Questions from Managerial Accounting

Q: Compare discretionary fixed costs to committed fixed costs. Think of an

Compare discretionary fixed costs to committed fixed costs. Think of an organization with which you are familiar. Give two examples of discretionary fixed costs and two examples of committed fixed cos...

Q: Define the terms “independent variable” and “dependent variable,”

Define the terms “independent variable” and “dependent variable,” as used in regression analysis. Illustrate the concepts of independent variables and dependent variables by selecting a cost a company...

Q: Suppose a company is implementing lean accounting throughout the organization. Why

Suppose a company is implementing lean accounting throughout the organization. Why might standard costing not be beneficial for that company?

Q: Describe the term “R-square.” If a regression analysis

Describe the term “R-square.” If a regression analysis for predicting manufacturing over - head using direct labor hours as the dependent variable has an R-square of 0.40, why might this be a problem?...

Q: Over the past year, a company’s inventory has increased significantly.

Over the past year, a company’s inventory has increased significantly. The company uses absorption costing for financial statements, but internally, the company uses variable costing for financial sta...

Q: A company has adopted a lean production philosophy and, as a

A company has adopted a lean production philosophy and, as a result, has cut its inventory levels significantly. Describe the impact on the company’s external financial statements as a result of this...

Q: What is a mixed cost? Give an example of a mixed

What is a mixed cost? Give an example of a mixed cost. Sketch a graph of this example.

Q: Define the term “relevant range.” Why is it important to

Define the term “relevant range.” Why is it important to managers?

Q: How realistic is your potential venture? Do you think you would

How realistic is your potential venture? Do you think you would be able to break even in each of the projected five years? How risky is your venture (use the margin of safety to help answer this quest...

Q: Describe your product. What market are you targeting this product for

Describe your product. What market are you targeting this product for? What price will you sell your product for? Make projections of your sales in units over each of the upcoming five years