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Unformatted text preview: Denise Seals Managerial Accounting MBAC5213OL Dr. Lemler March 26, 2009 Week 4 – Summary The main focus in chapter 9 was on standard costing. There are two main standards, quality standards and price standards. Quality standards are based on experience and studies while price standards are based on operations, purchasing and accounting. Other concepts within this chapter are ideal standards and attainable standards. These concepts are in the same principle as going to school, being taught theory vs. reality. For example my undergrad degree is in Chemical Engineering, and throughout my studies our information was always provided with ideal standards, i.e. weather conditions, perfect temperature, etc… This is great theory for school but this does not hold true for real-life conditions. I quickly figured this out with my first internship in Utah. My calculation went from being idea to dealing with reality, for example freezing weather conditions, which affect the material flow through the system. I was then forced to go to attainable standards for the conditions I was presented with. I had to take what I was given and find the best possible solution for the problem. Chapter 10 main concepts explain the reasons why a company would use decentralization and centralization. Decentralization allows lower-level managers to make decisions for their area of responsibility. On the other hand centralization the decision come from the top and the lower level managers are charged with implantation of the decision. I would have to say since my company is a very large company and we used the decentralization method. Each department is ran independent of one other. My director is allowed the freedom to run the department the best way he sees fit. Although the general vision is coming from the executive levels they allow each department to nurture the idea as they see fit. The other concepts that were brought into this chapter were the difference of the two accounting methods absorption-costing vs. variable costing. The differences between these two methods are how the manufacturing overall cost is calculated. Chapter 11 main concept was the Cost-Volume-Profit (CVP). This concept gives the cost needed to break even as well as the profit analysis for the period. The breakeven point is where the total revenue cost equals the total cost and the net profit equal zero. ...
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This note was uploaded on 03/25/2010 for the course MBAC 6605 taught by Professor Smith during the Spring '10 term at Baylor.
- Spring '10
- Managerial Accounting