Hi Tutor, below is an article on accounting and it's a discussion board question. I am unsure how to answer it, can you guide me on what to look out for and give tips, please? Thank you.

Article

Best Face Forward "Use digital media to drive business" -Teanna Bass ST. LOUIS-Teanna Bass dreamed of her own cosmetics business. After some research, and a company name from her twin sister, Teanna launched Sweet Tea Cosmetics in her college's student union. Teanna's goal: "Give the customer the best experience." Getting the right materials was Teanna's first step. She chose to buy her cosmetics rather than make them herself. "Sourcing is very important," explains Teanna. She chose her supplier in part for its sustainable business practices such as using glass containers instead of plastic. Teanna next set up her accounting system, which required basic managerial principles and cost classifications. Though not an accounting major, Teanna drew on her introductory accounting courses, and guidance from her aunt (an accountant), to keep her records. "I do it all," admits Teanna. Analytics and visualization through social media are key to Teanna's strategy. She uses analytics-likes per post, comments per post, profile visits, website clicks-to measure follower engagement. This helped Teanna double her Instagram followers and increase revenues. "The right picture at the right time" is crucial, says Teanna. Teanna continues to study business-to-business development and is considering a subscription model. She uses a four-H model -"be h umble, have a heart, ask for help, and be hungry." Adds Teanna, "Be passionate about what you do."MANAGERIAL ACCOUNTING BASICS C1 Explain the roles and ethics of managerial accounting. Managerial accounting provides financial and nonnancial information to an organization's managers. Managers control or direct a company or one of its many parts. Examples are an employee in charge of a company division, the head of marketing, the information technology officer, the human resources head= and toplevel managers such as the chief executive ofcer (CEO) and chief nancial ofcer (CFO). This section explains the purpose of managerial accounting (also called management accounting) and compares it with financial accounting. Purpose of Managerial Accounting Managerial accounting provides useful information to aid in 0 Determining the costs of an organization's products and services. 0 Planning future activities. 0 Comparing actual results to planned results. For example, managerial accounting helps marketing managers decide whether to advertise on social media such as Twitter . Managerial accounting also helps Google '5 information technology manager decide whether to buy new computers. The managerial accounting system collects cost information and assigns it to an organization's products and services. Costs are important to managers because they impact the nancial position and profitabiLity of a business. Costs are also important for decisions such as product pricing. protability analysis. and whether to make or buy a product. Much of managerial accounting involves gathering information for planning and control. Planning is the process of setting goals and making plans to achieve them. Companies make longterm strategic plans that usually span 5 to 10 years. Strategic plans are then turned into shortterm action plans, which are more concrete with betterdefined goals. A shortterm action plan that includes dollar amounts is known as a budget . Control is the process of monitoring and evaluating an organization's activities and employees. Feedback from the control page 544 function helps managers compare actual results with planned results and take corrective actions. Exhibit 18.1 shows the relation between planning and control and the types of questions managerial accounting helps answer. EXHIBIT 18.1 Planning and Control Planning Strategy Control . Build a new factory? . Are costs too high? . Develop new products? . Are services profitable? . Expand into new markets? . Are customers satisfied? Evaluation Nature of Managerial Accounting Exhibit 18.2 highlights key differences between managerial accounting and financial accounting.EXHIBIT 18.2 Managerial Accounting vs. Financial Accounting Financial Accounting Managerial Accounting This company's This product outlook is good. Is selling well. I'll buy its stock." We'll make Attribute more." Users External users: Investors, creditors, and Internal users: Managerial and executive others outside of the company's managers employees Inside the company Purpose Help external users make Investment, Help managers make planning credit, and other decisions and control decisions Flexibility of reporting Structured and controlled by GAAP Relatively flexible (no GAAP rules) Timeliness Often available only after an audit Available quickly without an audit Time dimension Past performance using historical Current performance and future projections Information. using mostly real-time Information Focus The whole company A company's projects, processes, and divisions Nature Monetary Information Mostly monetary, some nonmonetaryUsers of Accounting Information Companies report to different groups of decision makers. Financial accounting information is provided primarily to external users including investors, creditors, and regulators. Managerial accounting information is provided primarily to internal managerial and executive employees who are in charge of a company's business activities. Purpose of Information External users of financial accounting information often decide whether to invest in or lend to a company. Internal decision makers use managerial accounting information to understand, analyze, plan, and control company activities. Flexibility of Reporting Financial accounting follows concepts and rules known as generally accepted accounting principles (GAAP) to provide consistency and comparability of nancial statements across companies. Managerial accounting provides internal information and is more exible (not rulesbased), reecting the needs of managers to analyze, plan, and control products and processes. Timeliness of Information Financial accounting provides information to external users following required time periods [such as annual and quarterly]. Many nancial statements are delayed until an audit is done. Managerial accounting provides information to internal users as they request it. This can be as immediate and frequent as demanded. Time Dimension External users of nancial accounting information get historical reports using information that is often months page 545 old. Internal users of managerial accounting information often get realitime reports that are used to evaluate current performance, plan future activities, and make projections. Focus of Information External users of nancial accounting information often focus on the performance of a company as a whole for investing and lending decisions. Internal users of managerial accounting information often focus on a specic activity, product, department, or division for which they are responsible. For example, an investor of Apple might focus on income growth. An Apple production manager might focus on cost control at its Mac production facility. Nature of Information Both financial and managerial accounting reports have monetary information. Managerial accounting reports also have nonmonetary information, which includes customer and employee satisfaction data, percentage of onetime deliveries, product defect rates. energy from renewable sources. and employee diversity. Fraud and Ethics in Managerial Accounting Fraud affects all business and it is costly: The Association of Certied Eraud Examiners (ACFE) estimates the average U.S. business loses \"/6 of its revenues to fraud. The fraud triangle in Exhibit 18.3 shows three factors that push a person to commit fraud. Fraud Triangle Opportunity Rationalization Financial Pressure Opportunity . A person must be able to commit fraud with a low risk of getting caught. . Pressure , or incentive. A person must feel pressure or have incentive to commit fraud. . Rationalization , or attitude. A person justifies fraud or does not see its criminal nature. Implications of Fraud for Managerial Accounting The key to stopping fraud is prevention. It is less expensive and more effective to prevent fraud than to detect it. To help prevent fraud, managers set up internal controls. An internal control system is procedures managers use to . Ensure reliable accounting. . Uphold company policies. . Protect assets.0 Promote efficiency . Combating fraud requires ethics in accounting. Ethics are beliefs that distinguish right from wrong. They are accepted standards of good and bad behavior. The Institute of Management Accountants (INIA) requires that management accountants be competent. maintain condentiality. act with integrity. and coirnnunicate information in a fair and credible manner. .Toe Pl'achatree.-"Shutte1'stock Career Paths Managerial accountants are highly regarded, and their professional standing is sometimes denoted by a certificate. Certified management accountants (CMAs) must meet education and experience requirements, pass an exam, and be ethical. Many accounting specialists hold certificates in addition to or instead of the CMA. One of the most common is certified public accountant (CPA). Employers also want specialists with designations such as certified financial manager (CFM), certified internal auditor (CIA), certified bookkeeper (CB), certified payroll professional (CPP), certified fraud examiner (CFE), and certified forensic accountant (CrFA). Managerial accountants are in demand. Exhibit 18.4 reports average annual salaries for several accounting positions. Salaries vary based on location, company size, and other factors. EXHIBIT 18.4 Accounting Salaries Top-Level Managers Annual Salary Senior-Level Managers Annual Salary Mid- and Entry-Level Jobs Annual Salary Chief financial officer (CFO). .... $290,000 Division controller . . . . . . . . . ... $130,000 Financial analyst. . . $85,000 Controller/Treasurer. .... . . . . . . 180,000 General manager . .. . . . . . .. ... 105,000 Senior accountant . . . . . . . . . ... 85,000 Junior accountant 60,000Managerial accounting skills are highly valued and are useful in many careers. page 646 . Marketing uses sales and cost data to decide which products to promote. Management uses sales staff performance data for bonuses. . Entrepreneurs use costs, budgets, and financial reports for financing. . Decision makers in both for-profit and non profit organizations use accounting data to make informed decisions and secure financing from donors. Analytics Insight Jump Start Kickstarter 's crowdfunding site allows budding entrepreneurs to seek financing. Analytics can be used to tailor one's pitch-most successfully funded projects seek less than $10,000. About 37% of all projects are fully funded, with over 60% of theater and dance projects funded, but less than 30% of fashion and food projects funded