Questions from Cost Accounting

Q: Give examples of financial and nonfinancial performance measures that can be found

Give examples of financial and nonfinancial performance measures that can be found in each of the four perspectives of the balanced scorecard.

Q: “Managers should be rewarded only on the basis of their performance

“Managers should be rewarded only on the basis of their performance measures. They should be paid no salary.” Do you agree? Explain.

Q: Explain the role of benchmarking in evaluating managers.

Explain the role of benchmarking in evaluating managers.

Q: Explain the incentive problems that can arise when employees must perform multiple

Explain the incentive problems that can arise when employees must perform multiple tasks as part of their jobs.

Q: Describe two disclosures required by the SEC with respect to executive compensation

Describe two disclosures required by the SEC with respect to executive compensation.

Q: Describe the four levers of control.

Describe the four levers of control.

Q: What are the three steps in designing accounting-based performance measures

What are the three steps in designing accounting-based performance measures?

Q: Dakota Products uses a job-costing system with two direct-

Dakota Products uses a job-costing system with two direct-cost categories (direct materials and direct manufacturing labor) and one manufacturing overhead cost pool. Dakota allocates manufacturing ove...

Q: “RI is not identical to ROI, although both measures incorporate

“RI is not identical to ROI, although both measures incorporate income and investment into their computations.” Do you agree? Explain.

Q: Distinguish between measuring assets based on current cost and historical cost.

Distinguish between measuring assets based on current cost and historical cost.