Managerial Accounting
Essay by people • May 22, 2012 • Essay • 465 Words (2 Pages) • 1,734 Views
Managerial accounting provides economic and fi nancial information for managers
and other internal users. The skills that you will learn in this course will be
vital to your future success in business. You don't believe us? Let's look at some
examples of some of the crucial activities of employees at Current Designs, and
where those activities are addressed in this textbook.
In order to know whether it is making a profi t, Current Designs needs accurate
information about the cost of each kayak (Chapters 2, 3, and 4). And to stay
profi table, Current Designs must adjust the number of kayaks it produces in light
of changes in economic conditions and consumer tastes. It then needs to understand
how changes in the number of kayaks it produces impact its production
costs and profi tability (Chapters 5 and 6). Further, Current Designs' managers
must often consider alternative courses of action. For example, should the company
accept a special order from a customer, produce a particular kayak component
internally or outsource it, or continue or discontinue a particular product line
(Chapter 7)? Finally, one of the most important, and most diffi cult, decisions is what
price to charge for the kayaks (Chapter 8).
In order to plan for the future, Current Designs prepares budgets (Chapter 9),
and it then compares its budgeted numbers with its actual results to evaluate performance
and identify areas that need to change (Chapters 10 and 11). Finally, it
sometimes needs to make substantial investment decisions, such as the building
of a new plant or the purchase of new equipment (Chapter 12).
Someday, you are going to face decisions just like these. You may end up in
sales, marketing, management, production, or fi nance. You may work for a company
that provides medical care, produces software, or serves up mouth-watering
meals. No matter what your position is, and no matter what your product, the
skills you acquire in this class will increase your chances of business success. Put
another way, in
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