For each of the following items, identify which of the managementaccounting guidelines applies: cost–benefit approach, behavioral and technical considerations, ordifferent costs for different purposes.1. Analyzing whether to keep the billing function within an organization or outsource it.2. Deciding to give bonuses for superior performance to the employees in a Japanese subsidiary andextra vacation time to the employees in a Swedish subsidiary.3. Including costs of all the value-chain functions before deciding to launch a new product, but includingonly its manufacturing costs in determining its inventory valuation.4. Considering the desirability of hiring an additional salesperson.5. Giving each salesperson the compensation option of choosing either a low salary and a high-percentagesales commission or a high salary and a low-percentage sales commission.6. Selecting the costlier computer system after considering two systems.7. Installing a participatory budgeting system in which managers set their own performance targets, insteadof top management imposing performance targets on managers.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-evaluationpurposes.9. Introducing a profit-sharing plan for employees.
For each of the following items, identify which of the
accounting
different costs for different purposes.
1. Analyzing whether to keep the billing function within an organization or outsource it.
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.
3. Including costs of all the value-chain functions before deciding to launch a new product, but including
only its
4. Considering the desirability of hiring an additional salesperson.
5. Giving each salesperson the compensation option of choosing either a low salary and a high-percentage
sales commission or a high salary and a low-percentage sales commission.
6. Selecting the costlier computer system after considering two systems.
7. Installing a participatory budgeting system in which managers set their own performance targets, instead
of top management imposing performance targets on managers.
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.
9. Introducing a profit-sharing plan for employees.
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