1) Explain this statement: 'Managerial accounting and financial accounting work is interrelated and teh accountants must work together closely" relates to accounting concepts.

2) Describe three cost measurement methods that can be used to compute the unit cost of a product or service?

Chapter 16

1) Describe the accounting concepts that focus on determining the amount of cost, when costs should be recorded, and to what costs should be compared?

2) Why does the concept of matching underlie the cost flows in a job order costing system?

Chapter 17

1) Why does the concept of cost management underlie the five steps in preparing a process cost report?

2) Why does process costing in the management process reinforce the concepts of cost recognition and cost measurement to produce business results?

Chapter 18

1) Discuss how differentiating between activities that add value and those that do not add value enhance the relevance and reliability of manager information?

2) Why do the concepts of relevance and reliability underlie the five steps in implementing activity-based costing (ABC)?

Chapter 19

1) How does the preparation of a contribution margin income statement enhance cost behavior understanding and comparisons?

2) How does cost-volume profit (CVP) analysis in the management process reinforce the concepts of comparability and understandability to better business profitability?

Chapter 23

1) How do managers use the concept of cost benefit for short-run decisions during the planning phase of the management process?

2) How do managers use the concept of cost-benefit for the short-run decisions during the evaluating phase of the management process?

Chapter 24

1) How do managers use the concept of cost-benefit for capital budgeting decisions during the planning phase of the management process?

2) How do managers use the concept of cost-benefit for capital budgeting during the performing phase of the management process?

Chapter 20

1) Why does the preparation of operating budgets before financial budgets increase the usefulness of the budget process?

2) How are understandability and comparability enhanced when knowing who is responsible for teh budgeting process?

Chapter 21

1) What tools can managers use to enhance the understandability and comparability of performance analysis?

2) How does the balanced scorecard empower managers to understand and compare the interests of all the organization's stakeholders?

Chapter 22

1) Describe how the six elements of a standard unit cost increase cost comparability and understandability?

2) What should be included in a management report to further understandability and comparability when evaluating a cost center?

Chapter 11

1) What determines whether bonds are issued at a discount, premium, or face value?

2) Why are callable and convertible bonds considered to add to management's future flexibility in financing a business?

3) How does a lender assess the risk that a borrower may default - that is, not pay interest and principal when due?

Chapter 12

1) Why are most large companies established as corporations rather than as partnerships?

2) Why is treasury stock not considered and investment or an asset?

3) Why do many companies like to give stock options as compensation?