Managerial Accounting Concepts

Class Paper Guidelines:
Graduate students should be able to demonstrate critical thinking skills. Graduate level writing must demonstrate an ability an ability to evaluate arguments from various perspectives, be able to formulate well-articulated conclusions based on facts and/or deductive reasoning and present the information in a format that is germane to the task and understandable to the audience you are presenting to. You will be required to use the APA style for the paper that is 6 to 8 pages (double spaced) in length.
Your Paper will be graded using the following assessment guidelines: 1) adequately prepared, 2) support method of achieving solution, 3) demonstrate understanding of concepts and when/how to best apply, and effective/attainable analysis solution.
This Class Paper in conjunction with the Class Video Project

Class Paper Topic Parameters:
Background-
The summation of a nine-year study, published in the January 2007 edition of Accounting, Organizations, and Society, provided evidence that responsibility accounting, the process of measuring and reporting operating data by areas of responsibility, is necessary to achieve corporate goals. The authors, Casey Roe, Jacob Birnberg, and Michael Shields suggest that a Responsibility Center Manager’s behavior and communication skills were positively influenced by the quality and pertinence of the provided accounting information given a responsibility center manger thus helping make his/her responsibility center be more productive.

Managerial accounting is a job whereby accountants are responsible for providing information to the managers and other leaders within a company. Some practices are innovative, while other are more traditional and haven’t changed in years. There are several practices that are performed by almost all managerial accounting departments:

1. Variance analysis
2. Standard costs
3. Cost volume profit analysis
4. Efficiency

REQUIRED:
Topics you are asked to discuss as it relates to the four (4) identified practices are:

1. How can/should responsibility center managers use accounting information developed from the four (4) defined practices be utilized to make better decisions.
2. How can/should responsibility center managers be “helped” on how to use this information in the best possible way within their individual responsibility centers.
3. How can/should responsibility center managers department decision making performance be properly evaluated. Also, as it relates to this topic, discuss the impact that company bonuses can/should have on responsibility center managers decision process.
4. If top management determines that the company will not provide a defined practice if the cost of providing the defined practice outweighs the perceived benefits and strategic risk, how can/should the Accounting Department make this determination and how will this impact the holding of a Responsibility Center accountable.

If it helps, the below serviced as the foundation for establishing the Topic Parameters:

Managerial Accounting Practices – Essay Sample
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When it comes to accounting, managerial accountants have twice the responsibility as standard accounts. To preserve an efficient, effective work environment, these workers must maintain supportive, encouraging and definitive practices and policies for themselves and their co-workers. Managerial accounting practices are far different than typical accounting practices, since there is far more responsibility and diverse jobs on an employee’s shoulders. Managerial accounting is a job where accountants are responsible for providing information to the managers and other leaders within the accounting company. Some practices are innovative, while others are traditional and haven’t changed in many years. There are several practices, performed by almost all accounting firms and departments in the world, listed below.
• Variance analysis. This is one of the more difficult aspects to managerial accounting. Managerial accountants, when observing a variance in data, are required under this practice to search and find the cause of such variance. These accountants must determine the reason for the variance and if it poses a problem for the account.
• Standard costs. Managerial accountants are often required to determine the standard cost of items and services. Standard costs refer to the resulting cost of something when taking labor, resource, time and other factors into account. For example, the standard cost of building a new car may be $100,000. The standard cost, however, is not the same as the actual cost of a project or item; managerial accountants must also compare the standard cost to the real cost, an account for differences.
• Balanced scorecard. This is a relatively new introduction to the world of managerial accounting. A balanced scorecard is meant to measure customer satisfaction, determine operational efficiency and keep track of internal improvement plans, activities and processes. Managerial accountants use a balanced scorecard to help determine the efficiency, growth and ongoing improvement of the accounting firm.
• Cost volume profit analysis. This managerial accounting practice requires the employee to gather significant data – such as the cost of a product, amount of sales or labor costs – and determine if the company has profited from a project or sale.
There are other practices employed by managerial accountants that are less specific than those listed above. These include behavioral practices that affect all aspects of the managerial accountant’s job, which includes:
• Managerial accountants should be extremely concerned with efficiency, whether at an individual or corporate level. A managerial account should also be efficient themselves, turning in paperwork on time, completing all required data and performing their job to the best of their ability.

Actual Class Video Assignment:
Graduate students should be able to provide a well-reasoned verbal discussion/argument for the solutions/conclusions they have derived that reflects a basic knowledge, understanding of managerial accounting concepts. I thus ask that you act like you are making a presentation on your research paper conclusions to TOP MANAGEMNT. Therefore, you are asked to provide a 4-5 minute VIDEO PRESENTATION properly explaining the rationale behind your conclusions you derived in your Class Paper that you submitted and defend the how/why behind your conclusions (why you believe your thought process to be sound, logical, and of benefit to the company).