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Management
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English (U.S.)
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Topic:
Accounting Concepts and Practices and Their Effects on Various Stakeholders
Essay Instructions:
Overview-hello use a short form answer and fallow by the rubrics to pass:)
For this Short-Answer Assessment you will answer a series of short answer items to demonstrate your ability to explain accounting concepts and practices and their effects on various stakeholders.
Instructions
Before submitting your Assessment, carefully review the rubric. This is the same rubric the assessor will use to evaluate your submission and it provides detailed criteria describing how to achieve or master the Competency. Many students find that understanding the requirements of the Assessment and the rubric criteria help them direct their focus and use their time most productively.
To complete this Assessment:
• Download the IG010 Short Answer Submission Form, which includes the Rubric for this Assessment. Complete the form adhering to the criteria presented in the Rubric.
• Download the Academic Writing Checklist to use as a guide when completing your Assessment. Responses that do not meet the expectations of scholarly writing will be returned without scoring. Properly formatted APA citations and references must be provided where appropriate.
• Access The Anatomy of Corporate Fraud
• Access Managerial Fraud
Essay Sample Content Preview:
IG010 Project Performance Measurement
Short Answer Submission Form
Name:
E-Mail Address:
Prompt 1
Response
Cost is a crucial aspect in many business decisions. For decision-making, costs may be classified as sunk costs, opportunity costs, and accounting costs. According to Weygandt, Kimmel, Kieso (2018), sunk costs refer to expenses that have already been incurred and cannot be recovered. They are not included in future business decisions because they will always remain the same regardless of the decision's outcome. Sunk costs do not affect or change the results of any business verdict. For example, When looking to hire a new employee in your company, you may find a candidate who looks promising and offer them a hiring bonus of $3,000. If the individual is hired and ends up being inefficient, the $3,000 can be considered a sunk cost since you can not recover this amount even if you decide to terminate the contract. In such a case, the cost will be recorded as an expense.
Opportunity costs are the profits lost when one opportunity is chosen over another (Bragg, 2020). These costs serve as a simple reminder for examining all practical options before committing. For instance, you have $200,000 and decide to fund a product line that will produce a 5% return. If you could have invested in equity investments that would generate a return of 11%, then the 6% difference between the two options would be the foregone opportunity cost of this decision. These costs do not only involve money: they can also include conventional use of time. Regarding decision-making, opportunity costs help managers understand the possibility of each opportunity to identify the one with the best returns.
Accounting costs refer to the hard costs incurred in business activities and recorded in monetary units (Zimmerman, 2011). They appear in an organization’s financial statement. Essentially, these are the direct costs incurred by an entity. For example, if a company spends $150,000 on utility, this will be the accounting cost on utility. This will be the overall cost the business has spent on utilities. Accounting costs are essential in decision making because they help in determining the financial health of the business. They help managers know if the business has incurred a loss or made a profit within a specified period.
Prompt 2
Response
The Balanced Scorecard is one of the most common strategic management tools and performance measurement (Hansen & Schaltegger 2016). It often functions as a management tool for communicating, describing, and implementing strategy. In that case, the BSC has practical relevance in business decision making. Digital culture has revolutionized decision-making processes by altering how knowledge is gained and how actions are undertaken. The balanced scorecard is essential in guiding managers in strategy implementation and performance evaluation. It allows them to take more assertive actions.
Four quadrants are anchoring the perspectives of the balanced scorecard. These include financial, business process, customer, and organizational capacity. From a financial standpoint, an organization's goal is to ensure that it manages the key risks involved in operations and earns a return on the investments made (Alolah, Stewart, Panuwatwanich, Mohamed, 2014). The customer perspective examines business performance from a customer or stakeholder viewpoint, monitoring how it is providing value to those it is designed to serve. The business process assesses the efficiency and quality of the company's performance concerning services, products, and other business operations.
Organizational capacity or learning and growth focuses on human capital, culture, technology, infrastructure, and other capacities that impact breakthrough performance. According to (Hoque & Kaplan 2012), these four quadrants have a significant causal relationship as they function as performance measures, enabling businesses to identify their shortcomings and develop effective strategies. They provide a framework for implementing and managing strategy by linking a vision to strategic objectives, targets, initiatives, and measures.
Prompt 3
Response
Budgeting, planning, and forecasting are regarded as the three steps involved in strategic planning and are essential in determining the organization's long and short-term financial goals. The finance department in a company manages the strategic planning process under the guidance of the CFO. The concept of planning involves outlining a company's financial direction and creating a model of expectations for the next 3-5 years (Castellina, N., & Hatch, D. 2011). This is the first step in setting up a business. Budgeting refers to the documentation of how the overall plan will be implemented every month and consists of revenue and expense estimates. It also includes the anticipated cash flow as well as debt reduction. Forecasting is the use of accumulated historical data and market conditions in predicting future financial outcomes. It helps the management to predict results and can be adjusted whenever new information is available.
The primary link between forecasting, strategic planning, and budgeting is that they form the crucial components of the key responsibilities in an organization's executive finance department and performance management (Samonas, 2015). Basically, these processes are combined into a single component, in which each one of them represents a step towards an efficient financial strategy. Developing and implementing a sound forecasting, budgeting, and strategic planning process enables organizations to establish more accurate financial analytics, resulting in revenue growth.
Although planning, budgeting, and forecasting are essential for businesses to map out the present and envision the future, these elements...
Short Answer Submission Form
Name:
E-Mail Address:
Prompt 1
Response
Cost is a crucial aspect in many business decisions. For decision-making, costs may be classified as sunk costs, opportunity costs, and accounting costs. According to Weygandt, Kimmel, Kieso (2018), sunk costs refer to expenses that have already been incurred and cannot be recovered. They are not included in future business decisions because they will always remain the same regardless of the decision's outcome. Sunk costs do not affect or change the results of any business verdict. For example, When looking to hire a new employee in your company, you may find a candidate who looks promising and offer them a hiring bonus of $3,000. If the individual is hired and ends up being inefficient, the $3,000 can be considered a sunk cost since you can not recover this amount even if you decide to terminate the contract. In such a case, the cost will be recorded as an expense.
Opportunity costs are the profits lost when one opportunity is chosen over another (Bragg, 2020). These costs serve as a simple reminder for examining all practical options before committing. For instance, you have $200,000 and decide to fund a product line that will produce a 5% return. If you could have invested in equity investments that would generate a return of 11%, then the 6% difference between the two options would be the foregone opportunity cost of this decision. These costs do not only involve money: they can also include conventional use of time. Regarding decision-making, opportunity costs help managers understand the possibility of each opportunity to identify the one with the best returns.
Accounting costs refer to the hard costs incurred in business activities and recorded in monetary units (Zimmerman, 2011). They appear in an organization’s financial statement. Essentially, these are the direct costs incurred by an entity. For example, if a company spends $150,000 on utility, this will be the accounting cost on utility. This will be the overall cost the business has spent on utilities. Accounting costs are essential in decision making because they help in determining the financial health of the business. They help managers know if the business has incurred a loss or made a profit within a specified period.
Prompt 2
Response
The Balanced Scorecard is one of the most common strategic management tools and performance measurement (Hansen & Schaltegger 2016). It often functions as a management tool for communicating, describing, and implementing strategy. In that case, the BSC has practical relevance in business decision making. Digital culture has revolutionized decision-making processes by altering how knowledge is gained and how actions are undertaken. The balanced scorecard is essential in guiding managers in strategy implementation and performance evaluation. It allows them to take more assertive actions.
Four quadrants are anchoring the perspectives of the balanced scorecard. These include financial, business process, customer, and organizational capacity. From a financial standpoint, an organization's goal is to ensure that it manages the key risks involved in operations and earns a return on the investments made (Alolah, Stewart, Panuwatwanich, Mohamed, 2014). The customer perspective examines business performance from a customer or stakeholder viewpoint, monitoring how it is providing value to those it is designed to serve. The business process assesses the efficiency and quality of the company's performance concerning services, products, and other business operations.
Organizational capacity or learning and growth focuses on human capital, culture, technology, infrastructure, and other capacities that impact breakthrough performance. According to (Hoque & Kaplan 2012), these four quadrants have a significant causal relationship as they function as performance measures, enabling businesses to identify their shortcomings and develop effective strategies. They provide a framework for implementing and managing strategy by linking a vision to strategic objectives, targets, initiatives, and measures.
Prompt 3
Response
Budgeting, planning, and forecasting are regarded as the three steps involved in strategic planning and are essential in determining the organization's long and short-term financial goals. The finance department in a company manages the strategic planning process under the guidance of the CFO. The concept of planning involves outlining a company's financial direction and creating a model of expectations for the next 3-5 years (Castellina, N., & Hatch, D. 2011). This is the first step in setting up a business. Budgeting refers to the documentation of how the overall plan will be implemented every month and consists of revenue and expense estimates. It also includes the anticipated cash flow as well as debt reduction. Forecasting is the use of accumulated historical data and market conditions in predicting future financial outcomes. It helps the management to predict results and can be adjusted whenever new information is available.
The primary link between forecasting, strategic planning, and budgeting is that they form the crucial components of the key responsibilities in an organization's executive finance department and performance management (Samonas, 2015). Basically, these processes are combined into a single component, in which each one of them represents a step towards an efficient financial strategy. Developing and implementing a sound forecasting, budgeting, and strategic planning process enables organizations to establish more accurate financial analytics, resulting in revenue growth.
Although planning, budgeting, and forecasting are essential for businesses to map out the present and envision the future, these elements...
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