A finance professor and a marketing professor were recently
comparing notes on their perceptions of corporations. The finance professor claimed the goal of a corporation should be to maximize the value to the shareholders. The marketing professor claimed that the goal of a corporation should be to satisfy the customers. What are the similarities and differences in these two goals? ANSWER.. As one can see from the above that marketing and finance are like husband and wife although they will always have difference of opinion but they will be together forever as they both are interrelated and they cannot function in isolation and therefore companies should nee see marketing and finance as different departments rather they both should be allowed to work together so as to help company in achieving its pre defined goals.
2. Evaluate the statement "Managers need accounting information and
need to know how to use it" (5 pts) ANSWER.. Managers need accounting information to plan, monitor and make business decisions and also managers need to allocate the financial, human and capital resources towards competing needs of the business through the budgeting process and knowing how to use by preparing and monitoring budgets effectively requires reliable accounting data relating to the various activities, processes, products, services, segments and departments of the business and once more management requires accounting information to monitor the performance of business by comparison against past performance, competitor analysis, key performance indicators and industry benchmarks.
3. How do Cost Accountants support strategic decisions? (5 pts)
ANSWER.. By having the most effective system result when the manager decision maker and the accountant work together until the accountant understands the decision to be made and the manager understands the source of information that the accountant will report.
4. How do Management Accountants support strategic decisions? (5
pts) ANWER. The management accountant provides input that aids in developing strategy,building resources and capabilities, and implementing strategy. To understand the management accountant’s role, we must first understand the managers tasks in more detail.