All Matches

Solution Library

Expert Answer

Textbooks

Search Textbook questions, tutors and Books

Oops, something went wrong!

Change your search query and then try again

Result Not Found

Books FREE
Tutors
Study Help
Hire a Tutor
AI Study Help New

Search
Sign In
Register

study help
business
horngrens cost accounting a managerial emphasis

Questions and Answers of Horngrens Cost Accounting A Managerial Emphasis

Identify four key themes that are important to managers attaining success in their planning and control decisions
Describe three guidelines that help management accountants increase their value to managers
Explain variable costs and fixed costs
Interpret unit costs with caution
Distinguish among manufacturing-, merchandising-, and service-sector companies
Describe the three categories of inventories commonly found in manufacturing companies
Differentiate between inventoriable costs and period costs
Explain why different ways of computing product costs are appropriate for different purposes
Describe the building block concepts of costing systems
Understand how absorption costing can provide undesirable incentives for managers
Describe the various denominator-level capacity concepts that can be used in absorption costing
Describe how attempts to recover fixed costs of capacity may lead to a down- ward demand spiral
Explain how the choice of the denominator level affects the production-volume variance
Describe three alternative linear cost functions. a cost function?
What two assumptions are frequently made when estimating
Explain two caveats to consider when interpreting the production-volume variance as a measure of the economic cost of unused capacity
Explain how the efficiency variance for a variable indirect-cost item differs from the efficiency variance for a direct-cost item
Explain similarities and differences in the planning of variable overhead costs and the planning of fixed overhead costs
Describe benchmarking and how it can be used in cost management
Explain why purchasing performance measures should focus on more factors than just price variances
Develop a flexible budget and compute flexible-budget variances and sales-volume variances
Describe responsibility centers and responsibility accounting
Describe key advantages of budgets
Describe a four-part cost hierarchy
Distinguish between the traditional and the ABC approaches to designing a costing system
Explain the use of CVP analysis in decision making and how sensitivity analysis can help managers cope with uncertainty
Determine the breakeven point and output to achieve target operating income using the equation, contribution margin, and graph methods
=+1 Select financial and non-financial performance measures to use in a balanced scorecard
=+2 Design an accounting-based performance measure
=+3 Analyse return on investment (ROI) using the DuPont method
=+4 Use the residual-income (RI) measure and explain its advantages
=+5 Use the economic value added (EVA®) method to evaluate performance
=+6 Contrast the strengths and weaknesses of current-cost and historical-cost asset-measurement methods
=+7 Describe the difficulties that occur when the performance of divisions operating in different countries is compared
=+8 Explain the roles of salaries and incentives when rewarding managers
=+9 Describe the four levers of control and explain why each lever is important
=+What are the steps in designing an accounting-based performance measure?
=+How does the DuPont method analyse return on investment?
=+What is residual income and what are its advantages?
=+What is economic value added (EVA®)?
=+Should companies use the current cost or the historical cost of assets to measure performance?
=+What are the four levers of control, and why is each lever important?
=+The Basketball Division of RealSports manufactures and sells basketballs. Assume production equals sales. Budgeted data for 2014 are:Current assets $400 000 Long-term assets 600 000 Total assets $1
=+2 Using the selling price from requirement 1, separate the target ROI into its two components using the DuPont method.Chapter 20: Performance measurement, compensation and multinational
=+3 Calculate the RI of the Basketball Division for 2014, using the selling price from requirement 1.RealSports uses a required rate of return of 12% on total division assets when calculating
=+4 In addition to her salary, Pamela Stephenson, the division manager, receives 3% of the RI of the Basketball Division as a bonus. Calculate Pamela Stephenson’s bonus. Why do you think she is
=+20-1 Give examples of financial and non-financial performance measures that can be found in each of the four perspectives of the balanced scorecard.
=+20-2 What are the six steps in designing accounting-based performance measures?
=+20-3 What factors affecting ROI does the DuPont method of profitability analysis highlight?
=+20-4 ‘RI is not identical to ROI, although both measures incorporate income and investment into their calculations.’ Do you agree? Explain.
=+20-5 Describe the economic value added (EVA®) method.
=+20-6 Give three definitions of investment used in practice when calculating ROI.
=+20-7 Distinguish between measuring assets based on current cost and historical cost.
=+20-8 What special problems arise when evaluating performance in multinational companies?
=+20-9 Why is it important to distinguish between the performance of a manager and the performance of the organisation subunit for which the manager is responsible? Give an example.
=+20-10 Describe moral hazard.
=+20-11 ‘Managers should be rewarded only on the basis of their performance measures. They should be paid no salary.’ Do you agree? Explain.
=+20-12 Explain the role of benchmarking in evaluating managers.
=+20-13 Explain the incentive problems that can arise when employees must perform multiple tasks as part of their jobs.
=+20-14 Describe two disclosures required by the Australian Corporations Act 2001 with respect to executive compensation.
=+20-15 Describe the four levers of control.
=+20-16 KK ROI, comparisons of three companies (CMA, adapted) OBJECTIVE 3 Return on investment (ROI) is often expressed as follows:Income Investment = Income Revenues × Revenues Investment Required
=+2 Fill in the following blanks:Companies in same industry A B C Revenues $175 000 $550 000 ?Income $25 000 $40 000 ?Investment $250 000 ? $2 500 000 Income as a percentage of revenues ? ?
=+20-17 KK Analysis of return on invested assets, comparison of two divisions, DuPont method OBJECTIVE 3 Pacing Cycles Ltd has two divisions: Racing Bikes, Mountain Bikes and Cruisers. Results (in
=+2 Use the DuPont method of profitability analysis to explain changes in the operating profit to total assets ratios over the 2012 to 2014 period for each division and for Pacing Cycles as a whole.
=+20-18 KK ROI and RI (D. Kleespie, adapted) OBJECTIVES 3, 4 The Headland Surf Company produces a wide variety of surfwear and surfing equipment. Its newest division, Skimboards, manufactures and
=+2 If management requires an ROI of at least 15% from the division, what is the minimum selling price that the Headland Surf Company should charge per ShoreSurf board?
=+3 Assume that Headland Surf Company judges the performance of its investment centres on the basis of RI rather than ROI. What is the minimum selling price that Skimboards should charge per
=+20-19 K ROI and RI with manufacturing costs OBJECTIVES 3, 4 Blackstone Scooters makes electric scooters and has only two products, the Evergreen and the Racinggreen. To produce the Evergreen,
=+General administration and selling costs total $78500 for the period. In the current period, Blackstone Scooters produced 6300 Evergreen scooters using 655 set-up-hours and 27500 machine-hours.
=+2 Calculate the residual income for the Evergreen Division if Blackstone Scooters has a required rate of return of 11.5% on investments.
=+20-20 KK Financial and non-financial performance measures, goal congruence (CMA, adapted)OBJECTIVES 1, 8 Fishy Ltd manufactures fishfinders and depthsounders for recreational fishing, a market that
=+2 Calculate the bonus earned by each manager for each six-month period and for 2014.
=+3 What effect did the change in the bonus plan have on each manager’s behaviour? Did the new bonus plan achieve what Jen Harris desired? What changes, if any, would you make to the new bonus plan?
=+20-21 KK Goal incongruence and ROI OBJECTIVES 3, 4 Lamb Ltd manufactures office furniture in several divisions, including the Desk Division. The manager of the Desk Division plans to retire in two
=+One of the machines that the Desk Division uses to manufacture the desks is rather old, and the manager must decide whether to replace it. The new machine would cost $36000 and would last 6 years.
=+2 Assume that ‘investment’ is defined as average net long-term assets after depreciation. Calculate the project’s ROI for each of its first five years. If the Deck Division’s manager is
=+3 What can Lamb Ltd do to entice the manager to replace the machine before retiring?
=+20-22 KK ROI, RI, EVA® OBJECTIVES 3, 4, 5 Sunshine Motorbikes Ltd operates a New Bike Division and a Used Bike Division. Some division financial measures for 2014 are as follows:Chapter 20:
=+2 Calculate residual income (RI) for each division using operating profit as a measure of income and total assets as a measure of investment.
=+3 William Steiner, the New Bike Division manager, argues that his division is unfairly affected by the need to hold significant levels of accounts payable. Calculate an alternative RI for each
=+4 Sunshine Motorbikes Ltd, whose tax rate is 30%, has two sources of funds: long-term debt with a market value of $20000000 at an interest rate of 7.5%, and equity capital with a market value of
=+5 Use your preceding calculations to comment on the relative performance of each division.
=+20-23 KK ROI, RI, measurement of assets (CMA, adapted) OBJECTIVES 3, 4 Benson Ltd recently announced a bonus plan to be awarded to the manager of the most profitable division. The three division
=+20-24 KK Multinational performance measurement, ROI, RI OBJECTIVES 3, 4, 7 Ravensburger Ltd manufactures educational puzzles in Australia and Germany. The Australian and German operations are
=+Both investments were made on 31 December 2013. The exchange rate at the time of Ravensburger’s investment in Germany on 31 December 2013 was 0.75 euro = $1 AUD. During 2014, the euro increased
=+2 Top management wants to know which division earned a better ROI in 2014. What would you tell them? Explain your answer.
=+3 Which division do you think had the better RI performance? Explain your answer. The required rate of return on investment(calculated in Australian dollars) is 9%.786 Chapter 20: Performance
=+20-25 K ROI, RI, EVA® and performance evaluation OBJECTIVES 3, 4, 5, 8 Telum Ltd manufactures electronic devices and competes on the basis of quality and leading-edge designs. The company
=+What are the advantages and disadvantages of each measure?
=+2 The CEO of Telum Ltd has recently heard of another measure similar to residual income called EVA®. The CEO has the accountant calculate EVA®-adjusted incomes of the Mobile Phone and Tablet
=+3 What non-financial measures could Telum Ltd use to evaluate divisional performances?
=+20-26 KK Risk sharing, incentives, benchmarking, multiple tasks OBJECTIVE 8 The Solar Division of Energell sells solar panels. Energell’s corporate management gives the Division Manager, Pat
=+2 Suppose that Energell competes against Vantage Industries in the solar panel business. Vantage is approximately the same size as the Solar Division and operates in a business environment that is
=+3 Now suppose that Pat McCue has no authority for making capital-investment decisions. Corporate management makes these decisions. Is ROI a good performance measure to use to evaluate Pat? Is ROI a
=+4 Solar Division’s salespersons are responsible for selling and providing customer service and support. Sales are easy to measure.Although customer service is important to Solar in the long run,
=+20-27 KK Residual income and EVA®; timing issues OBJECTIVES 4, 5 Downtown Ltd makes taps. It has a weighted-average cost of capital of 8% and total assets of $6920000. Downtown Ltd has current
=+2 Calculate EVA® for the year. Adjust both the assets and operating profit for advertising, assuming that for the purposes of economic value added the advertising is capitalised and amortised on a
=+3 Discuss the difference between the outcomes of requirements 1 and 2 and which measure is preferred.
=+20-28 KKK ROI performance measures based on historical cost and current cost OBJECTIVES 3, 6 Maleny Moo Ltd operates three divisions that process milk products. The historical-cost accounting

Showing 500 - 600 of 6487

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Last

Services

Sitemap
Fun
Definitions
Become Tutor
Study Help Categories
Recent Questions
Expert Questions

Company Info

Security
Copyrights
Privacy Policy
Terms & Conditions
SolutionInn Fee
Scholarship

Get In Touch

About Us
Contact Us
Career
Jobs
FAQ
Campus Ambassador

Secure Payment

Download Our App

© 2024 SolutionInn. All Rights Reserved