Q1. (a) “Managerial accounting is a field of accounting that provides economic information for all interested parties.” Do you agree? Explain.
No, I don’t. Managerial accounting provides economic and financial information for managers and other internal users but not for all interested parties.
(b) Joe Delong believes that managerial accounting serves only manufacturing firms. Is Joe correct?
No, he isn’t. Managerial accounting can be serves to all kind of business for making a decision, so it has not necessary to serve only manufacturing firms.
Q2. Distinguish between managerial and financial accounting as to (a) primary users of reports, (b) types and frequency of reports, and (c) purpose of reports.
The primary users of managerial accounting are managers and officers. The reports usually come out as frequent as needed. Their purposes are for making specific goals. On the other hand, the users of financial accounting are stockholders, creditors, and regulators. The reports usually come out quarterly and annually. Their purposes are usually generally.
Q3. How do the content of reports and the verification of reports differ between managerial and financial accounting.
The content of reports of the managerial accounting pertains to subunits of the business, and they are very detailed. The content extends beyond double-entry accounting to any relevant data, and the standard is relevance to decisions. The content usually has no independent audits. On the other hand, the content of reports of the financial accounting pertains to business as a whole, and highly aggregated. It is limited to double-entry accounting and cost data, and generally accepted accounting principle. It is usually audited by CPA.
Q4. In what ways can the budgeting process create incentives for unethical behavior?
One way the budgeting process creates incentives for unethical behavior