Question 1

Planning:

Accepted Answer

Planning involves setting objectives and determining a course of action for achieving those objectives, which includes implementing decisions, evaluating performance, and providing feedback for future improvements.

Question 2

A recent Performance Report from Baker's Chocolate Factory revealed the budgeted amount of chocolate crisps was 1,000;and,they actually sold 900 chocolate crisps.Compute the difference.Was the difference favorable or unfavorable?

Accepted Answer

B)[1,000 - 900] = 100 unfavorable

Question 3

The most important functions in the value-chain analysis that managers use to please consumers include research and development (R&D),the design of products and processes,production,marketing,distribution and customer service.

Accepted Answer

Managers use these functions to create value for the consumer and enhance their satisfaction with the products or services offered. R&D helps in identifying customer needs and developing innovative products, while design focuses on creating products that meet those needs efficiently. Production ensures that the products are manufactured as per the design specifications, and marketing helps in promoting the products to the targeted customers. Distribution ensures that the products reach the customers in a timely and efficient manner, while customer service provides after-sales support to ensure customer satisfaction.

Question 4

A recent Performance Report from Baker's Chocolate Factory revealed that there were budgeted revenues in October,2012,of $2,000,000;and,the actual revenues were $2,110,000.Is the difference favorable or unfavorable?

Accepted Answer

C)[$2,110,000 - $2,000,000] = $110,000 favorable

Question 5

Classify each cost item of Ripon Printers into one of the business functions of the value chain,either (1)R&D, (2)Design, (3)Production, (4)Marketing, (5)Distribution,or (6)Customer service.
Item:
a.cost of customer order forms
b.cost of paper used to manufacture books
c.cost of paper used in packing cartons to ship books
d.cost of paper used in display at national trade show
e.depreciation of trucks used to transport books to college bookstores
f.cost of the wood used to manufacture paper
g.salary of the management scientists attempting to find another source of information technology
h.cost of refining the package size to specific dress sizes so that a standard-sized box is filled to capacity

Accepted Answer

The answer of Classify each cost item of Ripon Printers...

Question 6

When managers track the costs that are incurred in each value-chain category,their goal is to ensure the profitability of the organization.

Accepted Answer

Managers track costs in order to ensure that each value-chain activity is profitable, and the overall profitability of the organization is maintained.

Question 7

Complete a performance report for the month of October,2012,for the Management Scientist Quarterly,a national publication,showing four columns: 1)Actual Result;2)Budgeted Amount;3)Difference: Actual Result minus Budgeted Amount;4)Difference as a Percentage of Budgeted Amount.Compute the difference of the actual result compared to the budgeted amount.What is the difference as a percentage of the budgeted amount? Include the following information in the performance report:

Accepted Answer

The answer of Complete a performance report for the month...

Question 8

In reference to value-chain analysis,design of products and processes includes the detailed planning,engineering,and testing of products and processes.

Accepted Answer

Design of products and processes involves detailed planning, engineering, and testing of the same, and is an important part of value-chain analysis.

Question 9

Classify each cost item into one of the business functions of the value chain,either (1)R&D, (2)Design, (3)Production, (4)Marketing, (5)Distribution,or (6)Customer service.
Item:
a.cost of free food mailed to promote sales of a new organic food product
b.labor cost of workers in the construction plant
c.bonus paid to a person with a 80% satisfaction rating in handling customers with complaints
d.transportation costs for shipping products to retail outlets

Accepted Answer

The answer of Classify each cost item into one of...

Question 10

Explain why it is important for managers to account for all of the costs incurred in each value-chain category.What is their goal? Be specific.

Accepted Answer

The answer of Explain why it is important for managers...

Question 11

Companies feel pressure to reduce costs as a result of increased global competition.

Accepted Answer

Increased global competition creates pressure on companies to reduce costs in order to remain competitive. This can involve streamlining operations, outsourcing, and finding more cost-efficient suppliers, among other strategies.

Question 12

Which of the following is not true about a managerial accountant that links rewards to performance?

Accepted Answer

Linking rewards to performance is used to motivate managers, making option A incorrect.

Question 13

A budget:

Accepted Answer

A budget is a benchmark against which actual performance can be prepared. It is a financial plan that outlines the expected revenues, expenditures, and goals for a specific period. By comparing actual results to the budget, management can evaluate performance and make necessary adjustments to achieve their goals. The other options do not accurately describe a budget.

Question 14

Competitive information serves as a benchmark.

Accepted Answer

Competitive information provides important insights and serves as a benchmark against which a company can measure its performance and progress.

Question 15

How do managers calculate a target cost for the selling price of a product?

Accepted Answer

Target cost is calculated by subtracting the desired operating income per unit from the expected selling price per unit. This helps in determining the maximum cost that can be incurred on a product while still achieving the desired profit margin.

Question 16

What can a managerial accountant at a company do to counteract the impact of increased global competition and strive to ensure the company remains competitive in the marketplace?

Accepted Answer

The answer of What can a managerial accountant at a...

Question 17

Which of the following is not true about the five-step decision making process?

Accepted Answer

This statement is not true as one of the steps in the decision-making process is to evaluate the outcomes and learn from them.

Question 18

Describe the value chain and how it can help organizations become more effective.

Accepted Answer

The answer of Describe the value chain and how it...

Question 19

Successful strategy implementation only requires value-chain and supply-chain analysis to support long-term value.

Accepted Answer

Successful strategy implementation requires more than value-chain and supply-chain analysis and execution of key success factors.The decisions managers make help them to develop,integrate,and implement their strategies.

Question 20

The comparison of ________ performance to ________ performance,this is known as the control or postdecision role of information.

Accepted Answer

The comparison of actual performance (what really happened) to budgeted performance (what was expected to happen) is a common way for managers to evaluate how well they are meeting their goals. This is known as the control or postdecision role of information, as it helps managers make adjustments and improve future performance. Choices A, C, D, and E do not accurately describe this concept.

Quiz 1: The Manager and Management Accounting