Chapter 1, Problem 26E

For each of the following activities, explain which of the objectives of managerial accounting activity is involved. In some cases, several objectives may be involved.

1. 1. Developing a bonus reward system for the managers of the various offices of the AAA (American Automobile Association) Travel Agency.
2. 2. Comparing the actual and planned cost of a consulting engagement completed by an engineering firm such as Allied Engineering.
3. 3. Determining the cost of manufacturing a tennis racket at Wilson Sporting Goods.
4. 4. Measuring the cost of the inventory of digital cameras on hand in a Best Buy store.
5. 5. Estimating the annual operating cost of a newly proposed Wells Fargo branch bank.
6. 6. Measuring the following costs incurred during one month in a Hyatt Regency hotel:
   1. a.      Wages of table-service personnel.
   2. b.      Property taxes.
7. 7. Comparing a Sheraton Hotel’s room rate structure, occupancy rate, and restaurant patronage with industry averages.