Decision Making Techniques in Managerial Accounting

Managerial accounting comprises all the financial information needed to help managers make educated decisions and do their job duties efficiently. A typical manager’s responsibilities with managerial accounting include interpreting finance reports and projections and using those to make financial decisions that will affect the company. Since managers have to make routine decisions and finalize reports periodically, it is vital that they are able to conduct healthy decision making processes and are able to come to make quick educated conclusions. While there are plenty of decision making models to utilize with business situations, when it comes to making maximizing decisions the best one to use is the rational decision-making model. BSE†¦show more content†¦The Rational Decision-Making model is filled with eight steps that ensure through review of all items and possibilities that occur. The first step is to identify the problem at hand, the second step is establishing selection criteria in order to filter all candidates, and the third step would be evaluating the previous set criteria for true importance and rank. The forth step is making substitutes for all options and then step five is assessing those completely. The sixth step is choosing the best choice and step seven is when the final decision is put into practice. Last, the final most important step is to regroup and review the decision and how it affected the problem (Bauer Erdogan, 2010). When making decisions it is imperative that the prime decision maker keeps in mind various traps that will hinder the entire process. These barriers can cloud judgment, completely delay the process of giving a final verdict, or can serve as a devastating lost to the decision maker because of bad choices. The most delaying trap that can occur doing normal decision making processes is called analysis paralysis, which happens by gathering too much information and not being able to reach a final consensus because of it (Bauer Erdogan, 2010). Another very common fatal trap is anchoring, which occurs when too much emphasis is placed on a single amount of information or selectionShow MoreRelatedBUS 630 Final Paper1617 Words   |  7 PagesDecision Making with Managerial Accounting Managerial accounting is essential for decision making. Making the best choice depends on the managers goals, the anticipated results from each alternative, and the information available when the decision is made (Schneider, 2012). The different techniques associated with managerial accounting are very helpful in the decisions that need to be made. In order to truly understand decision making with managerial accounting one must first discern exactlyRead MoreDecision Making With Managerial Accounting1563 Words   |  7 PagesDecision Making with Managerial Accounting Accounting is the process charged with the identification, measurement and the communication of economic information in the aim of allowing the desired users in making the correct decisions and judgments. Accounting has two branches depending on the users. Managerial accounting isuseful to core users unlike financial accounting which is more essential to exterior users. Management accounting is, therefore, the identification, analysis, recordRead MoreManagerial Accounting1152 Words   |  5 PagesManagerial Accounting 12/3/15 Managerial Accounting Accounting is a crucial part in running a business. There are various forms of accounting that can be used, it is very important to know which technique is best to use for what companies. Once you figure out a particular technique to use, it is important to keep an open mind if there are any changes that need to take place in the business. By keeping an open mind helps the business adjust and be able to make the right decisions. Every businessRead MoreFinancial Accounting And Managerial Accounting1613 Words   |  7 PagesIntroduction: Both financial accounting and managerial accounting provide important information about the business process. On the one hand, financial accounting provides only financial information to its internal users and external users. On the other hand, managerial accounting basically communicates about financial and non-financial information with internal users such as managers, employees and owners of the company. In other words, managerial accounting provi des information to managers who directRead MoreAccounting753 Words   |  4 PagesCampbellsville University School of Business and Economics SYLLABUS Course Title: ACC 601 Managerial Accounting Semester/Dates: Graduate Term 1: August 29, 2011 – October 23, 2011 (Traditional MBA) Meetings: Thursday (6:00 PM – 10:00 PM), AD 25 Faculty: Dr. Sunny Onyiri Office: AD 29-b Phone: (502) 365 4424 Read MoreApplying Personal Managerial Accounting Problems1296 Words   |  6 PagesACT510Z-AGAC02S-01-Accounting Theory for Management Decisions, by Dr. Miller which is a hybrid class; and 2. FIN540X-A1-07-Managerial Finance by Dr. Anne which is a fully online class Outcomes from my first course ACT510Z to My Workplace The course outcomes for the ACT510Z-AGAC02S-01-Accounting Theory for Management Decisions - by Dr. Miller (Sullivan University, 2015a, P1) are: †¢ Solve various managerial accounting problems †¢ Utilize critical thinking skills in addressing various managerial accounting issuesRead MorePort Authority Analysis1245 Words   |  5 PagesAuthority exploits managerial accounting techniques to increase profit margin and maintain its competitive edge over the neighboring airports. Meanwhile, managerial accounting instruments assist terminal managers in recognizing, measuring, analyzing, deciphering, and conveying data information to realize the Organizations goal (Hilton Platt, 2017). With a balanced scorecard implemented, all managers, including managerial accountants, use the strategy for accurate decision-making to reduce cost andRead MoreManagerial and Financial Accounting1235 Words   |  5 Pagesï » ¿Part 1 Managerial and Financial Accounting: Key Differences Several differences exist between the above branches of accounting. To begin with, when it comes to financial accounting, the financial reports prepared are primarily utilized by external users including but not limited to regulators, creditors and stockholders (Weygandt, Kimmel and Kieso, 2009). On the other hand, managerial accounting reports are primarily meant for internal users i.e. managers and other officers of the firm. TheseRead MoreWhy An Ais ( Accounting Information System Is Not Optional But Mandatory1443 Words   |  6 PagesFinancial accounting is the procedure that encompasses the planning of financial reports on the organization for utilization by both inside and outside parties. Clients of these related reports incorporate investors, speculators, lenders, administrators, managers, unions, as well as external government agencies. Conversely, managerial accounting is the procedure of recognizing, measuring, investigating, and imparting financial information required by administration and management to plan, arrangeRead MoreEssay about Financial Accounting versus Managerial Accounting Matrix640 Words   |  3 Pagesï » ¿University of Phoenix Material Role of Financial Accounting versus Managerial Accounting Matrix Compare and contrast financial accounting and managerial accounting by answering the following questions in the matrix provided. Cite any sources you use in accordance with APA guidelines. Term or Concept Financial Accounting Managerial Accounting What is the primary purpose of the accounting system? The main purpose of financial accounting is to prepare financial reports that provide information

The Negative Effect of Divorce on Children Essay - 941 Words

The Negative Effect of Divorce on Children Divorce has a negative effect on the psychological and social aspects of our children, which may appear instantly or not come to the surface for years. This is why I think that divorce should only be a last resort and not rushed into even by couples with the most troubled marriages. The only acceptable reason for someone rushing into divorce is if they or their children are in danger. I believe that marriage is a commitment not to be taken lightly and disregarded at the first bump in the road especially when there are children involved. Far too many people do not want to take responsibility for their actions and choices; for example, people use abortion as birth control and couples’ jumping in†¦show more content†¦Sometimes divorce has the opposite effect and actually causes more issues for them and their children. Marriages are difficult and require work; some days you have to choose to stay no matter how you feel. You made that commitment and every marriage will arrive at bumps in the road or crossroads. You will not always agree on every issue and sometimes life’s hardships will add unneeded stress to an already rocky situation but if you take a stand and chose to wait it out issues have a way of working themselves out. Some marriages end because one spouse decides that the grass must be greener on the other side. This is a cowardly and selfish way to look at your marriage. There should be enough love and respect in your relationship where you can go to your spouse and say that this need is not being met and you’re struggling. I believe if your marriage is based on honesty, faith and trust that there is no mountain that you can’t climb together. The sun may not always be shining but together you can learn to dance in the rain. I am one of those children; that was negatively affected by divorce. I grew up in a broken home with step parents and step siblings. My relationship with my parents was far from ideal and out of four siblings, I’m only close to one older sister. Now for me when I decided to get married, I expected it to last. I did my absolute best to keep my family from falling apart. IShow MoreRelatedNegative Effects Of Divorce On Children1072 Words   |  5 PagesWhat are the Negative Effects of Divorce on Children When I was five years old I was forced to make a choice. This was a choice many children should not have to make and can never really be prepared for. My parents were getting a divorce and they decided it was in my best interests to give me the option to live with whomever I chose. It was a burden that to this day affects my relationship with one of my parents. Ultimately, I chose to live with my mother and from then on, my father would barelyRead MoreNegative Effects of Divorce on Children Essay889 Words   |  4 PagesNegative Effects of Divorce on Children Divorce has a strong negative effect on children. The children are brought into the family and then ripped out of what they know is right or of their norms. James M. Henslin defines the family as being two or more people who consider themselves related by blood, marriage, or adoption (445). When married you are instantaneously put into a family. When two people decide to get a divorce, their children do not wholly understand what is going on. RegardlessRead More The Negative Effects of Divorce on Children Essay1528 Words   |  7 PagesThe Negative Effects of Divorce on Children So many persons think divorce a panacea for every ill, find out, when they try it, that the remedy is worse than the disease (Qtd in Harper 192). Divorce, in any circumstance, rips a child apart, tossing him/her from one house to another, limiting time spent with his/her parents, and confusing him/her. There are very few reasons that would prove to be more beneficial for the parent to leave than to stay and endure his/her marriage. Usually it isRead MoreDivorces Have Negative Effects on Children Essay1050 Words   |  5 Pages In our nation divorce is a big part of life. Divorce is the legal dissolution of marriage or the termination of an existing relationship or union. Divorce starts with two adults but always ends up impacting the children in the biggest way. Sons and daughters of divorce often feel confused and abandoned, lose their family structure, and experience identity crisis. Many parents never bother to think of how divorce will affect their children. Children are impacted by divorce in multiple ways.Read MoreHow Does Divorce Create Long Term Negative Effects For Children? Essay1953 Words   |  8 PagesDivorce is one of many controversial subjects in family and human development research. What inspired me to critically analyze the article â€Å"Does Divorce Create Long-Term Negative Effects for Children?† is the challenge it would be for me to put my bias aside considering I am from a divorced home. After reading the article and analyzing it over and over, I can’t help but think that the writer answering â€Å"YES† to this controversial question overlooked many variables and over generalized his findingsRead Morethe effects of divorce on children and adolescents Essay example1035 Words   |  5 Pagesï » ¿The effects of Divorce on Children and adolescents Divorce or the parent separation is a major life change for the children and can lead to dreadful consequences. Divorce affects children and adolescents negatively, from different aspects resulting from the change in their family and the multiple stressors that they are facing. The Psychological, educational, emotional and social effects of divorce can be really devastating for both parent and children. Children andRead MoreChildren of Divorce Essay655 Words   |  3 Pages Summary Assignment Terrill Ray DeVry University ENGL 135 Summary Prewriting Theme: Family Topic: Children of Divorce Title: Consequences of parental divorce for child development. Hyun Sik Kim is likely against too much government influence on schools and feels that government control is detrimental. Intended audience: The American Sociological Review (ASR) publishes original (not previously published) works of interest to the discipline in general, new theoretical developments, results of qualitativeRead MoreThe Effects Of Divorce On Child Development1194 Words   |  5 PagesThe Effects of Divorce on Child Development I met the love of my life in my financial accounting class. He was charming, and intelligent, and he carried himself well. Early into our relationship I realized underneath this assuring exterior, was a broken, unstable man. He had issues with trust, and he always took many health risks. He explained to me how hard it was for him to attach himself to people because he figured they would leave anyways. Nothing is forever. he seemed to believe. On topRead MoreHow Divorce Has Changed Changing Society1491 Words   |  6 Pagesanalyze correlation, causation, and effect. One topic that has benefited from the use of statistics to measure its effects is divorce. Divorce is defined as the legal process of dissolving a marriage, thus separating two individuals (Merriam). From generation to generation, divorce has been on a steady increase. The annual rate of divorce more than doubled between the mid-1960s and the early 1980s (Croteau). As of recent, statistics show an increase in divorce ra tes from less than 20% to nearly 50%Read MoreEssay about The Effects of Divorce in American Culture1719 Words   |  7 PagesThe effects of divorce on the American culture are immense. Social scientists have been studying these effects for many years now. The studies are continuing to confirm that the climbing rate of divorce in the American culture is hurting the society and also frequently devastating the lives of many American children. More often than not people decide to get a divorce before they really think about the effects of divorce. People usually decide to get a divorce based on emotion rather than logic which

International Business Communication Phase Free Essays

The management team from the United States will be in charge of the staffing for said restaurants. There will be a meeting of Executives in the United States, to explain the project and provide everyone with the necessary information needed to complete the task at hand, also giving the chance for all the executives get acquainted. Communication is very important in the business world and is required when expanding business to other countries. We will write a custom essay sample on International Business Communication Phase or any similar topic only for you Order Now To have a complete understanding of a different culture, there has to be respect of customs, manners, and ethnicities. It is important to understand being able to communicate both verbally and non- verbally is the key to success. Because each of the groups may speak a different language, it needs to be priority number one to make sure everyone is on the same page and there is no confusion. Some cultures can feel uncomfortable and insult others, when there is a lack of cultural understanding. Differing cultural standards of these countries include but are not limited to, politics, social, and education. The language hurdles are an issue because of the people not knowing the other language does not understand when people have questions or comments. This will disturb the demonstration because it can cause confusion with communication between the different people and can cause them to be confused of the meeting and the information that they need to operate the business as taught. Language barriers can also cause rational replies and destructive sensitive replies. There are many approaches to aid everyone to improve a relationship with each other to help in conveying, execution, and growth. Other approaches consist of creating a bond, ask questions about their culture, opinion, and customs, and listen courteously to all persons to gain a complete understanding and knowledge of their views and their culture Conveying proficiently will let agreeing conditions between businesses partners become more easily. The win-win model would be the best form of a negotiating model for negotiating each set of partners. The win-win model entails agreeing on terms, both sides believing they have won. Conditionally, there are different types of coming to terms more efficiently. The key to coming to an agreement, there needs to be an agreed upon set of terms both arties understanding what the other party wants, without taking away from the initial goal. A conflict can possibly arise, if there is a conflict of interest or if one feels one way and the other individual feels another way. When conflict arises, it is very important to know that there is a conflict and a resolution is required. The outcome of a conflict can be either positive or negative. There are many techniques that can be developed to assist in handling conflict. It is important to know how important it is to satisfy your own needs and the needs of the other individual needs. To overcome conflicts, there are many strategies that you can use. Taking care of you and knowing yourself consist of understanding triggers and creating a better environment. The next strategy is to clarify the personal needs that are threatened by the conflict. To clarify the personal needs, means to be substantive and identify what the desired outcome of the negotiation process is. Find a safe place to negotiate is another strategy that consists of appropriate space to negotiate, appropriate time, and agreeing on the ground rules. Taking the time to listen ill help when conflict arises; because it will help you know what is being said by listening actively and help you have a clear understanding of what the other individual is saying. Specifically and clearly asserting your needs means to build from what you are hearing and using messages to clarify what is being said. Approaching flexibility and problem solving is a method for handling conflict and it means to find a solution or options identify the issues concisely and clearly, are open-minded, and to clarify what the criteria is for making the right decisions. Managing the issue calmly, patiently, and successfully will help to clarify any feelings, focus on the interests and needs, and to take a break. Also, implement and evaluate the issue and know what the cause was for the conflict and it will show you how to handle it if the situation was to arise again. Errors that can happen when negotiating contracts are very likely. Making sure when asking questions you leave the question open so the other party feels like they are being included. The other parties needs and expectations are considered, this helps them feel what they are proposing is not being disregarded. Self-defeating compromise is another mistake to avoid. This is cause from the fear of losing the deal or fear that the people you are negotiating with are taking advantage of you. Directing insensible messages is a no-no because it will show when a person is anxious or self-critical, the best thing to do is manage the problematic thoughts. Short term thinking will help to end the negotiating process fast and help gain immediate benefits. Talking too much is a mistake, because it can cause you to negotiate against yourself, rather than for yourself. When negotiating, you have to wait or pause and be informal able with being silent. Requiring face to face meetings is a mistake because it is best to negotiate at a distance. Negotiating at a distance will help come to a better agreement and it help an individual concentrate more on the high priority items by looking at the issues in an abstract way. Being too pasty is a mistake that is made by most individuals when negotiating because it makes things look desperate when you are trying to push an individual to say yes. Rather than push the individual to say you, you need to provide the individual what the chance to say not. How to cite International Business Communication Phase, Papers

Net Present Value and Washington State University free essay sample

Washington State University Finance 325 Practice Problems 1. What is the net present value of a project with the following cash flows and a required return of 12 percent? Year 0 1 2 3 Cash Flow -$28,900 $12,450 $19,630 $ 2,750 2. What is the net present value of a project that has an initial cash outflow of $12,670 and the following cash inflows? The required return is 11. 5 percent. Year 1 2 3 4 Cash Inflows $4,375 $ 0 $8,750 $4,100 3. A project will produce cash inflows of $1,750 a year for four years. The project initially costs $10,600 to get started. In year five, the project will be closed and as a result should produce a cash inflow of $8,500. What is the net present value of this project if the required rate of return is 13. 75 percent? 4. You are considering the following two mutually exclusive projects. The required rate of return is 11. 25 percent for project A and 10. 75 percent for project B. Which project should you accept and why? Year 0 1 2 3 Project A -$48,000 $18,400 $31,300 $11,700 Project B -$126,900 $ 69,700 $ 80,900 $ 0 5. We will write a custom essay sample on Net Present Value and Washington State University or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page You are considering two mutually exclusive projects with the following cash flows. Will your choice between the two projects differ if the required rate of return is 8 percent rather than 11 percent? If so, what should you do? Year 0 1 2 3 Project A -$240,000 $ 0 $ 0 $325,000 Project B -$198,000 $110,800 $ 82,500 $ 45,000 6. A project will produce an operating cash flow of $7,300 a year for three years. The initial cash investment in the project will be $11,600. The net after-tax salvage value is estimated at $3,500 and will be received during the last year of the project’s life. What is the net present value of the project if the required rate of return is 11 percent? 1 Washington State University Finance 325 7. A project is expected to create operating cash flows of $22,500 a year for three years. The initial cost of the fixed assets is $50,000. These assets will be worthless at the end of the project. An additional $3,000 of net working capital will be required throughout the life of the project. What is the project’s net present value if the required rate of return is 10 percent? 8. A project will produce operating cash flows of $45,000 a year for four years. During the life of the project, inventory will be lowered by $30,000 and accounts receivable will increase by $15,000. Accounts payable will decrease by $10,000. The project requires the purchase of equipment at an initial cost of $120,000. The equipment will be depreciated straight-line to a zero book value over the life of the project. The equipment will be salvaged at the end of the project creating a $25,000 after-tax cash flow. At the end of the project, net working capital will return to its normal level. What is the net present value of this project given a required return of 14 percent? Answer Keys 1. NPV = ? $28,900 + $12,450 $19,630 $2,750 ; NPV = -$177. 62 (negative) + + 1 2 (1 + . 12) (1 + . 12) (1 + . 12) 3 2. NPV = ? $12,670 + NPV = $218. 68 3. NPV = ? $10,600 + NPV = -$1,011. 40 $4,375 $0 $8,750 $4,100 + + + 1 2 3 (1 + . 115) (1 + . 115) (1 + . 115) (1 + . 115) 4 $1,750 $1,750 $1,750 $1,750 $8,500 + + + + 1 2 3 4 (1 + . 1375) (1 + . 1375) (1 + . 1375) (1 + . 375) (1 + . 1375) 5 4. NPVA = ? $48,000 + $18,400 $31,300 $11,700 + + ; NPVA = $2,326. 46 1 2 (1 + . 1125) (1 + . 1125) (1 + . 1125)3 $69,700 $80,900 NPVB = ? $126,900 + + ; NPVB = $1,991. 56 1 (1 + . 1075) (1 + . 1075) 2 Difference in NPVs = $2,326. 46 $1,991. 56 = $334. 90 The answer states that the NPV of Project A exceeds the NPV of project B by about $335. 5. At 8 percent, Project A has the higher NPV. At 11 percent, Project B has the hi gher NPV. 6. $8,798. 29 7. $5,208. 11 8. $27,958. 66 2 Washington State University Finance 325 3