Chap2gnposting - Introduction to Managerial Accounting Lets...

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Course Introduction 1 Introduction to Managerial Accounting Let’s define accounting ! Communicate economic information for decision making ! Financial Acct’g Managerial Acct’g Who uses the information? External users Current/potential shareholders and creditors Internal users Managers of the firm Why is the information used? Investing/lending decisions Comparative purposes Also decision making Product, pricing, sourcing, marketing, evaluation, etc. What information is reported? Annual Report Income Statement Balance Sheet Statement of Cash Flows Footnotes Also financial statements but in more detail and more often Other reports Budgets, production, sales, segmented How is the information compiled? GAAP ACC 271 No specific rules-- any information needed to provide good, well-informed decisions Cost/benefits analysis ACC 272
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Course Introduction 2 Discovery Learning Exercise Michigan Corporation produces miniature footballs that are sold in local stores. The company began on April 1, 2010, when it issued shares of stock to investors and received $60,000 in cash. During the second quarter of 2010, the company purchased and used raw materials that cost $13,000 cash. Wages paid to employees who made the footballs amounted to $25,000 cash. Finally, manufacturing overhead costs including rental fee paid for facilities and equipment amounted to $10,000 cash. The company started and completed the production of 30,000 footballs during the second quarter of 2010. Required: Determine the amount of expense incurred by Michigan Corporation during the second quarter of 2010 assuming none of the footballs were sold during that time. Answer: $0 Why: Matching principle costs were incurred to mfr. footballs not sell them.
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Course Introduction 3 Comparison of Retail and Wholesale Operations to Manufacturing Operations Retail and Wholesale Firms: ACC 271 Purchase Administrative Selling
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This note was uploaded on 05/28/2011 for the course ACC 272 taught by Professor Bird during the Spring '08 term at University of Michigan.

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Chap2gnposting - Introduction to Managerial Accounting Lets...

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