Managerial Accounting 222

managerial Accounting 222 Week 1 Questions 1-1 How does managerial accounting differ from fiscal accounting? Managerial accounting and financial accounting differs in who the coverage is for and for what purpose. Managerial accounting is for company managers to use to plan, control, and make decisions regarding unique(predicate) strategies. financial accounting is prep ared for owners, stakeholders, creditors, and government authorities and is used to verify cultivation regarding the economic stability of a company.There are likewise specific guidelines that are used (GAAP) in financial accounting and is mandatory whereas thither are no guidelines in managerial accounting and is not mandatory. 1-4Why do companies prepare budgets? Preparing budgets gives a company a quantitative plan that impart be used to complete a project or strategy. A budget is a guideline for which resources are used and can be compared for performance reports when determining the effectiveness and profita bility of a strategy. 1-13Why do companies that consume heel over Production tend to have minimal inventories?Companies that implement Lean Production have minimal inventories because they usually implement a just-in-time work strategy where production is only triggered by customer regard. Therefore, the amount of list is usually close or equal to customer orders creating minimal, if any, leftover inventory. 8-2Discuss around of the major benefits to be gained from budgeting. Budgets are beneficial because they can show the governing body what strategies management is using to live up to their business goals.They provide direction for employees to accomplish job duties towards the final result and allows them to understand which strategy is more essential through the amount of resources that is allocated towards it. Budgets also ensure that the entire organization is running(a) towards the same goal and provides a starting point for performance evaluations. 8-5Why is the gross sales forecast the starting point in budgeting? Sales forecasting is the prime(prenominal) step in determining the required needs for future production.In order to create a budget that includes all costs related to producing a product for sale, management must determine how many units are forecasted to sell so that an adequate amount of product is produced to meet demand without excessive costs. 8-9How can budgeting assist a company in formulation its workforce staffing levels? When a budget is created, the amount of work and units to be produced is also calculated. With this information, a company can plan for its labor workforce without having upset(prenominal) labor overages or shortages at any given time.