Week 2 Assignment
1. Managerial accounting is concerned with providing information for the use of people inside the organization, whereas financial accounting is concerned with providing information for the use of people outside the organization. 2. Planning consists of identifying alternatives, selecting from amongst the alternatives the one that is best for the organization, and specifying what actions will be taken to implement the chosen alternative. 3. When directing and motivating, managers oversee day-to-day activities and keep the organization functioning smoothly. 4. The accounting and other reports coming to management that are used in controlling the organization are called feedback. 5. The delegation of decision-making authority throughout an organization by allowing managers at various operating levels to make key decisions relating to their area of responsibility is called decentralization. 6. A position on the organization chart that is directly related to achieving the basic objectives of an organization is called a line position. 7. A staff position provides service or assistance to other parts of an organization and does not directly achieve the basic objective of the organization. 8. The manager in charge of the accounting department is generally known as the controller. 9. The plans of management are expressed formally in budgets. 10. A detailed report to management comparing budgeted data to actual data for a specific time period is called a performance report. 11. The chief financial officer is the member of the top management team who is responsible for providing timely and relevant data to support planning and control activities and for preparing financial statements for external use. 12. Managerial accounting places less emphasis on precision and more emphasis on non-monetary data than financial accounting. Exercise 1-2
1. Inventory consisting of units of product that are only...
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