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business
introduction to management accounting
Questions and Answers of
Introduction To Management Accounting
Zenith Inc. produces LaserJet printers. The company had the following data (in millions) for the third quarter of 2021.There were no beginning or ending inventories. Fill in the blanks.
Any future cost is relevant.” Do you agree? Explain.
What is the primary classification of costs under absorption costing?
Fixed costs are not relevant costs.” Do you agree? Explain.
List two factors that influence pricing decisions in practice.
What is target cost per unit?
What is value engineering?
Smith is a sports lover and often spends his weekends attending sports events. This week, he has two important events, a baseball match of his favorite team and a soccer match where the team he
Exclusive Fashions Inc. is a leading brand in the Canadian fashion industry. The company had the following data (in thousand C$, the official currency of Canada) for the year 2021. Assume there are
The Diamond Saga is a leading diamond jewelry company in South Africa. The company has the following data (in thousand ZAR, the official currency of South Africa) for the first quarter of
Travel Accessories Company manufactures and sells various travel accessories. The budget for the company for 2021 is as follows:The company typically uses a cost-plus pricing system. Direct materials
Benjamin Connor is the director of Acacia Business School, Ontario University. Apart from a fulltime MBA program on finance, Acacia Business School arranges short-term certificate courses of two
GenNext Home and Life Solutions Company produces and sells small smart home products. A recent study by the marketing division of the company has discovered a potential market for smart LED bulbs.
River Line Corp. makes a variety of small home utility machines. The market research team recently identified snowblowers as a potentially lucrative market. As a first entry into the market the
St. Teresa’s University is a well-known private university located in Kolkata, India. In addition to the regular courses, it also offers coaching classes for competitive examinations at a
Exclusive Candles is a mid-size company that sells ultrasonic aroma diffusers and humidifiers with LED lights. On October 1, 2020, part of the trial balance showed the following:The company pays for
Akihiko, a wholesaler in auto spare parts, was preparing his sales budget for the third quarter of 2020. Forecast sales are as follows (all values are in thousands of yen): Sales are 30% cash and
Smooth Write Ball Pens Company produces and sells a variety of ball pens. For the past few months, the product has been facing low demand, as a result of which the company is saddled with idle
Neon Motors is a dealer in motorcycles in Germany. It has an operating policy slightly different from the other dealers in the industry. Each month, Neon aims at a unit volume quota that approximates
Bright Colors Inc. produces and sells printer colors in 200 ml bottles for Deskjet Ink-tank printers. During 2020, the company produced and sold 130,000 bottles at an average price of $25 per bottle.
What are joint products? Name several examples of joint products.
It is critical in decision making to identify mis-specified costs.” Explain how costs can be mis-specified.
How is a continuous budget helpful for managers?
What factors influence the sales forecast?
What is the importance of participative budgeting?
Nearly every CFO has a horror story to tell about following bad advice generated from a financial planning model.” Do you agree?
Erika Dillinger is a dealer in computers. She has adopted the following policies regarding merchandise purchase and inventory. At the end of any month, the inventory should be €30,000 plus 80% of
Ruben Cooper is the owner and manager of a children’s toy shop, Wonder Toys. From the following data, Cooper wants to prepare a cash budget showing expected cash receipts and disbursements for the
Home Town Furnitures incurred losses for the past two quarters. In an immediate rescue measure, the CEO of the company issued instructions to every department to cut costs. Accordingly, the packaging
The field is less sharply defined. There is heavier use of economics, decision sciences, and behavioral sciences.” Identify the branch of accounting described in the quotation.
Three categories of requirements are imposed on accounting systems designed to meet the requirements of external users.” What are these categories?
Why is the Sarbanes-Oxley Act controversial?
What is the role of internal auditors in an accounting system?
Why is integrity so important to accountants?
Why are accountants concerned about product life cycles?
Discuss the role of accountants in postproduction value chain functions.
Distinguish between the duties of line managers and staff managers.
The role of management accountants is changing, especially in companies with a “flatter” organizational structure. What are some of the changes?
Describe the two parts of the qualifying examination for becoming a CMA.
What is lean manufacturing?
Adam Saunders was a successful marketing executive at Exclusive Furnitures. On the eve of the company’s foundation day, he was informed that he would be promoted to Assistant Factory Manager from
Successful companies across the world are often led by executives who do not belong to accounting field. Rather, they specialize in one or more functional areas such as engineering, marketing, or
In order to tap opportunities and at the same time minimize risks, successful companies around the world have diversified their product portfolio. Today, many companies have emerged as successful
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