Advantages of participative budgeting questions 1. Briefly describe why budgetary planning is important to managers. 2. What role do budgets play in the planning and control cycle? 3. What is a strategic plan and how does it relate to short- and long-term goals? 4. Suppose that your strategic plan is to retire comfortably at the age of 55. List several long-term objectives, short-term objectives, and […]

Steps of management decision making process 1. Briefly describe the five steps of the management decisionmaking process. 2. Suppose you are considering a part-time job to earn some extra spending money. List four factors that could affect that decision and would be included in Step 3 of your decision-making process. 3. Tom Ellis recently bought a plasma television and has since stated that he would […]

Analyze methods used to estimate cost behavior What is the relevant range and why is it important? 5. The formula for estimating cost behavior is y = a bx. Explain what each term represents. 6. Why is a scattergraph useful? 7. Describe the three methods used to estimate cost behavior. What are the strengths and weaknesses of each method? Will these methods always yield exactly […]

Discuss discretionary and common fixed costs Define each of the following terms: variable cost, fixed cost, step cost, and mixed cost. Give an example of each. 2. Explain what happens to the following when activity level decreases: a. Total fixed cost. b. Total variable cost. c. Total mixed cost. d. Fixed cost per unit. e. Variable cost per unit. f. Mixed cost per unit. 3. […]

Discuss stages of activity based costing What is the difference between a volume-based cost driver and a non-volume-based cost driver? 2. Explain the statement that traditional costing systems use volume-based allocation measures. 3. What are the potential negative consequences of a traditional volume-based costing system? 4. How does activity-based costing differ from traditional costing systems? 5. What types of business might use activity-based costing? 6. […]

job order cost system assignment Describe the key differences between job order costing and process costing. LO 2–2 Describe the source documents used to track direct materials and direct labor costs to the job cost sheet. LO 2–3 Calculate a predetermined overhead rate and use it to apply manufacturing overhead cost to jobs. LO 2–4 Describe how costs flow through the accounting system in job […]

Difference between relevant and irrelevant costs miles you drive your car each week and an example of a cost that is fixed regardless of how many miles you drive your car each week. 21. Explain the difference between relevant and irrelevant costs. What are the two criteria used to determine whether a cost is relevant? 22. Suppose you and your friends are planning a trip […]

Order analytics in managerial accounting Describe the key differences between financial accounting and managerial accounting. LO 1–2 Describe how managerial accounting is used in different types of organizations to support the key functions of management. LO 1–3 Describe the importance of ethics, sustainability, and decision analytics in managerial accounting. LO 1–4 Define and give examples of different types of costs: Having a hard time figuring […]

Assessing Finished Goods Inventory account Briefly describe the differences between job order and process costing. Give an example of a type of company that would use each one. 2. Briefly explain the underlying logic of a process costing system and its assignment of costs to products. 3. Explain the differences between Raw Materials Inventory, Work in Process Inventory, and Finished Goods Inventory accounts. 4. Explain […]

Discuss disadvantages of decentralization help List and explain the advantages and disadvantages of decentralization. LO 10–2 Describe the different types of responsibility centers and explain how managers of each type are evaluated. LO 10–3 Describe the four dimensions of the balanced scorecard and explain how they are used to evaluate managerial performance. LO 10–4 Compute and interpret return on investment, investment turnover, and profit margin. […]