Free

Managerial Analysis - Essay Example

Comments (0) Cite this document
Summary
In the paper “Managerial Analysis” the author provides the two accounts: a Factory Overhead account and a Raw Material Inventory account. The Factory Overhead account should be debited with 3000 dollars while the raw material inventory account should be credited for the same amount…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER95.3% of users find it useful
Managerial Analysis
Read TextPreview

Extract of sample "Managerial Analysis"

Managerial Analysis al Affiliation Managerial Analysis The two accounts involved should be a Factory Overhead account (as opposed to a work in process account) and a Raw Material Inventory account. The Factory Overhead account should be debited with 3000 dollars while the raw material inventory account should be credited for the same amount. At the end of a significant period (for instance a month), the ending balance in the overhead account (the remaining glue is recorded in the cost of goods sold and the ending inventory.)If the entries were not corrected, the balance sheet would be affected. Since they form part of the current assets, the current asset balances would have been overstated.
Glue is part of indirect raw materials used in the production. That is, it is consumed in the whole process but does not make part of the final product. Raw materials of all types are originally entered into an inventory asset account with a credit to the corresponding accounts payment account and a debit to the raw materials inventory account (Ormiston & Fraser, 2013). During the consumption of the raw materials, the accounting treatment varies, depending on their status as indirect or direct raw materials. Glue is an indirect raw material as it does not form part of the final products, but it is consumed. Consequently, it is entered on the debit side of the factory overhead account while the raw materials inventory asset account is credited. At the conclusion of the month, the overhead ending balance will form part of the cost of goods sold and ending inventories. At the reporting period, the cost of unused production materials will form part of the raw materials inventory account and will be recorded on the balance sheet as a current asset. Also, raw materials sometimes become obsolete. In this case, if the glue becomes obsolete, it is charged directly to the cost of the goods sold, with an offsetting credit to the raw material inventory account (Ormiston & Fraser, 2013).
References
Ormiston, A., & Fraser, L. M. (2013). Understanding financial statements. New York: Pearson Education. Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Managerial Analysis Essay Example | Topics and Well Written Essays - 250 words”, n.d.)
Managerial Analysis Essay Example | Topics and Well Written Essays - 250 words. Retrieved from https://studentshare.org/finance-accounting/1700228-managerial-analysis
(Managerial Analysis Essay Example | Topics and Well Written Essays - 250 Words)
Managerial Analysis Essay Example | Topics and Well Written Essays - 250 Words. https://studentshare.org/finance-accounting/1700228-managerial-analysis.
“Managerial Analysis Essay Example | Topics and Well Written Essays - 250 Words”, n.d. https://studentshare.org/finance-accounting/1700228-managerial-analysis.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Managerial Analysis

Analysis and Interpretation of Financial Statement as a managerial tool for Decision Making

...?ANALYSIS AND INTERPRETATION OF FINANCIAL MENT AS A MANAGERIAL TOOL FOR DECISION MAKING PREPARED BY ……………… NUMBER …………………… SUPERVISED BY…………………………. INSITUTION NAME …………………….. Contents Introduction ……………………………………………………………………………3 Literature Review ……………………………………………………………………… 4 Project description ……………………………………………………………………. 4 Project scope …………………………………………………………………….......... 5 Research methodology ………………………………………………………………… 6 Project priorities ………………………………………………………………………. 8 Work breakdown structures ………………………………………………………….., 9 Responsibilities matrix ………………………………………………………………... 10 Estimating project …………………………………………………………………….. 12 Estimating project cost ………………………………………………………………… 13 Network diagram...
15 Pages(3750 words)Dissertation

The empirical relationship between accounting disclosure and stock market return using portfolio analysis and managerial behavio

...in the market. The paper analyzes the potential existence of such an empirical relationship among companies within the Gulf Cooperation Council (GCC) region by using a numerical analysis on historical information on related parameters. Schillhofer (2008) has shown that earnings disclosures have a direct influence on investor preferences that determine the prices and returns from traded securities. Since then, numerous studies have been carried out to understand the relationship between corporate disclosures and the performances of securities related to the target firms. While this strong relationship is demonstrated among firms based in the developed and western economies, behavior demonstrating the relationship between...
10 Pages(2500 words)Dissertation

Managerial Accounting: Managerial Topic Paper

...? Managerial Accounting Introduction It was during the 1990s when Fair value Accounting or Mark to Market accounting became a part of the US ‘Generally Accepted Accounting Principles’ (GAAP). Since then this has been a topic of hot debate (Warren, Reeve & Duchac, pp. 36-38). Many experts have tried their best to defend this system, however, other have criticized it strongly. Furthermore, the current financial recession has ignited this debate to great limits. In fact, there have been some amendments in the current Fair Value Accounting, however, the essence of it remains the same, and the debate goes on. This paper is an attempt to capture a glance of this debate by defining this accounting system and briefly highlighting...
4 Pages(1000 words)Research Paper

Managerial Economic and Quantitative Analysis

...? Managerial Economic and Quantitative Analysis Part One Given the demand and cost functions of the two companies, it is possible to calculate the optimal quantity and price in two different cases; where the firms work together and where the firms work individually. Considering the case, where the two companies work individually, the optimal output and price of each company are obtained by first obtaining the profit equation. Profit can be defined as what remains after deducting total cost from total revenue (R. Thomas, C. Thomas & Maurice, 2007). So in order to obtain the profit equation, total cost equation is subtracted from the total revenue equation (that is, profit = total revenue – total cost)....
4 Pages(1000 words)Essay

Managerial Accounting and Business Analysis

... Address: Managerial Accounting and Business Analysis To find out appropriate conditions for investment in the shares of a company requires the following analyses. Horizontal or comparable analysis. Vertical analysis Ratio analysis Debt analysis In the present context we have to construction companies available to invest operating in a same stock exchange. It is advisable to choose the best after performing all the above analyses on the basis of financial reports of the companies from 2003 to 2005. Income Statement for Telford homes Plc. 2003 in thousand pounds000 000 2004 2005 Turnover 25,334 41,051 58,245 Gross Income 6,885 10,377 13,298 Trading income 4,975 7,484 9,471 Interest received 22 47... 25,...
9 Pages(2250 words)Essay

Enhancing Managerial Skills- Managerial accounting

...MANAGERIAL SKILLS Enhancing Managerial Skills The ever-changing business world demands that organizations and businesses respond to changes in the business environment in order to remain competitive. Managers need to have the requisite skills, which assist in making informed decisions that are fundamental to the businesses success. This is done better by the use of economic and financial information in planning and controlling the activities of such entities (Dopson, 2009). A managerial accounting course will enable the managers use financial information in making future decisions of the business. They use this information to forecast the business growth since it makes it possible to base...
1 Pages(250 words)Assignment

Managerial economics and strategic analysis

...Strategies and Managerial Economics within Coca Cola Company Overview of the Company Coca Cola Company was started in 1886 and iscurrently the world’s biggest manufacturer, marketer and distributor of their product consisting of a non alcoholic beverage syrup and concentrate (Hays, 2004). The Company is currently in operation in over 200 countries worldwide. Hays (2004) explains that the Company has gained fame for the most innovative drink “Coca Cola” but it now produces over 230 brands. According to Hays (2004), the Company’s headquarters is in Atlanta, Georgia in the United States and it has about 30, 000 employees in its subsidiaries worldwide. Hays (2004) estimates that about 70 % of the sales volume for the Company comes... of the...
4 Pages(1000 words)Essay

Managerial Applications of Technology(ROI and Break-Even Analysis Techniques )3

...Managerial Applications of Technology (ROI and Break-Even Analysis Techniques) Return on Investment is a popular ratio used to measure a company’s performance. ROI is an efficient means evaluating the efficiency of any investment. Furthermore, businesses use ROI to compare a number of different investments (Strotheide, 2001). ROI is calculated by dividing the return of investment by the cost of investment. It is usually expressed in percentage form. The returns of investment come from the sales of investment of interest. ROI is easy to calculate, and financial experts label it as simple and versatile. It is simple because if an investment does not indicate a positive ROI or if other investments indicate...
1 Pages(250 words)Assignment

Analysis of managerial functions of an existing company

...Managerial functions of Borla Performance Industries al affiliation Introduction Borla’s success in the competitive Motor vehicle industry has left many wondering whether it is magic or proficient management. Undoubtedly, many firms have ventured into the vehicle industry including Toyota, Isuzu, MercedesBenz and others; however, few have shown strength in manoeuvring through the shaky business. Arguably, many have survived the tide of shifting customer base and technology while others have remarkably left the same venue without anything to report (Mubarak, 2012). The company founded in 1979 has proven beyond reasonable doubt on its ability to offer adequate leadership, timely planning, and proficient delivery of services...
6 Pages(1500 words)Term Paper

Managerial Decision Making Research and Analysis

...Managerial Decision Making Research and Analysis 2000 Starbucks Corporation Research a specific company of your choice and identify some of the managerial decisions that were made over time and in response to changes in its market or competitive environment. - Introduction 100 introductory paragraph that has a succinct thesis statement which identifies the focus of the paper. Company overview 250 Starbucks Corporation is the premier roaster, retailer and markets of specialty coffee. Starbucks purchases and roasts coffees and sells it along with handcrafted coffee and other beverages through its own branded stores (Starbucks Annual Report, 2014). The company opened its first location in 1972 in Seattle. With an intensive course... ...
8 Pages(2000 words)Research Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Managerial Analysis for FREE!

Contact Us