BUS 5110 MANAGERIAL ACCOUNTING

Written Assignment-01
Topics: Submit a paper which is 2-3 pages in length (no more than 3-pages), exclusive of the

reference page. Paper should be double spaced in Times New Roman (or its equivalent) font

which is no greater than 12 points in size. The paper should cite at least three sources in APA

format. 

In this paper, in addition to presenting the computed answers, please also discuss how you

arrived at each answer the accounting problem asks. The accounting problem presents a

company’s balance sheet, income statement, and statement of cash flows for a theoretical

company, Polly’s Pet Products. Each of these statements has blank lines. Determine the values

that would be appropriate for each blank line. Provide a narrative of how you arrived at each

value. Include in this narrative an explanation of:

1) the financial statement being completed;

2) the account being valued;

3) its relationship to the other financial data.

For example, if the accounts payable (AP) line was missing, describe what a balance sheet is and

explain that you can derive the AP value based on knowing all the other values of the current

liabilities section. Then explain what an account liability is, as well as why it would belong in the

current liabilities section of the balance sheet. Finally, analyze, evaluate, and develop a

conclusion about the company’s performance based on the completed statements.

To complete this assignment, refer to the income statement, balance sheet, and statement of cash

flows of Polly’s Pet Products.

Superior papers will mention and explain the following elements when responding to the

assignment question:

Provide correct balances for the blank financial account lines.

Define the financial statement being completed.

Discuss how the values were determined.

Define and explain each account line that was completed.

Analyze, evaluate, and develop conclusions about the company’s performance based on the

financial information.

Discussion
Managerial accounting is the practice of identifying, measuring, analyzing, interpreting, and
communicating financial information to managers for the pursuit of an organization's goals
(Tuovila, 2020). In this discussion, we will see the role of managerial accounting in the company
where I work, how management accounting concepts can be applied, and what managerial
accounting practices would be beneficial.

I am working at Beximco Pharmaceuticals Ltd. which is a medicine manufacturer and retailer

company. Here, managerial accounting plays an important role in analyzing financial data using
three financial statements: income statement, balance sheet, and statement of cash flows, and
then issuing reports within the company to assist managers in making decisions to achieve goals
through planning and monitoring, as the information provided by management accounting is
critical for every decision. According to Cooper (2021), there are four international principles of
managerial accounting which are being followed in my organization listed here.

1. Influence - Communication is both the beginning and the end of management accounting. It
improves the decision-making process by providing relevant details at all stages of the decision-
making process. Management accounting is able to cut across silos and supports an integrated
thought process thanks to effective transmission of key information.

2. Relevance - Everyone benefits from having access to information. Management accounting

searches the best available resources for data relevant to the choice being made, the persons
making the decision, and the decision process being used.

3. Value - The impact on value is calculated. Management accounting connects an organization's

procedures to its basic business model and necessitates a thorough understanding of the
macroeconomic environment. It comprises analyzing data throughout the value-generation chain,
estimating potential possibilities, and focusing on risks, expenses, and value-generation potential
of prospects.

4. Credibility - Credibility is built through stewardship. Responsibility and scrutiny contribute to

a more intentional decision-making process. Managing short-term corporate interests against
long-term shareholder value enhances both trust and reliability.

According to Cooper (2021), these principles can be utilized by

1. Recognizing the requirement

2. Products and strategies
3. Diagnostics

According to Codjia (2017), key activities of management accounting include budgeting, internal
financial reporting, cost analysis and monitoring of internal controls, systems and procedures.
But budget and Cost analysis & monitoring of internal controls are the most useful activities to
me because these are describing the whole tenure of investment with possible vulnerabilities.

Managerial accounting is a useful instrument. Managerial accounting aids in the selection of

appropriate controls for assessing a plan's success, this is the process of comparing actual results
to predicted results at many levels, including product, department, division, and organization.

References:
1. Tuovila, A. (2020, August 29). Managerial Accounting Definition. Retrieved
November 15, 2020, from
https://www.investopedia.com/terms/m/managerialaccounting.asp
2. Cooper A. (2021, November 19). Four Managerial Accounting Principles Every
Business Must Comply With. Cogneesol. Retrieved from
https://www.cogneesol.com/blog/four-managerial-accounting-principles-to-comply-
with/
3. Codjia M. (2017, September 26). The Key Activities of Management Accounting.
bizfluent. Retrieved from https://bizfluent.com/list-6727118-key-activities-
management-accounting.html