Assignment MA

17/1/2010..

1..What is the basic difference in orientation between financial and managerial

accounting?

Answer:
-Managerial accounting provides information for managers inside an
organization who direct and control its operations.
-Financial accounting provides information to stockholders ,creditors and
others who are outside the organization.

2. What is mean by a business strategy?

Answer:
A strategy is “game plan” that enables a company to attract customers by
distinguishing itself from competitors. The focal points of company ‘s strategy
should be its target customers. A company can only succeed it it creates a
reason for customers to choose it over a competitor. These reason or what
are more formally called customer value propositions, are the assence of
strategy.

3. Describe the three broad categories of customer value propositions

Answer:
Customer intimacy ,operational excellence and product leadership.

4. Describe the three major activities of a manager?

Answer:
Planning
Directing and motivating
Controlling

5. What are the four steps in the major planning and control cycle?

Answer:
• Comparing actual to planned performance (Controlling)
• Formulating long-and short-term plans (Planning)
• Implementing plans (Directing and Motivating)
• Measuring performance (Controlling)
 6. What are the major differences between financial and managerial
accounting?

Answer:

Financial Accounting
Managerial Accounting

Users External persons who Managers who plan for

make financial and control an
decisions organization
Times focus Historical perspective Future emphasis
Verifiability versus Emphasis on Emphasis on relevance
relevance verifiability for planning and
control
Precision versus Emphasis on precision Emphasis on timeliness
timelines
Subject Primary focus is on the Focuses on segments
whole organization of an organization
Requirements Must follow GAAP and Need not follow GAAP
prescribed formats or any prescribed
format

7. Distinguish between line and staff positions in an organization?

Answer:

Line position are directly related to
achievement of the basic objective
of an organization
• example: production
supervisors in a
manufacturing plant
Staff position support and assist line
positions
• example:cost accountants in
the manufacturing plant
8. Describe the basic responsibilities of the Chief Financial Officer.

Answer:

The Chief Financial Officer is the memberof the top management team
who is responsible for providing timely and relevant data support planning
and control activities and for preparing financial statement for external
users.An effective CFO is considered a key member of the top
management team whose advice is sought in all major decisions. The CFO
is a highly paid professional who has command over the technical details
of accounting an finance,who can provide leadership to other professional
in his or her department, who can analyze new and evolving
situations,who can communicate technical data to others in a simple and
clear manner, and who is able to work well with top managers from other
disciplines.

9. What are the three main categories of inventories in a manufacturing

company?

• raw materials
• work in process
• finished goods

10.What are the five steps in the lean thinking model?

answer:

Exhibits 1-6

step1: Identify value in specific products/services

step2: Identify the business process that delivers value

step3: Organize work arrangements around the flow of the business

process

step4: Create a pull system that responds to customer orders

step5: Continuously pursue perfection in the business process.