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Module13and14Solutions

Financial & Managerial Accounting for MBAs 2nd

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©Cambridge Business Publishers, 2010 Solutions Manual, Module 13 13-1 Module 13 MANAGERIAL ACCOUNTING FOR MBAs EXERCISES E13-20 The major differences between financial and managerial accounting are summarized in Exhibit 13-1. Important differences from Michelle’s viewpoint are: x Financial accounting is a reporting system, while management accounting is a decision-making medium. x Financial accounting is concerned with external users, while management accounting is concerned with internal users. x Financial accounting concerns general-purpose financial statements, while management accounting concerns special-purpose information. x Financial accounting statements are highly aggregated, while management accounting information may be aggregated or disaggregated, depending on the needs of management. x Financial accounting reports are for a relatively long reporting period, while management accounting reports are for a long or a short period, depending on need. x Financial accounting reports on the past, while management accounting is oriented toward the future. Managerial accounting can help Michelle be a better product manager by: x Providing her with a framework for analyzing decision alternatives. x Providing information needed to develop plans for a coming period. x Providing information needed to measure performance. Note: There are many other possible answers.
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E13-21 Note: This is one of many possible solutions that can be developed from the given information. E13-22 The answers to this question will vary. The purpose of the assignment is to help students realize that management accounting performance reports may include nonmonetary as well as monetary measurements. The assignment also attempts to stress the importance of time and quality, as well as the importance of dollars. Monetary Quality Time a. Average salary Percentage employed Average time to obtain employment b. Operating costs Percentage correct Time waiting for initial diagnoses attention c. Sales revenue Returned orders Time customers are on hold d. Activity cost Recording correct Time waiting for service information e. Operating costs Items delivered to Items not shipped the day wrong address received E13-23 The answers to this question will vary. The purpose of the assignment is to help students realize that management accounting performance reports may include nonmonetary as well as monetary measurements. The assignment also attempts to stress the importance of time and quality, as well as the importance of dollars. Board of Directors President Staff assistant Bakery Manager Manager Store 1 Manager Store 2 Manager Store 3 Delivery Other operations Other employees Other employees Other employees
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©Cambridge Business Publishers, 2010 Solutions Manual, Module 13 13-3 Monetary Quality Time a. Cost of phone lines Number of lost calls Time to download AOL home page b. Average cost Percent installations Average time to complete per installation on date promised installation c. Average cost per Number of returns Time between order delivery
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