Question

Assignment Questions: 1. As a Chief Management Accountant of a Multi-National Company evaluate your primary duties and responsibilities and compare some of the differences between financial accounting and managerial accounting. (3 Marks) 2. At the beginning of the school year, Mohamed Ahamed decided to prepare a cash budget for the months of September, October, November, and December. The budget must plan for enough cash on December 31, 2018 to pay the spring semester tuition, which is the same as the fall tuition. The following information relates to the budget: Cash balance, September 1 (from a summer job) $8,810 Purchase season football tickets in September 120 Additional entertainment for each month 310 Pay fall semester tuition in September 4,800 Pay rent at the beginning of each month 430 Pay for food each month 240 Pay apartment deposit on September 2 (to be returned December 15) 600 Part-time job earnings each month (net of taxes) 1,090 a. Prepare a cash budget for September, October, November, and December. Enter all amounts as positive values except cash decrease which should be indicated with a minus sign. Sometimes an item may be a decrease in one period and an increase in a different period. Review the definitions of static budgets and flexible budgets. What weaknesses are shown by this cash budget? (3marks) b. Are the four monthly budgets that are presented prepared as static budgets or flexible budgets? (1 marks) c. Mohamed can see that his present plan sufficient cash. If Priscilla did not budget but went ahead with the original plan, she would be s at the end of December, with no time left to adjust. What are the budget implications for Mohamed Ahamed? (2 marks) 3. The following data are available in a manufacturing company for a yearly period: Particulars Fixed expenses: Wages and Salaries 9,50,000 Rent, Rate & Taxes 6,60,000

doctor just give this infirmation

Answer 1

As a chief managerial accountant - primary responsibilities will revolve around:

• Cost reduction;
• Quality improvement of the product;
• Budget preparation;
• Standard and Variance analysis - to set accountability and find reasons for unachieved results;
• Identifying bottlenecks and their proper resolution;
• Project Profitability and CVP analysis;
• Decisions related to make or buy a specific product;
• Job costing and Price fixation;
• Inter-departmental transactions - such as transfer pricing, profit distributions, and overhead allocations.

What are the differences in financial accounting and management accounting:

• Financial reporting (FR) reports overall broader results of the business whereas managerial accounting reports the results in a much detailed and decision-aid oriented manner;
• FR is profitability oriented whereas Managerial accounting is problem-solution oriented;
• FR is almost in every case is history-oriented (balance sheet, P&L, etc.) whereas managerial accounting is sometimes history-oriented but also a lot of times future-oriented e.g. budgets, forecasts and standard-setting;
• FR is concerned with valuations and their impairments of the assets whereas Managerial accounting is always productivity-oriented;