Module Discussion Question Solution
Reviewing the differences between financial and managerial accounting is a good place to start for this course. Financial accounting is rule-oriented since the information is used to communicate with third parties. Managerial accounting, on the other hand is for internal use. Anything goes as long as the information is a valuable tool for decision-making purposes and the benefit of the information exceeds the cost of accumulating and analyzing it.
Below are some questions for discussion. Keep the managerial perspective in mind when discussing.
• How is the purpose of managerial accounting different from financial accounting?
• Are more accountants involved in the financial or managerial function today? What about non-accountants?
• Comment on the use of a functional versus absorption income statement. Describe the differences in presentation and use of each type of income statement.
• How is the concept of cost of goods sold different than contribution margin?
• Explain the contribution margin concept/computation and when to use the information.
References
American Institute of Public Accountants (AICPA). (n.d.). Retrieved from https://www.aicpa.org/Pages/Default.aspx
Chartered Institute of Management Accountants (CIMA). (n.d.) Becoming a CMGA. Retrieved from https://www.cimaglobal.com/Members/CGMA/
Financial Accounting Standards Board (FASB). (n.d.). Retrieved from https://www.fasb.org/home
International Accounting Standards Board (IASB). (n.d.). Retrieved from https://www.ifrs.org/Home.htm
International Federation of Accountants (IFAC). (n.d.). Retrieved from https://www.ifac.org/
Public Company Accounting Oversight Board (PCAOB). (n.d.). Retrieved from https://pcaobus.org/Pages/default.aspx
You do not need to discuss every question or comment mentioned above. Choose one or two relevant aspects for further investigation and share your knowledge with the class. Try to add information not previously discussed by others in follow-up comments. Please, provide factual information (not merely opinions) backed up by details or examples. Your comments should be in your own words and Include references in APA format.