Global Issue: Management Uses for Internal Accounting Procedures

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Review of the Subject: Our course focuses on the two main objectives of internal accounting procedures. The two objectives, in no particular order, are decision making and control. “Information about firms’ future costs and revenues is not readily available but must be estimated by managers. Organizations must obtain and disseminate the knowledge to make these decisions. (Zimmerman, 2009, p. 2) At the same time employees’ interests are rarely aligned with those of management. While we would like to think our staff finds great satisfaction in helping us meet our goals the reality is that their objectives are not always our own. Therefore, “all successful firms must devise mechanisms that help align employee interests with maximizing …show more content…
We have many folks that come in to dine at our restaurants. Without a handle on what our food items actually cost to produce and serve how can we properly price our offerings? The easy answer is that we can’t. For that matter no business can properly price their products if they don’t have a smart pricing strategy based on astute internal accounting. Such pricing blunders are not limited to naïve small business owners however. One recent piece of news that caught my attention was that of Burger King Franchisees suing their own parent company. “Burger King Franchisees sued the hamburger company this week over its $1 double cheeseburger promotion, saying they’re losing money on the deal and the company can’t set maximum menu prices.” (Heher, 2009, p. 1). Now I have no idea what the actual cost of the burger is to the franchisees, but obviously having an accurate cost analysis will help settle this case. An essay on pricing isn’t complete without some mention of the infamous Black Friday retail extravaganza. While I personally haven’t determined how much you’d have to pay me to visit a mall the day after Thanksgiving, millions of Americans flock to their local outlets in a frenzy of consumerism. Enough has been said about the current state of the American economy. I’m not so convinced of the doom and gloom, but there’s no denying there’s been a decrease in consumer spending. At first it seemed to be positive news that electronics

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