For each of the following$$ items, identify which of the management accounting guidelines$$ applies: cost$-$benefit$$ approach, behavioral and technical$$ considerations, or different costs for different purposes.

Question content area bottom

Part $1$

$1.$

Giving constructive feedback when actual performance falls short of the budget.

$$

$2.$

Deciding to give bonuses for superior performance to the employees in a Japanese subsidiary and extra vacation time to the employees in a Swedish subsidiary.

$$

behavioral and technical considerations

cost$-$benefit approach

different costs for different purposes

$3.$

Including costs of all the$$ value$-$chain functions before deciding to launch a new$$ product, but including only its manufacturing costs in determining its inventory valuation.

$$

behavioral and technical considerations

cost$-$benefit approach

different costs for different purposes

$4.$

Selecting between a salary plan and a commission plan to compensate sales managers.

$$

behavioral and technical considerations

cost$-$benefit approach

different costs for different purposes

$5.$

Signing a lease on a costlier retail location when a$$ lower$-$cost location had available space.

$$

behavioral and technical considerations

cost$-$benefit approach

different costs for different purposes

$6.$

Analyzing whether to keep the billing function within an organization or outsource it$.$

$$

behavioral and technical considerations

cost$-$benefit approach

different costs for different purposes

$7.$

Installing a participatory budgeting system in which managers set their own performance$$ targets, instead of top management imposing performance targets on managers.

$$

behavioral and technical considerations

cost$-$benefit approach

different costs for different purposes

$8.$

Recording research costs as an expense for financial reporting purposes$($as required by U$.$S$.$ GAAP$)$ but capitalizing and expensing them over a longer period for management$$ performance$-$evaluation purposes.

$$

behavioral and technical considerations

cost$-$benefit approach

different costs for different purposes

$9.$

Signing a contract to sponsor a basketball star to increase exposure and sales to a younger customer market.