Short-Answer Questions and Definitions (5 sentences for each question)
What are the major differences between managerial and financial accounting?
Explain how a contribution margin (variable costing, behavioral income statement) differs from an income statement prepared in accordance with US GAAP.
Why are certain costs referred to as product costs? What are the major types of product costs incurred by a manufacturer?
Define the following terms.
Overhead for the production departments.
Overhead for non-production departments.
Explain the distinction of variable costs, fixed costs, and mixed costs.
Explain the difference between direct and indirect costs.
Distinguish between controllable and uncontrollable costs.
Define sunk costs and opportunity costs.
Real-World Example (500-600 words short essay)
Visit the website for Stitch Fix (Personal styling for everybody) and locate its last quarterly report.
***I have attached the quarterly report for reference***
Review the quarterly report to gain a general understanding of the company’s primary business segments and products/services. Write an essay addressing the following questions based on your research.
What products and services does the company provide?
How does the financial information provided in the quarterly report (focus on the income statement) differ from financial information used for managerial accounting purposes?
As a manager making business decisions within the company, what additional information would you need? (Remember that the income statement may be referred to using different terminology such as statement of earnings or statement of operations.) Give at least two specific pieces of information desirable to a manager, but not included in the published income statement.