Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
16th Edition
ISBN: 9780134475585
Author: Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
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Textbook Question
Chapter 1, Problem 1.31P
- 1. Analyzing whether to keep the billing function within an organization or outsource it.
- 2. Deciding to give bonuses for superior performance to the employees in a Japanese subsidiary and extra vacation time to the employees in a Swedish subsidiary.
- 3. Including costs of all the value-chain functions before deciding to launch a new product, but including only its
manufacturing costs in determining itsinventory valuation . - 4. Considering the desirability of hiring an additional salesperson.
- 5. Giving each salesperson the compensation option of choosing either a low salary and a high-percentage sales commission or a high salary and a low-percentage sales commission.
- 6. Selecting the costlier computer system after considering two systems.
- 7. Installing a participatory budgeting system in which managers set their own performance targets, instead of top management imposing performance targets on managers.
- 8. Recording research costs as an expense for financial reporting purposes (as required by U.S. GAAP) but capitalizing and expensing them over a longer period for management performance-evaluation purposes.
- 9. Introducing a profit-sharing plan for employees.
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Management accounting guidelines. For each of the following items, identify which of the management accounting guidelines applies: cost–benefit approach, behavioral and technical considerations, or different costs for different purposes.
Analyzing whether to keep the billing function within an organization or outsource it.
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Considering the desirability of hiring an additional salesperson.
Giving each salesperson the compensation option of choosing either a low salary and a high-percentage sales commission or a high salary and a low-percentage sales commission.
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1. Customer profitability analysis allows managers to do which of the following?
a. Identify the closest competitor.
b. Sell to higher end customers.
c. Manage each customer's costs-to-serve.
d. Focus solely on service calls.
2. What is the focus of operational control?
a. Long-term operating performance.
b. The profitability of the company.
c. The activities of company executives.
d. Short-term operating performance.
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a. Cost, quality, and functionality.
b. Management by objectives.
c. Management by exception.
d. Motivation, incentive, and fairness.
4. Cost allocation of costs for shared services in an organization is intended to remind managers of:
a. The cost and value of using shared resources.
b. How much capacity a firm has.
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d. Variable costing income calculations.
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c. Earnings-based…
For each of the following items, identify which of the management
accounting guidelines applies: cost-benefit approach, behavioral and technical
considerations, or different costs for different purposes.
Analyzing whether to keep the billing function within an organization or outsource
it
Deciding to give bonuses for superior performance to the employees in a Japanese
subsidiary and extra vacation time to the employees in a Swedish subsidiary
Including costs of all the value-chain functions before deciding to launch a new
product, but including only its manufacturing costs in determining its inventory
valuation
Considering the desirability of hiring one more salesperson
Giving each salesperson the compensation option of choosing either a low salary
and a high-percentage sales commission or a high salary and a low-percentage sales
commission
Selecting the costlier computer system after considering two systems
Installing a participatory budgeting system in which managers set…
Chapter 1 Solutions
Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
Ch. 1 - How does management accounting differ from...Ch. 1 - Management accounting should not fit the...Ch. 1 - How can a management accountant help formulate...Ch. 1 - Describe the business functions in the value...Ch. 1 - Explain the term supply chain and its importance...Ch. 1 - Management accounting deals only with costs. Do...Ch. 1 - How can management accountants help improve...Ch. 1 - Prob. 1.8QCh. 1 - Prob. 1.9QCh. 1 - What three guidelines help management accountants...
Ch. 1 - Prob. 1.11QCh. 1 - Prob. 1.12QCh. 1 - Prob. 1.13QCh. 1 - Prob. 1.14QCh. 1 - Prob. 1.15QCh. 1 - Which of the following is not a primary function...Ch. 1 - Value chain and classification of costs, computer...Ch. 1 - Prob. 1.18ECh. 1 - Value chain and classification of costs, fast-food...Ch. 1 - Key success factors. Dominion Consulting has...Ch. 1 - Key success factors. Vargas Construction Company...Ch. 1 - Planning and control decisions. Gregor Company...Ch. 1 - Planning and control decisions. Gavin Adams is the...Ch. 1 - Prob. 1.24ECh. 1 - Five-step decision-making process, service firm....Ch. 1 - Professional ethics and reporting division...Ch. 1 - Professional ethics and reporting division...Ch. 1 - Planning and control decisions, Internet company....Ch. 1 - Prob. 1.29PCh. 1 - Prob. 1.30PCh. 1 - Management accounting guidelines. For each of the...Ch. 1 - Prob. 1.32PCh. 1 - Prob. 1.33PCh. 1 - Budgeting, ethics, pharmaceutical company. Chris...Ch. 1 - Professional ethics and end-of-year actions. Linda...Ch. 1 - Professional ethics and end-of-year actions....Ch. 1 - Ethical challenges, global company environmental...
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