Question
For each of the following items, identify which of the management accounting guidelines applies: costbenefit approach, behavioral and technical considerations, or different costs for different
For each of the following items, identify which of the management accounting guidelines applies: costbenefit approach, behavioral and technical considerations, or different costs for different purposes.
1.Analyzing whether to avail an export order for which overtime payments are required.
2.Deciding on a short-term shutdown of a factory because of the lack of demand for products due to the seasonal factor. The short-term shutdown may save some overhead costs, but will result in incurring compensations to the retrenched workers.
3.Considering whether to replace old machinery to save frequent repair costs, production losses due to break-downs, compensations to workers on the incidence of accidents, and several other costs.
4.Deciding to impose supervisory control to limit the wastage of materials.
5.Considering introducing a performance bonus scheme to increase the productivity of employees.
6.Contemplating changing the production process to save production time resulting in increased production.
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