Managerial Accoutants Of National Bank Of Arizona

Q. “Discuss the purpose of the following activities performed by managerial accountants of National Bank of Arizona, and how they are relevant to oneself; or that of our investors. (1) product costing, (2) playing a role in management decision making, and (3) budgeting” (Course Hero, Inc., 2017). Let’s begin with what it is that a managerial accountant does for a business, they are key figures that oversee the status and success of a business; through their accounting credentials. However, their job description and responsibilities can cover a much broad band of duties, which include the following: product costs, decision making; and budgeting for the firm to which they are employed by. Though, these accountants are relied on more than any

One of the duties to which a manager accountant performs is finding quality products to which will help the business in meeting their profitable margins, by selecting the best combination of products and services to which others don’t amount up too; this giving the firm a leading edge over others in the same field of business. The purpose of this is to provide the company with detailed information as to the financial disclosures and options as to their financial security; where a financial accountant focuses only on the financial aspects of the business. These reports are consistent with the rules and regulations of the GAAP, and are done in house by a managerial accountant; while those from a financial manager are put together with only the guidelines in mind. Without, the assistance of these accountants, firms would be unfamiliar with proper procedures needed to account for setting appropriate costs to products, what type of products and services to provide; and an adequate location to conduct business. Therefore, it’s essential to have the proper systems, and accounting team to adhere to the necessities of the business, while bringing together their focus of the financial statements; which provides a detailed report of the business

In other words, “when they assign costs to specific cost objects, accountants distinguish between direct costs and indirect costs” (Kelly & Williams, 2016, pg. 133). So, what does it mean by direct costs, it a cost that can be traced to the actual products or department to which it was produced. Therefore, an indirect cost is one that isn’t accountable; such as a project, facility; or a function of a certain product. One example, of an indirect cost would be that of quality control; a system to which we abide by while maintaining specific standard and qualifications. Though, this is never an easy task when assigning specific goals and strategies to which the company will use, using the information obtain in the reports of the managerial accountant will benefit them in choosing the best alternatives when finding an adequate solution; especially, when considering the past and future of their business interactions. Because, if not properly thought-out it can cause some unforeseen circumstances to arise from obtaining misleading information; therefore, using a logical approach to the type of cost being applied will eliminate any uncertainties from arising as to whether it’s a direct cost;