Transactions
• Module 4: Completing the Accounting Cycle— Assignment: Completing the Accounting Cycle
• Module 5: Accounting for Cash— Assignment: Accounting for Cash
• Module 6: Receivables and Revenue— Assignment: Manilow Aging Analysis
• Module 7: Merchandising Operations— Assignment: Merchandising Operations
• Module 8: Inventory Valuation Methods— Assignment: Inventory Valuation Methods
• Module 9: Property, Plant, and Equipment— Assignment: Property, Plant, and Equipment
• Module 10: Other Assets— Assignment: Other Current and Noncurrent Assets
• Module 11: Current Liabilities— Assignment: Calculating Payroll at Kipley Co
• Module 12: Non-Current Liabilities— Assignment: Non-Current Liabilities
• Module 13: Accounting for Corporations— Assignment: Collins Mfg Stockholders’ Equity
• Module 14: Statement of Cash Flows— Assignment: Kachina Sports Company Cash Flows
• Module 15: Financial Statement Analysis— Assignment: Coca Cola FSA

Discussions

The following discussion assignments will also be preloaded (into the discussion-board tool) in your learning management system if you import the course. They can be used as is, modified, or removed. You can view them below or throughout the course.

• Module 0: Personal Accounting— Discussion: Winning the Lottery
• Module 1: The Role of Accounting in Business— Discussion: The Crafty Coffee Crook
• Module 2: Accounting Principles— Discussion: SoftSheets
• Module 3: Recording Business Transactions— Discussion: Baker’s Breakfast Bars
• Module 4: Completing the Accounting Cycle— Discussion: Closing the Books in QuickBooks
• Module 5: Accounting for Cash— Discussion: Counter Culture Cafe
• Module 6: Receivables and Revenue— Discussion: Maximizing Revenue
• Module 7: Merchandising Operations— Discussion: Inventory Controls
• Module 8: Inventory Valuation Methods— Discussion: LIFO, FIFO, Specific Identification, and Weighted Average
• Module 9: Property, Plant, and Equipment— Discussion: Cooking the Books
• Module 10: Other Assets— Discussion: Other Assets
• Module 11: Current Liabilities— Discussion: Current Liabilities
• Module 12: Non-Current Liabilities— Discussion: Off-Balance Sheet Financing
• Module 13: Accounting for Corporations— Discussion: Home Depot
• Module 14: Statement of Cash Flows— Discussion: Facebook, Inc.
• Module 15: Financial Statement Analysis— Discussion: Financial Statement Analysis

Alternative Excel-Based Assignments

For Modules 3–15, additional excel-based assignments are available below.

Module 3: Recording Business Transactions

• Module 3 Excel Assignment A
• Module 3 Excel Assignment B

Module 4: The Accounting Cycle

• Module 4 Excel Assignment A
• Module 4 Excel Assignment B
• Module 4 Excel Assignment C
• Module 4 Excel Assignment D

Module 5: Accounting for Cash

• Module 5 Excel Assignment

Module 6: Receivables and Revenue

• Module 6 Excel Assignment A
• Module 6 Excel Assignment B

Module 7: Merchandising Operations

• Module 7 Excel Assignment

Module 8: Inventory Valuation Methods

• Module 8 Excel Assignment A
• Module 8 Excel Assignment B
• Module 8 Excel Assignment C

Module 9: Property, Plant, and Equipment

• Module 9 Excel Assignment A
• Module 9 Excel Assignment B

Module 10: Other Assets

• Module 10 Excel Assignment

Module 11: Current Liabilities

• Module 11 Excel Assignment

Module 12: Non-Current Liabilities

• Module 12 Excel Assignment A
• Module 12 Excel Assignment B

Module 13: Accounting for Corporations

• Module 13 Excel Assignment A
• Module 13 Excel Assignment B
• Module 13 Excel Assignment C

Module 14: Statement of Cash Flows

• Module 14 Excel Assignment A
• Module 14 Excel Assignment B

Module 15: Financial Statement Analysis

• Module 15 Excel Assignment

Review Problems

There are also three unit review assignments and a final review. These reviews include a document which sets up the problems and an excel worksheet.

Unit 1 Review Problem (After Module 6)

• Review Problem Document

Unit 2 Review Problem (After Module 8)

Unit 3 review problem (after module 9), final review (after module 15).

• Assignments. Authored by : Cindy Moore and Joe Cooke. Provided by : Lumen Learning. License : CC BY: Attribution

Management Accounting

Management accounting is the process of organizing management reports and accounts that provide accurate and reasonable financial and record information required by managers to make day-to-day and short-term options. In Management accounting managers operate the provisions of accounting information to be able to better inform on their own before they decide matters in their organizations, which allows those to better manage as well as perform control functions.

Inventory Write-Off

T&e expense account, accounting identity – in accounting, social accounting – in organizations’ economic actions, annual report 2009-2010 of hdfc life insurance company limited, social proof, annual report 2013-2014 of larsen and toubro, score a pre-black friday doorbuster deal on the coolest 3d printer for your kids, group buying, education system of bangladesh, latest post, mid-ocean ridge (mor), harnessing hydrogen at the genesis of life, ngc 5728’s faint characteristics are exposed, astronomers discover the oldest black hole ever observed, atomic hydrogen welding, variable-frequency transformer (vft).