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Portfolio Assignment Unit 8

This document discusses key concepts the author learned in a managerial accounting course. The author found all topics intriguing and realized accounting strategies like differential analysis, analysis and interpretation of financial information, and master budgeting will be beneficial for their career as a human resources professional. Differential analysis aids decision making by comparing costs and revenues of options. Financial analysis provides insight for budgeting decisions around staffing levels. Master budgeting comprehensively plans revenues, expenses, and cash flows including human resource budgets. The author is grateful for insights gained into using accounting tools for managerial decision making.

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Hanna St. Jean
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80 views

Portfolio Assignment Unit 8

This document discusses key concepts the author learned in a managerial accounting course. The author found all topics intriguing and realized accounting strategies like differential analysis, analysis and interpretation of financial information, and master budgeting will be beneficial for their career as a human resources professional. Differential analysis aids decision making by comparing costs and revenues of options. Financial analysis provides insight for budgeting decisions around staffing levels. Master budgeting comprehensively plans revenues, expenses, and cash flows including human resource budgets. The author is grateful for insights gained into using accounting tools for managerial decision making.

Uploaded by

Hanna St. Jean
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Portfolio Assignment Unit 8

During this course, I must admit I have had the opportunity to understand so many concepts and
practical work in the area of Managerial Accounting like being able to understand the values in
balance sheet, cash flow statements, income statements, and analyze what they mean for the
company. Calculating financial ratios to help with decision making, undertaking cost analysis for
different options that would aid taking the best decision on which option a company could go
along with based on many factors quantitative as well as qualitative, among so many more
interesting topics.

Personally I must say that every topic of every unit was very intriguing. I have always been keen
on learning more in the accounting field and I feel that this was a very good push toward the
right direction. I have come to the realization that as I progress in my career life, it will be
important to gain a solid understanding of accounting strategies and tools and three of those that
I believe will be of greatest benefit to me are Differential Analysis, analysis and interpretation of
financial information, and Master budgeting.

Differential analysis is the result of analysis of two or more business options which will indicate
the difference between revenues and costs, sufficient enough to take a decision. This type of
analysis assists with decision making regarding the options of buying of making products,
keeping or dropping product lines, keeping or dropping customers, accepting or rejecting special
customer orders among others. In my case as a Human Resource Professional, this is very
beneficial to me as for example, in the event that the company is looking to drop a product line.
This involves dropping also of staff involved in the said production line. Being able to provide
valuation information that would aid in this decision is very critical and the posterior analysis of
the effect this would have on the company and its productivity is paramount.

Analysis and Interpretation of financial information is very critical, also for the Human Resource
Department as this could allow insight into how well the company is doing the parameters that
can be placed where taking budgetary decisions regarding staff is concerned. Human resources
may see the need for new staff to undertake a series of responsibilities and duties, however
taking a look at the financial data, management can together decide whether this is viable, and if
the growth/sales trend supports being able to pay and provide benefits to these and existing
employees for the upcoming years. Using ratios, the company is able have information on their
ability to pay debts on the short term and also on the long term among others.

Master budgeting is one of the most critical, as it involves financial planning for the entire
organization by providing information on the activities that generate income for the company,
detailing revenues and expenses, cash inflows and outflows with estimations. (Heisinger et al,
2012) It also includes budgeting of expenses for long term assets and cost of various projects to
be undertaken. It is very comprehensive and definitely includes estimates for the human resource
aspect of the company, like recruitment, training, health and safety of employees, benefits,
rewards, compliance requirements, and ergonomics among many others, all of which needs
budgetary allocations.

In conclusion, I am very grateful for having done this course which gave great insight on how to
use various accounting tools to make managerial decisions.

References
Heisinger, K., & Hoyle, J. B. (n.d.). Accounting for Managers. 
https://2012books.lardbucket.org/books/accounting-for-managers/index.html

Kenton W. (2022, March 6). Financial Statement Analysis: How it is done, by statement.
Investopedia.
https://www.investopedia.com/terms/f/financial-statement-analysis.asp

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