Questions from Managerial Accounting

Q: Define goal congruence, and explain why it is important to an

Define goal congruence, and explain why it is important to an organization’s success.

Q: Describe the managerial approach known as management by objectives or MBO.

Describe the managerial approach known as management by objectives or MBO.

Q: Define and give three examples of an investment center.

Define and give three examples of an investment center.

Q: Explain how the manager of the Automobile Division of an insurance company

Explain how the manager of the Automobile Division of an insurance company could improve her division’s ROI.

Q: Create an example showing how residual income is calculated. What information

Create an example showing how residual income is calculated. What information is used in computing residual income that is not used in computing ROI?

Q: What is the chief disadvantage of ROI as an investment center performance

What is the chief disadvantage of ROI as an investment center performance measure? How does the residual income measure eliminate this disadvantage?

Q: Why is there typically a rise in ROI or residual income across

Why is there typically a rise in ROI or residual income across time in a division? What undesirable behavioral implications could this phenomenon have?

Q: Define the term economic value added. How does it differ from

Define the term economic value added. How does it differ from residual income?

Q: Explain three strategies of environmental cost management.

Explain three strategies of environmental cost management.

Q: Distinguish between the following measures of invested capital, and briefly explain

Distinguish between the following measures of invested capital, and briefly explain when each should be used: (a) total assets, (b) total productive assets, and (c) total assets less current liabiliti...