Question: What are some additional considerations when

> What is a one-time-only special order?

> What is the likelihood value? Why do prediction models attempt to maximize it?

> How do data scientists use cross-validation and holdout samples?

> What is pruning? Why is it helpful?

> Why does overfitting occur?

> What is Gini impurity?

> Describe the decision tree technique of predictive modeling.

> Define target leakage.

> What is the seven-step decision-making process for applying machine-learning techniques in business situations?

> Docks Transport assembles prestige manufactured homes. Its job- costing system has two direct-cost categories (direct materials and direct manufacturing labor) and one indirect-cost pool (manufacturing overhead allocated at a budgeted $21 per machine-hou

> How do management accountants help managers to operationalize data science models?

> How does the management accountant use the payoff matrix to make decisions using data science models?

> Explain false positives (FP) and false negatives (FN).

> What is the receiver operating characteristic (ROC) curve?

> Explain the bias–variance tradeoff.

> How do management accountants work with data scientists to create value for an organization?

> When using the high-low method, should you base the high and low observations on the dependent variable or on the cost driver?

> Differentiate between the industrial engineering method of cost estimation and the quantitative method.

> What criteria are used by managers in the classification of costs into variable and fixed components?

> Why is a linear cost function useful?

> Virtual Company produces gadgets for the coveted small appliance market. The following data reflect activity for the year 2020: Virtual Co. uses a normal-costing system and allocates overhead to work in process at a rate of $2.50 per direct manufacturing

> Explain linear cost function and give an example.

> Do companies in either the service sector or the merchandising sector make choices about absorption costing versus variable costing?

> How does the treatment of fixed production overhead differ under variable costing and absorption costing?

> What needs to be calculated to explain a variable flexible-budget variance? Explain what an €8,000 unfavorable flexible-budget variance indicates.

> Assume variable manufacturing overhead is allocated using machine-hours. Give three possible reasons for a favorable variable overhead efficiency variance.

> Describe some of the characteristics of a flexible budget.

> Explain why standard costing should not be used to report results in year-end financial statements. Why would managers use standard costing?

> What are the main features to be considered in planning variable overhead costs and fixed over- head costs?

> How can flexible-budget variance analysis be used to control costs of activity areas?

> How are the main components of materials variances interrelated in a flexible budget?

> Olga Ltd produces stapling machines for most businesses operating in New Orleans. The production process involves three stages: cutting department, assembly department and painting and finishing department. Required Each department is treated as a cost

> Which of the following statements is true about a master budget? I. It is a summary of all other budgets. It is expressed as a budgeted income and is mentioned in the balance sheet. II. The master budget comprises of the operating budget and the financia

> Describe why standard costs are used in variance analysis.

> When is a flexible budget similar to a static budget? Why?

> What are the impacts of variances on an operating income?

> Why are standard costs often used in variance analysis?

> Benchmarking is about comparing your firm’s performance against the best levels of performance in the market and has nothing to do with variance analyses.” Do you agree?

> When inputs are substitutable, how can the direct materials efficiency variance be decomposed further to obtain useful information?

> Comment on the following statement made by a management accountant: “The plant manager has little knowledge of the individual impacts of the purchase department, the sales department, and the production department on the total unfavorable variance in our

> What is the purpose of variance analysis to management?

> What is the usual starting point for an operating budget?

> Budgets meet the cost–benefit test by pushing managers to act differently.” Do you agree? Explain.

> Holland Builders uses normal costing and allocates manufacturing overhead to jobs based on a budgeted labor-hour rate and actual direct labor-hours. Under- or over allocated overhead, if immaterial, is written off to cost of goods sold. During 2020, Holl

> Budgets can promote coordination and communication among subunits within the company.” Do you agree? Explain.

> List the key questions that a manager must consider when developing a successful strategy.

> What are the advantages of a budget?

> Define a master budget and explain its purpose. Describe its components.

> Explain why cash budgets are important.

> What is the key emphasis in Kaizen budgeting?

> The cost of cost objects under simple costing systems and under activity-based costing are never the same.” Do you agree? Explain.

> What are some behavioral issues that managers must be sensitive to when implementing ABC systems?

> Outline the steps involved in a simple costing system using a single indirect-cost pool.

> Plunge Manufacturing produces outdoor wading and slide pools. The company uses a normal-costing system and allocates manufacturing overhead based on direct manufacturing labor-hours. Most of the company’s production and sales occur in t

> Which levels of cost hierarchy (under activity-based costing) are not used in simple costing systems and why are they important?

> How can a cost hierarchy lead to a more accurate costing system?

> What are the fundamental cost objects in activity-based costing? How does activity-based costing work?

> The total annual production cost of a manufacturing company that produces three different USB devices is $10,000,000. The manager of the company states that the contribution margins of all three products guarantee and justify their productions and, there

> What are the main factors determining the number of indirect-cost pools in a costing system, to increase the accuracy of product or service costs? Explain.

> Activity-based costing is providing more accurate and detailed information and should replace simple costing.” Do you agree? Explain.

> Explain why ABC is equally important for both manufacturing and service companies.

> Describe the main limitations of ABC systems.

> Describe normal costing and actual costing systems.

> Seasonal patterns and fluctuating levels of monthly outputs are the two main factors for most organizations to use an annual period rather than a weekly or a monthly period to compute budgeted indirect-cost rates. Explain how annual indirect rates allevi

> Global Enterprize, a management consulting firm, has the following condensed budget for 2021: Required Global Enterprize has a single direct-cost category (professional labor) and a single indirect-cost pool (client support). Indirect costs are allocate

> Explain the role of information technology in job costing.

> Describe a key feature of job costing and process costing.

> Explain how the cost of a cost object/job is determined under a job-costing system.

> Why do managers have to make adjustments for under- or over-allocated indirect costs?

> Describe the flow of costs in a normal job-costing system.

> Comment on the following statement: There is no difference between “actual costing” and “nor- mal costing” systems because both systems use the product’s actual direct-cost rates and actual quantities of direct-cost inputs.

> Explain how job-costing information may be used for decision making.

> Explain what are the main limitations of CVP analysis for decision making? Explain.

> What is breakeven point (BEP)?

> Differentiate between contribution margin and contribution margin ratio.

> The Lynn Company uses a normal job-costing system at its Minneapolis plant. The plant has a machining department and an assembly department. Its job-costing system has two direct-cost categories (direct materials and direct manufacturing labor) and two m

> What is the main difference between gross margin and contribution margin? Which one is the focus of CVP analysis? Explain briefly.

> What are some of the assumptions underlying breakeven analysis in a multiple products environment?

> CVP analysis assumes that costs can be accurately divided into fixed and variable categories. Do you agree? Explain.

> Is it possible to calculate the breakeven point for a company that produces and sells more than one type of product? Explain.

> Is CVP analysis more focused on the short or the long term? Explain.

> Explain three common features of cost accounting and cost management and their applications.

> Inventoriable costs are usually associated with the manufacturing firms whilst period costs are mainly for trading firms. Discuss.

> Explain the impact of having weak ethics on suppliers, customers, and the market. Provide an example to illustrate your answer.

> Due to the significance of the information they’re trusted with, management accountants are expected to observe well-defined professional ethical standards. Professional management accountant organizations around the world have developed professional eth

> Explain how overtime premium and idle time affect labor costs.

> Gammaro Manufacturer uses normal costing. It allocates manufacturing overhead costs using a budgeted rate per machine-hour. The following data are available for 2020: Required 1. Calculate the budgeted manufacturing overhead rate. 2. Calculate the manuf

> As the new controller, reply to the following comment made by your plant manager: “When I install a proper accounting software, which can process all my daily accounting records and provide me with all necessary reports and analyses, I am not sure what a

> Technical and basic analytical competence are necessary but not sufficient conditions to becoming a successful management accountant.” Do you agree? Why?

> Give an example for each of the following: A cost that is variable and direct, a cost that is variable and indirect, a cost that is fixed and direct, and a cost that is fixed and indirect.

> Explain whether a business department can be a cost object.

> Why and when is it essential to calculate a unit cost?

> What is a cost driver? Give one example.

> PostNews.com offers its subscribers several services, such as an annotated TV guide and local-area information on weather, restaurants, and movie theaters. Its main revenue sources are fees for banner advertisements and fees from subscribers. Recent data

> Tiffany Cosmetics manufactures and sells a variety of makeup and beauty products. The company has come up with its own patented formula for a new anti-aging cream. The company president wants to make sure the product is priced competitively because its p

> The new chief executive officer (CEO) of Richard Manufacturing has asked for a variety of information about the operations of the firm from last year. The CEO is given the following information, but with some data missing: Required 1. Find (a) total sa

> News Report Group has two major divisions: print and Internet. Summary financial data (in millions) for 2019 and 2020 are as follows: The two division managers’ annual bonuses are based on division ROI (defined as operating income divid

> Caldwell Toys produces toys mainly for the domestic market. The company uses a job-costing system under which materials and labors used in the manufacturing process are directly allocated to different jobs. Whereas costs incurred in the manufacturing sup

> Newmann, Inc. has divisions in the United States, France, and Australia. The U.S. division is the oldest and most established of the three and has a cost of capital of 6%. The French division was started 4 years ago when the exchange rate for the euro wa

> Natural Bounty Corporation operates three divisions that process and bottle natural fruit juices. The historical-cost accounting system reports the following information for 2020: Natural Bounty estimates the useful life of each plant to be 12 years, wit