Question

Discuss and apply four accounting techniques and methods to make managerial decisions ( Full Convincing answer )

Answer 1

50.- Accounting method: e Jules a company to the Jules ac Accounting method refers expenses. The two revenues and Follows in reposting Primary methods are a caual accounting and cash accoun -ng cash accounting! ting reports reven revenue and sepenses cash accounting reports as they are received and paid, accouce accounting: - accruau accounting reports them as they are earned and incurred, accounting managerial managerial accounting is a branch of accounting that is concerned with the identification measurement, analysis and interpretation of accounting information so that it can be used to help managers to make nece -Ssary deússions to ebb iciently manage a company's operations.

accounting technizues and methods to make manageria decisions. >> Operational control, product and customer costing management control and strategic control are the four accounting techiniques and methods to make mana geriau decisions. The four ditt event functions relate to the different demand for management accounting information All these are part of management accounting, mangement accounting is the term used to desite the accounting method and techniques coupled with Special knowledged and ability which help the manage -ment for decision making. " 3 - Accounting methods reber to the basic rules and guidelines under which businesses keep their fina encial records and prepare their financial reports. There are two main accounting methods used for record keeping the cash basis and the accrual basis Small business Owners must decide which method. to use depending on the legal form of the business it sales volume, whether it sells goods to customeos

on credit, whether it maintains inventory, and the tax requirements set forth by the Internal Revenue service, some one form of record keeping is required by law and for tax Puroposes, but the resulting information can also be useful to managers in assessing the company's financial Situation and making decisions, It is possible to change accounting method lates, but the process can be complicated 2. It is important for small business owneds to decide which method to use up front based on what will be most suitable for their particular business. & Accounting records prepared using the cash basis recognize income and esubenses according to real time cash flow. income is recorded upon receipt of feend. rather than based upon when it is actually earned. - Expenses are recorded as they are paid rather than they are actually incurred. Under this accounting method, it is possible to deber tax 0ble income by delaying billing so that Payments is not received in the current year.

> Like wise, it is possible to accelerate expenses by is soon as the bills are received in adu rance of the due date. A company using an accrual basis for accounting recognizes both income and expenses out th they are earned or incuored, regardless of which cash associated with those transactions changes hanc -S. under this system, gevenue is recorded when it is earned rather than when Payment is received. > are incurred rathe » Expenses are than when recorded when they Payment is made.