...Accounting Scenario XBCOM/230 Version 1 1 University of Phoenix Material Accounting Scenario Situation Riordan Manufacturing wants to acquire the JJJ Company and has formed a confidential ad hoc committee to perform several functions, including due diligence of JJJ Company. The ad hoc committee was appointed by the chairman of the board (COB) of Riordan. Members of the committee are familiar with one another and have worked together in the past in various capacities. Accounting Team Representatives John and Beth are both from the accounting team and have reviewed the files for JJJ Company and are preparing to report their findings to the chief executive officer (CEO) and COB. They are not sure JJJ is financially stable enough to move forward with the acquisition. John graduated with a BA in Accounting from University of Phoenix in 1990. He joined Riordan in 2004 as a staff accountant and was promoted to accounting manager in 2007. He is a democratic leader whose focus is on sales profitability. Beth graduated with a BA in Accounting from University of Phoenix in 2008; she came to Riordan in 2007 as an accounting assistant after graduation. She was recently promoted to staff accountant by John, the accounting manager. William is the CEO of Riordan and he wants to do the acquisition—but only if it means greater profits for the company and bigger dividends for the stockholders. Although he understands business, he relies on John’s advice for the details...
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...University of Phoenix – Marietta Campus DuDonna Jones Strategic Planning and Implementation 581 Facilitator Ben Olmos January 20, 2009 Accounting Principalsis a business unit of MPS Group, Inc (NYSE:MPS). MPS Group is a leading provider of staffing, consulting, and solutions in the disciplines of information technology, finance, accounting, law, engineering, and health care. MPS Group delivers its services to government entities and businesses in virtually all industries throughout the United States, Canada, the United Kingdom, and Europe. Headquartered in Jacksonville, Florida, MPS Group trades on the New York Stock Exchange. Accounting Principals external environmental factors include the legal system, workforce/labor market, economy, customers, competitors, technology, and society. Legally, Accounting Principals must follow the guidelines and ensure policies reflect the spirit as well as the letter of law. Accounting Principals mainly focus on placement of accounting and finance personnel. Every company has an accounting department that makes it easier for account managers to make a cold call into an organization. As the economy improves, firms expand which results in competing for qualified employees and staffing activities increases. When the economy is in a recession, the number of available candidates increases that results in less staffing activities. “The people who actually use...
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...University of Phoenix Material Accounting Scenario Situation Riordan Manufacturing wants to acquire the JJJ Company and has formed a confidential ad hoc committee to perform several functions, including due diligence of JJJ Company. The ad hoc committee was appointed by the chairman of the board (COB) of Riordan. Members of the committee are familiar with one another and have worked together in the past in various capacities. Accounting Team Representatives John and Beth are both from the accounting team and have reviewed the files for JJJ Company and are preparing to report their findings to the chief executive officer (CEO) and COB. They are not sure JJJ is financially stable enough to move forward with the acquisition. John graduated with a BA in Accounting from University of Phoenix in 1990. He joined Riordan in 2004 as a staff accountant and was promoted to accounting manager in 2007. He is a democratic leader whose focus is on sales profitability. Beth graduated with a BA in Accounting from University of Phoenix in 2008; she came to Riordan in 2007 as an accounting assistant after graduation. She was recently promoted to staff accountant by John, the accounting manager. William is the CEO of Riordan and he wants to do the acquisition—but only if it means greater profits for the company and bigger dividends for the stockholders. Although he understands business, he relies on John’s advice for the details on accounting oversight. William, finance...
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...MANAGEMENT ACCOUNTING: AN OVERVIEW Learning Objectives Distinguish between managerial & financial accounting. Understand the evolution of management accounting. Explain about the IFAC model. Understand how managers can use accounting information to implement strategies. Explain about Relevant Lost & Relevant Regained. 2 Learning Objectives Distinguish between managerial & financial accounting. Understand the evolution of management accounting. Explain about the IFAC model. Understand how managers can use accounting information to implement strategies. Explain about Relevant Lost & Relevant Regained. 3 Accounting System (accumulates financial and managerial accounting data) Managerial Accounting Information for decision making, and control of an organization’s operations. Internal Users Financial Accounting Published financial statements and other financial reports. External Users Managerial Accounting Users of information Managers within company Regulation Financial Accounting Interested outside parties Required. Must comform to Not required because for internal GAAP which is regulated by use only FASB and SEC. Basic accounting system plus Almost exclusively from the Source of Data various other sources basic accounting system Reports often focus on subunits. Reports focus on the enterprise Nature of Reports Based on a combination of in its entirety. Based on and...
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...Cost accounting goal is to assist managers in achieving the maximum value for their organizations. Measuring the effects of decisions on the value of the organization is one of the fundamental services of cost accounts. Providers of information = accountants Users of information = managers We want the value chain to be as efficient as possible Value chain goes from beginning to end (complete end/disposal) Managers evaluate value-added activities (activities that customers perceive as adding utility to the goods or services they purchase) to determine how they contribute to the final product’s service, quality, and cost. Financial accounting teaches us to prepare and interpret financial statements Cost accounting we understand how the individual stages contribute to value and how to work with other managers to improve performance. Cost accounting is for managers or internal users – the one who make decisions for the organization. They do not need comparisons instead only use information relevant for the decisions that managers operating in a business environment with a particular strategy make. Managers add value to the organization by the decisions they make. From a different perspective, accoun- tants (you) add value by providing good information to managers making the decision. The better the decisions, the better the performance of your organization, whether it is a manufacturing firm, a bank, a not-for-profit hospital, a government agency, a school club, or...
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...clients and issues a duplicated copy of official receipts. The original is given to the clients as its copy. Before the end of the same banking day, the collector/messenger goes to their depository bank, prepares a deposit slip and deposits their collection. The authorized duplicate copy of the deposit slip is then attached to the copy of the duplicate official receipt and turned over to the accounting department. The accounts receivable clerk will reconcile the payment transaction. She checks if the validated duplicate copy of the deposit slips corresponds to the duplicate official receipt. If it matched, this will trigger the posting of payment of the client in the official receipts and updates the invoicing book and accounts receivable ledger. At the end of each week, the collector and the accounting staff prepares a weekly collection report and summary of accounts receivable aging report respectively that will be given to the accounting manager. The aging reports are for internal purposes and to see how many collection the company made. At the end of each month, the accounting manager does bank reconciliation to update the company’s book. She reconciles the passbook with the cash in bank account in the system of the company. Cash Disbursement Cycle Being a service company, RCS Logistics (Phils.) Inc. incurs no purchases; rather the major cash disbursements include the payments to the prime and secondary contractors such as their agents and suppliers and primarily for...
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...chosen name for the corporation – TBD in Unit 10] By Terra Allen, Accounting/Finance Manager, Michael Argentino, Marketing/Sales Manager, George Dickson, Operations/Production Manager, Doris Toliver, HR Assistant Manager, Felicia Parris, IT Assistant Manager March 14, 2014 Introduction to the Proposal’s Purpose and Content [Team’s chosen name] Corporation is a medium-sized manufacturing company with 250 employees. It directly markets one product: a unique coffee cup with a patented ball bearing sliding mechanism. Nathan Jr. and a group of 10 other executives run the company. [Team’s chosen name] Corporation has received a large sum of money from a venture capitalist. The venture capitalist and Nathan Jr. are predicting 100 percent growth in five years. To achieve that growth, productivity will need to increase at a similar rate. Therefore, this proposal provides a suggested business model update. Further, the functional areas updates are indicated to assist the business model to predict, plan, and implement future growth and profits. In this proposal, the problem of the outdated business model and functional areas is addressed with new ideas and new employees to implement them. The 100 percent growth projection in five years can become a reality with the managers’ ideas about these questions: 1. What will my updated business model look like? 1. How can my functional area managers modify their activities and objectives to help the corporation achieve...
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...Problem 1-4 Managers need accounting information and need to know how to use it. Critically evaluate this statement. Accounting information provides managers with data needed to determine whether a business is at a profit or a loss, how much debtors owe, company’s liabilities, and much other financial information. Accounting measures business transactions and as such can help direct managers in the right course with concrete information. Principally accounting information is a tool for managers to make business decisions on a timely manner. For example, if by using accounting information, managers notice that the trend is for sales to decrease, then they can take measures to stop this trend. Maybe they need to change prices or decrease expenses to handle the down-trend. The key is that accounting gave them the clue that something may not be going according to plan and as we know planning is an important role in business management. Lately we have witnessed an ever expanding basis of knowledge for the design of effective management accounting systems. New areas of expertise have continually provided new visions, opportunities and challenges to the conventional approaches. Perspectives drawn from economic theory have provided a sound basis for selecting information related for decision making and the application of mathematical skills has added to our potential for thoroughly analyzing complex problems. Moreover the developments in computer technology have ensured the means...
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...Chapter 3: The Regulation of financial accounting Why examine theories of regulation? Better placed to understand why some accounting prescriptions become part of legislation while others do not. Accounting standard – setting is a very political process While some proposed requirements may be technically sound and logical, they may not be mandated due to political ‘power’ or influence of some affected parties What is regulation? The Oxford Dictionary defines regulation in terms of a “prescribed rule” Macquarie Dictionary defined regulation as “a rule of order, as for conduct, prescribed by authority; a governing direction or law”. On the basis of these definitions can say that regulation is designed to control or govern conduct Hence, when we are discussing regulations relating to financial accounting, we are discussing rules that have been developed by an independent authoritative body that has been given the power to govern how we are to prepare financial statements, and the actions of the authoritative body will have the effect of restricting the accounting options that would otherwise be to an organisation. ‘Free Market’ perspective Accounting information should be treated like other goods, with demand and supply forces allowed to operate to generate an optimal supply. Arguments supporting ‘free – market’ perspective Private economic – based incentives ‘Market for managers’ ‘Market for corporate takeovers’ ‘Market for lemons’ Private economic – based...
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...Management Accounting April 10, 2013 Management Accounting Nepalese Perspective Management accounting is the method of measuring the performance of the organization through both quantitative and non-quantitative approach. Financial accounting and cost accounting both give the quantitative measures based upon which decisions are made but it will not be correct to make decisions based solely upon numbers thus only considering financial terms is considered the old method of decision making in management. Decisions made at both the operational level or management level are not always the outcome of financial numbers. Most of the decisions have other factors which make greater impact than the numbers given by the financial accounting. At present the tendency to measure performance on the overall basis rather than just looking at the size of the profit made by the company has tremendously increased the importance of management accounting worldwide including Nepal. The concept of cash flow management and profitability are central to both financial accounting and management accounting. The financial constrains of any organization defines its objectives and its future course, the impact of which needs to be considered by the managers for decision making in steps. Nepalese Perspective Cash Flow Management The most important function for any manager is to maintain the cash flow of the organization. The main cause of business failure in Nepal like elsewhere is not the unprofitability rather...
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...Abstract The accounting services are vital for the success of a business, and their quality is very important, both for the users of accounting information, as well as for the providers of services. I want to highlights through this paper, the characteristics and important quality factors of management accounting that managers need to use during management decision-making process. Accounting information provides managers with data needed to determine whether a business is at a profit or a loss, company’s liabilities, profit and much other financial information. Accounting measures business transactions and it is the right tool that helps managers with actual information and reach decisions on a timely manner. For example, in retail industry through accounting information, managers can determine when sales should decrease or increase. Accounting and financial information are among the most important information widely used in the managerial decisions. In the rapidly changing world nowadays, information technology has become an indispensable part of every organization. The extent to which the information technology affects the decision making process is quite big through which managers are capable to pay attention to the efficiency of their management accounting information systems. A business manager, should identify the handful of critical information variables and need to keep a close eye on the business. All these factors are included in internal accounting reports. Only...
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...Management Accounting: Information for Decision-Making and Strategy Execution - 6.Edition - 2012 Anthony A. Atkinson, Robert S. Kaplan Pearson I have both Solution Manulas And Test Banks Of this Book Contact ahad2030@yahoo.com Chapter 1 How Management Accounting Information Supports Decision Making QUESTIONS 1-1 Management accounting is a discipline that designs planning and performance measurement systems, using financial and nonfinancial information, to help an organization develop and implement its strategy. The information must be relevant and helpful, and customized to serve multiple purposes, such as making decisions, allocating resources, and monitoring, evaluating, and rewarding performance. Information for the “plan” and “do” steps of the PDCA cycle includes prospective data on costs, profits, efficiency, and quality associated with alternative ways to produce or provide goods or services. Information for the “check” and “act” steps includes assessments of how well the organization is achieving its objectives. Common information requirements include measures of cost, quality, profitability, and timeliness. 1-2 A company’s operators, managers, and executives need information for their operational control and improvement activities, as well as on the performance of their individual processes, products, services, and customers. This information is important to direct managers’ attention to areas where improvement is needed, to provide feedback...
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...Chapter 1 Introduction to Managerial Accounting Regardless of your major or intended career path, most of you will become managers one day. A manager has responsibility and control of selected parts of a company’s operations, or in some cases, multiple aspects of operations. Only those of you that happen to stay at the ‘bottom’ of a company, prefer never to get promoted, or never accept any responsibility for some aspect of a business, will miss the ‘management’ opportunity. Fortunately, none of you will likely fall into this persona given that you have taken the initiative to attend college. Understanding managerial accounting will help you move up the ladder more quickly, regardless of your chosen career path. How Can Managerial Accounting Help You? In any responsible business capacity, your boss and all other management levels above you will want to know how well you handle your responsibilities. To do so requires that they measure your performance. The evaluation process is similar to your perceptions in each college course in which you enroll. During your first class meeting in each course, one of your initial goals is to find out how your performance will be evaluated. In a business environment, you want to know what they expect, i.e., how they will measure your performance. While you won’t be earning letter grades in the business world, your performance will ultimately translate into promotions, bonuses, raises, reprimands, or perhaps dreaded walking...
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...competitive global market need to be financially intelligent. Like their counterparts in sales and marketing, they need to understand the language spoken by management: accounting. Budgeting HR managers develop and control departmental budgets. An accounting background prepares them to regard budgeted items such as training, recruitment, staffing, incentives and performance evaluation in terms of their cost and dollar benefit to the organization. When accompanied by and based upon payback analyses, HR budget requests give senior management the information it needs to decide how to allocate available funds. Exposure to accounting also helps an HR manager appreciate corporate cash flow in the budgeting process. Employee vacation costs, for example, might be charged monthly rather than when actually incurred for quarterly financial reporting. Managerial accounting is also helpful when it comes to proposing changes or introducing new policies. Belief that the new activity will solve a problem is not enough; the cost must be justified. The HR manager must anticipate senior management’s questions. If he/she has studied accounting, he/she will be able to demonstrate the viability of his/her idea in dollar terms. This approach presents new-hire orientation as a profit-contributing business driver, not merely an HR nicety. The HR manager should be able to write proposals that show management how an investment in HR can increase productivity and improve profitability. Without this ability, HR professionals...
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...As everyone knows, Reel Tape Inc. was a great company in the 1960s. When cassettes came in, Reel Tape Inc. just switched its product line but not its attitudes. However, its competitors had changed the way to do business. These competitors set up strategy and management accounting system to improve their quality, cost and time. They had high quality, delivered products on time, and had low price. These competitors took market share from Reel Tape Inc. One of the reasons that led to Reel Tape Inc. lost its market share was the lack of a good management-accounting system. (Jan Bell, Shahid Ansari, Thomsa Klammer, and Carol Lawrence, 1997) What is management accounting Management accounting is a system of measuring and providing operational and financial information that guides managerial action, motivates behaviors, and supports and creates the cultural values necessary to achieve an organization’s strategic objectives. (Jan Bell, Shahid Ansari, Thomsa Klammer, and Carol Lawrence, 1997) A good management-accounting system can help firms to produce low cost products, maintain quality and deliver on time. A good management accounting information is technical, behavioral and cultural. First, technology can provide relevant information for strategic decisions. Management accountants should obtain information what they want through companies’ information system. This information should be timely and accurate. It helps management accountants analyze companies’ financial situation and...
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