Managerial Accounting Creating Value In A Dynamic Business Environment 10th Global Edition Ronald W. Hilton, David E. Platt, Platt Hilton, Mcgraw-Hill - Solutions

14-9. Is the book value of inventory on hand a relevant cost? Why?
14-8. Explain why the book value of equipment is not a relevant cost
14-7. List and explain two important criteria that must be satisfied in order for information to be relevant
14-6. What is meant by each of the following potential charac- teristics of information relevant, accurate, and timely? Is objective informadon always relevant? Accurate?
14-5. A quantitative analysis enables a decision maker to put a "price" on the sum total of the qualitative characteris- tics in a decision situation Explain this statement, and give an example
14-4. Lxplain what is meant by the term decision model
14-3. Distinguish between qualitative and quantitative decision analyse?
14-2. Describe the managerial accountants iole in the decision-making process
14-1. List the seven steps in the decision-making process
13.25 Refer to the preceding exercise Required. 25 percent Demonstrate two ways Pensacola Divisions manager could improve the division's ROI to
13.24 The following data pertain to Pensacola Division's most recent year of operations Income Sales revenue Average invested capital $ 10,000.000 125 000,000 50,000,000 Required: the year Compute Pensacola Division's sales margin capital turnover and return on investment for
13-23. Explain the role of import duties or tariffs, in affecting the transfer-pricing policies of multinational companies
13-22. Why might income-tax laws affect the mansfer-puting policies of multinational companies
13-21. Explain the significance of excess capacity in the trans- fernag dr.uon when transfer prices are set using the general transfer-pricing rule
13-20. Descube four methods by which transfer prices may be set
13-19. Identify and explain the managerial accountant's pri- mary objective in choosing a transfer-pricing policy
13-18. Iscuss the importance of nonfinancial information in theasuring investment-center performance
13-17. List thuce nonfinancial measures that could be used to evaluate a division of an insurance company
13-16. How does inflation affect investment-center perfor- mance measures?
13-15. Descube an alternative to using ROI or residual income to measure in estinent-center performance
13-14. How do organizations use pay for performance to mot- vaie managers?
13-13. Explain why it is important in performance evaluation to distinguish between investment centers and their managers
13-12. Why do some companies use gross book valve instead of net book value to measure a division's invested capital?
13-11. Distinguish between the following measures of invested capital, and bricily explain when each should be used (u) total assets (1) total productive assets, and (c) total assets less cument liabilities
13-10. Define the term economic value added How does it differ from residual inconie'
13-9. Why is there typically a isse in ROI of residual income across time in a division? What undes-iable behavioral implications could this phenomenon have?
13-8. What is the chief disadvantage of ROI as an investment- center performance measure? How does the residual- income measure eliminate this disadvantage?
13-7. Create an example showing how residual income is cal- culated What information is used in computing residual income that is not used in computing ROI'
13-6. Explain how the manager of the Automobile Division of an insurance company could improve her division's ROI
13-5. Waite the formula for ROI show ing sales margin and capital turnover as its component
13-4. Define and give three examples of an vesinent center
13-3. Describe the managenal approach known as manage- ment by objective; or MBQ
13-2. Define goal congruence. and explain why it is impor- tant to an organization's success
13-1. What is the managerial accountant's primary objective in designing a icsponsibility-accounting system?
12.27 Oradell Electronics Company manufactures complex circuit beards for the aerospace industry Demand for the company's products has fallen in recent months, and the firm has cut its production significantly Many unskilled workers have been temporarily laid off Top management has made a decision,
12-26. Explain how an improvement in employee retention (a learning and growth measure) could flow though each of the balanced scorecard perspectives to result in improved financial performance
12-25. Using the measures selected in question 12-24, explai the difference between lead and lag measures
12-24. Using the Internet, identify the organizational strategy for a company of your choosing and suggest two per- formance measmes in each of the four balanced score- card categories
12-23. Give an example of a gain sharing plan that could be implemented by an airline
12-22. What is meant by aggregate productivity and what are its limitations?
12-21. List four examples of customer acceptance measures
12-20. Define the team manufacturing cycle efficiency
12-19. List seven areas in which nonfinancial, operational per- formance measures are receiving increased emphasis in today's manufacturing environment
12-18. What is meant by customer profitability analysis? Give an example of an activity that might be performed more commonly for one customer than for another
12-17. Can a common cost for one segment be a haceable cost for another segment? Explain your answer
12-16. List and explain three key features of the segmented income statement shown in Exhibit 12-7
12-15. Why is it important in responsibility accounting to dis- tinguish between segments and segment managers?
12-14. Why do some managers and accountants choose not to allocate common costs in segmented reports?
12-13. Explain what is meant by a segmented income statement
12-12. Referring to Exhibit 12-5, why are marketing costs distributed to the Waikiki Sands Hotel's departments on the basis of budgeted sales dollars?
12-11. Define the term cost allocation buse What would be a sensible allocation baac for assigning advertising costs to the various components of a large theme park?
12-10. Explain how and why cost allocation might be used to assign the costs of a mainframe computer system used for research purposes in a university
12-9. Give an example of a common resource in an organiza- tion List some of the opportunity costs associated with using the resource Why might allocation of the cost of the common resource to its users be useful?
12-8. Define and give examples of the following terms cost poot, cost object, and cost allocation (ot distribuiton)
12-7. "Performance reports based on controllability are impossible Nobody really controls anything in an organization! Do you agree or disagree? Explain your answer
12-6. Explain how to get positive behavioral effects from a responsibility-accounting system
12-5. What is the key feature of activity-based responsibility accounting? Buefly explain
12-4. Explain the relationship between performance reports and flexible budgeting
12-3. Under what cucumstances would it be appropriate to change the Waikiki Sands Hotel from a profit center to an investment center?
12-2. Defire and give examples of the following terins ces center, revenue center profit center, and investment !chter
12-1. Why is goal congruence important to an organization's success? How does a responsibility-accounting system. foster goal congruence?
11-21. Explain how an activity-based flexible budget differs from a conventional flexible budget
11-20. Give one example of a plausible activity base to use in flexible budgeting for each of the following orga- nizations an insurance company an express deliv- ery service, a restain ani, and a state tax-collection agency
11-19. Draw a graph showing both budgeted and applied variable overhead Explain why the graph appears as it does
11-18. Why are fixed-overhead costs sometimes called capac- ity-producing costs?
11-17. Distinguish between the control purpose and the product-costing purpose of standard costing and flexible budgeting
11-16. What is the conceptual problem of applying fixed production overhead as a product cost?
11-15. What types of organizations use flexible budgets?
11-14. Draw a graph showing budgeted and applied fixed overhead, and show an unfavorable (or positive) volume variance on the graph
11-13. Describe a common but misleading interpretation of the fixed-overhead volume variance Why is this interpreta- tion misleading?
11-12. What is the conect interpretation of the fixed-overhead volume variance
11-11. What is the fixed-overhead budget variance?
11-10. Distinguish between the interpretations of the direct- labor and variable-overhead efficiency vanances
11-9. What is the interpretation of the vanable-overhead effi- ciency variance?
11-8. Jeffries Company's only variable-overhead cost is elec- tricity Does an unfavorable variable-overhead spending variance imply that the company paid more than the anticipated rate per kilowatt-hour?
11-7. What is the interpretation of the variable-overhead spending variance
11-6. How have advances in manufacturing technology affected over head application?
11-5. Show, using T-accounts, how production overhead is added to Work-in-Process Inventory when standard costing is used
11-4. Distinguish between a columnar and a formula flexible budget
11-3. Why are flexible overhead budgets based on activity measures, such as hours of process time. machune time, oi diect-labor hours?
11-2. Explain the advantage of using a flexible budget
11-1. Distinguish between static and flexible budgets
10-21. List sex ea criticisms of standard costing in an advanced manufacturing environment.
10-20. List six advantages of a standard-costing system
10-19. Describe how standard costs are used for product casting
10-18. Discuss several ways in which standard-costing sys- tems should be adapted in today's manufacturing environment
10-17. Describe five factors that managers often consider when determining the significance of a variance
10-11 Why does an analo- gous question net arise in the context of the direct-labor variances?
10-16. Refer to Review Question
10-15. Whai nianager is generally in the best position to influ- ence the direct-labor efficiency variance?
10-14. What is the interpretation of the direct-labor efficienc variance?
10-13. What manager is generally in the best position to influence the dueci-labor rate varians.e'
10-12. What is the interpretation of the direct-laber rate variance? What are some possible causes'
10-11. Explain why the quantity purchased (PQ) is used in computing the direct-material purchase price variance. but the actual quantity consumed (AQ) is used in con- puting the direct-material price and quantity variances
10-10. What manager is usually in the best position to influence the duect-material quantity variance?
10-9. What is the interpretation of the direct-material quanary vanance?
10-8. What manager is usually in the best position to influence the duect-material price variance'
10-7. What is the interpretation of the direct-material price varunce and the direct-material purchase price variance?
10-6. Explain how standard material prices and quantities aic set
10-5. Describe how a bank might use standards

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Managerial Accounting Creating Value In A Dynamic Business Environment 10th Global Edition Ronald W. Hilton, David E. Platt, Platt Hilton, Mcgraw-Hill - Solutions

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