New Semester
Started
Get
50% OFF
Study Help!
--h --m --s
Claim Now
Question Answers
Textbooks
Find textbooks, questions and answers
Oops, something went wrong!
Change your search query and then try again
S
Books
FREE
Study Help
Expert Questions
Accounting
General Management
Mathematics
Finance
Organizational Behaviour
Law
Physics
Operating System
Management Leadership
Sociology
Programming
Marketing
Database
Computer Network
Economics
Textbooks Solutions
Accounting
Managerial Accounting
Management Leadership
Cost Accounting
Statistics
Business Law
Corporate Finance
Finance
Economics
Auditing
Tutors
Online Tutors
Find a Tutor
Hire a Tutor
Become a Tutor
AI Tutor
AI Study Planner
NEW
Sell Books
Search
Search
Sign In
Register
study help
business
management accounting
Management Accounting 3rd Edition Anthony A. Atkinson, Robert S. Kaplan, S. Mark Young, Rajiv D. Banker, Pajiv D. Banker - Solutions
Are food costs in a university residence cafe¬ teria an engineered cost or a capacity-related cost? Briefly explain. (LO 4)
Are materials always a flexible resource? Why? (LO 4)
What is a line of credit? How is it useful to a small organization? (LO 4)
Using the notion of aggregate planning, what problems would municipal authorities face when planning transportation for people attend¬ ing a rock concert in the city's center? (LO 4)
What does the term contribution margin per unit mean? How is contribution margin used in cost analysis to support managerial deci¬ sions? (LO 5)
What does the term break-even point mean? (LO 5)
What are the similarities and differences be¬ tween what-if and sensitivity analysis? (LO 6)
What is an appropriation? Give an example of one in a university. (LO 6)
What is a periodic budget? (LO 4)
You are planning your expenses for the up¬ coming school semester. You assume that this year's expenditures will equal last year's plus 2%. What approach to budgeting are you using? (LO 4)
You are willing to donate to worthy organiza¬ tions. However, you believe strongly that each request for a donation should be evaluated based on its own merits. You would not feel bad in any year if you donated nothing. What approach to budgeting are you using? (LO 4)
What are the two interrelated behavioral is¬ sues in budgeting? (LO 8)
What are the three most common methods of setting the budget? (LO 8)
What is the most motivating type of budget with respect to targets? (LO 8)
What is a stretch target? (LO 8)
What is budget slack? (LO 8)
Budgeting information Consider a company that sells prescription drugs. It has salespeople who visit doctors and hospitals to encourage physicians to pre¬ scribe its drugs. The company sells to drugstores. Salespeople are evaluated based on the sales in their territory. Their income is a salary
Budgeting and planning Some people say that budgets are great for planning but not for control. What do you think they mean? Do you agree with this sen¬ timent? Explain.(LO 8)
Financial budgets Many managers consider the pro forma financial statements to be the most important product of the master budgeting process. Why do you think they believe this?(LO 8)
Machine shop: comparing financial and operational results Budgeting allows an organization to compare its projected operating and financial results with those of competitors as a general test of the efficiency of the organization's operating processes. Explain how this might be valuable for a
Break-even analysis for a hospital Mariposa Medical Institute operates a 100- bed hospital and offers a number of specialized medical services. Mariposa's hospital facility and equipment are leased on a long-term basis. The hospital charges $100 per patient day. Based on past cost data, Mariposa
Break-even analysis, what-if analysis Polar Parkas Company budgets sales rev¬ enues at $30 per unit, flexible costs at $19.50 per unit, and capacity-related costs at $147,000 for the year 2000.REQUIRED(a) What is Polar's contribution margin per unit?(b) Determine the number of units Polar must
Sensitivity analysis: cost cutting A university faced with a deficit reacts by cut¬ ting resource allocations to all faculties and departments by 8%. Do you think this is a good approach to budgeting? Why?Method of designing the budget How does participation in the budgeting process differ from
Method of designing the budget How does participation in the budgeting process differ from consultation?(LO 8)
Budget slack What are the pros and cons of building slack into the budget from (a) the point of view of the employee building in slack and (b) from a senior manager's point of view?(LO 8)
Budgeting games What are budgeting games, and why do employees engage in them?(LO 8)
Operating budgets: production plan Borders Manufacturing is developing a sales and production plan as part of its master budgeting process. Projected monthly sales, which occur uniformly during each month, for the upcoming year follow:Production for each month equals one-half of the current month's
Operating budgets: labor hiring and production plan Mira Vista Planters pro¬ vides reforestation services to large paper products companies. It must hire one planter for every 10,000 trees that it has contracted to plant each month. An employee must receive one week of evaluation and training
Operating budgets: materials purchasing plan Pasadena Chemical Company LO 3 manufactures a wide range of chemical compounds. One of the most difficult compounds is a cleaning solvent made from an expensive and volatile raw ma¬ terial called tetrax that is often in short supply. The company uses
Operating budgets: labor hiring plan Strathfield Motel is planning its opera¬tions for the upcoming tourist season. The motel has 60 units and the following table presents the average number of daily rentals expected for each of the 12 weeks of the tourist season.The motel hires housekeeping staff
Financial budgets: expense budget During the school year, the Homebush School band arranges concert dates in many communities. Because only part of the school's travel expenses are covered by the concert admission fees, the band raises money in the local community through events such as car washes
Break-even point, what-if analysis Premier Products, Inc. is considering re¬ placing its existing machine with a new faster machine that will produce a more reliable product and will turn around customer orders in a shorter period. This change is expected to increase the sales price and
What-if-analysis Tenneco, Inc. produces three models of tennis rackets: stan¬ dard, deluxe, and pro. Sales and cost information for 2000 follows:Capacity-related manufacturing support costs are $800,000, and capacity- related selling and administrative costs are $400,000. In addition, the company
Break-even point, what-if analysis The following information pertains to Tora-sic Company's budgeted income statement for the month of June 2000:REQUIRED (a) Determine the company's break-even point in both units and dollars.(b) The sales manager believes that a $22,500 increase in the monthly
Break-even point, what-if analysis Air Peanut Company manufactures and sells roasted peanut packets to commercial airlines. Price and cost data per 100 packets of peanuts follow:Estimated annual sales volume = 1 1,535,700 packetsREQUIRED(a) Determine Air Peanut's break-even point.(b) How many
Methods of setting budgets Megan Espanoza, manager of the Wells Division of Mars, Inc., a large credit card company, recently received a memorandum about the proposed budgeting process for 2000. For the coming year, senior management at Mars would follow a new procedure regarding the budget-set-
Methods of designing budgets Budgets are usually set through one of three methods—participation, authority, or consultation.REQUIRED Write an essay stating the circumstances under which each method is most ap¬ propriate. If you disagree with a particular method, justify your answer.(LO 8)
Financial budgets: cash inflows Worthington Company makes cash (20% of total sales), credit card (50% of total sales), and account (30% of total sales) sales. Credit card sales are collected in the month following the sale, net of a 3% credit card fee. This means that if the sale is $100, then the
Operating budgets: materials purchasing plan Masefield Dairy is preparing a third-quarter budget (July, August, and September) for its ice cream products. It produces five brands of ice cream, and each uses a different mix of ingredients. Its suppliers deliver ingredients just in time provided that
Financial budgets: wages and expense budgets Nathaniels Motor Shop does LOS major repair work on automobile engines. The major cost in the shop is the wages of the mechanics. The shop employs nine mechanics who are paid $750 for working a 40-hour week. The work week consists of five days of eight
Financial budgets: cash outflows Country Club Road Nurseries grows and LO 3 sells garden plants. The nursery is active between January and October each year. During January, the potting tables and equipment are prepared. The pot¬ ting and seeding are done in February. In March and April, the
Operating budgets: labor hiring plan Shadyside Insurance Company manages a medical insurance program for its clients. Employees of client firms submit claims for reimbursement of medical expenses. Shadyside processes these claims, checks them to ensure that they are covered by the claimant's
Budgeted profit, what-if analysis The Monteiro Manufacturing Corporation manufactures and sells folding umbrellas. The corporation's condensed income statement for 1999 follows:Monteiro s budget committee has estimated the following changes for 2000:30% increase in number of units sold 20% increase
Competitive contribution margin analysis Johnson Company and Smith Com¬ pany are the two competing firms offering limousine service from the Charles- burg airport. While Johnson pays most of its employees on a per-ride basis, Smith prefers to pay its employees fixed salaries. Information about the
(Adapted from CPA May 1993) Budget preparation, break-even point, what-if analysis with multiple products The following budget information for the year ending December 31, 1999, pertains to Rust Manufacturing Company's operations:The following information is also provided.(a) Rust has no beginning
Multiple break-even points, what-if analysis In September 2000, Capetini Ca- LO 5, 6 pacitor Company sold capacitors to its distributors for $250 per capacitor. The sales level of 3000 capacitors per month was less than the single-shift capacity of 4400 capacitors at its plant located in San Diego.
Break-even analysis, what-if analysis The Flerschel Candy Company produces LO 5, 6 a single product—a chocolate almond bar which sells for $0.40 per bar. The flexible costs for each bar (sugar, chocolate, almonds, wrapper, and labor) total $0.25. The total monthly capacity-related costs are
Budgeting: motivational issues Manoil Electronics manufactures and sells LO 8 electronic components to electronics stores. The controller is preparing her annual budget and has asked the sales group to prepare sales estimates. All members of the sales force have been asked to estimate sales in
Budgeting: comprehensive problem Judd's Reproductions makes reproduc¬tions of antique tables and chairs and sells them through three sales outlets. The product line consists of two styles of tables, three styles of cabinets, and two styles of chairs. Although customers often ask Judd Molinari, the
Budgeting: motivational issues Nate Young is the dean of a business school. LO 4, 7, 8 The university is under strong financial pressures, and the university president has asked all the deans to cut costs. Nate is wondering how he should re¬ spond to this request.The university receives its
Budgeting and cost drivers Dinkum Company provides package courier services. Each afternoon its couriers pick up packages; they drive trucks operat¬ ing out of local terminals. Packages are returned to the terminal and are transported to the central hub that evening. In the hub, packages are
describe the form and nature of variance analysis and apply its basic insights LO1
explain why organizations use responsibility centers LO1
identify the issues to consider and basic tools to use in assessing the performance of a responsibility center LO1
describe the common forms of responsibility centers LO1
assess the issues and problems created by revenue and cost interactions in evaluating the performance of an organization unit LO1
identify the transfer-pricing alternatives available to organizations and the criteria for choosing a transfer-pricing alternative LO1
use return on investment and economic value added as financial control tools LO1
identify the limitations of financial controls LO1
What does financial control mean? (LO 1)
How does analysis of reasons for variances between actual and estimated costs help man¬ agers? (LO 1)
What is a flexible budget? (LO 1)
How are first, second, and third levels of vari¬ ance analysis related? (LO 1)
Why is it useful to decompose a flexible bud¬ get variance into a price variance and an effi¬ ciency (use) variance? (LO 1)
"If more experienced workers work on the job than planned in developing the labor stan¬ dards, the labor efficiency variance is likely to be favorable but the labor wage variance is likely to be unfavorable." Do you agree with this statement? Explain. (LO 1)
What effect will the purchase and use of cheaper, lower-quality materials likely have on price and use components of both materi¬ als and labor variances? (LO 1)
What is decentralization? (LO 2)
What does control mean in a decentralized organization? (LO 2)
What is a responsibility center? (LO 2)
What is a cost center? (LO 3, 4)
What is the assigned responsibility in a rev¬ enue center? (LO 3, 4)
When do organizations use profit centers? (LO 3, 4)
What is an investment center? (LO 3, 4)
What does the controllability principle re¬ quire? (LO 5)
How do responsibility centers interact? (LO 5)
What does segment margin mean? (LO 5)
What is a soft number in accounting? (LO 5)
What is a transfer price? (LO 6)
What are the four bases for setting a transfer price? (LO 6)
Why do organizations allocate revenues to re¬ sponsibility centers? (LO 3, 6)
Why do organizations allocate costs to re¬ sponsibility centers? (LO 3, 6)
What is return on investment? (LO 7)
How does efficiency (the ratio of operating income to sales) affect return on investment? (LO 7)
How does productivity (the ratio of sales to in¬ vestment) affect return on investment? (LO 7)
What does economic value added mean? (LO 7)
Variance analysis, material, and labor The following information is available for job K37 for Mandalay Company:(a) Determine the material price variance and use variance.(b) Determine the direct labor rate variance and efficiency variance.(LO 1) Actual Materials: Direct labor: Units produced:
Variance analysis, material, and labor Pharout Company uses a standard cost system. Job 822 is for the manufacture of 500 units of the product P521. The company's standards for one unit of product P521 are as follows:The job requires 2800 ounces of raw material costing $5880. An unfavor¬ able
Variance analysis, material, and labor Each unit of job Y703 has standard requirements of 5 pounds of raw material at a price of $100 per pound and 0.5 hour of direct labor at $12 per hour. To produce 9000 units of this prod¬ uct, job Y703 actually required 40,000 pounds of the raw material
Standard costs versus actual costs for materials Assembly of product PI 3 requires one unit of component X, two units of component Y, and three units 556 Chapter 12 of component Z. Job J372 produced 220 units of PI 3. The following informa¬ tion pertains to material variances for this job,
Master and flexible budgets An organization plans to make a product in batches of 25,000 units. Planned production is 1,000,000 units, and actual production is 1,125,000 units. What are the planned (master budget) number of batches and the flexible budget number of batches?(LO 1)
Issues in decentralization What control problem does decentralization cre¬ ate in organizations?(LO 1)
University responsibility centers Give an example of a responsibility center in a university.(LO 1)
Controllability Based on your understanding, which of the following— costs, revenues, profits, and investment—does the manager of a cinema control?(LO 1)
Cost centers Give an example of a responsibility center that is properly treated as a cost center.(LO 1)
Revenue centers Give an example of a responsibility center that is properly treated as a revenue center.(LO 1)
Investment centers Based on your understanding of how they are managed, would you agree or disagree that an outlet of a large department store chain should be treated as an investment center? What about the maintenance de¬ partment within that outlet? What about a single department within the
Multinational companies and investment centers Many multinational com¬ panies create wholly owned subsidiaries to do business in the countries or re¬ gions where they operate. Are these wholly owned subsidiaries examples of investment centers? Explain.(LO 1)
Computing division income A home services company offers renovations, heating, air conditioning, and plumbing services to its customers. Imagine that you are in the process of computing the income for the renovations divi¬ sion. What problems may you encounter in computing this income?(LO 1)
Controllability and evaluation Suppose that you are the manager of a fitness center that is one of many in a chain. Give one example of a cost that you control and one example of cost that you do not control. Why is it important to distinguish between costs that are controllable and costs that are
Responsibility centers Identify three responsibility centers in a fast-food restaurant and explain how they may interact.(LO 1)
Showing 1600 - 1700
of 5081
First
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Last
Step by Step Answers
Get 50% OFF
Claim Now
