Questions from Cost Accounting

Q: The president of Toys for Boys evaluates the performance of Annie and

The president of Toys for Boys evaluates the performance of Annie and Andy, the divisional managers, on the basis of a variety of net income measures. Drew, the controller, informs the president that...

Q: What is residual income, and how is it used to measure

What is residual income, and how is it used to measure divisional performance? How is it similar to, and different from, the return on investment measure? How is residual income similar to, and differ...

Q: In designing a performance measurement system, why should managerial rewards be

In designing a performance measurement system, why should managerial rewards be linked to performance measures? Why would an effective compensation strategy treat top managers, middle managers, and ot...

Q: What is the balanced scorecard? What perspectives are considered in selecting

What is the balanced scorecard? What perspectives are considered in selecting performance measures for the balanced scorecard, and why is each of these perspectives important?

Q: What four questions should managers ask when choosing the investment proposals to

What four questions should managers ask when choosing the investment proposals to fund?

Q: How is risk defined in capital budgeting analysis? List several aspects

How is risk defined in capital budgeting analysis? List several aspects of a project in which risk is involved and how risk can affect a project’s net present value.

Q: How is sensitivity analysis used in capital budgeting?

How is sensitivity analysis used in capital budgeting?

Q: What is meant by the term time value of money? Why

What is meant by the term time value of money? Why is a present value always less than the future value to which it relates? Appendix 1: The time value of money can be discussed in relation to either...

Q: Why do capital budgeting evaluation methods use cash flows rather than accounting

Why do capital budgeting evaluation methods use cash flows rather than accounting income?

Q: Pet Palace provides two types of services to dog owners: grooming

Pet Palace provides two types of services to dog owners: grooming and training. All company personnel can perform each service equally well. To expand sales and market share, Pet Palaceâ€&#...