Accounting for Manager Week 3 Part 1
Accounting for Manager Week 3 Part 1 ACCT 3309
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This 2 page Class Notes was uploaded by Hannah Archuleta on Sunday September 27, 2015. The Class Notes belongs to ACCT 3309 at University of Texas at Arlington taught by Annette Thompson Himele in Summer 2015. Since its upload, it has received 134 views. For similar materials see Accounting for managers in Accounting at University of Texas at Arlington.
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Date Created: 09/27/15
Accounting 3309 Depreciation September 14 2015 Professor Annette Thompson Chapter 3 Income Statement 0 Cash Accounting deals when monetary consumption is received or payed o Accrual Accounting deals when monetary consumption is earned or incurred 0 Most taxes use cash accounting due to their inability to pay with accrued income but can pay with the cash they have on hand 0 Financial Accountants take care of GAAP 0 Tax Accountants take care of the Tax Laws 0 Laws are completely different between tax and financial 0 Book Tax Differences are reported to the Balance Sheet Fixed vs Variable o Fixed ExpensesFixed Costs p 37 0 Example Rent 0 Variable ExpensesVariable Costs p 38 o Semi Variables are with a range 0 Variables changed per unit 0 Parts expenses will be higherlower depending on production numbers Application P 39 0 Indirect Costs are everything else 0 Labor can vary with direct expenses 0 Direct costs can be fixed or variable lncome Statement SalesRevenue Less Cost of Goods Sold IL All Direct Costs Gross Margin Less Operating Costs All Indirect Costs Operating Margin Less Taxes and Other Net Income Know this formula backwards and forwards You WILL be tested on it Managers are held accountable for this 0 Companies and organizations assume that Managers can control direct and indirect expenses 0 Most companies have tight gross profit margins of only 26 Common Size Analysis from Income Statement 0 Take numbers and covert them to percentages o For lncome Statements convert dollar amounts to percentages of the RevenueSales 0 You want to look at your trend analysis to determine percentages of increasedecrease of SalesRevenue and Cost of Goods Sold Know your p 44 Know your p44 0 Get your Operating Margins and Cash Flow Matching Principle Match expenses with revenue Investment is either for return in cash dividend or appreciation
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