Case Study (7%)

Semester : Fall Year : 2023

Course Title : Managerial Accounting
Course Code : ACT310
Instructor(s) : Enida Demiraj
(Includes names of all instructors teaching this
course)

Submission Date :
Exam Date : 23/11/2023

To be completed by the student

Student Name :
Student ID : Department :
Major : Section :
Integrity Statement : “I affirm that I will complete my assessment on my
own. I will not receive any help or use any
unlawful resources.”
Handwritten Integrity :
Statement

Signature :
Grading Scheme
Question Earned Points Max. Points Question Earned Points Max. Points
1 20
2 20
3 20
4 20
5 10
6 10 (Organization)

Total Earned Points Total Available Points Instructor Name

100

Important Notes:
- Any attempt at plagiarism or cheating will be reported. All ACM handbook academic misconduct rules will be applied.
- It is the responsibility of the student to submit this online assessment paper to the instructed online platform (Moodle, Turnitin) if
applicable.

1
Topic: Managerial Accounting and its ethical standards

INSTRUCTIONS:

Read the case study first and then follow the following steps to prepare your report.

Report should include:

1. Cover page
2. A separate answer to each question: While answering the questions, present & analyze the
findings (use examples/existing companies…)
3. Reference: If you have used other sources, please create a list of reference (Following APA
Style: http://owl.english.purdue.edu/owl/resource/560/01/)

Format
1. Font Size: 12
2. Line spacing: maximum 1.5
3. Word count (300 - 500)

Submission method is through Turn-it in link available on “Moodle”.

2
Topic: Managerial Accounting and its ethical standards

Part I Managerial Accounting (60 points)

Managerial accounting is much different from financial accounting. Also known as management
accounting or cost accounting, managerial accounting provides information to managers and other users
within the company in order to make more informed decisions. Unlike managerial accounting, financial
accounting is governed by rules set out by the Financial Accounting Standards Board (FASB).
Managerial and financial accounting are used by every business, and there are important differences in
their reporting functions.
Financial accounting information is communicated through reporting, such as the financial statements.
Managerial accounting information is communicated through reporting as well. However, the reports are
more detailed and more specific and can be customized. Other reports can include cost of goods
manufactured, job order cost sheets, and production reports. Each organization is free to structure its
reports in the format that organizes its information in the best way for it.
Managers at all levels make many different types of decisions every day, but to make most decisions,
they need specific information. Some information is easily obtainable, and some is not. Managers do not
always know what information they need or what is available, and they need to know if the decisions they
make are having the desired outcome and meeting specific goals. It is clear that management accountants
must have a solid foundation in accounting, in both financial and managerial accounting. They must have
knowledge of the business in which they are working. Management accountants should have effective
communication skills. Managerial accountants must possess extensive analytical skills. Managerial
accountants must have ethics and values.
Source: Principles of Accounting, Volume 2: Managerial Accounting by OSCRiceUniversity

Questions:

1. Distinguish between Managerial and Financial Accounting. (20 points)

2. Explain the primary roles and skills required of Managerial Accountants. (20 points)

3. Explain how Managerial Accounting is useful for companies. (20 points)

3
Part II Ethical Standards (30 points)
Refer to the following case and answer the questions below:

You are working as the accountant in the special projects and budgets area of Sturm, Ruger & Company,
a law firm that currently specializes in bankruptcy law. In order to serve its customers better and more
efficiently, the company is trying to decide whether or not to expand its services and offer credit
counseling, credit monitoring, credit rebuilding, and identity protection services. The president comes to
you and asks for some sales and revenue projections. He would like the projections in three days’ time
so that he can present the results to the board at the annual meeting.
You worked tirelessly for two days compiling projections of sales and revenues to prepare the reports.
The report is provided to the president just before the board is to arrive.
When you return to your office, you start clearing away some of the materials that you used in your report,
and you discover an error that makes all of your projections significantly overstated. You ask the
president’s administrative assistant if the president has presented the report to the board, and you find that
he had mentioned it but not given the full report as of yet.

Source: Principles of Accounting, Volume 2: Managerial Accounting by OSCRiceUniversity

Questions:

1. Explain the ethical concern in this matter. Refer to the IMA’s ethical principles:
Competence, Confidentiality, Integrity and Credibility. (20 points)

2. What would be the results of not telling the president of your error? Explain. (10 points)

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Grading Rubric:

Category Scoring Criteria Total Points Score

Organization - Page format 10

(10 points) - General Layout, Spelling
Mistake and Overall
Structure
- Distinguish between 20
Managerial and Financial
Accounting.

- Explain the primary roles 20

Content and skills required of
(90 points) Managerial Accountants.

- Explain how Managerial 20

Accounting is useful for
companies.

- What is the ethical concern 20

in this matter?

- What would be the results of 10

not telling the president of
your error?

Total Points 100