1. How does cost accounting and financial account differ? Explain with the help of relevant examples. 2. Which of the following does not represent the effective control? Justify your answer. a. periodically measuring and comparing company results. b. assigning responsibility for costs to employees responsible for those costs. c. constantly monitoring employees to ensure they do exactly as they are told. d. taking necessary corrective action when variances warrant doing so. 3. Why should predetermined overhead rates be used instead of actual rate? Justify your views with logical arguments. 4. Brox Hardly, a management accountant, was faced with an ethical conflict at the office. According to the Institute of Management Accountants Statement of Professional Practice, what should be the first action Hradly should pursue? Discuss. 5. You are a management accountant for Burn's Corporation. Ruth Hamilton, the sales representative for one of Burn's suppliers, invited you to attend a professional sporting event. Because you are an avid sports fan, you accepted Ruth's invitation. At the sporting event, Ruth begins talking about Burn's upcoming contract renewals with suppliers. Because there is intense competition and because it is the first bid she will submit to Burn's Corporation, she asks you to review her bid to make sure "it is good enough" before she submits it to the company. In addition, because you are knowledgeable about costs, especially regarding this contract, she asks you to tell her if her bid is "in the ballpark" or "needs improvement." She indicates that if she wins the contract, you will be provided with season tickets for the rest of the year. Required: Considering the Conduct of Cost Accountants, how would you respond to Ruth's request? 6. What is responsibility accounting? Compare and contrast financial-based responsibility accounting with activity-based responsibility accounting. 7. Why should predetermined overhead rates be used instead of actual rate? Justify your views with logical arguments.