Unit 2 Responses
Learning Goal: I’m working on a business discussion question and need an explanation and answer to help me learn.
There are a total of 8 responses. Read each one and write a 75-100 word response for each one.
Discussion 1 Responses
1.)Korrickia
According to Wild and Shaw (2019), managerial accounting is defined as a means by which a financial and non-financial picture provides managers and key decision-makers with reliable operations information. This information is valuable because it allows for continuous monitoring and feedback of organizational activities. The data is gathered to assist in planning for such things as product developments and expansions within new markets. Managers and those with vested interest have the ongoing capability of controlling and assessing cost measurements, and the profitability of goods and services. Along with such components as flexibility of reporting while utilizing generally accepted accounting principles (GAAP) promotes greater accountability financially and managerially.
Reference
Wild, J.J., & Shaw, K.W. (2019). Financial and managerial accounting: Information for decisions (8th ed.). McGraw-Hill Education.
2.) Eric
Managerial accounting is internally beneficial to managers because it identifies, analyzes, and measures useful financial information to pursue organizational goals. According to Wild and Shaw (2019), managerial accounting help managers by determining the costs of products and services, planning future activities, and comparing intended results to actual results. In the decision-making process, the company can use managerial accounting in short-term and long-term decisions involving the company’s financial health. Managerial accounting is intended to help increase the business operational efficiency by making long-term or short-term investment decisions. Also, managers can decide to provide continuous improvement on intelligent analysis for the company’s future.
Wild, J.J., & Shaw, K.W. (2019). Financial and managerial accounting: Information for decisions (8th ed.). McGraw-Hill Education.
Discussion 2 Responses
1.) Jayne
The shared scripture speaks of the communion of people in their life and workplace, which gives the impression of socialism (governed by the people) and groups and teams working together in the workplace by the power of the Holy Spirit. Secular or naturalist believes that all man’s activities stem from natural cause with no counsel using supernatural forces. The postmodernist belief is that no absolutes exit which resonates with new followers because nothing under the sun is perfect. Still, we strive for perfection in the world and workplace to fulfill God’s plan and inactions with others.
2.) Mary
The shared passages and scriptures reveal the instructions that were given to stay alert to watch out for ensuing evil, how to conduct yourself in life, apply wisdom, and seek counsel with decision-making because if not plans are destined to fail. These behavioral characteristics lead us to follow His instructions to fear the Lord and to trust Him with our entire being and are advised to avoid refusing the instruction of wisdom and counsel that will assist us and help you to grow. 3 John 1:11 “Beloved, do not imitate evil but imitate good”. When these same characteristics are aligned with performance and contributions signals the idea that as a manager there are opportunities to engage on the level of performance required based solely on the behavior being displayed. Postmodernist and the secular lean on the thinking that knowledge and the pursuit of wisdom is attached to one’s perceived belief in the truth.
Discussion 3 Responses
1.) Carter
When I managed a bookstore, my most significant budgetary concerns related to payroll and sales budgets for the next fiscal year. Future sales and payroll budgets were primarily determined by the performance from the previous fiscal year. Honestly, I avoided greatly exceeding my sales budget each fiscal year because I knew the expectation of those sales would carry forward into the next fiscal year budget.
Additionally, in my first years as a manager, I aggressively pursued efficiency through tight payroll controls. Eventually, I realized that more payroll was needed to manage the store effectively; however, I had great difficulty getting the funds allocated to the store budget.
Wild et al. suggest that “employees affected by a budget should help prepare it” (2022). I agree. Although I did have some input in my former store’s sales and payroll budgets, greater input would have allowed for more efficient and effective operations.
Wild, J. J., & Shaw, K. W. (2022). Financial & managerial accounting: Information for decisions (9th ed.). Mcgraw Hill.
2.) Michael
Budgets are useful and necessary tools that companies use to measure their performance in relation to strategic goals and objectives (Wild & Shaw, 2019). Wild and Shaw (2019) point out that budgets contribute to planning, controlling, coordinating, communicating, and motivating. However, budgets can be counter-productive and interfere with organizational success if not handled properly in light of natural human behavior.
Participatory budgets, where managers and employees that have the most direct impact on meeting budget goals participate in creating the budget, are generally more effective than budgets created exclusively by top management (Wild & Shaw, 2019). However, there are challenges to address in these types of budgets.
A department supervisor providing input into the budget process can be motivated to under-budget revenue and over-budget expenses to provide slack and make it easier for them to reach budget goals and please their superiors (Douthit & Stevens, 2015). For example, if a manager intentionally sets easily achievable budget goals, the manager may not be motivated to take risks and strive to grow the business unit to its full potential.
Likewise, in a capital budget process, a cardiology service line manager may use misleading or incomplete information when presenting a budget proposal to persuade hospital senior executives to purchase an expensive nuclear imaging system. This can occur by overstating revenue projections or understating expense projections to justify the capital investment.
Senior executives need to be aware of these human behaviors when engaging in the participatory budget process so that the budgets are reliable and useful in guiding management in its work to achieve corporate goals.
Douthit, J. D. & Stevens, D. E. (2015). The robustness of honesty affects budget proposals when the superior has rejection authority. The Accounting Review, 90(2), 467-493.
Wild, J. J., & Shaw, K. W. (2019). Financial & managerial accounting: information for decisions (8th ed.). McGraw-Hill Education.
Discussion 4 Responses
1.) Michael
Scripture presents very clear instruction on making investments with the resources God provides. Ecclesiastes 11:2 (English Standard Version, 2001) encourages diversity in our investments. In other words, it would be unwise to invest all resources in one venture or type of investment. For example, it is highly advisable to invest 401(k) funds in multiple investment vehicles (e.g., stocks, mutual funds, etc) rather than in single company stock.
Likewise, the Scriptures provide wisdom for managers involved in strategic planning for their companies. The writer of Proverbs advises in chapter 15 that managers need counsel from advisors to minimize the risk of failure. According to this passage, the manager that fails to seek and receive instruction demonstrates a lack of competence and humility.
On the contrary, people that follow a postmodernist philosophy may be less inclined to seek the counsel of others as they tend to over-value their own interpretation of the world (Myers & Noebel, 2016). Secular society rejects God and religion but does see value in diversifying investments and seeking counsel from others for strategic decisions (Myers & Noebel, 2016). They rely on the opinion of people and reject any input from Scripture or other religious writing.
English Standard Version. (2001). Crossway/Good News Publishers
2.) Mary
Proverbs 21:5 “The plans of the diligent lead surely to abundance, but everyone who is hasty comes only to poverty”. Instructions are provided throughout scripture for how to live and navigate life and encourages the followers to invest and to be wise in their investments seeking God for wisdom.
In the same manner, scriptures will give managers wisdom who can apply the information to strategize and plan for the business. When a manager is willing to seek out and accept the counsel of others they are being open to potentially reducing the risk that may be associated or attached to it. The philosophy that postmodernists have is that they will not seek out counsel from others to advise them and would lean more on their own understanding.
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