By following the matching principle all of the costs associated with a particular product, not just its wholesale price, is expensed when the item is sold. Requirement 2 - A Generally, the lower of cost or market method is used to value inventory in order to “avoid reporting inventory at an amount greater than the benefits it can provide” (Spiceland, Sepe, & Nelson, 2013, p. 476). According to Spiceland, Sepe, and Nelson (2013) the “change in replacement cost usually is a good indicator of the direction of change in selling price” (p. 477). When the change in replacement cost is negative the LCM method allows companies to apply the conservatism principle. The conservatism principle involves “recognizing expenses and liabilities as soon as possible when there is uncertainty about the outcome, but to only recognize revenues and assets when they are assured of being received” (The conservatism principle).
Costing Model: There are two costing models that can be used to allocate costs: traditional costing and activity based costing. Both costing models allocate direct material costs, direct labor costs and manufacturing overhead costs to the products being manufactured. However, the difference between the two models involves how the manufacturing overhead costs are allocated. Traditional costing allocates overhead costs to the products manufactured on the either direct labor hours, number of units produced, or machine hours used in production. The traditional costing method lumps all overhead costs into a single pool and allocates those costs across all products produced based on one of the three cost drivers (direct labor hours, number of units produced, or machine hours).
Why consider an organization’s approach to IM/IT resources and services as an exercise in portfolio management? •forces you to relate specific IT investments with the associated business need(s) and value propositions •provides a framework and standardized lens for the assessment of all IM/IT investments as well as measures for valuing those investments •focuses on a methodology for the valuation of IM/IT projects that connects well with the understandings of enterprise business leaders and IT governance •allows for year to year measurement of changes in IM/IT investments versus the impact (attributed results generated) by those investments •allows for qualitative if not quantitative comparisons between various IM/IT investments pursued by business units within the same enterprise and conceivable between competing businesses within the same industry How does an IM/IT portfolio management methodology help to serve the needs of the greater organization and facilitate a better appreciation by the business of its IM/IT products and services? •the organization has the following information resource management needs: • o to transact o to manage, control, make tactical decisions o to innovate, transform, increase its strategic competitiveness o control costs and improve overall performance •the portfolio model tracks and measures IM/IT project and service value and performance in the very manner that the business thinks of and measures value in these and any other corporate investments; aligning the description of and thinking about IM and IT investments in this manner allows for a common basis for understanding •IT transactional value is all about cutting operational costs and/or improving the efficiency of existing operations. •IT informational value is all about enabling management, control, and decision making. •IT strategic value is all
ACCOUNTING 256 FIRST MIDTERM Review Problems Multiple Choice—Choose the best answer. Managerial accounting is concerned with: The company as a whole, rather than with the segments of a company. The data needs of stockholders and creditors. The relevance and flexibility of data rather than precision. Meeting the requirements of generally accepted accounting principles.
A good _________ enables an accounting manager as well as auditors to follow the path of the data recorded in transactions form the initial source. 14. A control activity of an internal control system that focuses on structuring work assignments among employees so that one employee's work activities serve as a check on those of another employee is called ______________. 15. What kind of analysis should be performed when considering if an internal control procedure should be implemented?
It is a review of management and how operating procedures work. How effective and efficient the procedures are for the company. Although operational audits reveal possible problems in the financials statements, a compliance audit and fraud audit will help Whitfields internal
What should be remedied? Executive Summary: Introduction: Taking into consideration the relatively large size of the organization, we shall implement this study on one branch only instead of to review the process of attending customers over the counters in the branch instead implementing on the organization overall. We shall assess the operational processes whether it is flexible or bureaucratic, does it meet customer satisfaction or not. We also shall measure the performance and identify whether it is efficient or there is a room of
False. A general purpose financial report is a general report that shows all of the financial information that pertains to a business. This is done to meet all of the needs of the readers, rather than those of a specific group of readers, such as investors, shareholders, business executives or budget planners. (e) Accounting reports should be developed so that users without knowledge of economics and business can become informed about the financial results of a company. True (f) The objective of financial reporting is the foundation from which the other aspects of the framework logically result.
Financial Statements ACC/280 May 01, 2012 Edward Vargas Financial Statements Accounting is extremely important by monitoring the functions of the companies, and allowing them to make appropriate financial transactions and decisions. Some areas of accounting can seem confusing and difficult but in the end the outcome is clear and concise. There are two basic forms of accounting known as; financial and managerial accounting. Financial accounting responsibilities are to follow the General Accepted Accounting Principles (GAAP) that is regulations for investor relations, creditors, and taxation purposes, whereas managerial accounting is for internal evaluation. There are different functions and categories that accounting
ALL WK 1, DQ’s: WK 1, DQ 1: What is a business’s obligation to build an ethical culture and balance its desire for profit with ethical responsibilities to employees, customers, society, and the environment? Ethics is different from one person to the next, so it is imperative that business clearly define the norm for staff members and management. The decisions organizations make influence more than business partners, affiliates, culture, and others. It is important for organizations center of attention on maximizing shareholder revenue. Therefore, maximizing profit without causing destruction to the business culture can be a balancing act for most organizations.