Accounting (ACC) 561
November 11, 2010
Eddie Mattison, Facilitator
Decision Making
Budgets and Performance Reports
Budgets…help to prepare and implement plans. They are the chief devices for disciplining management planning. Without budgets, planning whitethorn not get the front and center focus that it normally deserves. (Horngren at el. 2008, p. 13) Guillermo must be able to operate inwardly his budgets; otherwise he may begin to operate at a profit loss. Creating a budget will leave alone Guillermo to know the ex mold amount of money that he has to allocate to specific expenses. Performance reports provide feedback by comparing results with plans and by spiritedlighting variances, which are deviations from plans. (Horngren at el. 2008, p. 13) Guillermo can use proceeding reports to determine if changes that he makes positively or negatively imprint his bottom line. By using both budgets and performance reports Guillermo should be able to outline a plan that will residual company/organizational goals, personal goals, and maintain profitability.
Ethics Influence
Regulations and standards much(prenominal) as Generally Accepted Accounting Principles (GAAP), Foreign bollocks up Practices Act, and Sarbanes-Oxley Act operate as external controls to mark off that companies and accountants act legally and ethically.
According to the text Regulation of accounting systems seeks to ensure the reliability of the information that accountants provide. However, no regulations can be as effective in ensuring reliability as holding accountants to high ethical standards (Horngren at el. 2008, p. 8) This being said, Guillermo should continue to examine ways to maintain profitability in the ever-changing business mart; however he should not be swayed from the principles that brought him to success.
germane(predicate) Information
Relevant information is (1) Information must be an expected next revenue or cost, and (2) it must have an element of end among the alternatives. That is,...If you want to get a full essay, order it on our website: Ordercustompaper.com
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