GeorgetteHodsonACG 3073-2week1.docx

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Running head: ACCOUNTING FOR MANAGERS 1 Accounting for Managers WEEK 1 Georgette Hodson Everest University
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ACCOUNTING FOR MANAGERS 2 Accounting for Managers Week 1 In ACCT2: on pages 14-15, complete the following: o Brief Exercises 1-4. 1. Data, Information, and Knowledge The following statements relate to various types of data, information, and knowledge in a business setting. a. The sales price for a particular inventory item – Data b. Dimensions of a company's manufacturing facility - Data c. Customer purchasing patterns used to launch a new advertising campaign - Knowledge d. Summary of cash disbursements by vendor - Information e. Summary of product sales by product and region – Information f. Statistical analysis of production defects, resulting in changes to production and inspection processes – Knowledge 2. Financial and managerial accounting information serve deferent purposes. The following phrases are commonly used to describe either financial or managerial accounting. — Must follow GAAP – Financial Accounting Focused on past performance – Financial Accounting Timeliness is critical – Managerial Accounting Emphasizes reporting on the whole company – Financial Accounting Information is often less precise – Managerial Accounting Future orientation – Managerial Accounting Information is often “old” – Financial Accounting Reports results by segments – Managerial Accounting Highly customizable – Managerial Accounting
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ACCOUNTING FOR MANAGERS 3 3. Factors in Decision Making Decision making requires the consideration of various factors and matters, some quantitative and others qualitative. The following statements describe various aspects of decision making. a. Cost is rarely a factor in decisions and should be considered only when financial resources are plentiful. FALSE b. Relevant costs are those costs which can be avoided by choosing one alternative over another. TRUE c. future costs that do not di²er across alternatives are always relevant . FALSE d. Only historical costs are sunk costs. TRUE e. Opportunity costs that are not quantifiable need not be considered in decision making. FALSE 4. The famed economist, MILTON FRIEDMAN once argued that the only social responsibility of a corporation is to increase profits. b. Common elements of ethics programs include CONDUCT, EMPLOYEE HOT LINES AND ETHICS CALL CENTERS c. Corporate scandals such as that at Enron led to the passage of the SARBANES- OXLEY ACT. d. INTEGRITY is the cornerstone of ethical business practices. e. Managers should always consider the views of various STAKE-HOLDERS when evaluating ethical dilemmas. Exercises 5-7. 5. Users of Accounting Information Accounting information is used by a variety of individuals and organizations for numerous purposes. Following is a small set of potential users of accounting information.
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