I need you to answer my peer's discussion post in a detailed manner with sources/references/citations, please. State if you agree or disagree. Answer each post separately. This is the discussion post my peers are answering too: Managerial accounting is concerned with providing information to managers so they may make business decisions that satisfy customers while continuously monitoring costs and improving efficiencies. Some reports provide timely updates on key indicators while others investigate problems such as declined profitability. Please list a report or activity you learned about in managerial accounting which would be useful if implemented in either a) a current or past place of employment or b) your personal life. Describe how the report would help in your job or personal life. (NO AI PLEASE)

Post 1

Hello Class,

One valuable report in managerial accounting that could be implemented in both a professional and personal setting is a variance analysis report.In a professional environment, such a report would help identify discrepancies between budgeted or expected costs and actual costs incurred in various business activities. By comparing the budgeted or standard costs to the actual costs, managers can pinpoint areas of inefficiency, cost overruns, or unexpected expenses. This allows for timely adjustments to be made to improve cost control, operational efficiency, and overall profitability. For instance, if a manufacturing company notices a significant variance in the cost of raw materials, they can investigate the root cause, such as supplier price increases or inefficient production processes, and take corrective actions accordingly.In a personal context, I have applied variance analysis reportfor my personal finance management. By comparing budgeted expenses to actual expenses, I identified areas where they may be overspending or where expenses are higher than anticipated. This insight enables me to adjust my spending habits, prioritize expenses, and work towards financial goals more effectively. Implementing a variance analysis report can facilitate better decision-making, cost control, and efficiency improvements both in a professional setting and in personal finance management.

Reference:

Managerial accounting, Investopedia, April 2024, https://www.investopedia.com/terms/m/managerialaccounting.asp

Post 2

Hello Class,

I work as a finance clerk at a convenience store, I think that this course has been of great benefit to me in many ways. It has shown me different managerial accounting practices and how to implement them in my day-to-day work. One reporting activity that really stands out to me and I tend to use it daily is the Recording and Reconciling Daily Sales Transactions Report.

I refer to them as Daily Cash Reports, I collect all the previous day's sales transactions and reconciliation reports from the cash registers and enter them into an excel sheet for each cashier that worked that day. This helps to ensure accurate financial reporting and tracks all daily sales so that I can identify any discrepancies immediately. It provides an insight into the revenue trends that take place daily and allows me understand the overall financial health of the store and maintain reliable financial data which is essential for budgeting, forecasting, and decision-making.

Reference:

Garrison, R. H., Libby, T., & Webb, A. (2020). Managerial accounting (12th ed.). McGraw-Hill Ryerson Ltd.

Post 3

Hello Class,

Yes, a lot of valuable information and learning, indeed. The managerial accounting activities and reports introduced in this course have significantly impacted the expansion of my financial awareness of the processes that can be used to make confident and profitable decisions. As a farm business owner and operator, I resonate most with the capital budgeting decisions unit. Our mixed operation is full of the typical capital budget decisions involving purchasing new equipment or introducing a new product (Garrison et al., 2020, pg.604). The decisions our operation experiences consistently would be to lease or buy and equipment replacement decisions (Garrison et al. 2020, pg. 604). A recent spring challenge has occurred, and our operation is considering replacing our current seeding equipment. We are wondering whether to replace it now and which of several available machines should be purchased (Garrison et al. 2020, pg. 2020). Therefore, the total cost approach method to illustrate the least-cost decision is useful for deciding between purchasing a new seeding drill or keeping the old one. Purchasing a new seeding drill is a significant purchase. Therefore, the least-cost decision method reveals its importance in approaching the decision with an actual report of real data and analysis, which could help manage the risk of such a significant investment for our farm operation.

Thanks,

Garrison, R. H, Webb, A., & Libby, T. (2020). Managerial accounting (12th ed.). McGraw-Hill Ryerson Ltd.