Explain the contribution margin concept-computation

Reference no: EM131565275

Discussion

Let us explore the differences between financial and managerial accounting. 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.

References:

Holt, M. (n.d.). Management Accounting vs. Financial Accounting. Chron. https://smallbusiness.chron.com/management-accounting-vs-financial-accounting-3987.html

Principles of accounting Managerial Accounting. Chapter 17.

Required:

Below are some questions for discussion.

• How is the purpose of managerial accounting different from financial accounting?

• Are more accountants involved in the financial or managerial function today?

• Comment on the use of a variable costing approach vs. absorption income statement. Describe the differences in the presentation and use of each type of income statement.

• How is the concept of "cost of goods sold" different from "contribution margin"?

• Explain the contribution margin concept/computation and when to use the information.

• Choose one or two topics for further investigation and share your knowledge with the class. Provide factual information (not merely opinions) backed up by current news, examples, or other interesting details. Your comments should be in your own words and include references in APA format, if applicable.

Presence during both weeks of the module and a minimum of three postings are required, one original posting and two responses to colleagues. Minimum required participation does not guarantee a perfect score.

Reference no: EM131565275

Questions Cloud

Discuss carrot and the stick : When we think of change, we often think of the "carrot and the stick" analogy. Some changes come from anticipation of something positive after making the change

Construct an essay that combines non-fiction material : Construct an essay that combines non-fiction material from your own life as well as researched material - how you will use your own personal story alongside outside research.

Create a mock-up interface for the project : Describe at least 3 interface design techniques that you will use in your interface design.Create a mock-up interface for the project.

What are the implications of securities market efficiency : What are the implications of securities market efficiency for financial accounting and reporting

Explain the contribution margin concept-computation : Explain the contribution margin concept/computation and when to use information. How is purpose of managerial accounting different from financial accounting?

Which is replenished at the end of each month : John Smith is the petty cash custodian. John approves all requests for payment out of the $200 fund, which is replenished at the end of each month

Determine the fundamental obstacles or challenges : Determine the fundamental obstacles or challenges that business management in general must overcome in order to implement data analytics.

Prepare a segmented variable costingincome statement : Prepare a segmented variable costing (behavioral) income statement for the company in good format.

Determine the cost of goods manufactured : Nantahala Company has the following information for August. For August determine (a) the cost of goods manufactured (b) the cost of goods sold

User Account

All Pages