Questions from Accounting Information Systems

Q: Should companies allow purchasing agents to start their own businesses that produce

Should companies allow purchasing agents to start their own businesses that produce goods the company frequently purchases? Why? Would you change your answer if the purchasing agent’s company was rate...

Q: When activity-based cost reports indicate that excess capacity

When activity-based cost reports indicate that excess capacity exists, management should either find alternative revenue-enhancing uses for that capacity or eliminate it through downsizing. What fac...

Q: Why should accountants participate in product design? What insights about costs

Why should accountants participate in product design? What insights about costs can accountants contribute that differ from the perspectives of purchasing managers and engineers?

Q: Typically, McDonald’s produces menu items in advance of customer orders based

Typically, McDonald’s produces menu items in advance of customer orders based on anticipated demand. In contrast, Burger King produces menu items only in response to customer orders. Which system (MRP...

Q: Some companies have switched from a “management by exception” philosophy

Some companies have switched from a “management by exception” philosophy to a “continuous improvement” viewpoint. The change is subtle, but significant. Continuous improvement focuses on comparing act...

Q: This chapter noted many of the benefits that can arise by

This chapter noted many of the benefits that can arise by integrating the HRM and payroll databases. Nevertheless, many companies maintain separate payroll and HRM information systems. Why do you thi...

Q: Consider the following two situations: For the situations presented,

Consider the following two situations: For the situations presented, describe the recommendations the internal auditors should make to prevent the following problems. Situation 1: Many employees of...

Q: Some accountants have advocated that a company’s human assets be measured and

Some accountants have advocated that a company’s human assets be measured and included directly in the financial statements. For example, the costs of hiring and training an employee would be recorded...

Q: You are responsible for implementing a new employee performance measurement system that

You are responsible for implementing a new employee performance measurement system that will provide factory supervisors with detailed information about each of their employees on a weekly basis. In c...

Q: One of the threats associated with having employees telecommute is that they

One of the threats associated with having employees telecommute is that they may use company-provided resources (e.g., laptop, printer, etc.) for a side business. What are some other threats? What con...