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Weeks 5-9 DQ

Weeks 5-9 DQ

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Published by teaseandbrown
DQ Weeks 5-9
DQ Weeks 5-9

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Published by: teaseandbrown on Jul 22, 2013
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05/14/2014

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Week 5 Discussion Question 1 How would you describe the difference between financial and managerial accounting?

What are the distinguishing features of managerial accounting? Financial accounting and managerial accounting both provide good and true information however the difference is the parties it is intended for. It must be reliable, relevant, consistent, and have comparability. Financial accounting is more appropriately used for external users such as lenders and investors. Managerial accounting is more appropriately used for internal users such as the managers and officers of the company. Financial accounting contains information that is more targeted towards convincing lenders and investors to extend credit thereby highlighting different parts of the reports such as using comparability, collateral, and liquidity. Managerial accounting contains the same information but it is more targeted on the efficiency of the company's leaders and what it should do to improve the bottom line. The information will be broken down into parts by its internal users and figure out how to control and direct the aspects of the company. Week 5 Discussion Question 2 1) First, select a management function (planning, directing and motivating, or controlling) and explain how that function relates to business as a whole. 2) Next, select a different function listed by a classmate. Discuss with your classmate how the functions you each selected complement each other.

Planning is a major management function that is critical for a business to become successful. By planning ahead, the business will be able to conquer obstacles that can sabotage the company. For example, if a property management creates a plan in case of high vacancy such as having extra cash reserves, it will be able to overcome the loss of income as oppose to a company who did not plan. Planning most importantly gives more certainty to the direction of the company. A company who plans to expand will more likely to do so and exceed past others who did not develop a long term plan. Week 7 Discussion Question 1 Post your response to the following:

You know how important it is to create budgets for your household. How does budgeting help management make good business decisions? Budgeting is important task for a business to be successful. Management must be responsible to do this. Being able to plan and coordinate resources and expenditures is key so business management will create a surplus of money instead of a deficit. Creating a surplus will help business management allocate capital better. For example, if the company budgets wisely, the company can use extra resources to invest back into the company such as hiring more labor to expand growth. Budgeting is a fundamental process where management spends the company wisely to improve overall growth. Week 7 Discussion Question 2 Post your response to the following: What are some of the different types of budgets? Describe in detail one type of budget covered in the text. Describe what the budget is used for and what information it provides a business. Then, as you respond to your classmates, discuss how the budget you described relates to the budget they described. Discuss how a business benefits from each of the budgets. There are many different type of budgets. They include: Direct Materials Budget, Sales Budget, Direct Labor Budget, Production Budget, Manufacturing Overhead Budget, and Selling and Administration Expense Budget. One type of budget is the sales budget. It is the first budget that is prepared. It is the most important budget because every budget after depends on it. Accuracy and a detailed sales budget will depict a company's well being. For example, if sales budget forecasts too high, it will lead to loss of income because of high inventory. The sales budget is important to figure out the maximization of profits. By multiplying the unit selling price and the number of units sold, will get you the total sales in dollars. When calculating current sales, the company can estimate future sales.

Week 9 Discussion Questions
Post your response to the following: Think back over what you have studied and learned in this course. Do you have a new perception of or appreciation for the field of accounting and how it contributes to business? Explain.

I have always appreciated the field of accounting and its contribution to finances in general. Understanding the basic fundamentals of accounting helps businesses and individuals. I have become much more financial savvy as a result of taking this class. I've realized the hard work that comes with analyzing and creating financial statements. As an investor myself, I am able to make smarter decisions with my own money. Having the details in the vision is just as important as the vision itself. Accounting is the details and it is needed for the growth and elevation of a company. Creating a plan with projected data and numbers makes the job of the management that much easier.

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