Discuss the sources of accounting information


Response to the following problem:

Both managerial accounting and financial accounting provide useful information to decision makers. Indicate in the following chart the most likely source of information for each business decision (a decision can require major input from both sources, in which case both can be marked).

 Primary Information Source                                                        Business Decision             Managerial Financial

1. Plan the budget for next quarter . . . . . . . . . . . . . . . . . .                ____                                      ____

2. Measure profitability of all individual stores . . . . . . . . .                     ____                                      ____

3. Prepare financial reports according to GAAP . . . . . . . .                     ____                                      ____

4. Determine location and size for a new plant . . . . . . . .                      ____                                      ____

5. Determine amount of dividends to pay stockholders. .                       ____                                      ____

6. Evaluate a purchasing department's performance . . . .                      ____                                      ____

7. Report financial performance to board of directors. . . .                      ____                                      ____

8. Estimate product cost for a new line of shoes . . . . . . . .                    ____                                      ____

 

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Managerial Accounting: Discuss the sources of accounting information
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