0.0 Introduction

Question 1

What is Managerial Accounting about? Why is it important for companies?

1.
2.

Answer 1

• helps managers make decisions, by understanding how decisions affect cost and revenues
• help to plan and control an organizations operations

Question 2

Accounting Information is used in decision making for planning and control.

1. What do you do in Planning?
2. What do you do in Control?

Answer 2

1. setting objectives and outlining how the objectives will be obtained
2. process of implementing plans and using feedback to evaluate the achievements of objectives

Question 3

Accounting provides…. to help managers around the world to…

Answer 3

… a common language
… communicate and coordinate their actions and to achieve their goals

Question 4

What is a performance report?

1.
2.
3.

Answer 4

• compares actual results with budgetal amounts
• provides feedback by comparing results with plans
• highlights variances

Question 5

What are typical support activities? (4)
What are typical primary activities? (5)

Answer 5

Support
1. Firm infrastructure
2. HR Management
3. technology development
4. procurement (negotiating terms, activities involved in obtaining goods and services of company)

Primary
1. Inbound Logistics
2. Operations
3. Outbound Logistics
4. Marketing and Sales
5. Service