Management Accounting 2nd Edition Pauline Weetman - Solutions

Suggest one activity (or a collection of activities) for which PPBS would be particularly useful.
What is the name given to a budget that has been prepared by re-evaluating activities and comparing the incremental costs of those activities with their incremental benefits?A Incremental budget B Rolling budget C Zero-base budget D Flexible budget
In the following extract, the College of Charleston, USA, describes on its website how it estimates the standard cost of attendance in respect of a student.To consider a student for federal financial aid, the College of Charleston must assign a student expense budget to each aid applicant. The
The US government has strict accounting rules for those involved in defence contracts. This extract outlines the process and then sets out the rules for applying Standard Costing. Administratively a function located within OFPP is the Cost Accounting Standards Board (CASB), an independent
Suggest three situations in which a business organisation might decide to revise standards, as indicated in Figure 15.1, following calculation and analysis of variances. Is revision equally likely for adverse and for favourable variances? Make sure that you know the definitions of adverse and
A road repair company has set up two divisions: one is motorway repairs and the other is town street repairs. Write down the advantages and disadvantages of establishing these divisions.
As Jon said, our cash and cost results have been excellent. Going forward, we will generate consistent cash flows by closely managing operating expenses, capital spending and of course working capital. At the same time, we’ll offset higher operating costs. We’ll continue to increase prices
Write down two types of business that buy goods on credit and two types of business that buy only for cash. What explanations might be given for these different strategies?
Write down two types of expense that might be unpaid at the accounting date and so recorded as accruals.
Write down two benefits and two risks of using just-in-time purchasing. Think of one type of business for which just-in-time purchasing would be useful and one type of business for which it would be unsuitable.
Covidien (NYSE: COV), a leading global provider of healthcare products, today announced definitive agreements to sell its Sleep Diagnostics and Oxygen Therapy product lines and a proposal to sell its Sleep Therapy product line.The decision to divest these three product lines was made following a
Use the specialist searches available through your college library or information service to find two recent articles or research papers covering ‘strategic management accounting’.Write a fifty-word summary of each, explaining the main purposes and findings.
The directors of Coatings plc have decided that specialist paints for use on buses and lorries should become the focus of a new e-business strategy. ‘All we have at present is a call centre where our customers phone in orders’, said the sales manager. ‘Our two main competitors are improving
The survey shows that the principles of lean accounting are not well understood by most UK manufacturers and this may be the reason for the low take up. ‘But at its heart lean accounting is about establishing a financial reporting system that supports, complements and enhances lean manufacturing
Use the specialist searches available through your college library or information service to find two recent articles or research papers covering ‘target costing’. From the papers write down one benefit and one potential criticism or question about target costing.
You are the Management Accountant of a small engineering company, which is a member of a large engineering group. The Managing Director has recently joined the company and has little experience of the engineering sector. He has recently returned from the group’s annual management conference. The
The following extract is taken from an article discussing research into the costs of ‘outsourcing’. We found that companies commit two common mistakes when deciding to source components from abroad. First, they tend to only calculate the ‘static’ cost of a supply chain, which basically adds
Use the specialist searches available through your college library or information service to find two recent articles or research papers covering ‘kaizen costing’. From the papers write down one benefit of kaizen costing and one reason for it not being used in all businesses.
Write down two benefits of e-business and two possible problems of applying accounting controls to e-business.
Ltd processes and purifies a basic chemical which is then broken down by reaction to give three separate products. Explain the approaches to joint cost allocation using the following information:Joint costs incurred up to the split-off point are £2,000. Product ABC Units produced 3,000 1,000 2,000
What is incremental analysis?
What are the limitations of the decision-relevant approach?
What is ‘external capital rationing’?
What is the profitability index?
How may the effect of inflation be included in capital budgeting?
Explain what is meant by post-completion audit.
Explain why present value techniques may not be suitable for project evaluation where a business uses Advanced Manufacturing Technologies.
What is the sequence of the budgeting process?
Why is profit not a suitable measure of divisional performance?
Explain, in terms of divisional performance evaluation, the difference between using ‘profit’ and ‘profitability’.
Define, and explain the use of, return on investment as a measure of divisional performance.
Define, and explain the use of, residual income as a measure of divisional performance.
Explain the circumstances in which return on investment is preferable as a measure of divisional performance.
Explain the circumstances in which residual income is preferable as a measure of divisional performance.
Explain what is meant by a ‘transfer price’.
Explain the methods of transfer pricing.
Explain what is meant by ‘economic value added’.
What is zero-based budgeting?
Define current assets and give three examples.
Define current liabilities and give three examples.
Explain how the stockholding period is calculated.
Define working capital.
What have researchers found about the use of EVA bonus schemes?
Explain why companies regard economic value added as a useful tool for assessing managerial performance.
What have researchers found about the use of EVA?
Explain how the customers collection period is calculated.
Explain how the suppliers payment period is calculated.
Explain what is meant by the accrual of liabilities.
Describe the working capital cycle.
Explain how the current ratio is calculated.
Explain how the liquid ratio is calculated.
Explain how the working capital cycle is calculated.
Explain the meaning of overtrading.
What is the just-in-time approach to purchasing inventory?
What have researchers found about the length of the working capital cycle in practice?
What have researchers found about the idea that different types of business have different types of working capital?
What are bankers looking for when they evaluate working capital?
What kinds of organisation are likely to use JIT production?
Define ‘business strategy’.
How do the managers of a business maintain its competitive position ?
What have researchers found about the definition of what strategic management accounting means?
How does target costing help maintain competitive advantage?
What is customer profitability analysis?
How does life-cycle costing help maintain competitive advantage?
How does lean accounting help maintain competitive advantage?
How does value chain analysis help maintain competitive advantage?
How does activity-based management develop out of activity-based costing?
What is e-business?
What is e-commerce?
What are the costs of holding inventory?
What are the costs of ordering inventory?
How is the economic order quantity calculated?
Describe the main contents of a business plan for presenting to a bank providing finance for a small business.
What have researchers found about the frequency of review of working capital in small businesses?
What are the disadvantages of divisionalisation?
What are the advantages of divisionalisation?
What is a division?
What have researchers described as the factors required for a successful performance management system?
What have researchers found about the benefits of using a Balanced Scorecard?
What is the ‘Six Sigma’ approach to performance measurement?
Define a ‘non-controllable cost’.
Define ‘feed forward control’.
How are fixed overhead cost variances calculated?
How are variable overhead cost variances calculated?
How are sales margin variances calculated?
What have researchers found about the range of methods of overhead absorption used in practice?
Look at Figure 7.1 and follow the flow of transactions down the diagram. Then use the diagram to explain how costs are collected in the profit and loss account. Figure 7.1 Diagrammatic representation of the flow of costs and revenue in a job-costing system Inventory (a) (d) (c) (h) Work-in-progress
Purchasing manager, agent, and buyer career overview and job description Companies hire purchasing managers, buyers, and purchasing agents to find the best merchandise at the lowest possible purchase cost. Purchasers typically buy goods and services for their company or organization to use, while
Look at some item in the room where you are sitting as you read this chapter (perhaps a table or a desk or a window). What words would you use to describe the cost of materials and labour used in producing that item (e.g. wood, plastic, work in assembly, running costs of workshop)? How would you
The following information was recorded during the month of May by the central warehouse of Stores Co. The warehouse issues goods to retail outlets owned by Stores Co. to allow the retail outlets to meet expected demand from customers. The record represents kitchen units, all of the same
You are the newly appointed secretary of a primary school employing 20 teachers and having 300 pupils. The head teacher has asked you to design a system for ordering books and stationery and controlling the issue of books and stationery to teachers. Make a list of the key features that you will
The following extract is from an article discussing the problems faced by General Motors in 2008 and compares the full cost of labour with the wages paid.Management and the union are under pressure to bring labour costs into line with those at non-union plants, mostly in the southern states,
You have been employed as a storekeeper at a superstore selling vehicle accessories.Write down the main procedures you would carry out to ensure that:l the materials in store are held securely;l the accounting records of inventory are accurate; and l the materials are issued only to authorised
Explain which document you would expect to find in the records of Chocolate Ltd as evidence of each of the following transactions or events which took place during the month of June:(a) Evidence that the buying department of Chocolate Ltd had authority to order new supplies of cocoa beans from a
You have been asked to plan the labour force for a job of work that will require the equivalent of five skilled workers for a period of 30 days. Within that period there is an expectation of 25 days of productive work and five days equivalent of non-productive work relating to rest periods and
The following extract is taken from an editor’s introduction to consultation on the future direction of a regional newspaper.So what could a new Birmingham Post look like, one to weather the recession and emerge equipped to thrive in the new media world? The facts: our biggest expenses are staff
You are employed in the personnel department of a large organisation. Explain how the records kept by the personnel department would be useful to the accounting department in preparing the monthly payroll.
The Electric Wiring Company employs staff to repair electrical equipment in customers’ homes under maintenance contracts. Each job of work is the cost unit for which costs are recorded and monitored. Explain which of the following will be direct labour costs and which will be indirect labour
How are direct and indirect materials costs distinguished?
How are fixed and variable materials costs distinguished?

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Management Accounting 2nd Edition Pauline Weetman - Solutions

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