Mustra manufactures computer circuit boards. Inventories are kept to a minimum and they maintain a highly trained workforce that operates at full capacity this is achieved by adjusting their price to meet market demand, where necessary. As new electronic devices are developed by other companies Mustra breaks-down and reverse-engineers the item in order to create a circuit board that will achieve the same functions. Mustra then markets these circuit boards to manufacturing companies which produce the cloned devices.
Marketing The accounting department of a business monitors the financial condition of a company based on financial statements that are compiled on a regular basis.
The marketing department is responsible for managing and developing the sales of a business. The accounting department must work closely with the marketing department to monitor trends in the business as well as manage the efficiency of sales promotions initiated by the marketing company.
For example, a marketing might campaign might be successful in terms of gross sales, but the accounting department might determine that the cost of the campaign was too high. Accounting Department and Financial Statements All businesses must keep some form of accounting system to monitor the financial results of a business.
The financial statements help management gauge the profitability of a business within a given period. The accounting department is responsible for the preparation and analysis of the financial statements. They can monitor sales trends and expense trends in the business that can provide management with the information it needs to make plans for expansion or cost reductions.
Some of the most important expenditures a business can make are in the areas of marketing and advertising. A business must be able to market its goods and services, however they must also be able to manage the cost of the marketing and advertising efforts.
Marketing Reports The marketing department of a company sets up programs to increase sales via advertising and sales promotions.
These can include direct advertising programs such as radio and television campaigns to indirect programs that include involvement in community and public organizations.
The marketing department prepares a variety of reports designed to assist management in processes of determining sales strategies that work.
Reports might include gross sales per campaign or even customer hits on a website advertisement. Marketing is always looking for the best way to promote a business within the confines of the company budget. Ratio Analysis Management is always looking at the relationship between sales and costs.
These are called ratios. For example, a typical ratio is the gross-expense ratio.
This measures the gross expenses of a company with the gross sales. The gross expense ratio can be further broken down into expenses related to important departments in the company, such as marketing.
Accounting and marketing should work closely to monitor the ratios of advertising and marketing expenses to gross sales. For example, if marketing expenses are increased in a period, but sales remain constant, management may decide that the marketing expenses were inefficient.
This is called ratio analysis. Considerations Marketing and accounting must work closely so that management can see where the marketing campaigns are successful. Another reason marketing and accounting work closely together is to prepare budgets for future expenditures in the fields of marketing and advertising.
By looking at past financial results, management can budget future expenditures for the marketing campaigns.Key Costs Related to Managerial Accounting. In accounting, a cost measures how much you pay/sacrifice for something. Managerial accounting must give managers accurate cost information relevant to their management decisions.
About Marketing Are you innovative, creative, resourceful and good at communicating? Careers in marketing use all these skills and more. Every organization’s goal is to market and sell its products or services profitably while creating a valuable relationship with customers.
Management (or managing) is the administration of an organization, whether it is a business, a not-for-profit organization, or government timberdesignmag.comment includes the activities of setting the strategy of an organization and coordinating the efforts of its employees (or of volunteers) to accomplish its objectives through the application of available resources, such as financial, natural.
One simple definition of management accounting is the provision of financial and non-financial decision-making information to managers.
According to the Institute of Management Accountants (IMA): "Management accounting is a profession that involves partnering in management decision making, devising planning and performance management systems, and providing expertise in financial .
Financial Accounting Basic introduction to financial accounting. Defines financial accounting, compares to managerial accounting, lists underlying assumptions, and provides an example of recording transactions. google-plus; twitter; facebook; Management Study Guide is a complete tutorial for management students, where students can learn the basics as well as advanced concepts related to management and its related subjects.