and I a. Managerial accounting allows Managers to set and evaluate business by determining what they need in order to make a , and how to that information. b. Managers must for the future by setting goals and objectives for what they want the business to achieve. Managerial accounting can help provide useful information to management for planning that involves setting priorities and determining how to allocate resources to help accomplish them, and for a planning tool for assessing company resources for meeting objectives. c. The function of management requires that managers measure whether plans are successful or unsuccessful at meeting the goals. Managerial accounting produces reports that focus on variances between planned performance and actual performance. d. Ultimately, managers must whether goals have been met and what changes are needed. generate reports and information needed to assess and interpret the results of various evaluations. a. Financial accounting is governed by a set of rules known as that are created by the _. It provides information to both internal and external stakeholders, with a focus on providing information to external stakeholders such as and The data used is primarily (from the past). Financial accounting reports are prepared quarterly and and must be by a . I b. Managerial accounting is not required to follow It provides information to stakeholders, such as managers and other employees. Reports are prepared as often as needed, and are not required to be Managerial accounting reports are (more or less?) detailed than financial accounting reports, often focusing on one department or section of the business. 3. Explain the Primary Roles and skills Required of Managerial Accountants a. Managerial accountants must have strong knowledge of the business and industry in which they work, strong skills to work in cross-functional teams, effective skills to convey accounting information to an audience as intended, and 3. Explain the Primary Roles and skills Required of Managerial Accountants a. Managerial accountants must have strong knowledge of the business and industry in which they work, strong skills to work in cross-functional teams, effective skills to convey accounting information to an audience as intended, and strong skills to operate accounting and reporting software, especially ERP systems. More and more all accountants are required to have strong data skills to work with financial analysts and managers to reduce expenses and analyze budgets, among other problem-solving roles. Managerial accountants must also have strong and as described in the Institute of Management Accountants ethical standards. b. Management accountants work at various levels within the organization, from project level and division level, to and a. The is the professional organization for management accounting, providing research, education, and practice development. b. The certification is available through the IMA for individuals who meet the educational requirements, pass the two-part exam, and maintain continuing professional education. C. The IMA also develops standards to help managerial accountants deal with challenges. Managerial accountants should never commit acts that violate the and they should never ignore such deeds by others in their companies. 5. Distinguish between Merchandising, Manufacturing, and Service Organizations businesses are retailers that re-sell merchandise, such as Target or Walmart. They generate from selling products, and subtract the from that to calculate their gross profit, then subtract to calculate operating profit. I a. a. b. businesses are retailers that re-sell merchandise, such as Target or Walmart. They generate from selling products, and subtract the from that to calculate their gross profit, then subtract to calculate operating profit. businesses produce products using raw materials, such as Proctor & Gamble. Products that have been started but not completed are called while completed products are called _The costs that go into these products include and costs. Their income statement shows the sales Revenue minus the equals the gross profit, then operating expenses are subtracted to find the The consists of the costs of the products that were produced during a single period. businesses provide a service, such as accounting or legal services, cable tv, or internet. The net income or operating profit of these businesses are computed by subtracting from C