ISSUES IN MANAGERIAL ACCOUNTING

Issues in Managerial Accounting (Discussion Questions) each discussion question response should be between 225 – 275 words. Provide 1 or 2 references/sources per discussion.

Discussion: Financial vs. Managerial Accounting
Reviewing the differences between financial and managerial accounting is a good place to start for this course. Financial accounting is rule-oriented since the information is used to communicate with third parties. Managerial accounting, on the other hand is for internal use. Anything goes as long as the information is a valuable tool for decision-making purposes and the benefit of the information exceeds the cost of accumulating and analyzing it.
Below are questions for discussion. Keep the managerial perspective in mind when discussing.
• How is the purpose of managerial accounting different from financial accounting?
• Are more accountants involved in the financial or managerial function today? What about non-accountants?
References
American Institute of Public Accountants (AICPA). (n.d.). Retrieved from http://www.aicpa.org/Pages/Default.aspx
Chartered Institute of Management Accountants (CIMA). (n.d.) Becoming a CMGA. Retrieved from http://www.cimaglobal.com/Members/CGMA/
Financial Accounting Standards Board (FASB). (n.d.). Retrieved from http://www.fasb.org/home

Discussion: Implementation of ABC Costing
There is more to ABC costing that understanding how costs behave and applying more drivers. Robert Kaplan (http://www.hbs.edu/faculty/Pages/profile.aspx?facId=6487) is the father of ABC costing.
Search the Internet to find an article about a company that implemented or attempted to implement ABC costing and comment on whether it was successful or not.

Discussion: Target Costing
Businesses typically exist to maximize profit. It means that revenues must exceed the costs associated with producing a product or providing a service in addition to covering administrative costs. So, it is not only about understanding costs, but also determining price of a product or service. There are many models or approaches to determining price for a product or service. Below find two models.
Target costing is a method where costs and margins are determined ahead of time. If a product or service cannot meet these objectives, it is deemed not to be viable.
Optimum selling price is a strategy that compares a company’s products or services to similar ones in the market place.
Questions
• Discuss one or both of the above approaches and provide examples of companies or products that fit at least one of the two above categories.
• Can you think of a third approach used by businesses?

Discussion: Performance Evaluations
Both financial information and non-financial information are used to measure performance for product lines, divisions, and individuals associated with the business. Reflect on using financial information to evaluate performance for a business segment and a manager in charge of a business segment.
Questions
Accounting was developed to record and summarize transactions and for control purposes. How is accounting used today, other than for its original intent? Is financial information a good tool for performance evaluations (individual and organizational)? If so, do you advocate a specific format? If not, what do you suggest?

Discussion: Reflection
What Did You Learn?
Review the cases and presentation you prepared for the session long project (SLP).
Questions (Small paragraphs)
• Write one paragraph to comment on topics covered in cases and SLPs and the relate, reinforce, or complement each other.
• Write two paragraphs to summarize what you take away from the SLP project.
Write one paragraph to comment on a topic that was the most interesting to you.

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