Cost Accounting Essay

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Eduardo Carrillo 8/27/15 Cost Accounting Chapter 1 & 2 Discussion Questions 1. Cost management can be described as controlling and planning the business’ money. It differs from management accounting because of three objectives that the management accounting has. They are costing services, products and other objects. Planning and control and finally decision making. 2. In financial accounting it focuses on producing for external users when the cost management focuses on internal users. 3. The factors that affect the cost management are competition, growth in the same industry as the company, and improvements in manufacturing technology. 4. A flexible manufacturing system is enterprise resource planning which is designed…show more content…
Line positions workers have a direct responsibility of objectives while the staff positions have an indirect position towards the company objectives. 7. I believe the controller should be in the same level as other top management staff because he/she is in charge of all the company’s budgeting and has a more detailed understanding in the financial position that the company stands in. 8. Planning is when the company prepares a future route that the company will take. Controlling is the follow up after planning. Here the company monitors the outcome that their plan has taken. Finally the feedback stage is when the company takes the information that was received from the previous steps and evaluates it. From there another decision is taken depending if it is a positive or negative result. 9. The role of cost management regarding continuous improvement depends on the performance. The company is always striving to increase sale, come up with innovating technology that allows them to get ahead of their competitors. The cost management team gives the information needed by the top management to make decisions. 10. The performance reports shows the sales and cost of goods sold for a certain period in the company. The controlling part of the company then monitors this kind of data and that’s when it determines if the company is going in the right…show more content…
I disagree because there are some companies that are willing to do the wrong thing in order to come out on top in terms on profits or sale. If it is beneficial enough then they might be tempted to ignore the right thing. 13. Yes because those people in the position of management have more power than others and they must be even more cautious when acting for a company’s future. 14. The three forms of accounting certification are CPA, CMA, and CIA. The best certification for a management accountant is the CMA because it is accepted globally and it requires the certificate holder to be up to date with everything related to management. 15. The two examinations that must be passed to obtain the certificate are the decision making and the financial planning, performance, and control. They must meet different qualifications than the accountants meet which puts them in a better positon of managing certain areas of a company. Chapter 2 1. An accounting information system can be described as a form of collecting information by analyzing, classifying, and managing data so it can be given to others. 2. The financial accounting system focuses on outputs for external users when cost accounting focuses on internal outputs to meet the company’s
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