You have come to the end of your training at Red Duv Aviation. You have recently learned that managerial accountants earn between $43,424 and $101,153 per year. You have also learned that Red Duv pays managerial accountants in the upper range of this amount. Rumor has it that Red Duv is planning to keep one apprentice on full time after the summer.
You have been asked to write a report summarizing your training as a management accountant. The report will be closely looked at when deciding who will stay on with the company full time. Lucky for you, you followed directions in the training and already have your rough draft ready to polish.
The paper should contain eight (8) sections. In 1500 – 2500 words summarize the following:
1. Managerial Accounting: Define and discuss in detail managerial accounting. What is its purpose? How is it used? What are the primary responsibilities of a management accountant? Discuss some of the differences between financial accounting and managerial accounting. Summarize the ethical standards of management accountants.
2. Job Order Costing: Define job order costing. Compare and contrast job order costing with process costing. Trace the flow of costs through a job order costing system. Discuss manufacturing overhead and how it is applied. Why is the manufacturing overhead account adjusted at the end of the period?
3. Process Order Costing: Define Process order costing. Trace the flow of costs through a process order costing system. Explain the concept and calculation of equivalent units of production. Discuss the production report as a decision making tool.
4. Cost Management Systems: Analyze the process of assigning and allocating costs. Discuss the development of an activity-based costing system and how activity based costing system and how activity based management is used in decision making. Compare and contrast Just-In-Time and Quality Management Systems.
5. Cost-Volume-Profit Analysis: Analyze cost behavior in relation to changes in volume. Define contribution margin and its use in computing operating income. Discuss cost-volume-profit (CVP) analysis and how it is used as a decision tool.
6. Variable Costing: Compare and contrast variable costing with absorption costing, highlighting the differences between operating income. Discuss the use of variable costing for decision making in a manufacturing company and a service company.
7. Decision Making: Discuss how relevant information is used to make short-term decisions and how pricing affects short-term decisions. Explain the concept of capital budgeting and detail the capital budgeting techniques used to make decisions. This includes, the payback method, the accounting rate of return method, and the discounted cash flow method.
8. Budgets and Standard Costing: Evaluate the different types of budgets and discuss how operating and financial budgets are prepared for a manufacturing company. Discuss the use of budgets and standard costs to control business activities. Explain how standard costs are used to determine variances.