Podcast
Questions and Answers
What should subordinates abstain from disclosing?
What should subordinates abstain from disclosing?
- Company performance metrics
- Employee performance reviews
- Confidential information (correct)
- Legal obligations
Which action should be taken if direct discussions with a supervisor do not resolve a conflict?
Which action should be taken if direct discussions with a supervisor do not resolve a conflict?
- Raise the issue on social media
- Discuss with the next highest uninvolved managerial level (correct)
- Consult the human resources department immediately
- Ignore the issue and continue working
What is a potential consequence of abandoning ethical standards in business?
What is a potential consequence of abandoning ethical standards in business?
- Increased job security
- Enhanced competitive advantage
- Higher prices and lower quality of goods (correct)
- Improved customer loyalty
What is the main purpose of a company's strategy?
What is the main purpose of a company's strategy?
Which of the following should be maintained during conflict resolution unless legally required otherwise?
Which of the following should be maintained during conflict resolution unless legally required otherwise?
Which group should be considered for discussion if the immediate supervisor is involved in the conflict?
Which group should be considered for discussion if the immediate supervisor is involved in the conflict?
Why are ethical standards important in business?
Why are ethical standards important in business?
What is an appropriate first step for resolving an ethical conflict?
What is an appropriate first step for resolving an ethical conflict?
What is the primary purpose of segregation of duties in an organization?
What is the primary purpose of segregation of duties in an organization?
Which of the following is an example of a preventive control?
Which of the following is an example of a preventive control?
What does information systems security help achieve?
What does information systems security help achieve?
Which aspect does Corporate Social Responsibility (CSR) NOT typically address?
Which aspect does Corporate Social Responsibility (CSR) NOT typically address?
What is a key responsibility of companies towards their suppliers in terms of CSR?
What is a key responsibility of companies towards their suppliers in terms of CSR?
How do effective performance reviews function within organizational management?
How do effective performance reviews function within organizational management?
Which of the following is NOT a benefit of providing easy-to-use information systems for customers?
Which of the following is NOT a benefit of providing easy-to-use information systems for customers?
What type of control involves maintaining written or electronic evidence to support transactions?
What type of control involves maintaining written or electronic evidence to support transactions?
What is the primary focus of a Customer Intimacy Strategy?
What is the primary focus of a Customer Intimacy Strategy?
What is a common tactic used in risk management once risks are identified?
What is a common tactic used in risk management once risks are identified?
Which of the following is a type of preventive internal control for financial reporting?
Which of the following is a type of preventive internal control for financial reporting?
What does an Operational Excellence Strategy primarily aim to achieve?
What does an Operational Excellence Strategy primarily aim to achieve?
Which of the following is an example of a control to reduce the risk of losing market share?
Which of the following is an example of a control to reduce the risk of losing market share?
Which type of risk management approach involves deciding to accept a risk?
Which type of risk management approach involves deciding to accept a risk?
Which of the following best describes 'reconciliations' in internal controls?
Which of the following best describes 'reconciliations' in internal controls?
What control can be implemented to address the risk of a website malfunction?
What control can be implemented to address the risk of a website malfunction?
What is a key aspect of the planning process in budgeting for advertising?
What is a key aspect of the planning process in budgeting for advertising?
In controlling, what is assessed regarding unit sales?
In controlling, what is assessed regarding unit sales?
What decision should be made regarding inventory during peak seasons?
What decision should be made regarding inventory during peak seasons?
When planning for employee recruitment, which aspect should be considered?
When planning for employee recruitment, which aspect should be considered?
What outcome is assessed during the controlling phase for employee retention?
What outcome is assessed during the controlling phase for employee retention?
Who primarily uses managerial accounting information?
Who primarily uses managerial accounting information?
In decision making, what should be evaluated when deciding to hire medical staff?
In decision making, what should be evaluated when deciding to hire medical staff?
What is the main time focus of managerial accounting?
What is the main time focus of managerial accounting?
What should be planned for in the manufacturing process to lower inventory levels?
What should be planned for in the manufacturing process to lower inventory levels?
What should be controlled to ensure timely performance appraisals are achieved?
What should be controlled to ensure timely performance appraisals are achieved?
Which of the following best describes the emphasis in managerial accounting?
Which of the following best describes the emphasis in managerial accounting?
How are segment reports treated in managerial accounting?
How are segment reports treated in managerial accounting?
What foundational requirement differentiates managerial accounting from financial accounting?
What foundational requirement differentiates managerial accounting from financial accounting?
Which function involves gathering feedback and comparing actual results with the budget?
Which function involves gathering feedback and comparing actual results with the budget?
In the context of decision making, what is a critical action managers must take?
In the context of decision making, what is a critical action managers must take?
What type of reporting is mandatory for external stakeholders?
What type of reporting is mandatory for external stakeholders?
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Study Notes
Financial and Managerial Accounting Differences
- Financial accounting serves external users such as investors and creditors, while managerial accounting targets internal managers for planning and control.
- Financial accounting focuses on historical data, whereas managerial accounting emphasizes future planning.
- Objectivity and verifiability are key in financial accounting; relevancy and timeliness are prioritized in managerial accounting.
- Financial reports cover the entire company, while managerial accounting produces segment reports.
- Financial accounting must adhere to GAAP or IFRS; managerial accounting is not bound by these standards.
- Financial accounting is mandatory for external reporting, unlike managerial accounting, which is optional.
Work of Management
- Planning: Establishing goals and determining the best means to achieve them, including budget development.
- Controlling: Involves monitoring results through performance reports to ensure adherence to plans.
- Decision Making: Involves evaluating alternatives such as pricing strategies, inventory management, and resource allocation.
Ethical Standards in Business
- Ethical standards are crucial for maintaining economic stability and protect the quality of goods and services.
- Without ethical practices, quality of life can decline, resulting in expensive and less desirable products.
Strategic Management
- Strategies serve as plans that distinguish a company in the marketplace by targeting customer needs.
- Customer Intimacy Strategy: Focus on understanding and meeting individual customer needs.
- Operational Excellence Strategy: Prioritize fast, convenient service at lower costs.
- Product Leadership Strategy: Aim for ever-higher quality in products offered.
Enterprise Risk Management
- This process involves proactively identifying and managing risks, evaluating whether to avoid, accept, or reduce them.
- Common risk management tactics include implementing specific controls to minimize identified risks.
Identifying and Controlling Business Risks
- Business risks can include intellectual assets theft, product safety issues, market competition, supply chain disruptions, and technological failures.
- Controls such as firewalls, rigorous testing programs, contingency plans, and dual supplier relationships are essential for risk management.
Internal Controls for Financial Reporting
- Authorizations (Preventive): Require managerial approval for specific transactions.
- Reconciliations (Detective): Compare datasets to identify discrepancies.
- Segregation of Duties (Preventive): Separate roles in transaction processes to reduce fraud risk.
- Physical Safeguards (Preventive): Utilize security measures like cameras and locks.
- Performance Reviews (Detective): Benchmark actual results against standards.
- Information Systems Security (Preventive/Detective): Implement controls for data access and integrity.
Corporate Social Responsibility (CSR)
- CSR principles involve considering all stakeholder needs (customers, employees, suppliers, communities).
- Companies are expected to deliver safe, high-quality products and maintain fair working conditions and compensation.
- CSR goes beyond legal compliance, encompassing voluntary actions to meet stakeholder expectations.
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