Acct

Paul Garcia

ACCT 606 Managerial Accounting

Chapter 1

1-1:1-15

January 16, 2015

1-1. Financial accounting differs from Managerial accounting because financial accounting is concerned with reporting financial information to external parties, such as stockholders, creditors, and regulators. Financial accounting emphasizes the financial consequences of past activities. Also financial accounting is mandatory for external reports and it needs to comply with rules, such as generally accepted accounting principles (GAAP) and international financial reporting standards (IFRS).Where as Managerial emphasizes decisions affecting the future, relevance, timeliness, and segment performances. Managerial accounting is concerned with providing information to managers for use within the organizations.

1-2. The major television network I chose is MTV. First as the manager I’d have to begin by establishing a goal and I would make it: to inspire kids to achieve academic success. How I would plan to achieve this would be: What type of shows do we air to influence kids to go to school? How do we reinforce education is important but on a level that kids can relate to. How are we going to invest in kid’s education? When will we air such shows? How will we measure that our shows and our actions are having an impact? How much money can we spend to make this be successful? Some control activities would be: Did we succeed in influencing kids to attend school and strive to exceed? Did we reach enough kids by our efforts? Is our method working? Do we need to visit schools to make a bigger impact and how can we reach multiple students all at once?

1-3. If I had to chose to decide whether or not to continue making a component part or to begin buying the part from an overseas supplier some quantitative factors that would impact my decision would be cost of producing it my self or purchasing it from overseas. Another quantitative decision that would be made would be how...