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Questions and Answers of
Management Accounting
How do we argue that variance analysis can constitute a prominent management control system?
What is the purpose of preparing a flexible budget?
Prepare a sheet of formulae of variances, together with a remark on their rationality and man- agerial purpose.
How do you explain that budgetary control systems have contributed to the existence of the mechanistic form of management accounting?
'Controls are solutions for managers, problems for sociologists.' What is this difference?
'Budgets have answers.' What are the questions?
'Frameworks of controls cannot be applied.' Do you agree? Why?
'Organizations are mechanistic. Budgets are part of them." Is that correct? What are your views?
Can organizations live with budgets for ever?
In terms of their evolutionary roots, how do you differentiate between product costing and C-V-P analysis?
What are the defining properties of the neoclassical economic model of the firm?
What is the difference between economic and conventional accounting conceptions of profits? How has management accounting incorporated the economic conception of profit?
How should the assumptions of perfectly and non-perfectly competitive market conditions be reflected in the shape of the total, marginal and average revenue curves?
What are the different technological assumptions that we can hold on the relationship between output and variable factor input?
How should different technological assumptions on production be reflected in cost curves? What technological assumption of production is implied in linear cost curves?
Explain the economic rule that a firm should meet in order to maximize its short-run profits.
Illustrate the neoclassical microeconomic model of the firm's equilibrium behaviour. How far does C-V-P analysis in management accounting resemble this neoclassical economic model of the firm?
Differentiate between fixed and variable cost in relation to fixed and variable factors of production.
What is the difference between long- and short-run decision scenarios? Which branches of neoclassical economics are more relevant for each of these decision scenarios?
Prove mathematically that BEP = FC/contribution per unit.
Explain, in general terms and notions, how a linear programming model can be used to solve multi-product, multi-constraint short-run decision scenarios. Specify the objective function and the
Define the term 'shareholders' wealth maximization'.
List and briefly describe the main concepts of Keynesian theory of investment.
Explain how cost of capital is calculated when an investment project is financed by multiple sources of capital.
Discuss the contribution of neoclassical economics in the construction of mechanistic forms of organizations. How does it programme the short- and long-run decision scenarios in terms of economic
"The theoretical foundation of management accounting is neoclassical economics.' Discuss.
Discuss the link between short-run and long-run decision-making.
Discuss how the assumption of 'economic-rational man' is replicated in management account- ing practices.
Discuss how Milton Friedman's doctrine that the 'social responsibility of business is to increase its profits' is replicated in management accounting.
Why do we consider post-mechanistic conditions as multi-layered, multifaceted and para-doxical?
What is meant by globalization?
What are the underlying forces that promoted globalization?
How does globalization impact upon product market conditions?
How do globalization and its ramifications in product markets impact upon business intents?
What are the wider macroeconomic conditions essential for the persistence of mass pro- duction?
What were the wider social and economic forces that contributed to the collapse of mass- production systems?
How did the industrial world respond to the crisis of mass production? Explain in line with Piore and Sabel's (1984) thesis of 'flexible specialization'.
What is flexible manufacturing?
How would you describe the transition from Fordism to post-Fordism?
What are the salient features of post-Fordist manufacturing compared to the Fordist assembly line?
How would you compare the post-Fordist explanation of industrial change with the 'flexible specialization' thesis?
What are the three different settings in which, according to Piore and Sabel (1984), flexible specialization began to take place?
What cultural changes were brought about by the postmodern cultural turn? How would they be replicated in market and consumer behaviour?
What are the changes sought in organizational systems in response to the postmodern cultural turn?
What are the changes brought about by post-bureaucratic movements in organizations?
How does management accounting respond to post-mechanistic transition in organizational contexts, intents and contents?
What are the main sources for inflexibilities associated with traditional management account- ing tools and concepts? How do you relate emerging management accounting techniques such as ABC and ERP
What purpose does the strategic turn in management accounting serve?
We cannot build it yet. But already we can specify the 'postmodern' factory... Its essence will not be mechanical, though there will be plenty of machines. Its essence will be conceptual-the product
There is a widespread agreement that something dramatic has been happening to the international economy over the last two decades: rapid changes in production technology and industrial organization,
What are the reasons behind the strategic turn in management?
What are the different ways in which we can understand the evolving character of SMA?
What are the major weaknesses in conventional management accounting in relation to strategic management accounting?
What roles should SMA play if it is to overcome weaknesses in conventional management accounting?
How do you compare salient features of conventional management accounting with SMA?
How do you understand SMA in relation to other functional management areas, especially marketing, operations and strategic management?
What directions could SMA take to expand its strategic interface?
What are the major strategic concerns and tools/concepts in accounting for corporate strategies?
What are the major strategic concerns and tools/concepts in accounting for market or competitive strategies?
What are the major strategic concerns and tools/concepts in accounting for manufacturing strategies?
How do you differentiate between corporate vision and mission?
What implications do the notions of vision and mission, as they are stated in corporate com- munications, have upon the traditional understanding of corporate objectives?
What do you understand by the term 'strategy' at corporate planning level and in the context of portfolio planning models?
What are the major dimensions that portfolio planning models consider in evaluating the relative strategic position of a corporate business portfolio? How are they measured in the BCG growth share
What informational demands are placed upon management accounting by portfolio planning models?
How do you define the term 'strategy' in relation to competitive strategies?
What are the major factors that determine a firm's capacity to gain and sustain a competitive advantage?
What generic strategies are available for a firm at the competitive level? Can you differentiate between them and discuss the management control implications of following each of them?
What strategic analyses are demanded by Porter's framework of competitive strategy?
What forces would determine the relative attractiveness of an industry?
What are the salient features of Porter's value-chain model of the firm?
What are the major weaknesses of a conventional PMS?
What role does a PMS play within a management control system?
How does the BSC attempt to overcome the weaknesses of a conventional PMS?
How would you compare a conventional PMS with a BSC?
What are the major criticisms levelled against the BSC?
In a globally competitive organization, everyone understands that long-term profitability is achieved by improving customer satisfaction, not by trying to sell the largest possible quantities of what
Corporate management accounting systems are inadequate for today's environment. In this time of rapid technological change, vigorous global and domestic competition, and enormously expanding
Strategic management accounting's defining characteristic is the management accounting interface with marketing management rather than strategy. When conceived in this way, strategic management
'What is important is not what a corporate vision should contain, or how corporate managers should go about creating one, but the type of transformation that the notion of vision exemplifies.'
"Though popular until the late 1980s, portfolio models never captured the "post-industrial" notion of strategy manifested in corporate vision and mission statements.' Discuss.
"The BSC is neither a novel nor a conceptually convincing model. Its popularity is gained not by its conceptual substance but by persuasive rhetoric in its promotion. The causality it assumes is
What are the main differences between nineteenth-century cost management and twentieth- century cost accounting?
As the terms are used in contemporary management accounting textbooks, what are the differences between 'cost accounting' and 'cost management'?
What are the main contributions to the development of contemporary cost management?
Describe the main steps in the development of an ABC/M programme.
Distinguish between the technical procedures in traditional absorption costing and ABC.
Why are activities more important than functions, business processes, actions and operations?
Define 'ABM'. Describe its operational and strategic dimensions.
What did mainstream academic researchers learn about the implementation of ABC/M programmes?
Outline the critical comments regarding ABC/M implementation.
How does ABC/M promote the post-mechanistic form?
'ABC is not only a costing technique but also a business enterprise in modern capitalism.' Discuss.
'The ABC "solution" creates more problems.' Discuss.
'ABC is not a problem, but the context is.' Is this true?
On ABC/M, some researchers are positive, others are critical. Why?
On the application of ABC, reflect on the lessons you learned from Marconi.
What is a new organization?
What are the main factors responsible for creating new organizations?
Why did bureaucratic organizations have problems?
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