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Managerial accounting garrison, noreen, brewer 11ed

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Managerial accounting garrison, noreen, brewer 11ed

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Managerial accounting garrison, noreen, brewer 11ed s to Questions1-1 Managerial accounting is concerned with providing information to managers for use within the organization. Financial accounting is c

oncerned with providing information to stockholders, creditors, and others outside of the organization.1-2 Essentially, managers carry out three major Managerial accounting garrison, noreen, brewer 11ed

activities in an organization: planning, directing and motivating, and controlling. All three activities involve decision making.1-3 The Planning and

Managerial accounting garrison, noreen, brewer 11ed

Control Cycle involves formulating plans, implementing plans, measuring performance, and evaluating differences between planned and actual performanc

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Managerial accounting garrison, noreen, brewer 11ed the achievement of those objectives; rather, it is supportive, providing services and assistance to other parts of the organization.1-5 In contrast to

financial accounting, managerial accounting: (1) focuses on the needs of the manager; (2) places more emphasis on the future; (3) emphasizes relevanc Managerial accounting garrison, noreen, brewer 11ed

e and flexibility, rather than precision; (4) emphasizes the segments of an organization; (5) is not governed by GAAP; and (6) is not mandatory.1-6 A

Managerial accounting garrison, noreen, brewer 11ed

number of benefits accrue from reduced setup time. First, reduced setup time allows a company to produce in smaller batches, which in turn reduces the

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Managerial accounting garrison, noreen, brewer 11ed he ability to rapidly changefrom making one product to making another allows the company to respond more quickly to customers. Finally, smaller batche

s make it easier to spot manufacturing problems before they result in a large number of defective units.1-7 The main benefits of a successful JIT syst Managerial accounting garrison, noreen, brewer 11ed

em are reductions in: (1) funds tied up in inventories; (2) space requirements; (3) throughput time; and (4) defects.1-8 TQM generally approaches impr

Managerial accounting garrison, noreen, brewer 11ed

ovement in a series of small steps that are planned and implemented by teams of front-line workers. Process Reengineering involves completely redesign

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Managerial accounting garrison, noreen, brewer 11ed ed. If management responds by laying off workers, morale will almost certain suffer.1-10 Some benefits from improvement efforts come from cost reducti

ons, but the primary benefit is often an increase In capacity. At non-con-straints, increases in capacity just add to the already-existing excess capa Managerial accounting garrison, noreen, brewer 11ed

city. Therefore, improvement efforts should ordinarily focus on the constraint.

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