{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Module 1 HW Problem Solutions

Module 1 HW Problem Solutions - CHAPTER 1 INTRODUCTION THE...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
CHAPTER 1 INTRODUCTION: THE ROLE, HISTORY, AND DIRECTION OF MANAGEMENT ACCOUNTING QUESTIONS FOR WRITING AND DISCUSSION 1. A management accounting information sys- tem is an information system that produces outputs using inputs and processes needed to satisfy specific managerial objectives. 2. The inputs of a management accounting in- formation system are economic events. The processes transform the inputs into outputs and are such things as collecting, measur- ing, storing, analyzing, reporting, and man- aging. Typical outputs include special re- ports, product costs, customer costs, per- formance reports, budgets, and personal com- munication. 3. The three objectives of a management ac- counting information system are as follows: To provide information for costing out ser- vices, products, and other objects of interest to management; to provide information for planning, controlling, evaluation, and con- tinuous improvement; and to provide in- formation for decision making. 4. All organizations—manufacturing, mer- chandising, and services—must have a good management accounting information system. Management accounting concepts and procedures are not restricted to any one type of organization. 5. The users of management accounting in- formation are managers and workers within the organization. Anyone internal to an or- ganization is a potential user of manage- ment accounting information. 6. Management accounting information is used to cost out objects (for example, services and products) and to aid in planning, con- trolling, evaluation, continuous improve- ment, and decision making. 7. Both financial and nonfinancial information should be provided by the management ac- counting information system. Nonfinancial information provides insights useful for con- trolling operations—it is easily used by op- erational workers. Financial information is critical for evaluating the success of opera- tional control. 8. Continuous improvement means searching for ways of increasing overall efficiency and productivity of activities by reducing waste, increasing quality, and reducing costs. 9. Employee empowerment is allowing opera- tional workers to plan, control, and make decisions without explicit authorization from middle- and higher-level managers. 10. Operational workers must be informed so that they can evaluate and monitor the ef- fectiveness of their decisions. 11. Planning establishes performance stand- ards, feedback compares actual perform- ance with planned performance, and con- trolling uses feedback to evaluate devi- ations from plans. 12. Performance reports are formal reports that compare actual data with planned data or benchmarks and thus provide signals to managers that allow them to take corrective actions. 13. Management accounting differs from finan- cial accounting in the following major ways: (1) internally focused, (2) no mandated rules, (3) financial and nonfinancial; subject- ive information possible, (4) emphasis on the future, (5) internal evaluation and de- cisions based on very detailed information, (6) broad, multidisciplinary.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}