The primary purpose of managerial accounting is to provide information useful for management decisions. Many of the managerial accounting techniques that you learn in his course will be useful for decisions you make in your everyday life. After you graduate, one of the next important decisions you’ll have to make is where to work.

Instructions

Suppose that you go for job interviews and are given an offer of employment by two competing firms for the same entry-level position. They are offering the same salary and benefits. Their offices are in different cities. They are both public companies, so their annual reports containing financial and other information are available to you for free on their websites.

For each of the following factors, provide an example of the numerical information you would need to help decide which firm to work for.

(a) Which company is currently more profitable?

(b) Which city is more economical to live in?

(c) Which company has better long-term prospects?

(d) Which company might have more opportunities for advancement?