Functions of Organization
Enumerate the 2 broad functions of an organization.
line function
staff function
sometimes called as administrative level
•Top Management
They both deals processing information which is useful in decision-making.
Managerial Accounting and Financial Accounting
Cost accounting is a systematic set of procedures for recording and reporting measurements of the ______________ and performing services in the aggregate and in detail
cost of manufacturing goods
What does IMA stands for?
Institute of Management Accountants
It is the one that is directly involved in the core operations of the company such as sales and production.
•Line Function
What does the top management consists?
Chief Executive Officer(CEO) and the Board of Directors (BOD)
What does a Managerial Accounting processes?
It processes economic information to be used by management in making decisions.
________ utilizes cost accounting concepts. Cost accounting provides the needed values to be reported in the financial statements, especially in the computation and presentation of cost of sales.
FINANCIAL ACCOUNTING
Give the four standards of IMA Code of Ethics
Competence
-Confidentiality
-Integrity
-Credibility
It provides advisory and support to the organization.
•Staff Function
Enumerate the levels of management. (in order)
•Top Management
•Middle Management
•Low level Management
________ involves preparation of general-purpose financial statements used by various users in making informed decisions
Financial Accounting
•MANAGERIAL ACCOUNTING provides information to the members of the management for ______ purposes, and this information may include cost information from cost accounting.
decision-making
A standard that requires of being updated on industry knowledge and skills.
competence
How does the management accountants performs Staff function?
They support the company by providing information to enable decisions which are vital for the company’s performance and continuity.
They implement and execute the plans and policies set by the top managements.
•Middle Management
Who are the users of managerial accounting?
Internal
WHat is the main function of COST ACCOUNTING?
the cost accumulation and allocation to determine cost values
A standard that asks to Act with honesty and fairness
integrity
•Is the branch of accounting that focuses on providing information for internal parties-i.e. the company’s management, to aid in decision-making
Managerial Accounting
What is the responsibility of those under the low level management?
responsible in directing and controlling the day-to-day operations of the company.
Differentiate managerial and financial accounting in terms of Compliance with Accounting Standards and Time Orientation.
financial accounting-Required;Historical
managerial accounting-Not Required;Current and Future
Differentiate Cost accounting to Managerial and Financial Accounting
COST ACCOUNTING is in itself a separate subset, but is present in both managerial accounting and financial accounting
Name atleast one standard for COde of Ethics that you will explain and support it with example.
1.Competence:
1.Stay updated on industry knowledge and skills.
2.Example: Regularly attending professional development courses to ensure accurate financial reporting.
2.Confidentiality:
1.Protect sensitive information.
2.Example: Not sharing a company's upcoming merger details outside of work.
3.Integrity:
1.Act with honesty and fairness.
2.Example: Declining gifts from a vendor to avoid conflicts of interest.
4.Credibility:
1.Provide clear and accurate information.
2.Example: Ensuring financial statements are free of misleading data.