Question 1

Kristin West owns a car wash in Clinton.Identify each of the following actions she performs as a planning, controlling, evaluating, or decision-making activity:

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Question 2

Michael Mounts owns several used bookstores in Cleveland.Identify each of the following actions he performs as a planning, controlling, evaluating, or decision-making activity:

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Question 3

In each of the following situations, identify whether the setting is primarily financial accounting or managerial accounting.
a.Falcon Company sent its annual report to its stockholders.
b.Genesis, Inc.'s controller sent a report of actual versus budgeted sales figures to the sales manager.
c.Hurtz Rent-All Company determines that its investments have declined in value and should be adjusted.
d.Inca, Inc.controller suspects that cash is being stolen by a sales clerk.As a result, she prepares an analysis to compare each sales clerk's collections for each day.
e.Jones Company executives are meeting to review the annual report to be submitted to the SEC.

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Question 4

Managerial accounting information is not just for accountants.All areas within an organization can use the information to support decision-making.For each of the following positions, list three decisions the manager might have to make and give an example of a report that would help the manager in the decision-making process.
a.Human resources manager
b.Purchasing manager
c.Engineering department

Accepted Answer

Managerial accounting information can be useful for decision-making in various areas of an organization, not just accounting. Human resources managers may need to make decisions regarding employee compensation, training and development, and staffing levels. Reports such as a budgeted vs. actual payroll report, a training cost analysis report, and a staffing forecast report can help the human resources manager make informed decisions in these areas.

Question 5

Your boss has asked you to lead a committee to develop a code of conduct for the company.Write a memo to the committee members to schedule your first meeting.In your memo, list the six components you believe are most important to be included in the code and explain why.

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Question 6

Assume your roommate is a management major and must take this managerial accounting course next semester.You have explained some of the things you have learned thus far, but your roommate states, "I don't know why I would need to know anything about managerial accounting! I am not an accounting major and will NEVER be preparing any managerial accounting reports.As long as I make a profit for the company for which I will work, who cares what the accountants' reports say?" How would you respond?

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Question 7

List three reasons why it is important for a company to have a written code of conduct.

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Question 8

A key component of a positive ethical environment is "tone at the top." Discuss what this term means, and why this is a key component.

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Question 9

Compare and contrast strategic planning and operational planning.

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Question 10

The Institute of Management Accountants (IMA) and many other professional organizations have a code of conduct to direct the membership's ethical behavior.Discuss the standards that guide the conduct of members of the IMA.

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Question 11

Managerial and financial accounting differ in several different ways.Explain these differences by completing the table below.

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Question 12

Managerial accounting is designed to assist managers with four general activities.List the activities and give an example of each.

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Question 13

What are the requirements of Section 406 of the Sarbanes-Oxley Act regarding publicly traded company's code of conduct?

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Question 14

For each statement below, indicate the management tool being described.

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Question 15

Juan's Ortiz's taco stand in Bomfa, California, specializes in fresh, handmade tacos.While Juan's business does not yet have a national presence, he does have a strong citywide reputation.Recently, Juan has been receiving orders from other parts of the country through the company's website.He is beginning to think about the potential for growing his out-of-city business.
Required:
a.How can managerial accounting information be useful to Juan as he thinks about growing his out-of-city business?
b.What decisions might Juan need to make if he decides to grow his out-of-city business?
c.What managerial accounting information might Juan find useful as he decides how to grow his out-of-city business?

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Question 16

Managerial accounting information is not just for accountants.All areas within an organization can use the information to support decision-making.For each of the following positions, list three decisions the manager might have to make and give an example of a report that would help the manager in the decision-making process.
a.Plant manager
b.Vice-President of sales
c.Inventory supervisor

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Question 17

A relatively new tool that managerial accountants have developed to assist is the balanced scorecard.
Required:
Explain the purpose of the balanced scorecard.List the various perspectives comprising the balanced scorecard, and state what each perspective measures.

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Question 18

As part of their continuing effort to improve business processes to deliver maximum value to their customers, many businesses have adopted one or more of the following systems:
a.Supply chain management
b.Just-in-time-inventory (JIT)
c.Enterprise resource planning (ERP) systems
Required:
Describe each of the three systems and their goal.

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Question 19

Define managerial accounting and explain how managerial accounting information helps managers do their jobs.

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Question 20

Lilly Grant owns an ice cream shop in Marigold.Identify each of the following actions she performs as a planning, controlling, evaluating, or decision-making activity:

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Quiz 1: Accounting As a Tool for Management