Questions from Management Accounting

Q: How is an activity-based approach different from a traditional approach

How is an activity-based approach different from a traditional approach to designing a job-costing system?

Q: How is the accounting rate of return method different from the payback

How is the accounting rate of return method different from the payback method?

Q: Corporation tax only plays a role in capital budgeting because of capital

Corporation tax only plays a role in capital budgeting because of capital allowances.’ Do you agree? Explain.

Q: What approaches might be used to recognize risk in capital budgeting?

What approaches might be used to recognize risk in capital budgeting?

Q: ‘Discounted cash flow techniques are relevant only to for-profit

‘Discounted cash flow techniques are relevant only to for-profit organizations.’ Do you agree? Explain.

Q: ‘Budgets are wonderful vehicles for communication.’ Comment.

‘Budgets are wonderful vehicles for communication.’ Comment.

Q: Cite three benefits companies report from using an activity-based budgeting

Cite three benefits companies report from using an activity-based budgeting approach.

Q: Define responsibility accounting.

Define responsibility accounting.

Q: Outline three criticisms of traditional budgeting and a related proposal for change

Outline three criticisms of traditional budgeting and a related proposal for change.

Q: A toy manufacturer that specializes in making fad items has just developed

A toy manufacturer that specializes in making fad items has just developed a £50 000 molding machine for producing a special toy. The machine has been used to produce only one unit so far. The company...