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if you expect to make:
i. 240 texts per month? Plan B
ii. 780 texts per month? Plan C
iii. 1,250 texts per month? Plan C
2. In 3 – 4 sentences, define the following terms and give two examples of each:
c. Direct Materials Cost - According to our text book, direct materials cost is “Acquisition costs of all materials that eventually become part of the cost object (work in process and then finished goods), and that can be traced to the cost object in an economically feasible way.” Examples of this are the stuffing and cloth used to make pillows, as well as the acquisition costs of these items such as shipping charges and sales tax. (Cost Accounting
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manager needs to effectively manage the firm or not-for-profit organization -- both financial information about costs and revenues and relevant non-financial information about productivity, quality, and other key success factors for the firm. Typically, cost management is the responsibility of the Chief Financial Officer (CFO) who often delegates much of this responsibility to the Controller.
1-4 In the private sector, the Financial Accounting Standards Board, an independent organization, and the American Institute of Certified Public Accountants (AICPA) supply guidance regarding financial reporting practices. The Sarbanes-Okley Act of 2002 also created the Public Company Accounting Oversight
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Under Alternative 2, Year 1 (X 1000)
Sales $ 0
Normal Cost of Goods sold $ 0
Overapplied FOH ( 320 )
Adjusted Cost of Goods Sold (( 320 ))
Gross Profit 320
Less S & A ( 40 )
NIAC $ 280
Note that the $340,000 NIAC in Year 1 under alternative 2 is derived as follows:
NIAC = (CM/U - f)VS + F(VP-D) – F S&A
=(20 - 16) 20,000 + 16(40,000 - 20,000) - 60,000
=80,000 + 320,000 -60,000
=400,000 - 60,000
Thus of the 400,000 Gross only 80,000 came from Vs and $320,000 came from Vp.
Accounting Theory 20XX CPA Exam
Number 4 (Estimated time -- 15 - 25 minutes)
Part a. Crisp Company, a manufacturer with heavy investments in property
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this end, you have worked with accounting and other areas to gather the following information assembled.
The company sells many styles of earrings, but all are sold for the same price, $10 per pair. Actual sales of earrings for the last three months and budgeted sales for the next six months follow (in pairs of earrings):
January (actual) | 20,000 |
February (actual) | 26,000 |
March (actual) | 40,000 |
April (budget) | 65,000 |
May (budget) | 100,000 |
June (budget) | 50,000 |
July (budget) | 30,000 |
August (budget) | 28,000 |
September (budget) | 25,000 |
The concentration of sales before and during May is due to Mother's Day. Sufficient inventory should be on hand at
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day-to-day management as well as future planning and organizing.
Mgt. Accounting Principles –
• Compiling data (records, reports, statements etc.)
• Management by Exception – top management should be involved only in case of exceptional matters.
• Control at Source – costs be controlled at its source
• Integration – integration of mgt. information
• Efficient utilization of resources
• Forward looking approach
• Measuring returns on investment
Techniques of Mgt. Accounting
✓ Cost sheets analysis
✓ Material costs
✓ Overheads costs
✓ Marginal Costing
✓ Break-even Analysis
✓ Budgetary Control
✓ Standard Costing
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ACCT 3020 Cost and Management Account II
Zhuhai Company was a medium-sized, partly integrated paper company, producing white and kraft papers and paperboard. A portion of its paperboard output was converted into corrugated boxes by the Design division, which also printed and colored the outside surface of the boxes. Including Design, the company had four producing divisions and a timberland division which supplied part of the company’s pulp requirements.
For several years each division had been judged independently on the basis of its profit and return on investment. Top management had been working to gain effective results
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Assignment Print View
Score: 40 out of 40 points (100%)
10 out of
Sako Company’s Audio Division produces a speaker that is used by manufacturers of various audio
products. Sales and cost data on the speaker follow:
Selling price per unit on the intermediate
Variable costs per unit
Fixed costs per unit (based on capacity)
Capacity in units
Sako Company has a HiFi Division that could use this speaker in one of its products. The HiFi Division
will need 10,000 speakers per year. It has received a quote of $32 per speaker from another
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The Nature of Cost Accounting
Cost accounting has been defined by many accounting scholars in various forums. There is no one watertight definition of cost accounting, but the various definitions all point to certain common aspects about the subject. Below are some definitions by certain authorities :
“That part of management accounting which establishes budgets and standard costs and actual costs of operations, processes, departments or products and the analysis of variances, profitability or social use of funds” (Chartered Institute of Management Accountants - CIMA)
“That which identities, defines, measures, reports and analyses the various elements of direct and indirect costs
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Cost Accounting : An Introduction
MODULE - 6B
Elementary Cost Accounting
COST ACCOUNTING : AN INTRODUCTION
After passing your senior secondary examination, if you set up a small manufacturing unit, say manufacturing of packing boxes, a problem will arise what price of each box you should quote to the buyer. Many factors are considered while fixing the price of a product/item such as competitors’ price etc. One of the basic factors is the cost of its production. Cost is essential not only to fix price but also to ascertain the margin of profit. Knowledge of the cost determination is also necessary to keep a check on the cost of product/control on wastages, etc. The accounting
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An assumption (or convention) is something that is generally accepted or taken for granted without proof.
There are five commonly accounting assumptions
The accounting entity assumption - regards that the business is an entity or body separate from its owners, the accounting entity is not always the same as the legal entity.
Monetary assumption- assumes that all transactions are recorded in the common monetary unit in use. (dollars and cents)
Historical cost assumption - the historical cost or (objectivity) refers to recording of items at their original purchase price.
Historical value - in the statement of
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Jenna Brooks Summary on Research for Accounting Changes and Error Analysis
Companies have always faced issues of how to reflect changes in accounting methods and error corrections in financial statements. A change in accounting principle results when an entity adopts a generally accepted accounting principle different from the one it used previously (Hall 2007). A presumption exists that an accounting principle once adopted shall not be changed in accounting for events and transactions of a similar type (Financial Accounting Standards Board). It is preferred that consistent use of the same accounting principle from one accounting period to another is used because it enhances
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Phase 1 Accounting in the Organization DB2
Colorado Technical University
Professor Lynn Sheik
Accounting can be broken down into many different categories and areas. Managerial and financial accounting is only two parts of the cost accounting system. Within these two different aspects of accounting there are many similarities and differences not only between these categories but also in their rules and regulations, management information and reporting requirements as well. The certifications of accountants are also differentiated in these two categories, CMA and CPA. No matter what category you place an accountant in; the job is crucial in the
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Accounting concepts are the rules and guidelines used in accountancy and one of these is the historical cost accounting. This concept is an accounting technique that values an asset on the balance sheet at the price paid for the asset at the time of its acquisition.
Moreover, the historical cost accounting is the situation in which accountants record revenue, expenditure and asset acquisition and disposal at historical cost. This means the actual amounts of money, or money’s worth, received or paid to complete the transaction.
However, there are several limitations and flaws of the traditional historical costs method. But still, historical costs are the standard
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on the use of scarce resources
Social psychology – deals with principles governing human behavior in organizations
Management accounting is the internal business function responsible for collecting and reporting financial information for internal business use. Management accounting information often relates to the cost of materials and labor used to produce goods or services sold to consumers. This information is necessary for companies to determine the effectiveness and efficiency of business operations and how well they earn profits based on the assets used to produce consumer products. Management accounting information is usually specific to each company and the managers meeting to
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TOURO COLLEGE COURSE SYLLABUS
COURSE TITLE: Cost Accounting
COURSE NUMBER: EBA 213
PREREQUISITES: EBA 101, EBA 102
CREDIT HOURS: 3
DEVELOPER: Professor Simon Saltz
LAST UPDATE: December 1,2003
Cost accounting focuses on cost determination for manufacturers, products and services. This includes the
establishment and maintenance of job order and process cost systems, and the classification of costs as
product or period, direct or indirect. Also included are managerial techniques and systems such as budgeting
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, pensions, income taxes, and inventory valuation methods that are often found on the CPA exam.
2. Financial accounting from a management perspective covers many of the same topics as financial accounting but it does so from the view of a manager using financial accounting information to help make decisions or to report an organization’s performance to others. This is the typical focus of an MBA financial accounting course, or a financial accounting course in a non-degreed program for executives. It is the primary focus of Accy 401, EMBA.
3. Cost and managerial accounting deals almost exclusively with accounting as a tool to help manage and understand a business. These courses
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EXPLORING THE PROS AND CONS OF FAIR VALUE ACCOUNTING
The speed of globalization in the capital markets and the increasing complexity of financial instruments have caused financial statement users to question the relevance and usefulness of historical cost accounting (HCA). The propensity to use fair value accounting (FVA) is imminent as we enter into a borderless economy and as financial markets evolve that require more current and relevant financial information. The U.S. Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS) joint effort to establish a uniform accounting standard has caused alarm to U.S. companies and
1370 words - 6 pages
Accounting Standards Boards Paper
University of Phoenix
Accounting is an ever-evolving field with constantly changing objectives. In this world of accounting, standards need to be set whether they are in the United States or Overseas. The accounting boards will help with making sure that all of the information is done correctly and are reported in a consistent way so that investors can determine what company is better to invest in. The two types of accounting standards board that are being discussed are the International Accounting Standards Board (IASB) and Financial Accounting Standards Board (FASB). The intent of this paper will be to address the relationship
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Contemporary issues in Accounting
Unit Code: ACCOO106
Subject: Normative accounting theory
To: Mr Khalid Mahmood
Name: Muhammad Mehedi Alam
Word count: 1145(reference excluded)
Date of Submission-07/12/09
Normative accounting theories
CPPA- current/constant purchasing power accounting
CCA- current cost accounting
CoCoA- continuous contemporary accounting
Current purchasing power accounting a form of accounting that measures profit after allowing for the maintenance of the purchasing power of the shareholders' capital. ‘There are various prescriptive theories of accounting that were advanced by various people on the basis that historical
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criteria an item must be able to be measured reliably. Measurements on items may include historic cost, replacement cost, current cost, market value and net realisable value. Items are classified in the financial statements to assist with the interpretation and usefulness of the statements to users.
The following is an example to illustrate how to use the recognition criteria and measurement and classification elements to determine whether the accounting standard applies and the correct accounting treatment to be used.
Mary owns and runs a fish and chip shop. Recently Mary purchased a new deep fryer for her business. The value of the deep fryer is $7,500. What is the
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accounting issue memorandUM
to: Audit files
FROM: [YOUR NAME], MEMBER OF AUDIT TEAM FOR PARKER & PROCK
BY: FRANK REEDY, ENGAGEMENT MANAGER ON AUDIT FOR PARKER & PROCK
SUBJECT: TREATMENT OF MANUFACTURING OVERHEAD COSTS AT PARKER & PROCK FOR YEAR ENDING DECEMBER 31, 2013
DATE: JANUARY 16, 2014
CC: CLAIRE ALLYSON, CONTROLLER, PARKER & PROCK
In performing the audit planning for the audit of Parker & Prock (P&P) for the year ending December 31, 2013, we discovered that P&P has an accounting policy that results in only direct manufacturing labor and direct material costs being included in the cost of manufactured inventory. Furthermore, this accounting policy
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deemed to be hyper inflationary. The characteristics of a hyper inflation include the population keeping it wealth in non-monetary assets or relatively stable foreign currency; prices quoted in foreign currency or wide spread of indexation of prices. This might arise if cumulative inflation reaches or exceeds 100% over 3 years.
An entity operating in a hyperinflationary economy will either:
A) Records a gain or loss on its “net monetary position” in its income statement
b) Record non-monetary items (eg property, plant, equipment) in the balance sheet by applying indexation to their historical cost.
CURRENT COST ACCOUNTING
Current cost accounting is a method of measuring assets in
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applications wherein the transaction data is store in a well-organized database. The user operates on this database using the required interface and also takes the required reports by suitable transformations of stored data into information. Therefore, the fundamentals of computerized accounting include all of the basic requirements of any database-oriented application in computers. It helps simplify, integrate and streamline all the business processes cost effectively and easily helps present the true picture of the business undertakings to users of financial reports. This allows departments to work together more easily and helps decrease overhead. This not only saved time but made
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, clinics, or surgical centers.
Accounting period principle
This principle is based on the necessity of providing accounting information on a periodic and timely basis for its use in making important decisions. In healthcare, this period may consist of periods of 12 individual months, 13 four-week periods, or accounting periods used by the healthcare facility.
Cost valuation principle
The principle of cost valuation is the estimation of the values of goods. Cost valuations can be done on assets, investments, businesses, enterprises, or other intangible assets. Cost valuation is the preferred method of accounting for goods because it is more objective. Health care organizations
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professions, audit report preparers, management personnel, business owners, investors, tax authorities, and litigation and regulatory issues are the main concerns of this convergence process.
IFRS is principles-based approach while the US GAAP is rule-based. IFRS focuses on the economic substance of the transaction over form. This leads to the subjective approach rather than the objective approach. There are many differences regarding accounting recording transactions. For example, financial instruments, revenue recognition, treatment of research and development cost, evaluation of fixed assets, depreciation of fixed assets, treatment of stock (FIFO), impairment of assets, treatment of
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* Automatic generation of accounting documents like invoices, cheques and statement of account;
* With the larger reductions in the cost of hardware and software and availability of user-friendly accounting software package, it is relatively cheaper like maintaining a manual accounting system;
* More timely information can be produced;
* No more manual processing of the data- all automatically been posted to the various ledgers/accounts and
* Many types of useful reports can be generated for management to make decisions
12.3 NEED AND REQUIREMENTS OF COMPUTERSIED
The need for computerised accounting arises from advantages of speed,
accuracy and lower cost of handling
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accounting is most often used by governments, non-profits, and churches. This is a growing area of accounting software with a few well-established providers, but room for others to move in.
Tax Accounting Software – Almost everyone knows about this type of accounting software. Turbo Tax and Tax Act are some of the more popular services out there. More and more this type of software is moving to the Internet. FreeTaxUSA is a popular online tax service, and the federal filing is free.
Cost Accounting Software – There are some over-the-counter packages that deal with managerial accounting. However, there are no rules when it comes to cost accounting so many companies develop their own accounting
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general conclusion (Mathews & Perera, 1996).
4) Whether the theory is advanced to any other existing theory (Popper, cited in Mathews & Perera, 1996). Deegan suggests that preference of one theory over another is based on “particular value judgements” and satisfaction of certain information needs (2009, p.16).
5) Do the majority agree with the theory so that there is a prospect of its implication in the relevant area (Deegan, 2009).
6) Whether the theory can be seen to be working in practice (Deegan, 2009).
In order to exemplify the application of the above factors in practice more thoroughlya concept of Historical Cost Accounting (HCA) could be evaluated. Starting with the first
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using this data as a base, the estimated cost of fraud and abuse ranges from $100-$170 billion annually (2012).
Baker, J. J., & Baker, R.W. (2011). Health care finance: Basic tools for nonfinancial managers
(3rd ed.). Sudbury, MA: Jones & Bartlett Publishers.
What Are Generally Accepted Accounting Principle (1999-2012). Retrieved from http://www.allbusiness.com/accounting/methods-standards-generally-accepted-
Corporate Compliance (2010). Retrieved from http:// www.corpcompliance.com/
Sarbanes-Oxley. (2007)., 2(), p1000-1003.
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To : Susan Thompson, Managerial Accountant Assistant
From: Danielle Wright Breckenridge,
Date: January 8, 2015
Subject: Similarities and differences between financial and managerial accounting
Hello Susan, I wanted to start by saying welcome aboard. We are glad to have you as a part of the team hear at EEC and I am sure with your experience and accounting background you are going to be a perfect fit. I do understand that you have spend most of your career working in a financial accounting office preparing journal entries, and you have a great understanding of financial accounting however you have no experience with managerial accounting. I am providing this memo in
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-integrated manufacturing technology. Computer –integrated manufacturing has a significant and positive impact on financial world which involved cost accountants. “With automated manufacturing with marketing and accounting data, increasing both the quantity and timeless of the information (Hansen & Howen, 1997, p.8)” (www.itpluseeducation).
The advantage of technology over past several years has grown numerous times for the better. The disadvantages are equal to the quantity and impact. Accountants with many avenues work with detailed and precise information in a timely time. Accountants run the risk losing accountability and confidentially.
The elimination of “paper trail can be proven to
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and ongoing discussion on best performance measurement indicators. The propagator of the initial wave of changes was Robert Kaplan himself. His development in cooperation with Robin Cooper of activity-based costing (ABC, its first maiden use has been implemented by General Electric in the 1960’s) in the series of publications ranging from 1987 to 1992 revolutionised the understanding of cost drivers in the face of new emerging technologies. At the same time come into being the group of new techniques like: Foster and Horngren’s backflush accounting (1988) or Galloway and Waldon’s throughput accounting that contributed to Goldratt and Cox’s publication “The Goal: Excellence in Manufacturing
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CHAPTER 1: Accounting In Action
BY THE END OF THIS CHAPTER STUDENTS SHOULD BE ABLE TO:
1. EXPLAIN THE MEANING OF ACCOUNTING.
2. IDENTIFY THE USERS AND USES OF ACCOUNTING.
3. UNDERSTAND WHY ETHICS IS A FUNDAMENTAL BUSINESS CONCEPT.
4. EXPLAIN THE MEANING OF GENERALLY ACCEPTED ACCOUNTING PRINCIPLES AND THE COST PRINCIPLE.
5. EXPLAIN THE MEANING OF THE MONETARY UNIT ASSUMPTION AND THE ECONOMIC ENTITY ASSUMPTION.
6. STATE THE BASIC ACCOUNTING EQUATION AND EXPLAIN THE MEANING OF ASSETS, LIABILITIES, AND STOCKHOLDERS' EQUITY.
7. ANALYZE THE EFFECT OF BUSINESS TRANSACTIONS ON THE BASIC ACCOUNTING EQUATION.
8. PREPARE AN INCOME STATEMENT, RETAINED
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Responsibility Accounting focuses on providing financial information useful in evaluating the efficiency and effectiveness of managers or department heads on the basis of the financial performance directly under their control. It is a system that collects, summarizes, and reports accounting data relating to the responsibilities of individual managers; in a sense it holds managers accountable for their actions in their individual departments.
As long as certain conditions exist, Responsibility Accounting can be used in every level of management. These condition are: Cost and revenue can be directly associated with the specific level of management responsibility
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, and equipment can be reported at current fair values rather than historical cost. This helps to reduce fraud and increase investor confidence in financial reports. On GAAP property, plant and equipment is listed as historical cost. Meaning there were no change in no value over the years since the date it was purchase. Items depreciate such as equipment and building over time and the value goes down. When it comes to conceptual framework the differ in terms of the objective of financial reporting the IFRS separately are directed to regard to and consider the appropriate concepts in the framework when developing accounting management in the absence of a standard or interpretation that
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environments, and it can be useful to enrich this study. One of these studies:
a. Al-Adli and Al-Azamah Study (1986): A theoretical study conducted in the State of Kuwait, titled "Accounting of fixed assets" and sought to present and discuss the major accounting problems about accounting of fixed assets and the principles of accounting that used to treatment it. The study presented the cost of acquiring fixed assets and the problems of measurement, also discussed the accounting treatments of the expenditure incurred by the company after the purchase of fixed assets and the foundations of divided it into capital and revenue expenditure, and discussed some departures from the historical cost
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one application to another (Bagranoff, Simkin, & Norman, 2008, p. 16). Total assets are an example of data that could be used in this manner because they may need to be manipulated and viewed in different ways depending on who the data is being prepared for.
Managerial accounting includes cost accounting and budgeting. The cost accounting part of managerial accounting specifically assists management in measuring and controlling the costs associated with an organization’s various acquisition, processing, distribution, and selling activities (Bagranoff, Simkin, & Norman, 2008, p. 16). Activity Based Costing is one system that companies use to track labor dollars, but more commonly companies
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requires accountants to be consistent from one accounting period to another in applying accounting principles such as methods, practices and procedures. The final principle is the principle cost, and this reacquires accountants to show the actual amount that is in every account and on financial statements.
The general accepted accounting principles set a minimum level of regularity in financial statements, and its establishment takes place through the Financial Accounting Standards Broad (FASB). According to American Institute of Certified Public Accountants (2010),” Accounting principles range from general guidelines to very detailed rules established by the Financial Accounting
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Should accounting be regulated or unregulated?
The controversial topic of accounting regulation has been argued for many years; should accounting be regulated or unregulated?
Congress empowered the Securities and Exchange Commission (SEC) through the Securities Act of 1933 and the Securities Exchange Act of 1934 to regulate financial reporting in response to the Great Crash of 1929 (B).
Proponents of regulated accounting standards argue several valid points, the center argument of which revolves around the point that “do what is in the best interests of the public;” More specifically the protection of investors from fraudulent, misleading, or intentionally incomplete
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➢ the bonus plan hypothesis
➢ the debt covenant hypothesis
➢ the political cost hypothesis
The bonus plan hypothesis dictates that managers will use accounting policies that are likely to shift reported earnings from future periods to the current period. This is to maximize their personal compensation as by reporting a high net income, their utility will be maximized through bonuses and incentives.
The debt covenant hypothesis states that the closer a firm is to compromising their debt covenants, the more likely management is to use accounting policies that shift reported earnings from future periods to the current period. This is because higher net earnings will reduce
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1. Financial Accounting consists of the process that results in the preparation and reporting of financial statments. The Bookkeeping activity is an important subdivision of financial accounting. Bookkeeping is the process of accumulating the financial results of an entity's activities.
2. Managerial Accounting consists of the use of economic and financial information to plan and control many activities of the entity and to support the management decision-making process. Cost Accounting is a subset of managerial accounting that is involved with the determination and accumulation of product or service costs.
3. Auditing, or Public Accounting is the function in which a firm's
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The future of the accounting profession will be a period of increased change and continuous development. The industry will require new levels of business flexibility and competition will intensify because new industry entrants will outsource and automate accounting, audit, and tax professionals, especially for routine and lower-value services. Financial service companies, banks, software and Internet firms will soon offer an increasing amount of accounting and tax-related products and services. Outsourcing to lower-cost countries will also continue to grow in the future. India, for example, already attracts global accounting work and other countries are moving into this field. Seeing
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practices. There is a heavy responsibility of an employee to do the best job possible to service both the patient and the employer. The ethical responsibility to protect social interest above those of the employer is a good checks and balance system to protect the interest of patients within the legal perimeters established by the government.
The accounting department plays a huge role within the medical office. The accounting department allows the organization to operate at its fullest potential. With no accounting department, it would be impossible for any type of organization to operate in a cost effective manner.
Accounting Principles & General
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established seven SFACs which are intended to “establish objectives an concepts that the FASB will use to develop standards of financial accounting and reporting” (Schroeder, Clark, & Cathey, 2011, p 11).
In 1990, the United States (US) decided to emerge with the international accounting standards due to the US companies have large amounts of revenue and profits in the foreign markets. The International Accounting Standards Board (IASB) was established in 1973 to achieve the purpose of harmonizing the international accounting standards (Schroeder, Clark, & Cathey, 2011). The companies that are in need of capital or investments are looking at cost and time issues, because these companies
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I. Lean Accounting
Lean accounting often refers to more simplified accounting practices that focuses on eliminating waste, reducing production lead time, and producing products on customer demand. But Lean accounting does not stand alone. It is enabled by lean thinking and lean production methods. And lean accounting not only needs lean manufacturing, it also facilitates lean manufacturing.1 That’s why lean accounting is always related to, but not necessarily have to be associated with lean manufacturing.
Here are some specific positive reasons that lean accounting is important.
1. Reduces time, cost, and waste by eliminating wasteful transactions and systems.
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Acct 217 paper
International Financial Reporting Standards constitutes a set of generally accepted accounting principles, which are adopted, by companies, and employed to assist in preparation of interim, and end-of-year financial statements. They are a vital source of information, useful to the shareholders, employees, customers, debtors, suppliers and many others.
The importance of IFRS is enabling these individual entities to learn and understand the financial position and financial performance of the company. They also indicate if the management is using the company’s resources to the best interest of the company. These standards are formulated
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Kudler Fine Foods - Accounting System
September 3, 2012
Dr. Marcia Reid
Kudler Fine Foods - Accounting System
The purpose of this paper is to describe the value of a new accounting system for Kudler Fine Foods. The author will cover the key features, core technology, benefits, and cost of the proposed system.
In businesses today, it is imperative that the accounting system be tied into every aspect of a business and integrated within all of the information systems in use. Therefore, before any system is updated or changed, the accounting system must be considered and analyzed for compatibility and integration. Kudler Fine Foods hired a consulting firm to “assist in
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.Variable cost per unit is = $0.652.Total annual cost of variable cost = $0.65 * 8000 = $52003.Unit fixed cost = $1.134.Total annual cost of fixed cost = $90001.Since we do not know the selling price, the Cost Volume Profit Analysis, Equation Method would be shown as follows:a.($X * 8000) - $5200 - $9000 = net incomeReferencesHorngren, C./Sundem, G./Stratton, W. (2005). Introduction to Management Accounting.(13th ed.). Upper Saddle River, NJ. Pearson Education Inc.American InterContinental University. (2007). ACG420-0701B-09: ManagerialAccounting and Organizational Controls. Assignment List. Retrieved on March 17,2007 from https://mycampus.aiu-online.com/Login.aspx?logout=yes
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time to minimize the cost.
Finance Directors: Finance directors need the accounting information to properly conduct daily activities within the business; such as finance the company, invest its resources, produce its goods and services, market their goods and manage the employees.
Company Officers: Employees of the company study the financial statements of corporations as part of their task of preparing for important business negotiations.
Internal Auditors: Internal auditors also need to study the accounting information of the company in order to carry out proper audit.
Budget Officers: To set and prepare reasonable and effective budget, budget officers have to go through
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determine the overall financial health of a company. This would alleviate any required calculations of future or past services.
Accrual basis accounting goes hand in hand with revenue recognition principle where the transaction or revenue is recognized when the merchandise exchange is made.
Matching principle recognizes profits as the revenue is honored. This is relevant to revenue recognition and accrual basis (above) in that when the goods are recorded from an asset to an expense at the point of the goods exchanging ownership. Not when the payment is received.
Cost principle shows assets recorded at cost, which is arguable when referencing appreciation. In example would a be an office