Exam 1: Introduction to Managerial Accounting

Excellent customer service is an example of a value-added activity.

You have been working as a staff accountant at Sanborn Industries for three months. Mr. Jones, the accounting manager as well as your boss, has informed you that he has decided to change vendors for the company's office supplies. He notifies you that your company will now be utilizing the store owned by his best friend. Mr. Jones is hopeful that this will bring in a significant profit for his friend's business possibly preventing the closing of his store. You receive the first invoice from that store and realize that the prices are nearly double the amount that the company was paying when using a large retail chain. What should you do about the situation?

Positions that have direct responsibility for the basic objectives of an organization are referred to as line positions.

Managerial Accounting is designed primarily for internal users.