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Managerial Accounting
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Part 1: Managerial Accounting Purpose Infographic
Purpose of Managerial Accounting
Provide managers with information for planning, controlling and decision making within an organization
Accounting Concepts Useful in Classifying Costs
Direct labor – Labor costs easily traced to individual units of products
Manufacturing Activities and Flow of Manufacturing Costs
Purchasing of raw materials where necesaary materials for production are acquired
Direct material – Raw materials that are part of a product and can be traced directly to it
Manufacturing overhead – All manufacturing costs that cannot be easily traced to finished products such as utility costs and propoerty taxes
Inventory managment involves stroing and tracking of raw materials and finished goods
Production planning and scheduling of labor, equipment and materials
Quality control involves inspection and testing processes to enaure quality of finished goods
Manufacturing process where raw materials and transformed into finished products
Supply chain management ensures smmoth flow of materials and products