ACCT 2230 Chapter 11: Chapter 11 Managerial Accounting Notes

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azurecrow744

17 Dec 2011

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Decentralized organization: an organization in which decision-making is spread throughout the organization rather than being confined to a few top executives. All large organizations are decentralized to some extent. Effective decentralization requires segment reporting to permit analysis and evaluation of the decisions made by segment managers. Reports are needed for individual segments of the organization. Responsibility centre: a broadly defined as any part of the organization whose manager has control over and is accountable for cost, profits, and investment. 3 primary types are cost centre, profit centres, and investment centres. Cost centre: business segment whose manager has control over costs but not over revenue or investment funds. Departments such as accounting, finance, general administration, legal etc. Manager might be evaluated by comparing actual costs to how much costs should have been for the actual number of units produced during a period (eg. Profit centre: is any business segment whose manager has control over both cost and revenue.

Related Questions

1.________ is the field of accounting that develops informationfor external parties such as stockholders, suppliers, banks andgovernmental regulatory bodies.

A) Auditing

B) Internal auditing

C) Management accounting

D) Financial accounting

Answer:

Financial reports prepared by financial accountants focus on________. Financial reports prepared by management accountantsfocus on ________

A) segments of the organization such as departments anddivisions; segments of the organization such as departments anddivisions

B) the organization as a whole; the organization as a whole

C) the organization as a whole; segments of the organizationsuch as departments and divisions

D) segments of the organization such as departments anddivisions; the organization as a whole

Answer:

What are accounting systems?

A) The process used to streamline production processes

B) The process used to generate performance measures

C) Formal mechanisms for gathering, organizing and communicatinginformation about an organization's activities

D) none of the above

Answer:

A(n) ________ is a review to determine whether the policies andprocedures specified by top management have been implemented bylower managers.

A) management audit

B) internal audit

C) internal control

D) internal accounting control

Answer:

A budget ________.

A) is a quantitative expression of a plan of action

B) provides feedback by comparing actual results with plannedresults

C) includes deviations from planned results

D) ignores areas that are presumed to be running smoothly

rosemouse550

Fill in the blanks with the phrase that best completes the sentence. Some phrases may be used more than once and some not at all.

Phrases:
cost center	revenue center
investment center	lower
profit center	higher
responsibility center

The maintenance department at the local zoo isâ a(n)

The gift shop at the local zoo isâ a(n)

The menswear department of a departmentâ store, which is responsible for buying and sellingâ merchandise, isâ a(n)

The production line at a manufacturing plant isâ a(n)

A(n) BLANK is any segment of the business whose manager is accountable for specific activities.

A division of a beverage manufacturing company responsible for a particular brand of soft drink isâ a(n)

The sales manager in charge of a shoeâ company's northwest sales territory overseesâ a(n)

Managers of cost and revenue centers are at BLANK levels of the organization than are managers of profit and investment centers.

champagnemoose571

You work as a Management Accounting officer in a smalland medium organization operating in either a Manufacturing,Retail, Hospitality or Construction sector with not more than fifty(50) employees and an annual net turnover not exceedingÂ£500,000.
Management accounting plays a key role in organizations today andtherefore decision makers in the organization must understand howto create and use good management accounting information. Intodayâs business environment, business wants to track performanceinformation that goes beyond just the cost-based information ofhistoric general ledger systems provided by traditional financialaccounting information. Good management accounting involves aresponsibility to manage a wide variety of critical managementaccounting information using management accounting system andmanagement accounting techniques such as cost-volume- profitanalysis, marginal costing and absorption costing to producerelevant management report for informed decision making.
This was the summary of the speech delivered by a conferencespeaker about the role of management accounting and managementaccounting system in an organization. The General Manager of yourorganization sees management accounting function as very crucial inproviding management information well informed decision makingwithin the organization. Knowing that you are studying managementaccounting at the HND level, the organization sponsored you toattend this conference. After this conference the Generalmanagement has asked you (Management Accounting Officer) to write areport to him covering management accounting and managementaccounting system together with different costing techniques andreporting to enable the organization implement them.
Explain management accounting and give the essential requirementsof different types of management accounting systems to the chosenscenario giving examples. Explain different methods used formanagement accounting reporting that can also be used for the cscenario. (1000 words). NO PLAGIARISM PLEASE

ACCT 2230 Chapter 11: Chapter 11 Managerial Accounting Notes

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