Contrast financial and managerial accounting on the basis of user orientation, purpose of information, level of aggregation, length of time period, orientation toward past or future, conformance to external standards, and emphasis on objective data.

 

Briefly explain the nature of the ethical dilemmas that managers and accountants confront, giving examples.

 

Identify the different types of product (manufacturing) and non-production costs. In addition, describe the changes in composition of total manufacturing costs during the last century.

 

Briefly describe variable, fixed, mixed, and step costs, and indicate how the total cost function of each changes as activity increases within a time period.  Give 3 examples of each type of cost (only one example of step costs).

 

Briefly describe the cost-volume-profit analysis model and discuss how it can be used.  Also, briefly explain the limitation of basic cost-volume-profit analysis as it relates to an organization’s sales mix.

 

Differentiate between functional based costing and activity based costing. Comment on cost distortions commonly observed in traditional costing systems.

 

Explain how budgets provide a basis for performance evaluation.  Why should motivational considerations be a part of budget planning and utilization?  List several ways to motivate employees with budgets.

 

What is a standard cost variance, and what is the objective of variance analysis?  Identify three possible causes for (1) a favorable materials price variance; (2) an unfavorable materials price variance; (3) a favorable materials quantity variance; and (4) an unfavorable materials quantity variance.

 

Define the Balanced Scorecard and the four sections.  The Balanced Scorecard was developed to overcome what shortcoming?

 

Compare and contrast the various quantitative models used to evaluate capital budgeting proposals.  What situations exist that result in NPV (Net Present Value) being preferred over IRR (Internal Rate of Return)?