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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Problem 1-2 Users of Accounting Information and Their Needs
Havre Company would like to buy a building and equipment to produce a new product line. In- formation about Havre is more useful to some people involved in the project than to others.
Required
Complete the following chart by identifying the information listed on the left with the user’s need to know the information. Identify the information as one of the following:
a. Need to know
b. Helpful to know
c. Not necessary to know
User of the Information
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Information Management Stockholders Banker
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1. Amount of current debt, repayment schedule, and interest rate |
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2. Fair market value of the building |
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3. Condition of the roof and heating and cooling, electrical, and plumbing systems |
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4. Total cost of the building, improvements, and equipment to set up production |
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5. Expected sales from the new product, variable production costs, and related selling costs |
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