Homework 1

Homework 1 - Chapter 1 Managerial Accounting Questions 1-6,...

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Chapter 1 Managerial Accounting Questions 1-6, 9, 10, 13-14, 17 Problems 4, 6, 7 Questions: 1) What is the basic difference in orientation between financial and managerial accounting? Answer: Managerial accounting focuses on the information needed for managers. They simply interpret all the data for the managers to make decisions. Financial accounting is made for external users such as stockholders and investors interested in the companies’ financial status. 2) What is meant by a business strategy? Answer: A plan that separates a company from others in hopes of attracting more customers. 3) Describe the three broad categories of customer value propositions Answer: There are 3 categories of customer value propositions: Customer Intimacy, Operational Excellence, and Product Leadership. Customer intimacy involves the company appealing to the consumer by showing that they understand and respond to individual needs better than the competitors. The operational excellence basically is when a company operates to provide products and services faster than anyone else, cheaper than anyone else, and more conveniently than anyone else. Product leadership is when a company states that they have higher quality products than anyone else. 4) Describe the three major activities of a manager. Answer: The three activities are: Planning, Directing and Motivating, and Controlling. Planning is the process in deciding what decisions to make, what alternatives to have, and how to do them. Directing and Motivating entails telling people to carry out plans and
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Homework 1 - Chapter 1 Managerial Accounting Questions 1-6,...

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