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• Limited to double-entry accounting and cost data. • Generally accepted accounting principles.
• Pertains to subunits of the business and may be very detailed.
• Extends beyond double-entry accounting system to any relevant data.
• Standard is relevance to decisions.
In financial accounting, financial statements are verified annually through an independent audit by certified public accountants. There are no independent audits of internal reports issued by managerial accountants.
4.
Budgets are prepared by companies to provide future direction. Because the budget is also used as an evaluation tool, some managers try to game the budgeting process by underestimating their division’s predicted performance so that it will be easier to meet their performance targets.
On the other hand, if the budget is set at unattainable levels, managers sometimes take unethical actions to meet targets to receive higher compensation or in some cases to keep their jobs.
5.
Linda should know that the management of an organization performs three broad functions:
(1) Planning requires management to look ahead and to establish …show more content…
Direct materials used ..................................
Direct labor...................................................
Manufacturing overhead
Indirect labor ........................................
Factory manager’s salary....................
Indirect materials .................................
Maintenance, factory equipment ........
Depreciation, factory equipment ........
Factory utilities.....................................
Total manufacturing overhead .....
Total manufacturing costs ..........................
Total cost of work in process .....................
Less: Work in process, June 30 ................
Cost of goods manufactured ......................
(b)
$ 3,000
$20,000
40,000
$4,500
3,000
2,200
1,800
1,400
400
13,300
73,300
76,300
3,800
$72,500
CEPEDA CORPORATION
Income Statement (Partial)
For the Month Ended June 30, 2014
Sales revenue...........................................................
Cost of goods sold
Finished goods inventory, June 1
• Pertains to subunits of the business and may be very detailed.
• Extends beyond double-entry accounting system to any relevant data.
• Standard is relevance to decisions.
In financial accounting, financial statements are verified annually through an independent audit by certified public accountants. There are no independent audits of internal reports issued by managerial accountants.
4.
Budgets are prepared by companies to provide future direction. Because the budget is also used as an evaluation tool, some managers try to game the budgeting process by underestimating their division’s predicted performance so that it will be easier to meet their performance targets.
On the other hand, if the budget is set at unattainable levels, managers sometimes take unethical actions to meet targets to receive higher compensation or in some cases to keep their jobs.
5.
Linda should know that the management of an organization performs three broad functions:
(1) Planning requires management to look ahead and to establish …show more content…
Direct materials used ..................................
Direct labor...................................................
Manufacturing overhead
Indirect labor ........................................
Factory manager’s salary....................
Indirect materials .................................
Maintenance, factory equipment ........
Depreciation, factory equipment ........
Factory utilities.....................................
Total manufacturing overhead .....
Total manufacturing costs ..........................
Total cost of work in process .....................
Less: Work in process, June 30 ................
Cost of goods manufactured ......................
(b)
$ 3,000
$20,000
40,000
$4,500
3,000
2,200
1,800
1,400
400
13,300
73,300
76,300
3,800
$72,500
CEPEDA CORPORATION
Income Statement (Partial)
For the Month Ended June 30, 2014
Sales revenue...........................................................
Cost of goods sold
Finished goods inventory, June 1