Bus 630 Week 1 Discussion

After a period of declining sales for Allround, we increased the advertising budget to be consistent with our competitor’s budget. We decided to be very consistent with our strategy over the ten periods; however, in hindsight we should have implemented a more dynamic strategy that factored in the changing

Management should note that the level of activity was above what had been planned for the month. This led to an expected increase in profits of $1,100. However, the individual items on the report should not receive much management attention. The favorable variance for revenue and the unfavorable variances for expenses are entirely caused by the increase in activity.

a. This particular industry has a constantly increasing cost. There will be an increase in the demand for input factors for one key reason. Every day, new companies will be introduced into this market of remodeling, economic profits being the encouraging factor. Because of this, there will be a bid up on input prices for the companies in the industry of remodeling. “When a market is characterized by a large number of small producers, the demand curve facing the manager of each individual firm is horizontal at the price determined by the

Tobacco smoking is the largest preventable cause of death and diseases in the United States of America. Close to 480,000 Americans lose their life each year due to illness caused by smoking cigarette. (Healthy People 2020, 2010).

In looking ahead on our scheduling, do you anticipate any new orders beyond the current PO that we are working on? We should have it completed sometime next week and I want to stay ahead of the game for scheduling our sewing floor hours.

A variable cost is a corporate expense that varies with production output. Variable costs are those costs that vary depending on a company's production volume; they rise as production increases and fall as production decreases (Variable Cost, n.d.); in the case study for all cost per event such

Fixed cost or expense are variables that are not effected by the change in production or sales. A variable cost or expense is effected directly by a change in production volume or sales. We will categorize our Fixed and variable cost and expenses. First, we have variable data: executive salaries, insurance and property taxes. These items are located on schedule 7 of our Excel analysis. Second we have fixed variables, raw material direct labor, and inventory.

Bhimani, A., Horngren, C., Datar, S., Rajan, M. et al. (2012) Management and Cost Accounting. 5th ed. Edinburgh: Prentice Hall, p.369 - 378.

Variable costs will include packaging, ingredients, shipping, and labor which will vary depending on production volume. The cost taken for the production and other operations mainly depend on the scale of production and the location of facilities.

2-3. Three examples of a variable cost are a 12% increase in the production of dresses, which will cause a 12% increase in variable costs. A 10% increase in clothes will cause an 10% increase in variable costs. A 30% increase in labor hours will cause a 30% increase in variable costs. Three examples of a fixed cost are a 12%

Financial accounting is the process of recording, summarizing and reporting business transactions over a period of time in order to prepare company financial reports for use by both internal and external parties such as investors and creditors. On the other hand, managerial accounting is the process of identifying, measuring, analyzing, and communicating financial information needed by management in order to plan, control, and evaluate a company’s operations.

The focus of financial accounting is providing information about the functioning of the business to its users, whereas the focus of Management accounting is providing information to help the management in evaluating the performance and planning for the future. Accordingly, a diversification of users can be observed. Both internal management and external parties use financial accounting statements, while the management accounting is only used by internal management. Therefore Management accounting is very confidential for an organization while in contrary Financial accounting is to be publicly reported.

(1) - Managerial Accounting: The branch of accounting that focuses on information for internal decision makers of an organization. Management accounting provides information to help managers plan and control operations as they lead the business. Managerial accounting help to calculate cost of goods sold and cost of goods manufactured, helps in prepare budget and if you have the budget, you can compare between it and the accrual to make variance analysis.

The primary difference between financial and managerial accounting is that financial accounting is used for external members of the company; they do not control or run the businesses’ operations. An example of external members would be customers and shareholders of the business. On the other hand, managerial accounting is used for internal members in the company such as managers and officers. The internal members use managerial accounting to increase efficiency and effectiveness within their company. According to accounting4management.com, financial accounting and managerial accounting have several differences, but they both depend on the same data.

To make informed decisions, MBA managers must use a scientific approach rather than simply following their intuition. This scientific approach often uses historical data supplied by accountants in the Financial Accounting department to plan future activities and monitor employee performance.