TP1. LO 1.1 Table 1.3 shows how different areas within the business world use the information from managerial accountants. Think of the ways that the events coordinator for the United Way (a nonprofit charitable organization) would use each area (planning, controlling, and evaluation). Relating Managerial Accounting Functions to Various Business Majors Sales Human Resources Logistics Planning What are our expected sales for each product in each geographic region? How much should be How much should we budget for salary and wage increases for the year? How much should we plan to spend on safety and training for the year? Should we invest in radio-frequency identification (RFID) processors to enable computer tracking of inventory? How much raw material should be budgeted for salaries and commissions for our ordered and delivered to ensure salespeople? timely delivery of our finished products to our customers? Controlling Are we meeting expected sales growth in each region? Are each of the salespeople meeting their sales projections? Is our projected budget for wages and salaries sufficient? Are we meeting our safety and training goals? Are our products being delivered to our customers in a timely manner, and at what cost? Are we dealing with stock-outs in inventory? If so, what is that costing us? How do our actual sales Evaluating Would it be cheaper to hire temporary What are the cost differences in compare to our forecasted or employees to get through our "busy" starting our own delivery service versus continuing to use other budgeted sales? What sales promotions are our competitors offering, and what effect is it having on our market share? season or to pay our current employees for overtime? carriers? Should we outsource the manufacturing of a component part or continue to make it ourselves? What are the price differences? Table 1.3 TP1. LO 1.1 Table 1.3 shows how different areas within the business world use the information from managerial accountants. Think of the ways that the events coordinator for the United Way (a nonprofit charitable organization) would use each area (planning, controlling, and evaluation). Relating Managerial Accounting Functions to Various Business Majors Sales Human Resources Logistics Planning What are our expected sales for each product in each geographic region? How much should be How much should we budget for salary and wage increases for the year? How much should we plan to spend on safety and training for the year? Should we invest in radio-frequency identification (RFID) processors to enable computer tracking of inventory? How much raw material should be budgeted for salaries and commissions for our ordered and delivered to ensure salespeople? timely delivery of our finished products to our customers? Controlling Are we meeting expected sales growth in each region? Are each of the salespeople meeting their sales projections? Is our projected budget for wages and salaries sufficient? Are we meeting our safety and training goals? Are our products being delivered to our customers in a timely manner, and at what cost? Are we dealing with stock-outs in inventory? If so, what is that costing us? How do our actual sales Evaluating Would it be cheaper to hire temporary What are the cost differences in compare to our forecasted or employees to get through our "busy" starting our own delivery service versus continuing to use other budgeted sales? What sales promotions are our competitors offering, and what effect is it having on our market share? season or to pay our current employees for overtime? carriers? Should we outsource the manufacturing of a component part or continue to make it ourselves? What are the price differences? Table 1.3
