need help Account

1.

The banking industry doesn't have tangible items to sell. Instead it sells services. Each manager, no matter the level, is responsible for maintaining expenses and achieving sells goals. Managerial accounting is used at my current employer to control cost related to payroll, operating expenses, supplies, marketing, business development and quarterly incentives. For example, on a slow traffic day a part-time employee may be allowed to go home to offset the lack of sales for that day. The quarterly incentive rates how well you were able to maintain your budget and whether you achieved your sales goals. It’s all related. A branch that achieves high branch goals will be allotted a higher business development budget and marketing budget. The incentive goals set goals for customer service standards, maintaining operating expenses, growth and sales. Achieving your sales goals brings revenue into the company and maintaining the budget prevents increases in liabilities. Each quarter, the previous quarter is reviewed and the incentive goals are adjusted.

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2.

Managerial finance can be used by my employer by comparing similar companies that market similar products and compare what profits were earned five years ago ,what they earned this year ,and what they hope to earn in the future. They also can use managerial finance to see what areas they need to improve in and how they can make the best improvements for the company. Managerial finance can also determine what the company spent on shipping and how well customers are paying there bills from last year ,this year ,and in the future in the hopes of improving the companies overall profits.

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