Sheree_JohnsonII_BUS340_Assignment2_1_ - Sheree M. Johnson...

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Sheree M. Johnson II October 21, 2010 BUS340 Managerial Accounting Exercise 18-1 Characteristics of financial accounting and managerial accounting C1 Financial Accounting Managerial Accounting 1. Users and Investors, creditors and Managers, employees and decision makers other external users other internal users 2. Purpose of Making investment, credit Planning and information and other decisions control decisions 3. Flexibility Structured and often Relatively flexible of practice controlled by GAAP (no GAAP) 4. Timeliness of Often available only Available quickly without information after audit is complete need to wait for audit 5. Time dimension Historical information Many projections with some predictions and estimates 6. Focus of Emphasis on Projects, processes and information whole organization segments of an organization 7. Nature of Monetary Monetary and information information nonmonetary information Exercise 18-2 Management concepts C2 a.Total quality management (TQM) 1. The company starts reporting measures on customer complaints and product returns from customers. c. Continuous improvement (CI) 2. The company starts reporting measures such as the percent of defective products and the number of units scrapped. b. Just-in-time (JIT) system 3. The company starts measuring inventory turnover and discontinues elaborate inventory records. Its new focus is to pull inventory through the system. 1. (a), (c), and (d) 2. (a) and (c) 3. (b) Exercise 18-3 Balance sheet identification and preparation C5
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(1) Identify which set of numbers relates to the manufacturer and which to the merchandiser. Manufacturer: Raw materials inventory, Goods in process inventory, Merchandise inventory Merchandiser: Finished goods inventory, Accounts receivable, net, Prepaid expenses, and Cash Company 1, Sun Fresh Foods, is a merchandising firm with only one inventory item, merchandise inventory. Company 2, Salomon Skis Mfg., is a manufacturing company with 3 inventory categories (raw materials, goods in process, and finished goods). (2) Prepare the current asset section for each company from this information.
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This note was uploaded on 01/16/2011 for the course BUS 340 taught by Professor Linlu during the Spring '10 term at Stratford.

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Sheree_JohnsonII_BUS340_Assignment2_1_ - Sheree M. Johnson...

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