1. Tutorial 11
Financial Management

2. Q1 a) Differences between Financial Accounting & Management Accounting
Comparison Criteria
Financial Accounting
Management Accounting
Information focus
Recording financial impacts of business operations via i:
GL Accounting processes
AR and AP accounting processes
Assets accounting processes
Bank Ledge accounting processes
Generated reporting information for tracking the achievements of sale and cost performance and other business objectives
Type of Financial Statements
Legislation compliant and management information
Management information

3. Q1 b) How can an ERP system benefit workers in both areas?
Both Financial and Management Accounting modules
Provide workers a wealth of real-time and accurate information on demand
Have built-in reporting features that reduces laborious work in preparing a variety of reports

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Examples of how ERP systems can save time for accountants:
Financial statement preparation, especially for companies with subsidiaries
Preparation of management reports for decision making
Gathering, summarising and analysing data
Providing data for operating decisions (e.g. credit management)
Inventory cost accounting
Tracking events in completing a transaction (e.g. a sales order)
Q3) ERP systems save time for accountants in many ways
Expected that the employment of accountants would diminish
Needed more than ever in industry
Explain how changes such as the introduction of the Sarbanes-Oxley Act has impacted the demand for accountants
Look on websites like careerone.com.au or seek.com.au
Sarbanes-Oxley Act has caused a huge need for accountants and individuals with finance majors in accounting because of the added reporting, documentation and verification of controls required in organisations
Further, think about the job advertisements you have looked at on Seek.com.au and careerone.com.au recently

5. Q4 – Credit Checking
Given the state of the system, will credit be granted or denied for ABC Corporation’s current order?
If the system processed data in a more timely way, would credit be granted or denied?

6. Q4 – Credit Checking
First find out how much the client is owning the company money
Calculate the current order value $32 X 100 = $3,200
Find out outstanding A/R $6,000
Total amount payable $9,200
Client’s credit limit is $8,000
Client’s outstanding unpaid amount is $9.200 > Credit Limit , reject the current order for the 100 chain locks

7. Additional Critical Path Question 1

8. Additional Critical Path Question 1
Critical Path  A-C-D-F, which is 18 days

9. Additional Critical Path Question 2

10. Additional Critical Path Question 2 a and b
Critical Path  A-B-F-H-I-L ( 28 weeks)

11. Additional Critical Path Question 2 c
Critical Path  A-B-F-H-I-L ( 28 weeks)
If Activity E’s earliest start time was delayed by 1 week, what effect(s) will this have on Activity J’s earliest start time, earliest finish time and slack?
E delaying 1 week will have no effects on J, because E has 2 weeks slack, which more than the 1 week delay