B Chapter 15 - needed What records are needed and how...

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 Chapter 15 The Nature of Management Accounting Management Accounting  is the process  within an organization that provides  information used by an organization’s  managers in planning, implementing, and  controlling the organization’s activities Management Accounting  is used for  decision facilitation (improve specific  decisions) Contrast between Management   Accounting and Financial Reporting-P.   459
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Types of Management Accounting   Information and Their Uses-P. 463 Problem 15-1: Look at the figures for the  Service Department. How well did the SD  do? 15-2: Part 4-responsibility accounting.  15-4: should the manager be concerned  about the numbers? Case: The focus is now on accounting  information useful to management to make  decisions, rather than external reporting  (Since this is a small business, GAAP is not 
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Unformatted text preview: needed). What records are needed and how important is accuracy (internal controls)? Records needed include scheduling, revenue, payroll, operating cost and fixed asset systems. Issues in the case; How often should Rosemary prepare financial statements? How should prices be set? Issues that could be raised. Should Rosemary pay herself a salary and commission for the classes she runs, or take residual profits from the business? How should you handle the cost of the equipment-expense or capitalize over life? You must consider the cost and benefits of a internal control system when answering what rosemary should do, including how to handle the problem with Kate?...
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