Questions from Managerial Accounting

Q: What are the reasons for carrying inventory?

What are the reasons for carrying inventory?

Q: Explain why, in the traditional view of inventory, carrying costs

Explain why, in the traditional view of inventory, carrying costs increase as ordering costs decrease.

Q: During the most recent year, Judson Company had the following data

During the most recent year, Judson Company had the following data associated with the product it makes: Units in beginning inventory ………………………….. 300 Units produced …………………………………………. 15,000 Units so...

Q: Define the term budget. How are budgets used in planning?

Define the term budget. How are budgets used in planning?

Q: A budget too easily achieved will lead to diminished performance. Do

A budget too easily achieved will lead to diminished performance. Do you agree? Explain.

Q: Explain why a manager has an incentive to build slack into the

Explain why a manager has an incentive to build slack into the budget.

Q: Explain how a manager can milk the firm to improve budgetary performance

Explain how a manager can milk the firm to improve budgetary performance.

Q: Define control. How are budgets used to control?

Define control. How are budgets used to control?

Q: Discuss some reasons for budgeting.

Discuss some reasons for budgeting.

Q: What is a master budget? An operating budget? A financial

What is a master budget? An operating budget? A financial budget?