Questions from Cost Management

Q: What is operating leverage, and for what is it used?

What is operating leverage, and for what is it used?

Q: Define “degree of operating leverage” (DOL). How is

Define “degree of operating leverage” (DOL). How is DOL measured?

Q: Describe at least three benefits that an organization can expect to realize

Describe at least three benefits that an organization can expect to realize from budgeting.

Q: How does the use of a time-driven activity-based

How does the use of a time-driven activity-based cost (TDABC) system facilitate the preparation of budgets for an organization?

Q: Calculate the net after-tax cash flow effect of the following

Calculate the net after-tax cash flow effect of the following information: sales, $260; expenses other than depreciation, $140; depreciation expense, $50; marginal income tax rate, 35%. Round your ans...

Q: What is the essence of a fixed-performance contract and what

What is the essence of a fixed-performance contract and what dysfunctional consequences can occur through the use of this type of incentive system?

Q: Define what is meant by the terms what-if analysis and

Define what is meant by the terms what-if analysis and scenario analysis.

Q: Define the terms “relative performance contract” and “rolling financial

Define the terms “relative performance contract” and “rolling financial forecasts.” What role for these is envisioned by critics of the traditional budgeting process?

Q: Differentiate master, operating, and financial budgets.

Differentiate master, operating, and financial budgets.

Q: Many accountants believe that the most important benefit of the master budgeting

Many accountants believe that the most important benefit of the master budgeting process is the end result: a set of budgeted (i.e., pro-forma) financial statements. What is the rationale for this vie...