LARION, TRISHA D.

BSBA MM – 3B

REVIEW QUESTIONS AND PROBLEMS

 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
maximize the value to the shareholders. The marketing professor claimed that the goal of a
corporation should be to satisfy customers. What are the similarities and differences in these
two goals?

ANSWER:

The financial department goal is to maximize shareholder wealth and the goal of marketing
department is to satisfy to reach this maximization. While difference is the marketing
department sets the needs of customers as the main goal to achieve, and if the needs are
satisfied, there is a demand for corporation customers. The similarities of these goals are both
the goals tend to maximize the profit of corporation, but setting different targets products and it
is profitable, so the shareholders wealth will be maximized. But financial department sets the
shareholders wealth as the main goal, but the reaching of it not always will cause the satisfying
of the customer needs. So, apparently the goal of marketing department is better, as both
customers and shareholders will be satisfied.

 ‘’Planning is really more vital than control’’. Do you agree? Why?

ANSWER:

Yes. For my opinion, Planning is really more vital than control because it is needed at every level
of management .Without it, all business activities of the organization will become meaningless.

 What roles do management accountants use?

ANSWER:

Management accountants work for public companies, private businesses, and government
agencies. Their duties include recording and crunching numbers, helping to choose and manage
company investments, risk management, budgeting, planning, strategizing, and decision making.
And also, the major roles do management an accountant performs is that they are tailoring the
application of the process to the organization so that the organization’s objectives, short-term
and long term are achieved effectively.
LARION, TRISHA D.
BSBA MM – 3B

 Discuss the basic features of financial and managerial accounting

ANSWER:
Financial Accounting is involves the systematic recording of business transactions, governed by a
body of international financial reporting standard (IFRS) leading to the preparation of financial
statements. And Management Accounting is concerned with providing financial information to
persons within the organization. The basic feature of Financial Accounting is they are only
transactions in monetary terms are considered. Financial accounting considers only those
transactions which are of historical nature the transaction which have already taken place.
Financial statements which are based on financial accounting are interim reports and cannot be
the final ones. They only summarized data for the entire organizations that are prepared. While
the basic feature of management accounting is that they select only few information out of
much information provided by the financial accounting system. The reason is that all the
financial accounting information is not necessary to management. Management accounting
never follows the rules of financial accounting. But it is concerned with the information which
are highly useful to the management for decision making and control purposes.

The competitive environment for both manufacturing and service companies has become far
more challenging and demanding in the last 25 years. Discuss the changes in competition and in
the nature and type of the new requirements for management accounting information.

ANSWER:

In this competitive environment for both manufacturing and service companies has become far
more challenging and demanding in the last 25 years . Nowadays, organizations face an
uncertain business environment with increasing market competition. As a result, organizational
resources and processes were already organized and monitored in order to achieve their
organizational goals. They are now facing intense challenges and are expected to adapt with
rapid changes in business environment. Companies demand for more proactive management
accountants, who are now expecting to become part of management and ready to accept
exciting challenges ahead. And also, they involves human judgement, impulses, whims and
prejudices as evidenced in interpretation of data, deductions and conclusions drawn from
analysis. Management accounting systems play an essential role because they provide
information for the decision-making process.
LARION, TRISHA D.
BSBA MM – 3B

PROBLEMS

 PROBLEM 1
You have just discovered that James Torres, a manager of Manila division has made up
fictitious revenues and booked some of them in this period and deferred some of them
to the next period. As a result, James has been able to achieve a very large net income
number for his division for this period and more than likely the next period as well.
What are the terms used for James methods and are they illegal?

ANSWER:
Yes, it is illegal because he committed a fraud in order to have fictitious revenues that
will result that he was be able to achieve a very large net income. James might be
inspired to increase the sales because he wants to meet the targets of sales which might
lead to this promotion. He should not do like this because the revenue does not belong
to the company.

 PROBLEM 2
As a manager at the P3 Company, you have just found out the vice of the company has
secretly engaged in selling technical specifications for your new, patent-pending,
product VidOne, to AZ Products, your leading competitor. What do you do?

ANSWER:
As a manager, my responsibility is to ensure a safe, secure, and legal work environment.
So In order to improve safety culture in an organization there must be an ongoing
commitment to communication. The vice of the company should be able to share that
he/she engaged in selling technical specifications for new, patent-pending, product
VidOne, to AZ Products. But the wrong of these is we should be able do our own ideas
for the product VidOne and not to deal with a competitor while the vice of the company
should not keep this a secret to the company. So as a manager, I will plan to have a
meeting with our organizations regarding to this matter to avoid arguments.

 PROBLEM 3
If you see a coworker stealing from the petty cash fund, what are your possible courses
of action and how do you proceed?
LARION, TRISHA D.
BSBA MM – 3B

ANSWER:
My coworker did was wrong. Sure she could justify, she could make various arguments
about her pay rate, being in a tough spot, that money is a just paper. But the simplest
way to deal with a co-worker who steals the petty cash fund is to arrange a private
meeting with a supervisor. You can tell the supervisor what you witnessed and allow the
supervisor to handle the matter. Reporting to a supervisor, though, can have some
drawbacks.