Exercise $1-26$ Objectives of Managerial Accounting Activity

For each of the following activities, explain which of the objectives of managerial accounting

activity is involved. In some cases, several objectives may be involved.

$1.$ Developing a bonus reward system for the managers of the various offices of AAA

$($American Automobile Association$)$ Travel.

$2.$ Comparing the actual and planned costs of a consulting engagement completed by an

engineering firm such as Allied Engineering.

$3.$ Determining the cost of manufacturing a tennis racket at Wilson Sporting Goods.

$4.$ Measuring the cost of the inventory of digital cameras on hand in a Best Buy store.

$5.$ Estimating the annual operating cost of a newly proposed Wells Fargo branch bank.

$6.$ Measuring the following costs incurred during one month in a Hyatt Regency hotel: a$.$

Wages of table$-$service personnel. B$.$ Property taxes.

$7.$ Comparing a Sheraton Hotel$$s room rate structure, occupancy rate, and restaurant

patronage with industry averages.