Managerial Accounting Week 8

1. What is the difference between financial accounting and managerial accounting?

2. Explain the two reasons why the shorter the payback period the more attractive the investment is when the payback technique is used?

3. Distinguish between a master budget and a sales forecast.

4. Explain the nature and importance of a job cost sheet.

5. Distinguish among operating, investing, and financing activities.

6. Managers’ activities and responsibilities can be classified into three broad functions. List and discuss each function.

7. Identify and discuss the relevant costs in accepting an order at a special price.

8. Smith & Company claims that the relevant range concept is only important for variable costs. Explain the relevant range concept and discuss whether you agree with Smith & Company.

9. What is a CVP analysis and how is it used in managerial accounting?

10. What is the difference between: unit-level, batch-level, product-level, and facility-level activities?

Discussion Question. (Please put this on a separate sheet from the 10 questions above.)

· Managerial Accounting

Discussion: Reflection and Review

Review and reflect on what you learned in the past 8 weeks. What is the most practical and easily applied lesson you learned? What was the hardest to grasp? Why? What else do you need to know about Managerial Accounting?