Is Financial Accounting or Managerial Accounting More Useful to a Plant

question 150

Essay

Is financial accounting or managerial accounting more useful to a plant (factory)manager? Explain your answer.

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Definitions:

CPI

Stands for Consumer Price Index, a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, used to estimate the economy's inflation rate.

Real Wages

Wage increases larger than rises in the consumer price index; that is, the real earning power of wages

Expectancy Theory

A motivation theory suggesting that individuals are more likely to act in a certain way based on the expectation that the act will be followed by a given outcome and the attractiveness of that outcome.

Pay Systems

Structures within an organization that determine how employees are compensated for their work, including wages, salaries, benefits, and incentives.