Managerial Acct - Unit 2 Discussion

Unit 2 Discussion

Discussion Topic

Respond to your Discussion topic after you have completed your Reading and the Learning Activity.

Topic: Benefit Corporation Costs

The discussion for this unit emphasizes on the content of managerial accounting reports pertaining to subunits of the business. These reports may be very detailed in order to provide the necessary information for managers to make the correct decisions to control their department’s costs.

Scenario: You are an accounting manager at a Benefit Corporation tasked with the following: The production manager just called you to say something is awry with the costs involved with their “green” detergent production. She asks why workers are using more materials than usual in the production of the detergent. In addition, she wants to know why the direct labor cost has increased in comparison with previous months.

• What documents and data might you want to examine and why?
• Discuss the potential issues that might prevent the company from buying cheaper materials.
• Also, discuss the potential issues that a manager confronts when he/she needs to incur more direct labor costs in order to comply with the production deadlines.