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introduction to financial accounting

Questions and Answers of Introduction To Financial Accounting

5. Explain the difference between euchromatin and heterochromatin, and distinguish between constitutive heterochromatin and facultative heterochromatin.
4. Explain the meaning of chromosome territory.
3. Analyze Noll’s results, and explain how they support the beads-on-a-string model.
2. Describe the structures of nucleosomes, the 30-nm fiber, and loop domains.
1. Define chromatin.
Discuss the effects of transposable elements on gene function.
3. Explain how transposons and retrotransposons move to new locations in a genome.
2. Describe the organization of sequences within different types of transposable elements.
1. Summarize the studies of McClintock, and explain how they revealed the existence of transposable elements.
2. Define repetitive sequence, and explain how this type of sequence affects genome sizes.
1. Describe the variation in size of eukaryotic genomes.
7 Describe the four levers of control and why they are necessary
6 Understand the roles of salaries and incentives when rewarding managers
5 Indicate the difficulties that occur when the performance of divisions operating in different countries is compared
4 Study the choice of performance targets and design of feedback mechanisms
3 Analyze the key measurement choices in the design of each performance measure
2 Examine accounting-based measures for evaluating a business unit’s performance, including return on investment (ROI), residual income (RI), and economic value added (EVA®)
1 Select financial and nonfinancial performance measures to use in a balanced scorecard
9 Incorporate income tax considerations in multinational transfer pricing
8 Apply a general guideline for determining a minimum transfer price
7 Describe the range of feasible transfer prices when there is unused capacity and alternative methods for arriving at the eventual hybrid price
6 Understand how to avoid making suboptimal decisions when transfer prices are based on full cost plus a markup
5 Illustrate how market-based transfer prices promote goal congruence in perfectly competitive markets
4 Calculate transfer prices using three methods
3 Explain transfer prices and the four criteria managers use to evaluate them
2 Describe the benefits and costs of decentralization
1 Describe a management control system and its three key properties
7 Explain how managers can use capital budgeting to achieve their firms’ strategic goals
6 Understand issues involved in implementing capital budgeting decisions and evaluating managerial performance
5 Identify relevant cash inflows and outflows for capital budgeting decisions
4 Use and evaluate the accrual accounting rate-of-return (AARR)method
3 Use and evaluate the payback and discounted payback methods
2 Use and evaluate the two main discounted cash flow (DCF) methods:the net present value (NPV)method and the internal rate-ofreturn(IRR) method
1 Understand the five stages of capital budgeting for a project
4 Account for spoilage at various stages of completion in process costing
3 Account for spoilage in process costing using the weightedaverage method and the first-in, first-out (FIFO) method
2 Identify the differences between normal and abnormal spoilage
1 Understand the definitions of spoilage, rework, and scrap
7 Use financial and nonfinancial measures of time
6 Determine the costs of delays
5 Describe customer-response time and on-time performance and why delays occur
4 Use financial and nonfinancial measures to evaluate quality
3 Use costs-of-quality measures to make decisions
2 Develop nonfinancial measures and methods to improve quality
1 Explain the four cost categories in a costs-of-quality program
8 Understand the principles of lean accounting
7 Describe different ways backflush costing can simplify traditional inventory-costing systems
6 Identify the features and benefits of a just-in-time production system
5 Distinguish materials requirements planning (MRP) systems from just-in-time (JIT) systems for manufacturing
4 Describe why companies are using just-in-time (JIT) purchasing
3 Identify the effect of errors that can arise when using the EOQ decision model and ways to reduce conflicts between the EOQ model and models used for performance evaluation
2 Balance ordering costs with carrying costs using the economic-order quantity(EOQ) decision model
1 Identify six categories of costs associated with goods for sale
6 Account for byproducts using two methods
5 Explain why joint costs are irrelevant in a sell-or-process-further decision
4 Identify situations when the sales value at splitoff method is preferred when allocating joint costs
3 Allocate joint costs using four methods
2 Explain why joint costs are allocated to individual products
1 Identify the splitoff point in a jointcost situation and distinguish joint products from byproducts
6 Understand the need for hybridcosting systems such as operation costing
5 Apply process-costing methods to situations with transferred-in costs
4 Use the weighted-average method and the first-in, first-out (FIFO)method of process costing
3 Describe the five steps in process costing and calculate equivalent units
2 Understand the basic concepts of process costing and compute average unit costs
1 Identify the situations in which process-costing systems are appropriate
8 Explain how conflicts can arise between the decision model a manager uses and the performance-evaluation model top management uses to evaluate managers
7 Explain why book value of equipment is irrelevant to managers making equipmentreplacement decisions
6 Discuss the factors managers must consider when adding or dropping customers or business units
5 Explain how to manage bottlenecks
4 Know how to choose which products to produce when there are capacity constraints
3 Explain the concept of opportunity cost and why managers should consider it when making insourcing-versus-outsourcing decisions
2 Distinguish relevant from irrelevant information in decision situations
1 Use the five-step decision-making process
5 Identify unused capacity and how to manage it
4 Analyze changes in operating income to evaluate strategy
3 Understand the four perspectives of the balanced scorecard
2 Understand what comprises reengineering
1 Recognize which of two generic strategies a company is using
8 Explain the effects of antitrust laws on pricing
7 Describe two pricing practices in which non-cost factors are important
6 Use life-cycle budgeting and costing when making pricing decisions
5 Price products using the cost-plus approach
4 Apply the concepts of cost incurrence and locked-in costs
3 Price products using the targetcosting approach
2 Understand how companies make long-run pricing decisions
1 Discuss the three major factors that affect pricing decisions
6 Subdivide the sales-volume variance into the sales-mix variance and the sales-quantity variance and the sales-quantity variance into the market-share variance and the market-size variance
5 Discuss decisions faced when collecting and allocating indirect costs to customers
4 Understand criteria to guide costallocation decisions
3 Understand the cost-hierarchybased operating income statement
2 Identify the importance of customer-profitability profiles
1 Discuss why a company’s revenues and costs differ across customers
6 Understand how bundling of products causes revenue allocation issues and the methods managers use to allocate revenues
5 Explain the importance of explicit agreement between contracting parties when the reimbursement amount is based on costs incurred
4 Allocate common costs using the stand-alone method and the incremental method
3 Allocate multiple supportdepartment costs using the direct method, the step-down method, and the reciprocal method
2 Understand how the choice between allocation based on budgeted and actual rates and between budgeted and actual usage can affect the incentives of division managers
1 Distinguish the single-rate method from the dual-rate method
7 Understand other issues that play an important role in capacity planning and control.
6 Examine the key factors managers use to choose a capacity level to compute the budgeted fixed manufacturing cost rate.

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