Distinguish between cost accounting and managerial accounting.
> The case deals with labor disputes in a unionized hospital. (For the case, go to www.cengage.com/management/mathis or visit the instructor companion website.) 1. Discuss the hospital administrator’s refusal to bargain from both his viewpoint and a legal
> The case discusses how unions sometimes compete to represent workers and explores experiences at the Denver Sheriff’s Department. (For the case, go to www.cengage.com/management/mathis or visit the instructor companion website.) 1. Is it good or bad for
> Give some examples of how technology is creating employer–employee rights and policy issues. Then suggest some possible actions that may be needed.
> Identify how overreliance on the employment-at-will doctrine can create problems for supervisors and employees. What are the ramifications if companies default to EAW rather than dealing directly with employee conduct problems?
> Assume that as the HR Manager, you have decided to prepare some guidelines for supervisors to use when they have to discipline employees. Gather the information needed, using Internet resources, such as www.blr.com and www.workforce.com for sample polici
> Discuss the impact on an individual employee and work unit if organizational justice is not honored by managers. Recall any past work experience you may have in which a supervisor “played favorites.” How did that impact your job performance and commitmen
> Management is developing a company workplace monitoring program to track compliance with safety procedures at an offshore oil rig platform in the Gulf of Mexico. The monitoring program is expected to help improve workplace safety compliance and reduce in
> This case discusses a California court ruling on terminating a female for her personal appearance. (For the case, go to www.cengage.com/management/mathis or visit the instructor companion website.) 1. Do you agree that the company is guilty of illegal ac
> HR can become more valuable in helping organizations meet their strategic goals by getting involved with performance consulting. At Ingersoll Rand’s Climate Solutions, the HR group worked with managers to create positive talent plans and developed a tale
> This case explores the problems that occur when “bullying” bosses or employees are present in the workplace. (For the case, go to www.cengage.com/management/mathis or visit the instructor companion website.) 1. If you were an HR professional doing traini
> This case discusses the stringent noncompete clause that must be signed by every Jimmy John’s employee. 1. Based on your understanding of this case, what possible reasons could Jimmy John’s management have for adopting this policy? If you were the HR man
> This case describes the problem facing a new department supervisor when HR policies and discipline have been handled poorly in the past. (For the case, go to www.cengage.com/management/mathis or visit the instructor companion website.) 1. What are the HR
> The number and magnitude of data breaches have been increasing at retailers, banks, government agencies, and other institutions. The management team at your company has decided to develop plans for dealing with data security breaches. Because your compan
> What should an employer do when facing an OSHA inspection?
> What can first-line supervisors do to help control workers’ compensation costs, and how might they be rewarded for doing so?
> As the HR manager of a distribution and warehouse firm with 600 employees, you plan to discuss a company wellness program at an executive staff meeting next week. The topics to cover include what a wellness program is, how it can benefit the company and
> This case considers the safety culture at a construction firm. 1. What could be done to increase front-line workers’ reports of violations? Why might they be reluctant to report violations they witness? 2. What rewards might be offered to front-line wor
> This case provides information on the success of safety and health efforts in the workplace. (For the case, go to www.cengage.com/management/mathis or visit the instructor companion website.) 1. Identify how these two firms have incorporated elements of
> This case concerns warning signs of possible alcohol use and the consequences at work. (For the case, go to www.cengage.com/management/mathis or visit the instructor companion website.) 1. What actions, if any, should Jack Otto take? 2. Identify some way
> This case highlights the challenges of employee retention during stressful and unpredictable times when Xerox was undergoing a significant shift in its strategic focus. (For the case, go to www.cengage.com/management/mathis or visit the instructor compan
> This case explores the different challenges associated with managing data security. (For the case, go to www.cengage.com/management/mathis or visit the instructor companion website.) 1. How would you communicate a data security policy that required softw
> This case explores the positive individual and organizational benefits of wellness programs. (For the case, go to www.cengage.com/management/mathis or visit the instructor companion website.) 1. What are some factors that you consider to be important pre
> Why are benefits strategically important to employers, and what are some key strategic considerations?
> Your company now has more than 60 employees. The controller has been handling all of the HR functions, including administration of the company’s benefits. You are considering outsourcing the benefit administration function to enable the controller to foc
> Based on the information discussed in the chapter, how would you oversee the design (or redesign) of a benefits program in a large organization? What issues would you consider?
> Assume that as an HR staff member, you have been asked to research consumer-driven health plans because your employer is considering implementing one. Go to a leading benefits information resource, Employee Benefit News, at www.benefitnews.com, and ident
> Discuss the following statement: “Health care costs are out of control in the United States, and increasing conflicts between employers and employees are likely as employers try to reduce their health benefits costs.”
> This case describes the problems that can occur when trying to coordinate time-off leaves for employees. (For the case, go to www.cengage.com/management/mathis or visit the instructor companion website.) 1. What problems exist with the benefits program o
> This case explores how FedEx provides benefits to its employees. (For the case, go to www.cengage.com/management/mathis or visit the instructor companion website.) 1. Why is having multiple health-care plans important for FedEx in slowing down increases
> This case investigates how a number of companies offer creative benefits to employees to enhance their work engagement and job performance. (For the case, go to www.cengage.com/management/mathis or visit the instructor companion website.) 1. What are the
> Assume you are an HR Director with a staff of seven people. A departmental objective is for all staff members to become professionally certified within a year. Using the Internet resources of HR associations, such as www.shrm.org and www.WorldatWork.org,
> This case describes the use of experiential and informal mobile technology by a trade association that focuses on the delivery of drinking water to residents and businesses. Apprenticeship 3.0 delivers a series of learning modules to employees and tracks
> Thermal Technology, Inc. manufactures a special chemical used to coat certain electrical components that will be exposed to high heat in various applications. The company’s annual fixed production cost is $500,000. Required: 1. Draw a graph of the comp
> What does the following statement by a managerial accountant at Caterpillar imply about where in the organization the managerial accountants are located? “[We] are a partner with all of the other functions in the business here.
> How does the fixed cost per unit change as the level of activity (or cost driver) increases? Why?
> On May 10, after the close of business, Fresno Furniture Company had a devastating fire that destroyed the company’s work-in-process and finished-goods inventories. Fortunately, all raw materials escaped damage because materials owned by the firm were st
> How could your college or university use the concepts in the balanced scorecard? List two possible performance measures that would be relevant to a college or university, for each of the balanced scorecard’s four areas.
> Distinguish between fixed costs and variable costs.
> Scranton Refrigeration Corporation began operations at the beginning of the current year. One of the company’s products, a compressor, sells for $370 per unit. Information related to the current year’s activities follows. Variable costs per unit: Direct
> The state Department of Education owns a computer system, which its employees use for word processing and keeping track of education statistics. The governor’s office recently began using this computer also. As a result of the increased usage, the demand
> Distinguish between the following two accounting positions: controller and treasurer.
> Give examples to illustrate how the city of Tampa could use cost information in planning, controlling costs, and making decisions.
> Briefly describe two methods that can be used to evaluate a particular least-squares regression line.
> Why do many operating managers prefer a contribution income statement instead of a traditional income statement?
> Determine the missing amounts in each of the following independent cases. Case A Case B Case C Sales ? $240,000 $ 60,000 Beginning inventory, raw material Ending inventory, raw material 7,500 $ 180,000 15,000 Purchases of raw material 200,000 255,000
> Distinguish between line and staff positions. Give two examples of each in a university setting.
> What is meant by the phrase “different costs for different purposes”?
> The following selected information was extracted from the 20x1 accounting records of Surgical Products, Inc.: Raw-material-purchases .................................................. $350,000 Direct labor ................................................
> Thomas Cleverly purchased a vacant lot outside of London for £17,200, because he heard that a shopping mall was going to be built on the other side of the road. He figured that he could make a bundle by putting in a fast-food outlet on the site. As it tu
> Explain why an overtime premium is included in manufacturing overhead.
> The following data refer to Laredo Luggage Company for the year 20x2: Required: 1. Prepare Laredo Luggage’s schedule of cost of goods manufactured for the year. 2. Prepare Laredo Luggage’s schedule of cost of goods s
> List and describe four important differences between managerial and financial accounting.
> List several possible cost drivers that could be used by a cruise line such as Carnival.
> Why is the cost of idle time treated as manufacturing overhead?
> How can a profit-volume graph be used to predict a company’s profit for a particular sales volume?
> LaJolla Airways operates commuter flights in California. Due to a political convention held in San Diego, the airline added several extra flights during a two-week period. Additional cabin crews were hired on a temporary basis. However, rather than hirin
> Give examples of how each of the objectives of managerial accounting activity would be important in an airline company such as American Airlines.
> List, describe, and give an example of each of the four different types of production processes.
> Angella Lopez, a consultant with Deloitte & Young, has just begun an engagement at Olympic Airways, which is based in Seattle. The company has fallen on hard times of late despite record profits for the rest of the airline industry. Management is somewha
> List several product costs incurred in the production of a backpack.
> Indicate for each of the following costs whether it is a product cost or a period cost. 1. Cost of grapes purchased by a winery. 2. Depreciation on pizza ovens in a pizza restaurant. 3. Cost of plant manager’s salary in a computer production facility. 4.
> Explain briefly how activity-based costing (ABC) affects cost-volume-profit analysis.
> Two companies have identical fixed expenses, unit variable expenses, and profits. Yet one company has set a much lower price for its product. Explain how this can happen.
> Stereo Technology, Inc. manufactures printed circuits for stereo amplifiers. A common product defect is a “drift” caused by failure to maintain precise heat levels during the production process. Rejects from the 100 percent testing program can be reworke
> How could cost-volume-profit analysis be used in budgeting? In making a decision about advertising?
> When sales volume increases, which company will experience a larger percentage increase in profit: company X, which has mostly fixed expenses, or company Y, which has mostly variable expenses?
> East Company manufactures VCRs using a completely automated production process. West Company also manufactures VCRs, but its products are assembled manually. How will these two firms’ cost structures differ? Which company will have a higher operating lev
> List the most important assumptions of cost-volume profit analysis.
> In a strategy meeting, a manufacturing company’s president said, “If we raise the price of our product, the company’s break-even point will be lower.” The financial vice president responded by saying, “Then we should raise our price. The company will be
> What information is conveyed by a cost-volume-profit graph in addition to a company’s break-even point?
> Give examples of each of the four primary management activities in the context of a national fast-food chain such as Burger King.
> Briefly explain each of the following methods of computing a break-even point in units: (a) contribution margin approach, (b) equation approach, and (c) graphical approach.
> SkiCo, Inc., manufactures ski boots. The company’s projected income for the coming year, based on sales of 160,000 units, is as follows: Sales.............................................................. $16,000,000 Operating expenses: Variable ex
> Hollywood Stars, Inc., owns and operates a nationwide chain of movie theaters. The chain’s 450 properties vary from low-volume, small-town, single-screen theaters to high-volume, urban, multiscreen theaters. The firm’s
> Distinguish between simple regression and multiple regression.
> Phoenix-based CompTronics manufactures audio speakers for desktop computers. The following data relate to the period just ended when the company produced and sold 42,000 speaker sets: Sales ................................................................
> Premier Corporation sells two models of home ice cream makers, Mister Ice Cream and Cold King. Current sales total 60,000 units, consisting of 21,000 Mister Ice Cream units and 39,000 Cold King units. Selling price and variable cost information follows.
> Boundaries, a chain of retail stores, sells books and music CDs. Condensed monthly income data are presented in the following table for November 20x4. (Ignore income taxes.) Additional information: • Management estimates that closing t
> Dillon, Jones, and Kline, Ltd. is studying the acquisition of two electrical component insertion systems for producing its sole product, the universal gismo. Data relevant to the systems follow. Model A: Variable costs, $8.00 per unit Annual fixed c
> Detroit Disk, Inc. is a retailer for digital video disks. The projected net income for the current year is $600,000 based on a sales volume of 400,000 video disks. Detroit Disk has been selling the disks for $24 each. The variable costs consist of the $1
> Surreal Sound, Inc., manufactures and sells compact disks. Price and cost data are as follows: Selling price per unit (package of two CDs) ........................... $ 25.00 Variable costs per unit: Direct material.......................
> ScholarPak Company produced and sold 70,000 backpacks during the year just ended at an average price of $30 per unit. Variable manufacturing costs were $12 per unit, and variable marketing costs were $6 per unit sold. Fixed costs amounted to $540,000 for
> Use the Internet to access the website for one of the following companies, or any other company of your choosing. American Airlines: www.aa.com Coca-Cola: www.coca-cola.com Deere and Company: www.deere.com IBM: www.ibm.com Google: www.google.com Require
> Columbus Canopy Company (CCC) manufactures and sells adjustable canopies that attach to motor homes and trailers. The market covers both new units as well as replacement canopies. CCC developed its 20x4 business plan based on the assumption that canopies
> Seattle Telecom, Inc. manufactures telecommunications equipment. The company has always been production oriented and sells its products through agents. Agents are paid a commission of 15 percent of the selling price. Seattle Telecom’s b
> Explain the meaning of the term least squares in the least-squares regression method of cost estimation.
> Great Northern Ski Company recently expanded its manufacturing capacity. The firm will now be able to produce up to 15,000 pairs of cross-country skis of either the mountaineering model or the touring model. The sales department assures management that i
> The Asian Division of Worldwide Reference Corporation produces a pocket dictionary containing popular phrases in six Asian languages. Annual budget data for the coming year follow. Projected sales are 100,000 books Required: 1. Calculate the break-even
> Toledo Tool Company (TTC) manufactures a line of electric garden tools that are s old in general hardware stores. The company’s controller, Will Fulton, has just received the sales forecast for the coming year for TTC’
> Central Pennsylvania Limestone Company produces thin limestone sheets used for cosmetic facing on buildings. The following income statement represents the operating results for the year just ended. The company had sales of 1,800 tons during the year. The
> Refer to the original data given for Saturn Game Company in the preceding problem. An activity-based costing study has revealed that Saturn’s $300,000 of fixed costs include the following components: Setup (40 setups at $800 per setup) ..................
> Saturn Game Company manufactures computer games. Last year Saturn sold 25,000 games at $50 each. Total costs amounted to $1,050,000 of which $300,000 were considered fixed. In an attempt to improve its product, the company is considering replacing a comp
> Steven Clark and two of his colleagues are considering opening a law office in a large metropolitan area that would make inexpensive legal services available to those who could not otherwise afford services. The intent is to provide easy access for their
> Zodiac Company has decided to introduce a new product, which can be manufactured by either a computer assisted manufacturing system or a labor-intensive production system. The manufacturing method will not affect the quality of the product. The estimated
> What is the most important difference between a manufacturing firm and a service industry firm, with regard to the classification of costs as product costs or period costs?
> PneumoTech, Inc. is studying the addition of a new valve to its product line. The valve would be used by manufacturers of pneumatic equipment. The company anticipates starting with a relatively low sales volume and then boosting demand over the next seve
> Explain the impact of an increase in the level of activity (or cost driver) on (a) total variable cost and (b) variable cost per unit.
> Lake Champlain Sporting Goods Company, a wholesale supply company, engages independent sales agents to market the company’s products throughout New York and Ontario. These agents currently receive a commission of 20 percent of sales, bu
> Susquehanna Medical Center operates a general hospital in northeastern Pennsylvania. The medical center also rents space and beds to separately owned entities rendering specialized services, such as Pediatrics and Psychiatric Care. Susquehanna charges ea
> Power Grid Engineering Associates, Inc., provides consulting services to commercial electric utilities. The consulting firm’s contribution-margin ratio is 25 percent, and its annual fixed expenses are $200,000. The firm’s income-tax rate is 40 percent.
