Week 1

Question 1

Accounting definition

Answer 1

science of measuring, reporting and controlling performance

Question 2

Cost accounting

Answer 2

Part of management accounting. How to manage costs and how to allocate to different products.

Question 3

Management accounting roles

Answer 3

Decision-facilitating - information improves decisions
Decision-influencing - shaping behavior, motivate employees
Coordination-facilitatin - coordinate decisions across units (sales lets productions know how many units to make)

Question 4

Cost object meaning

Answer 4

Thing that accumulates cost

Question 5

Variable cost

Answer 5

Increases the total cost the more product you make (5eur per belt)

Question 6

Management accounting vs Financial accounting examples

Answer 6

Financial: At the end of the year, XYZ Manufacturing prepares a financial statement that includes the income statement, balance sheet, and cash flow statement.
Managament :XYZ’s managers need internal reports to make better business decisions