Business decisions are a vital part of managerial accounting as they are the key to improving the performance of the business. Hence, managers take utmost care while formulating and implementing these decisions. What should be done while making short term business decisions.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 25, Problem 1QC

To determine

Concept Introduction:

Business decisions are a vital part of managerial accounting as they are the key to improving the performance of the business. Hence, managers take utmost care while formulating and implementing these decisions.

What should be done while making short term business decisions.

Expert Solution & Answer

Answer to Problem 1QC

Separate the variable from the fixed costs

Explanation for correct answer:

By separating the variable from the fixed cost i.e. contribution margin approach concept, a manager can ascertain and take short term managerial decisions in an efficient manner. Thus, this approach is appropriate.

Explanation of Solution

Explanation for incorrect answer:

For taking short term business decision, traditional costing approach is not apt, since it does not include many aspects of the business. Thus, it should be ignored.

Just ascertaining the total cost will not help the manager to take the apt short-term managerial decisions as there are many aspects other than cost such as labor, production etc. thus this total cost principle is ignored.

While taking a short-term business decision, a manager should consider both quantitative and qualitative factors because considering only the quantitative factors will not help in successful decision making. Thus, this approach is ignored.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Direct materials price variance

$ 36,000 204,000 The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to liquidation: Cash Noncash assets Liabilities Drysdale, loan $ 50,000 10,000 Total assets $ 240,000 Drysdale, capital (50%) Koufax, capital (30%) Marichal, capital (20%) Total liabilities and capital 70,000 60,000 50,000 $ 240,000 Required: a-1. Determine the maximum loss that can be absorbed in Step 1. Then, assuming that this loss has been incurred, determine the next maximum loss that can be absorbed in Step 2. a-2. Liquidation expenses are estimated to be $15,000. Prepare a predistribution schedule to guide the distribution of cash. b. Assume that assets costing $74,000 are sold for $60,000. How is the available cash to be divided? Complete this question by entering your answers in the tabs below.

Calculate GP ratio round answers to decimal place

Answer 2

Question

Chapter 25, Problem 1QC

To determine

Concept Introduction:

Business decisions are a vital part of managerial accounting as they are the key to improving the performance of the business. Hence, managers take utmost care while formulating and implementing these decisions.

What should be done while making short term business decisions.

Expert Solution & Answer

Answer to Problem 1QC

Separate the variable from the fixed costs

Explanation for correct answer:

By separating the variable from the fixed cost i.e. contribution margin approach concept, a manager can ascertain and take short term managerial decisions in an efficient manner. Thus, this approach is appropriate.

Explanation of Solution

Explanation for incorrect answer:

For taking short term business decision, traditional costing approach is not apt, since it does not include many aspects of the business. Thus, it should be ignored.

Just ascertaining the total cost will not help the manager to take the apt short-term managerial decisions as there are many aspects other than cost such as labor, production etc. thus this total cost principle is ignored.

While taking a short-term business decision, a manager should consider both quantitative and qualitative factors because considering only the quantitative factors will not help in successful decision making. Thus, this approach is ignored.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 25, Problem 1QC

To determine

Concept Introduction:

Business decisions are a vital part of managerial accounting as they are the key to improving the performance of the business. Hence, managers take utmost care while formulating and implementing these decisions.

What should be done while making short term business decisions.

Expert Solution & Answer

Answer to Problem 1QC

Separate the variable from the fixed costs

Explanation for correct answer:

By separating the variable from the fixed cost i.e. contribution margin approach concept, a manager can ascertain and take short term managerial decisions in an efficient manner. Thus, this approach is appropriate.

Explanation of Solution

Explanation for incorrect answer:

For taking short term business decision, traditional costing approach is not apt, since it does not include many aspects of the business. Thus, it should be ignored.

Just ascertaining the total cost will not help the manager to take the apt short-term managerial decisions as there are many aspects other than cost such as labor, production etc. thus this total cost principle is ignored.

While taking a short-term business decision, a manager should consider both quantitative and qualitative factors because considering only the quantitative factors will not help in successful decision making. Thus, this approach is ignored.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 25, Problem 1QC

To determine

Concept Introduction:

Business decisions are a vital part of managerial accounting as they are the key to improving the performance of the business. Hence, managers take utmost care while formulating and implementing these decisions.

What should be done while making short term business decisions.

Expert Solution & Answer

Answer to Problem 1QC

Separate the variable from the fixed costs

Explanation for correct answer:

By separating the variable from the fixed cost i.e. contribution margin approach concept, a manager can ascertain and take short term managerial decisions in an efficient manner. Thus, this approach is appropriate.

Explanation of Solution

Explanation for incorrect answer:

For taking short term business decision, traditional costing approach is not apt, since it does not include many aspects of the business. Thus, it should be ignored.

Just ascertaining the total cost will not help the manager to take the apt short-term managerial decisions as there are many aspects other than cost such as labor, production etc. thus this total cost principle is ignored.

While taking a short-term business decision, a manager should consider both quantitative and qualitative factors because considering only the quantitative factors will not help in successful decision making. Thus, this approach is ignored.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 25, Problem 1QC

To determine

Concept Introduction:

Business decisions are a vital part of managerial accounting as they are the key to improving the performance of the business. Hence, managers take utmost care while formulating and implementing these decisions.

What should be done while making short term business decisions.

Expert Solution & Answer

Answer to Problem 1QC

Separate the variable from the fixed costs

Explanation for correct answer:

By separating the variable from the fixed cost i.e. contribution margin approach concept, a manager can ascertain and take short term managerial decisions in an efficient manner. Thus, this approach is appropriate.

Explanation of Solution

Explanation for incorrect answer:

For taking short term business decision, traditional costing approach is not apt, since it does not include many aspects of the business. Thus, it should be ignored.

Just ascertaining the total cost will not help the manager to take the apt short-term managerial decisions as there are many aspects other than cost such as labor, production etc. thus this total cost principle is ignored.

While taking a short-term business decision, a manager should consider both quantitative and qualitative factors because considering only the quantitative factors will not help in successful decision making. Thus, this approach is ignored.

Answer 6

Chapter 25, Problem 1QC

To determine

Concept Introduction:

Business decisions are a vital part of managerial accounting as they are the key to improving the performance of the business. Hence, managers take utmost care while formulating and implementing these decisions.

What should be done while making short term business decisions.

Expert Solution & Answer

Answer to Problem 1QC

Separate the variable from the fixed costs

Explanation for correct answer:

By separating the variable from the fixed cost i.e. contribution margin approach concept, a manager can ascertain and take short term managerial decisions in an efficient manner. Thus, this approach is appropriate.

Explanation of Solution

Explanation for incorrect answer:

For taking short term business decision, traditional costing approach is not apt, since it does not include many aspects of the business. Thus, it should be ignored.

Just ascertaining the total cost will not help the manager to take the apt short-term managerial decisions as there are many aspects other than cost such as labor, production etc. thus this total cost principle is ignored.

While taking a short-term business decision, a manager should consider both quantitative and qualitative factors because considering only the quantitative factors will not help in successful decision making. Thus, this approach is ignored.

Answer 7

Chapter 25, Problem 1QC

To determine

Concept Introduction:

Business decisions are a vital part of managerial accounting as they are the key to improving the performance of the business. Hence, managers take utmost care while formulating and implementing these decisions.

What should be done while making short term business decisions.

Answer 8

Expert Solution & Answer

Answer to Problem 1QC

Separate the variable from the fixed costs

Explanation for correct answer:

By separating the variable from the fixed cost i.e. contribution margin approach concept, a manager can ascertain and take short term managerial decisions in an efficient manner. Thus, this approach is appropriate.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Explanation for incorrect answer:

For taking short term business decision, traditional costing approach is not apt, since it does not include many aspects of the business. Thus, it should be ignored.

Just ascertaining the total cost will not help the manager to take the apt short-term managerial decisions as there are many aspects other than cost such as labor, production etc. thus this total cost principle is ignored.

While taking a short-term business decision, a manager should consider both quantitative and qualitative factors because considering only the quantitative factors will not help in successful decision making. Thus, this approach is ignored.

Answer 12

Ch. 25 - Prob. 1QC Ch. 25 - Prob. 2QC Ch. 25 - Which of the following costs are irrelevant to...Ch. 25 - Prob. 4QC Ch. 25 - Prob. 5QC Ch. 25 - 6. When companies are price-setters, their...Ch. 25 - Prob. 7QC Ch. 25 - Prob. 8QC Ch. 25 - Prob. 9QC Ch. 25 - Prob. 10QC

Business decisions are a vital part of managerial accounting as they are the key to improving the performance of the business. Hence, managers take utmost care while formulating and implementing these decisions. What should be done while making short term business decisions.

Videos

Concept Introduction:

Business decisions are a vital part of managerial accounting as they are the key to improving the performance of the business. Hence, managers take utmost care while formulating and implementing these decisions.

What should be done while making short term business decisions.

Answer to Problem 1QC

Explanation of Solution

Want to see more full solutions like this?

Chapter 25 Solutions

Business decisions are a vital part of managerial accounting as they are the key to improving the performance of the business. Hence, managers take utmost care while formulating and implementing these decisions. What should be done while making short term business decisions.

Videos

Concept Introduction: Business decisions are a vital part of managerial accounting as they are the key to improving the performance of the business. Hence, managers take utmost care while formulating and implementing these decisions. What should be done while making short term business decisions.

Answer to Problem 1QC

Explanation of Solution

Want to see more full solutions like this?

Chapter 25 Solutions

Concept Introduction:

Business decisions are a vital part of managerial accounting as they are the key to improving the performance of the business. Hence, managers take utmost care while formulating and implementing these decisions.

What should be done while making short term business decisions.