Questions from Managerial Accounting

Q: Explain how to get positive behavioral effects from a responsibility-accounting

Explain how to get positive behavioral effects from a responsibility-accounting system.

Q: Performance reports based on controllability are impossible. Nobody really controls anything

Performance reports based on controllability are impossible. Nobody really controls anything in an organization!” Do you agree or disagree? Explain your answer.

Q: Outback, Ltd., manufactures tactical LED flashlights in Melbourne, Australia

Outback, Ltd., manufactures tactical LED flashlights in Melbourne, Australia. The firm uses an absorption-costing system for internal reporting purposes; however, the company is considering using vari...

Q: Define and give examples of the following terms: cost pool,

Define and give examples of the following terms: cost pool, cost object, and cost allocation (or distribution).

Q: Give an example of a common resource in an organization. List

Give an example of a common resource in an organization. List some of the opportunity costs associated with using the resource. Why might allocation of the cost of the common resource to its users be...

Q: Explain how and why cost allocation might be used to assign the

Explain how and why cost allocation might be used to assign the costs of a mainframe computer system used for research purposes in a university.

Q: Define the term cost allocation base. What would be a sensible

Define the term cost allocation base. What would be a sensible allocation base for assigning advertising costs to the various components of a large theme park?

Q: Referring to Exhibit 12–5, why are marketing costs distributed

Referring to Exhibit 12–5, why are marketing costs distributed to the Waikiki Sands Hotel’s departments on the basis of budgeted sales dollars? Exhibit 12-5:

Q: Why is it important in responsibility accounting to distinguish between segments and

Why is it important in responsibility accounting to distinguish between segments and segment managers?

Q: Can a common cost for one segment be a traceable cost for

Can a common cost for one segment be a traceable cost for another segment? Explain your answer.