In your own words, answer this unit’s discussion questions in a main post (recommended minimum 300 words), and respond to at least 2 peers’ postings (recommended minimum 75 words).
After you have reviewed the Assignment Details below, click the Discussion Board link under the My Work heading above to open the Discussion Board and make your post.
Use these videos for help on how to post to the Discussion Board:
Assignment Details
To be successful, all organizations need to thoroughly understand their costs. New technologies, such as phone apps, are changing the way consumers shop and purchase goods and services.
Discuss the different types of costs at your current or a previous employer.
Explain how costs might differ for managerial and financial accounting.
Responses to Peers
Read through your peers’ posts, and respond to a minimum of 2 of your peers. You can connect to your peers in several ways, including the following:
Discuss the importance of understanding the types of costs that one is responsible for
- Discuss the understanding of financial versus managerial accounting relative to your peers’ posts.
In your own words, please post a response to the Discussion Board and comment on other postings. You will be graded on the quality of your postings.
Shatara Reddick
Good morning AIU class,
Distribution centers have allot of of variable cost. Shipping products to their customers cost the company allot of money. These companies have to hire people to move these products. The amount of labor, materials, and other resources are requires to produce your product. If a company rents out a building they have to pay rent to to use the warehouse. Distribution warehouse have allot of qualified people in the warehouse. Such managers, CEO’s and these salaries have to be paid. They also come with expenses like insurance and depreciation.
Direct labor and direct materials costs are also variable cost for the warehouse. In the shipping department alone come with allot of cost. They have to have the materials they need to ship products to their customers. Such as tape, boxes etc. The company that I work for now has saved some money by not crushing usable boxes. It helps them make a more sustainable profit. Its other things that these companies have to pay for such as detention for the truckers. Being in logistics we are constant basis dealing with big trucking companies. If these driver have to sit over two hours they warehouse has to pay for that. Which would be a fixed cost.
Managerial accounting focus on organizations finances from the inside. Financial accounting focuses on the business finances from the outside. Managerial accounts focus more of short term goals for the company. Financial focus on the long term finances of a business. Financial produce documents such as income statements and balance sheets. Managerial produce financial documents that they use internally. Managerial accounting is the practice of measuring and analyzing. Accounting has different meanings when it come to running a business.
References
M.U.S.E. readings
https://www.freshbooks.com/hub/accounting/financial-accounting-vs-managerial-accounting
Terence Williams
Hi class!
I was recently in the food and beverage industry. I’ve worked in both commercial style restaurants and fine dining for a little over five years. During my time in that field, I held several positions that dealt with managing people and food. One job in particular was being a kitchen manager for company that was contracted out to feed two large charter school programs. This covered around twenty schools, for breakfast and lunch. When I took the position, it was only to get my feet wet in the industry, but after my boss found out I had military service and a degree in culinary arts, he let go of the kitchen manager they had and promoted. I instantly became the subject matter expert on all things food, including food cost and ordering. From a managerial standpoint, that is a lot of responsibility to assume. Being able to rotate product and keep cost relatively low is a task all by itself. Average cost of food and labor should be under 30 percent, and that’s being generous. From a financial standpoint, those two tend to overlap. The more you have coming in, and the less you have going out determines the bottom line and what you can afford in labor. Tracking shift hours, overtime, payroll, food cost, and whatnot would cost to house storage and transport was all part of my job. And it was a lot.
