Questions from Cost Management

Q: Explain how a manager’s risk aversion can affect decision making and how

Explain how a manager’s risk aversion can affect decision making and how compensation plans should be designed to deal with risk aversion.

Q: Explain how management compensation can provide an incentive to unethical behavior.

Explain how management compensation can provide an incentive to unethical behavior. What methods can be used to reduce the chance of unethical activities resulting from compensation plans?

Q: From a financial reporting standpoint, what form of compensation is most

From a financial reporting standpoint, what form of compensation is most desirable for the firm?

Q: From a tax planning standpoint, what form of compensation is least

From a tax planning standpoint, what form of compensation is least desirable for the manager? For the firm?

Q: If Toyota Motor Company receives an order on May 1, begins

If Toyota Motor Company receives an order on May 1, begins production on May 19, and ships the order on May 20 immediately following production, then what is the manufacturing cycle efficiency (MCE) r...

Q: List the three bases for bonus incentive plans; explain how they

List the three bases for bonus incentive plans; explain how they differ and how each achieves (or does not achieve) the three objectives of management compensation.

Q: Identify and explain the six financial ratios used to evaluate liquidity as

Identify and explain the six financial ratios used to evaluate liquidity as part of the firm’s business analysis.

Q: What are the two types of bonus pools for bonus incentive plans

What are the two types of bonus pools for bonus incentive plans? How do they differ, and how does each achieve (or not achieve) the three objectives of management compensation?

Q: 21. Direct materials are / 22.

21. Direct materials are 22. Which of the following costs would be included in manufacturing overhead for a computer manufacturer? a. The cost of the USB port hardware b. The wages paid to hardware...

Q: 26. Management accounting, as defined by the IMA, uses

26. Management accounting, as defined by the IMA, uses the expertise of the management accountant to a. Improve quality and reduce cost b. Implement a strategy of cost leadership or differentiation c...