Origin of Managerial Accounting
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- čas přidán 29. 06. 2024
- This video discusses the origin of Managerial Accounting.
The Industrial Revolution and the rise of factories gave birth to Managerial Accounting. Prior to factories, the various processes involved in creating goods such as clothing were carried out by independent artisans. With factories, these artisans were all gathered under one roof (as "employees") and paid a wage. This made it difficult to calculate the cost per-unit; for example, how much did it cost to produce one square foot of wool? Managerial Accounting principles were soon developed to calculate the cost per-unit, which also made it easier to calculate the cost of ending inventory for the Balance Sheet and the cost of goods sold for the Income Statement.
Later in the 19th century, the massive scale of railroads led to further developments of Managerial Accounting principles. For example, the large size of railroad companies prompted top management to divide a company into divisions and evaluate the performance of each division. This also led to transfer pricing to coordinate the use of resources between divisions within the same firm. In addition, managers in the railroad industry came up with a number of metrics (e.g., cost per ton-mile) that are still in use today. All of these developments laid the foundation for Managerial Accounting as we know it today.
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Thank you, that means a lot!
I just wanna thank you so much for making these videos! About two days before my managerial accounting exam a while back I was SO stressed because I barely understood the material... Found this channel, binged as much of this playlist as I could, and I wound up actually passing! Thanks for making the content so clear and so practical, you're an absolute godsend to students everywhere
Congratulations on passing your course! And thank you for taking the time to write such a kind and uplifting note!
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Thanks so much for making these videos. I learn more from these than I have done from my lecturers at uni. I have a Management Accounting exam in a few days, and you're stuff has been so helpful
Thank You, this is a great way to refresh all the chapters from 10 years ago!
I have been learning about Management Accounting through your videos. Great learning! Thanks!
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How did the exam go??? Fingers crossed!!
Thank you so much :)
Yes the industrial revolution led to quite a few changes and improvements!
thank you
Nice one
😀
2 weeks away from my final and I have a F. ill come back after to update my grade
It's calculation-oriented, but how can I organize this with financial management and economics practice thinking try
Thank you and please explain what is COGS
Cost of goods sold is the cost of purchasing the inventory (if the company is a retailer like Walmart) of the cost of manufacturing the inventory if the company is a manufacturer (like Boeing)
Superstar
what does division mean in accounting? thank you
A division is like a segment of the business. An automobile manufacturer, for example, might have two divisions: one division that makes cars, and one division that makes trucks
I am desperate. Can someone explain to me why 12000 are not being used in this scenario.
Tinroof Manufacturing fabricates cans and uses process costing. There are three processing departments-Cutting, Painting, and Packaging.
On October 1, 2018, the Painting Department had 12,000 units of partially processed product in production. During October, 64,000 units were transferred in from the Cutting Department and 49,000 units were completed and transferred out.
At the end of the month, there were 15,000 units of partially processed products remaining in the Painting Department. See additional details below.
Painting Department, ending balance at October 31, 2018
Percentage completion for materials cost: 70%
Percentage completion for conversion cost: 50%
For the Painting Department, what was the TOTAL number of equivalent units of production in the month of October for
1. direct materials and 2. conversion costs.
Direct Material
Direct Material Percentage of Completion Equivalent Units
Completed and transferred out 49,000 100% 49,000
Ending balance 15,000 70% 10,500
Total units accounted for 59,500
Conversion Costs
Direct Material Percentage of Completion Equivalent Units
Completed and transferred out 49,000 100% 49,000
Ending balance 15,000 50% 7,500
Total units accounted for 56,500
Rawlroads
☝️
I will never be ok with how your pronounce the word "railroads" like "ralroads".
Why does he sound like Lightning McQueen?