MANAGERIAL ACCOUNTING – VARIABLE COSTINGManagerial
accounting emphasizes short-term profit analysis, so the income
statement is very important. Consequently, weâll examine and discuss
income statements in this first case. The assignment for this module is
divided into two parts:Part I:Use the background material and Internet to answer the questions below.Discuss and analyze the difference between managerial and financial accounting. Pay particular attention to:How is managerial accounting different from financial accounting?Comment on the different needs and use of financial information for internal purposes.The managerial accounting profession and its role in todayâs business environment. How has it changed over time?Comment on the Certified Management Accountant (CMA) designation. How is it different from the CPA certification?Part II:You may want to complete the SLP before addressing the questions below.Explain
the main differences between the absorption and contribution
(behavioral, variable) income statements. Will net income always be the
same under the two approaches? If not, explain the difference.Comment
specifically on why companies feel the need to create yet another
income statement in a different format. What information can the company
gleam from this approach which is helpful as a tool in the decision
making process.Explain situations in which break-even analysis
can be a useful tool. Explain the break-even formula and provide a
specific example using numbers for a product with which you are
familiar. Reasonable estimates are adequate. Don’t forget to include the
source of the information.Assignment ExpectationsIt
is important to answer the questions as posed. The discussion should be
three to five pages and written in a clear and concise manner. Support
your discussion with references in APA format. You are encouraged to use
Excel or other compatible spreadsheet when computations are involved.
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