Part I: What is the difference between managerial and financial accounting?
Q1. How is managerial accounting different from financial accounting?
Q2. Comment on the different needs and use of financial information for internal purposes.
Q3. The managerial accounting profession and its role in today's business environment. How has it changed over time?
Q4. Comment on the Certified Management Accountant (CMA) designation. How is it different from the CPA certification?
Part II:
Q1. Explain the main differences between the absorption and contribution (behavioral, variable) income statements. Will net income always be the same under the two approaches? If not, explain the difference.
Q2. Comment specifically on why companies feel the need to create yet another income statement in a different format. What information can the company gleam from this approach which is helpful as a tool in the decision making process.
Q3. Explain situations in which break-even analysis can be a useful tool. Explain the break-even formula and provide a specific example using numbers for a product with which you are familiar. Reasonable estimates are adequate. Don't forget to include the source of the information.