As a reflective summative activity, I want to hear from you all. Please respond to the following prompt:
What was the most valuable concept or skill that you learned in this class and why?
This is a reflective activity, so there are no wrong answers! Take some time to reflect on all of the activities and concepts we discussed, and let me know what skill or concept stuck with you. Read your colleague’s posts and respond to one that wrote about a different concept/skill than you identified.
Week 7 Reflection Discussion
The key concepts I learned from managerial accounting are managerial accounting is to collect and analyze financial data to facilitate management in making better business decisions. Although managerial accounts have different underlying details depending on the business, they frequently list the specific company’s spending patterns, cash flow streams, debts, and assets. Sole proprietors benefit from having information like this to assist in decision-making. Additionally, it helps small banks determine a company’s suitability for a small business loan. Furthermore, managerial accounting backs up the following notions:
- Find out how much the product or service will cost.
- Evaluating the performance of the objectives.
- Using the budget, plan future activities.
- To choose a capital investment course of action.
Utilizing the most effective cost systems, such as job order and process costing, along with a thorough analysis of cost behavior, the price of the good or service is established (fixed cost, variable cost, mixed cost) (Jiambalvo, 2019, p.22). Controlling costs is made possible by comparing actual performance results using the variance analysis concept. Various budgets, including the master, cash, sales, purchase, production, and direct labor, are used to plan future activities carefully. The payback period, net present value method, profitability index, and internal rate of return concepts can all be used to determine the best investment strategy. Capital budgets also contain estimates for costs that will arise in the future, such as those associated with acquisitions, the purchase of new equipment, facility improvements, and long-term project investments. We can use this concept in practical applications if we ever decide to launch a business.
Jiambalvo, J. (2019). Managerial accounting. John Wiley & Sons.