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Bus 630 Week 5 Assignment

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Bus 630 Week 6 Final Paper Dell Inc.
Dell Inc.
Focus of the Final Paper
Due to varying business characteristics, the managerial accounting techniques applied in each business may differ. For
example, a business in the start-up phase may rely heavily upon budgeting and capital investment techniques; whereas, a
business in the mature/maintaining phase may rely heavily upon cost management and quality control. Ultimately, the
techniques used by management should assist the business in achieving its short-term and long-term goals through effective
decision-making.
For your Final Paper, you will analyze the role of managerial accounting in two parts. Part I will provide a general overview of
managerial accounting. Part II will provide examples of how managerial accounting theories and principles are applied in the
business world. You may find it helpful to reflect upon your own professional experiences for examples.
PartI(Three to four double-spaced pages)
Present the following:
Definition of managerial accounting
Role of managerial accounting and the management accountant in a business or organization
Ethical issues/concerns for the management accountant
General description of at least three managerial accounting techniques available and their application within a business or
organization
Part II (Four to six double-spaced pages)
Select at least three of the five topics identified below:
Cost Management Techniques
Costing Methods
Capital Investment Decision Techniques
Budgeting
Quality Control
For each topic selected present real world examples of the application of managerial accounting techniques within a business
or organization. Examples may be gathered from your own professional experiences or from case studies obtained from
credible sources (excluding textbook examples explored in previous weeks). Presentation of each example should include how
a managerial accounting technique was applied in the business or organization’s decision-making model. Be sure to support
your example with calculations when applicable.
Dell Inc.
Dell, a Delaware corporation, was founded in 1984 by Michael Dell on a
simple concept: by selling computer systems directly to customers, Dell
could best understand their needs and efficiently provide the most
effective computing solutions to meet those needs (Dell, 2005, p. 1). Dell
Inc., with fiscal 2011 net revenue of $61.5 billion, is a premier provider of

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products and services worldwide that enable customers to build their
information-technology and Internet infrastructures (Yahoo Finance,
2012). Dell offers a broad range of enterprise systems (servers, storage,
workstations, and networking products), client systems (notebook and
desktop computer systems), printing and imaging systems, software and
peripherals, and global services. During calendar 2004, Dell was the
number one supplier of personal computer systems worldwide as well as
in the United States. Dell’s global market leadership is the result of a
persistent focus on delivering the best possible customer experience by
selling products and services directly to customers (Dell, 2005, p. 1).
By selling products directly to the customer, Dell has developed a
marketplace niche and strategy for itself that has enabled it to remain
relevant and successful. Dell’s business strategy combines its direct
customer model with a highly efficient manufacturing and supply chain
management organization and an emphasis on standards-based
technologies. This strategy enables Dell to provide customers with
superior value; high-quality, relevant technology; customized systems;
superior service and support; and products and services that are easy to
buy and use (Dell, 2005, p. 1). Part of Dell’s business strategy is that
they maintain a direct intimate relationship with the customer as Dell had
determined that this is the most efficient path to effectively satisfy the
customer’s needs. This direct customer relationship, also referred to as
Dell’s “direct business model,” (Dell, 2005, p. 1) demonstrates that Dell’s
highest priority is their relationship with their customers. Other areas of
high priority for Dell include the customer’s ability to purchase custom-
built products and custom-tailored services, Dell’s ability to be the low-
cost leader, Dell’s success in providing a single point of accountability for
its customers and Dell’s belief that Non-proprietary standards-based
technologies deliver the best value to customers (Dell, 2005, p. 1). All of
these priorities are incorporated into Dell’s over-all strategy for success
in the marketplace.
There are many factors that affect Dell’s business and the results of its
operations, some of which are beyond Dell’s control that may cause the
actual results of Dell’s operations in future periods to differ materially
from those currently expected or desired (Dell, 2005, p. 7). The following
are some of the areas that could affect Dell’s business; general
economic, business, or industry conditions may result in a decrease in
net revenue, Dell’s business is extremely competitive and no assurances
can be offered that Dell can maintain its competitive advantage, a

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