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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 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.
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Giving constructive feedback when actual performance falls short of the budget.
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
costbenefit approach
different costs for different purposes
Including costs of all the valuechain functions before deciding to launch a new product, but including only its manufacturing costs in determining its inventory valuation.
behavioral and technical considerations
costbenefit approach
different costs for different purposes
Selecting between a salary plan and a commission plan to compensate sales managers.
behavioral and technical considerations
costbenefit approach
different costs for different purposes
Signing a lease on a costlier retail location when a lowercost location had available space.
behavioral and technical considerations
costbenefit approach
different costs for different purposes
Analyzing whether to keep the billing function within an organization or outsource it
behavioral and technical considerations
costbenefit approach
different costs for different purposes
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
costbenefit approach
different costs for different purposes
Recording research costs as an expense for financial reporting purposesas required by US GAAP but capitalizing and expensing them over a longer period for management performanceevaluation purposes.
behavioral and technical considerations
costbenefit approach
different costs for different purposes
Signing a contract to sponsor a basketball star to increase exposure and sales to a younger customer market.
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