Acc Chapter 1

How does managerial accounting differ from financial accounting ?

Financial accounting is concerned with reporting financial information to external parties, such as stockholders, creditors, and regulators. While Managerial accounting is concerned with providing information to managers for use within the organization. Managerial accounting focuses on planning, controlling and decision making from the inside, and emphasis decisions affecting the future, relevance, timeless, segement. does not need to follow GAAP/IFRS, and not mandatory

Why do companies that implement Lean Production tend to have minimal inventories?

Lead production is a management approach that organizes resources such as people and machines round the flow of business processes and that only produces units in response to customer orders). (Just-in-time production) Minimal inventory because they only produce their products as they need them.

Why do companies prepare budgets ?

a budget is a detailed plan for the future that is usually expressed in formal quantitative terms. to help plan salaries and how much you plan to spend in the future.

Provide three examples of how a company's risks can influence it planning, controlling, and decision-making ?

Enterprise risk management , implementing specific controls, proactively managing risks instead of reacting

Why I ethical behavior important to business?

Ethical behavior is the lubricant that keeps the economy running. Without that lubricant, the economy would operate much less efficiently-- less would be available to consumers, quality would be lower, and prices would be higher.