Both managerial accounting and financial accounting provide useful information to decision makers. Indicate in the following chart the most likely source of information for each business decision (a decision can require major input from both sources, in which case both can be marked).
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Primary Information Source |
|
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Business Decision |
Managerial |
Financial |
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1. Plan the budget for next quarter |
____ |
____ |
|
2. Measure profitability of all individual stores |
____ |
____ |
|
3. Prepare financial reports according to GAAP |
____ |
____ |
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4. Determine location and size for a new plant |
____ |
____ |
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5. Determine amount of dividends to pay stockholders |
____ |
____ |
|
6. Evaluate a purchasing department’s performance |
____ |
____ |
|
7. Report financial performance to board of directors |
____ |
____ |
|
8. Estimate product cost for a new line of shoes |
____ |
____ |