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Unformatted text preview: BUS 215 Section 08 Homework Assignment: Chapter 2 Q2-3) The major differences between financial and managerial accounting are as follows: Financial Accounting:- Reports externally (owners, creditors, tax authorities, regulators)- Emphasizes of the past activities- Emphasizes objectivity and verifiability- Focuses on precision- Emphasizes the summary data concerning the whole organization- Must follow GAAP- Mandatory for external reports Managerial Accounting:- Reports internally (Managers)- Emphasizes decisions affecting the future- Emphasizes relevance- focuses on timeliness (an estimate)- Focuses detailed segment reports about dept. products, and customers- Need not follow GAAP- Not mandatory Q2-4) The three major elements of product costs in a manufacturing company are: 1. Direct Labor 2. Direct Materials 3. Manufacturing Overhead Q2-6) Product costs are costs involved in acquiring or making a product. Period costs are all the cost that are not product costs such as selling and administrative expenses (sales commission and rent for an office)....
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