Question 1

What is a value chain? And what relationship is there between the value chain and activity-based management?

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Question 2

Benchmarking involves the identification of the best practices used by world-class competitors.Discuss the following widely recognized best practices: activity-based management and just in time inventory.

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Question 3

Management accountants have a responsibility to demonstrate integrity.What does this ethical standard require of management accountants?

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Question 4

Arizona Company provided the following information regarding its most recent year of operations: $$\begin{array} { | l | r | } 
\hline \text { Administrative salaries } & \$ 24,000 \
\hline \text { Direct labor } & 48,000 \
\hline \text { Direct raw material } & 80,000 \
\hline \text { Marketing and distribution costs } & 60,000 \
\hline \text { Overhead costs } & 36,000 \
\hline \text { Product design and testing } & 30,000 \
\hline \text { Research and development } & 40,000 \
\hline \text { Sales revenues } & 410,000 \
\hline \text { Sales salaries and commissions } & 54,000 \
\hline \text { Warranty costs } & 4,000 \
\hline & \
\hline \text { Number of units produced } & 20,000 \
\hline \text { Number of units sold } & 20,000\
\hline 
\end{array}$$ Required:
Determine the following amounts:
(a)Total product costs
(b)Total upstream costs
(c)Total downstream costs
(d)Product cost per unit
(e)Total cost per unit,including product costs and upstream and downstream costs
(f)The selling price per unit that would be required if the company wishes to earn a profit margin equal to 25% of total cost
(g)Comment on the company's profitability at its current selling price

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Question 5

Management accountants have a responsibility to be objective.What does this ethical standard require of management accountants?

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Question 6

Select the term from the list provided that best matches each of the following descriptions.The first is done for you.

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Question 7

Jarvis Company provided the following information regarding its first year of operations: $$\begin{array}{l}
\begin{array} { | l | r | } 
\hline \text { Administrative salaries } & \$ 60,000 \
\hline \text { Depreciation on factory equipment } & 16,000 \
\hline \text { Indirect materials } & 4,000 \
\hline \text { Marketing costs } & 40,000 \
\hline \text { Salaries for factory supervisors } & 28,000 \
\hline \text { Wages for production workers } & 80,000 \
\hline \text { Raw materials used } & 100,000 \
\hline \text { Research and development } & 32,000 \
\hline \text { Rent on factory building } & 18,000 \
\hline \text { Sales revenues } & 432,000 \
\hline \text { Sales salaries and other selling costs } & 56,000 \
\hline
\end{array}\
\begin{array} { | l | c | } 
\hline \text { Beginning inventory }\quad \quad \quad \quad \quad \quad  \quad &  0 \text { units } \
\hline \text { Number of units produced } & 20,000 \
\hline \text { Number of units sold } & 18,000 \
\hline
\end{array}
\end{array}$$ Required:
Determine the following amounts:
(a)Total overhead costs.
(b)Total product costs.
(c)Product cost per unit.
(d)Total cost of ending finished goods inventory.
(e)Total cost of goods sold.

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Question 8

Reno Company provided the following information regarding its operations for the month ending September 30: $$\begin{array} { | l | r | } 
\hline \text { Administrative costs } & \$ 30,000 \
\hline \text { Depreciation on factory equipment } & 12,000 \
\hline \text { Indirect materials } & 2,000 \
\hline \text { Marketing and distribution costs } & 24,000 \
\hline \text { Salaries for factory supervisors } & 20,000 \
\hline \text { Wages for production workers } & 26,000 \
\hline \text { Raw materials used } & 38,000 \
\hline \text { Sales revenue } & 196,000 \
\hline \text { Selling costs } & 18,000 \
\hline \text { Utilities for production facilities } & 8,000 \
\hline & \
\hline \text { Number of units produced } & 20,000 \
\hline \text { Number of units sold } & 15,000 \
\hline
\end{array}$$ Required:
1)Compute the firm's total manufacturing overhead cost.
2)Prepare a schedule of inventory costs that shows total product costs,ending inventory,and cost of goods sold;and
3)Prepare an income statement for the month ending September 30.

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Question 9

As a Certified Management Accountant,Steven is bound by the Institute of Management Accountant's Standards of Ethical Conduct.Describe the actions Steven should take when faced with an ethical dilemma at work.

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Question 10

What inventory holding costs would be incurred by a business that holds a large amount of inventory?

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Question 11

How does the Sarbanes-Oxley Act of 2002 affect the responsibilities of the managers of publicly held US corporations?

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Question 12

What benefits may result from use of a just in time system?

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Question 13

Complete the following table to compare and contrast financial and managerial accounting. $$\begin{array} { | l | l | l | } 
\hline \text { Characteristic } & \text { Financial Accounting } & \text { Managerial Accornting } \
\hline \text { Users } & & \
\hline \text { Level of aggregation } & & \
\hline \text { Regulation } & & \
\hline \text { Characteristics of information } & & \
\hline \text { Time horizon } & & \
\hline \text { Reporting frequency } & & \
\hline
\end{array}$$

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Question 14

Select the term from the list provided that best matches each of the following descriptions.The first is done for you.

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Question 15

The Giga Company produces tablet computers.The following information is provided:  Required:
Classify each of the company's costs as a period cost (general,selling,and administrative cost)or as a direct or indirect product cost.Enter the dollar amount of the cost in the appropriate column.After entering all amounts,calculate the total general,selling,and administrative cost,the total direct product cost,and the total indirect product cost. $$\begin{array} { | l | l | l | l | } 
\hline { \text { Item } } & \text { Period cost } & \text { Direct product cost } & \text { Indirect product cost } \
\hline \text { a) } & & & \
\hline \text { b) } & & & \
\hline \text { c) } & & & \
\hline \text { d) } & & & \
\hline \text { e) } & & & \
\hline \text { f) } & & & \
\hline \text { g) } & & & \
\hline \text { h) } & & & \
\hline \text { i) } & & & \
\hline \text { i) } & & & \
\hline \text { k) } & & & \
\hline \text { l) } & & & \
\hline \text { m) } & & & \
\hline \text { Total } & & & \
\hline
\end{array}$$

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Question 16

Discuss three practical implications of misclassifying product and/or period costs.

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Question 17

Is McDonald's a manufacturing company or a service company? How do they record the cost of materials,labor,and overhead?

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Question 18

What are upstream costs? What upstream costs would be incurred by a company that produces and sells computer software programs?

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Question 19

What part do management accountants play in corporate governance?

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Question 20

What is the fraud triangle? Which element of the fraud triangle is most closely connected with internal controls?

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Quiz 1: Management Accounting and Corporate Governance

What is a value chain? And what relationship is there between the value chain and activity-based management?

Benchmarking involves the identification of the best practices used by world-class competitors.Discuss the following widely recognized best practices: activity-based management and just in time inventory.

Management accountants have a responsibility to demonstrate integrity.What does this ethical standard require of management accountants?

Management accountants have a responsibility to be objective.What does this ethical standard require of management accountants?

Select the term from the list provided that best matches each of the following descriptions.The first is done for you.

As a Certified Management Accountant,Steven is bound by the Institute of Management Accountant's Standards of Ethical Conduct.Describe the actions Steven should take when faced with an ethical dilemma at work.

What inventory holding costs would be incurred by a business that holds a large amount of inventory?

How does the Sarbanes-Oxley Act of 2002 affect the responsibilities of the managers of publicly held US corporations?

What benefits may result from use of a just in time system?

Select the term from the list provided that best matches each of the following descriptions.The first is done for you.

Discuss three practical implications of misclassifying product and/or period costs.

Is McDonald's a manufacturing company or a service company? How do they record the cost of materials,labor,and overhead?

What are upstream costs? What upstream costs would be incurred by a company that produces and sells computer software programs?

What part do management accountants play in corporate governance?

What is the fraud triangle? Which element of the fraud triangle is most closely connected with internal controls?