Exercise 1-12 Differences between Managerial Accounting and Financial Accounting Objective 2 Jenna Suarez, the controller for Arben Company, has faced the following situations in the past 2 weeks: a. Ben Heald, head of production, wondered whether it would be more cost effective to buy parts partially assembled or to buy individual parts and assemble them at the Arben factory. b. The president of Arben reminded Jenna that the stockholders' meeting was coming up, and he needed her to prepare a PowerPoint® presentation showing the income statement and balance sheet information for last year. C. Ellen Johnson, vice president of sales, has decided to expand the sales offices for next year. She sent Jenna the information on next year's rent and depreciation information for budgeting purposes. d. Jenna's assistant, Mike, received the information from Ellen on depreciation and added it to depreciation expenses and accumulated depreciation on office equipment. e. Jenna compared the budgeted spending on materials used in production with the actual spending on materials used in production. Materials spending was significantly higher than expected. She set up a meeting to discuss this outcome with Ben Heald so that he could explain it. Required: Determine whether each request is relatively more managerial accounting oriented or financial accounting oriented.
Exercise 1-12 Differences between Managerial Accounting and Financial Accounting Objective 2 Jenna Suarez, the controller for Arben Company, has faced the following situations in the past 2 weeks: a. Ben Heald, head of production, wondered whether it would be more cost effective to buy parts partially assembled or to buy individual parts and assemble them at the Arben factory. b. The president of Arben reminded Jenna that the stockholders' meeting was coming up, and he needed her to prepare a PowerPoint® presentation showing the income statement and balance sheet information for last year. C. Ellen Johnson, vice president of sales, has decided to expand the sales offices for next year. She sent Jenna the information on next year's rent and depreciation information for budgeting purposes. d. Jenna's assistant, Mike, received the information from Ellen on depreciation and added it to depreciation expenses and accumulated depreciation on office equipment. e. Jenna compared the budgeted spending on materials used in production with the actual spending on materials used in production. Materials spending was significantly higher than expected. She set up a meeting to discuss this outcome with Ben Heald so that he could explain it. Required: Determine whether each request is relatively more managerial accounting oriented or financial accounting oriented.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Exercise 1-12 Differences between Managerial Accounting and
Financial Accounting
Objective 2 Jenna Suarez, the controller for Arben Company, has faced the following
situations in the past 2 weeks:
a. Ben Heald, head of production, wondered whether it would be more cost effective
to buy parts partially assembled or to buy individual parts and assemble them at
the Arben factory.
b. The president of Arben reminded Jenna that the stockholders' meeting was coming
up, and he needed her to prepare a PowerPoint® presentation showing the income
statement and balance sheet information for last year.
C. Ellen Johnson, vice president of sales, has decided to expand the sales offices for
next year. She sent Jenna the information on next year's rent and depreciation
information for budgeting purposes.
d. Jenna's assistant, Mike, received the information from Ellen on depreciation and
added it to depreciation expenses and accumulated depreciation on office
equipment.
e. Jenna compared the budgeted spending on materials used in production with the
actual spending on materials used in production. Materials spending was
significantly higher than expected. She set up a meeting to discuss this outcome
with Ben Heald so that he could explain it.
Required:
Determine whether each request is relatively more managerial accounting oriented or
financial accounting oriented.
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