MARY GRACE ARZAGA-MASDO

ADVANCED MANAGERIAL ACCOUNTING

ASSIGNMENT

A. What are the primary needs of Each Manager?

1. Sales Manager – The sales manager should look at the sales trends of the company by product and
by product line. He should know the costs components of each product – the manufacturing cost and
the period cost, and as well as the factors affecting the sales of each product and these can be known
by identifying and knowing well their customers. The cost of each product doesn’t only mean the
final stage cost of a product but the cost from the manufacturing stage to the point where the product
is ready to be sold. Aside from the product cost, as the one supervises the sales representatives, he
should also know the rate of the commission they gave to their sales representative. This information
is important since he will be able to know how the cost of commission affect the profit of the
company.
2. Technical Specialist – The technical specialist should look into the effectiveness and efficiency of
the work of the programmers. Their work is vital in the company since the production will be
affected once there is inefficiency in their unit. The work of engineering and designed teams depends
on the work of the programmers since they uses computerized drafting and testing of new products.
The number of scraps and wastage can be eliminated or minimized if the computer programmers are
efficient. Therefore, the Technical specialist should need information that will help maintain or
improve the efficiency of the work of computer programmers.
3. Cost Accounting Manager – This manager needs to know all manufacturing costs which includes
product and period costs. In product cost, cost components are labor costs, materials costs and
manufacturing overhead which pertains to indirect labor and material costs. In period costs, cost
components are expenses incurred in selling and administrative costs. The Cost Accounting Manager
should look at the relationship of all costs incurred as to the sales of the company. He should see to it
that costs are being minimized. All costs incurred, be it historical and future costs, are being
evaluated to be used in making sound decision.
4. Production Supervisor – The production supervisor would need information similar to the
information needed by the cost accounting manager. However, the production supervisor need not to
know the costs incurred in selling and administrative but rather focused on the cost of production to
be able to determine how production could be improved in terms of efficiency and determine what
production costs need to be trimmed in order to maximize profit.
5. Engineer – The engineer should work in collaboration with sales manager and technical specialist.
She needs also to be informed of the cost of product in each newly created design. The product cost
is necessary to determine the cost of selling the product. The Engineer is required to work with sales
manager to be able to know if the design of products produced by the company would be loved by
the target market which is the tennis players. She also needs some information from the sales
manager such as the price that the target market willing to pay to get the products made by the
company. This information is very crucial since she would be able to adjust or design products
whose price is within the range that the customers are willing to pay.
B. Which, If any, financial Accounting report(s) is each likely to use?

1. Sales Manager – Income Statement and Balance Sheet. In income statement, sales manager will only
need the portion of the Sales and cost of goods manufactured as well as the costs of sales
representative’s commission. In balance sheet, sales manager will only need to look at the
Inventories – beginning and ending inventory of finished goods so they would be able to know if the
sales strategies are effective or not.
2. Technical Specialist – Income Statement and Balance Sheet. Technical Specialist will only need the
portion of the costs to see the costs of scrap or wastage and In Balance sheet, the inventory part
particularly Work in Process inventory.
3. Cost Accounting Manager – Income Statement and Balance Sheet. The cost manager will need to
look at the entire Income Statement and Balance sheet to see how costs relates to each other.
4. Production Supervisor – Income Statement and Balance sheet. The production supervisor is required
to focus on Cost of goods manufactured in Income statement or the Production costs and Inventories
in Balance Sheet, all types of inventories, Work in Process, Finished Goods and Raw Materials.
5. Engineer – Income Statement and Balance Sheet. Since the engineer is concerned with the design
and development of the new products she also needs to look at the cost of goods manufactured in
income statement and inventory in balance sheet.