Managerial Accounting Creating Value In A Dynamic Business Environment Mass Market Paperback Jan 01 2013 Hilton Platt 10th Edition David Platt Ronald W Hilton - Solutions

Discover the ultimate resource for "Managerial Accounting: Creating Value In A Dynamic Business Environment" by Hilton and Platt, 10th Edition. Unlock comprehensive solutions with our online answer key, offering step-by-step answers for textbook questions and solved problems. Our solution manual and instructor manual provide chapter solutions and test bank access for an in-depth understanding. Download solutions in PDF format for free, ensuring you have all the chapter solutions and answers you need. Enhance your learning with detailed questions and answers, available for free download, and excel in your accounting studies.

2. (Learning Objective 2) Managerial accounting differs from financial accounting in that managerial accountinga. is used primarily by external decision makers.b. is required by Generally Accepted Accounting Principles(GAAP).c. tends to report on the company as a whole rather than segments of the
1. (Learning Objective 1) Which of the following activities is associated with the management responsibility of controlling?a. Preparing a budgetb. Implementing just-in-time production technologyc. The use of performance reportsd. None of the above
For what purpose should the managerial accountant be careful to not use joint cost allocations?
Are joint cost allocations useful? If they are, for what purpose?
Define the term net realizable value, and explain how this concept can be used to allocate joint costs.
Describe the relative-sales-value method of joint cost allocation.
Briefly explain how to use the physical-units method of joint cost allocation.
Define the following terms: joint production process, joint costs, joint products, split-off point, separable costs, and by-product.
Explain the difference between two-stage allocation with departmental overhead rates and activity-based costing. Which approach generally results in more accurate product costs?
Should actual or budgeted service department costs be allocated? Why?
What potential behavioral problem can result when the dual approach is used?
Why does the dual-allocation approach improve the resulting cost allocation?
How does the managerial accountant determine the department sequence in the step-down method? How are ties handled?
Explain briefly the main differences between the direct, step-down, and reciprocal-services methods of service department cost allocation.
Define the term reciprocal services.
Distinguish between a service department and a production department. Give an example of the counterpart of a manufacturer’s “production” department in a bank.
(Appendix B) Briefly describe two correct methods of net-present-value analysis in an inflationary period.
Discuss the pros and cons of the accounting rate of return as an investment criterion.
How is an investment project’s accounting rate of return defined? Why do the accounting rate of return and internal rate of return on a capital project generally differ?
What are the two main drawbacks of the payback method?
What is meant by the term payback period? How is this criterion sometimes used in capital budgeting?
Define the term profitability index. How is it used in ranking investment proposals?
Why may the net-present-value and internal-rate-ofreturn methods yield different rankings for investments with different lives?
Explain how a gain or loss on disposal is handled in a capital-budgeting analysis.
Why is accelerated depreciation advantageous to a business?
Give an example of a cash flow that is not on the income statement. How do you determine the after-tax amount of such a cash flow?
What is a depreciation tax shield? Explain the effect of a depreciation tax shield in a capital-budgeting analysis.
Explain how to compute the after-tax amount of a cash revenue or expense.
Give an example of a noncash expense. What impact does such an expense have in a capital-budgeting analysis? Explain how to compute the after-tax impact of a noncash expense.
What is meant by a postaudit of an investment project?
Distinguish between the following approaches to discounted-cash-flow analysis: total-cost approach versus incremental-cost approach.
List and briefly explain four assumptions underlying discounted-cash-flow analysis.
List and briefly explain two advantages that the net-present-value method has over the internal-rateof-return method.
Explain the following terms: recovery of investment versus return on investment.
State the decision rule used to accept or reject an investment proposal under each of these methods of analysis:(1) net-present-value method and (2) internal-rate-ofreturn method.
Briefly explain the concept of discounted-cash-flow analysis. What are the two common methods of discounted-cash-flow analysis?
“The greater the discount rate, the greater the present value of a future cash flow.” True or false? Explain your answer.
Distinguish between the following two types of capitalbudgeting decisions: acceptance-or-rejection decisions and capital-rationing decisions.
“Time is money!” is an old saying. Relate this statement to the evaluation of capital-investment projects.
Briefly explain the potential negative consequences in pricing decisions from using a traditional, volumebased product-costing system.
Explain what is meant by unlawful price discrimination and predatory pricing.
Describe the following approaches to pricing new products: skimming pricing, penetration pricing, and t arget costing.
The decision to accept or reject a special order and the selection of a price for a special order are very similar decisions. Explain.
Explain the importance of the excess-capacity issue in setting a competitive bid price.
Briefly describe the time-and-material pricing approach.
Could tear-down methods be used effectively for target pricing in a service-industry company, such as a h otel or an airline? Explain.
Explain the role of value engineering in target costing.
Why is a focus on the customer such a key principle of target costing?
Explain the phrase price-led costing.
Briefly explain the concept of return-on-investment pricing.
Explain the behavioral problem that can result when cost-plus prices are based on variable cost.
List three advantages of pricing based on variable cost.
What is the primary disadvantage of basing the costplus pricing formula on absorption cost?
List four reasons often cited for the widespread use of absorption cost as the cost base in cost-plus pricing f ormulas.
List the four common cost bases used in cost-plus pricing. How can they all result in the same price?
Write the general formula for cost-plus pricing, and briefly explain its use.
Determining the best approach to pricing requires a cost-benefit trade-off. Explain.
Describe three limitations of the economic, profitmaximizing model of pricing.
Briefly define total cost and marginal cost.
Define the following terms: total revenue, marginal revenue, demand curve, price elasticity, and cross-elasticity.
Briefly explain the concept of economic, profitmaximizing pricing. It may be helpful to use graphs in your e xplanation.
Explain the following assertion: “Price setting generally requires a balance between market forces and cost c onsiderations.”
Explain what is meant by the following statement: “In considering the reactions of competitors, it is crucial t o define your product.”
List and briefly describe four major influences on pricing decisions.
“All this marginal revenue and marginal cost stuff is just theory. Prices are determined by production costs.”Evaluate this assertion.
Comment on the following remark made by a bank president: “The prices of our banking services are determined by the financial-services market. Costs are irrelevant.”
Describe the legal restrictions on setting prices
Set prices in special-order or competitive-bidding situations by analyzing the relevant costs.
Determine prices using the time and material pricing approach.
Explain the process of value engineering and its role in target costing.
Explain how product-cost distortion can undermine a firm’s pricing strategy.
Explain the role of activity-based costing in setting a target cost.
List and discuss the key principles of target costing.
Discuss the issues involved in the strategic pricing of new products.
Set prices using cost-plus pricing formulas.
Explain and use the economic, profit-maximizing pricing model.
List and describe the four major influences on pricing decisions.
List five ways that management can seek to relax a constraint by expanding the capacity of a bottleneck operation.
Are the concepts underlying a relevant-cost analysis still valid in an advanced manufacturing environment?Are these concepts valid when activity-based costing is used? Explain.
“Accounting systems should produce only relevant data and forget about the irrelevant data. Then I’d know what was relevant and what wasn’t!” Comment on this remark by a company president.
Give two examples of sunk costs, and explain why they are irrelevant in decision making.
Why can unitized fixed costs cause errors in decision making?
List four potential pitfalls in decision making, which represent common errors.
There is an important link between decision making and managerial performance evaluation. Explain.
How is sensitivity analysis used to cope with uncertainty in decision making?
What is meant by the term contribution margin per unit of scarce resource?
Briefly describe the proper approach to making a production decision when limited resources are involved.
Are allocated joint processing costs relevant when making a decision to sell a joint product at the split-off point or process it further? Why?
What is a joint production process? Describe a special decision that commonly arises in the context of a joint production process. Briefly describe the proper approach for making this type of decision.
Briefly describe the proper approach for making a decision about adding or dropping a product line.
What is meant by the term differential cost analysis?
How does the existence of excess production capacity affect the decision to accept or reject a special order?
What behavioral tendency do people often exhibit with regard to opportunity costs?
Define the term opportunity cost, and give an example of one.
Give an example of an irrelevant future cost. Why is it irrelevant?
Why might a manager exhibit a behavioral tendency to inappropriately consider sunk costs in making a decision?
Is the book value of inventory on hand a relevant cost?Why?
Explain why the book value of equipment is not a relevant cost.
List and explain two important criteria that must be satisfied in order for information to be relevant.
What is meant by each of the following potential characteristics of information: relevant, accurate, and t imely? Is objective information always relevant? Accurate?

Showing 400 - 500 of 1713

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Last

Managerial Accounting Creating Value In A Dynamic Business Environment Mass Market Paperback Jan 01 2013 Hilton Platt 10th Edition David Platt Ronald W Hilton - Solutions

Step by Step Answers