Question 1
Financial reporting is a centerpiece of a company's current financial condition. The financial community then relies on the financial statements to be accurate in order to make financial decisions. The premise of responsibility for accurate reporting is then that of management's. How then do you see management's accomplishing this role and by what methods? Refer to examples, especially from your reading and study this module.
Question 2
Variances represent the difference between actual results and the expected results of an activity or measure. Expected results are often referred to as budgets. One of the key methods that cost accountants use to measure performance is the variance of actual performance against that of the budget for the period.
Describe an example of an activity that you would use variance analysis as a means to measure its performance over time. Include in your description which risks the use of variance analysis would pose to ensuring the example stays on track.
Question 3
Imagine you work for a small manufacturing company that makes designer faucets for kitchen and bathroom remodeling. They have a small design team, a sales group, and a manufacturing facility. Most sales are conducted directly with remodeling contractors. Senior management has started reading about knowledge management and has asked you to explore opportunities for improving knowledge.
What do you think are the most important knowledge assets for this company? How could each of the following employee groups benefit from knowledge management? Designers and engineers, Sales department staff, Executive Management.