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Prologue Chapter Homework 1. How does managerial accounting differ from financial accounting? 2. Why do companies prepare budgets? 3. Why is managerial accounting relevant to business majors and their careers? 4. Pick 3 companies that would fit each of the 3 Customer Value Propositions noted in the chapter. Describe why they meet the definition of each strategy. (ex. Starbucks utilizes Customer Intimacy strategy because it provides an inviting and customizable experience for its customers. It allows customers to choose from a variety of options for coffees and offers a comfortable experience in their cafe style stores.) 5. Pick any large company and explain three ways that it could segment its companywide performance (ex. You could evaluate Home Depot's profitability by individual store location or by department.) 6. Why do companies that implement Lean Production tend to have minimal inventories? Is implementation of Lean Production easy? What are some potential difficulties of implementing Lean Production? 7. Why is ethics important to business? 8. List and describe the 5 "V"'s of big data. 9. What is the main idea behind Enterprise Risk Management? In other words, what is the management of a company trying to achieve by creating an Enterprise Risk Management function