Principles of Accounting Volume 2
19th Edition
ISBN: 9781947172609
Author: OpenStax
Publisher: OpenStax College
expand_more
expand_more
format_list_bulleted
Textbook Question
Chapter 9, Problem 6EA
As manager of department B in MarIey’s Manufacturing, based on the costs you identified in the previous exercise for further research, how does this impact the financial performance of your department, and what might be some questions you want to ask or solutions you might propose to Marley’s management?
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Instructions: Designate the best answer for each of the following questions.
1.Which of the following is a responsibility center that incurs expenses, generates revenues, and is responsible for generating a return on assets?
a. Cost center
b. Revenue center
c. Profit center
d. Investment center
2.Which one of the following is the most useful measure for evaluating a manager's performance in controlling revenues and costs in a profit center?
a. Contribution margin
b. Contribution net income
c. Contribution gross profit
d. Controllable margin
3.Hanover Corporation desires to earn target net income of $42,000. The selling price per unit is $18, unit variable cost is $5.60, and total fixed costs are $123,912. How many units must the company sell to earn its target net income?
a. 13,380
b. 9,993
c. 3,387
d. 9,217
4.Remark…
In this comprehensive paper, assume you are working with the accounting department in your organization to make a decision regarding a capital investment you feel is needed to improve productivity in your department. The organization has limited resources and you are trying to prove why your department needs the resources more than other departments in the company. Provide an example of a possible capital investment to use in your argument to management that will be used throughout your paper. Give some examples of the types of non-financial factors that managers would consider in this decision that are more important in today's capital investment decisions than they were in the past.
Answer the following questions:
What are the factors of incremental analysis such as relevant costs, opportunity costs, and sunk costs?
What is the incremental analysis approach and what are its scopes in the management accounting?
Why incremental analysis is important in an organization and what are the prospect of it in the manufacturing organization?
How various types of incremental analysis help management to make an effective decision?
What is the relationship between the opportunity cost and rational decision making?
Describe the effectiveness and prospect of incremental analysis in the context of ethical organization that ties with management accounting.
Describe the effectiveness of incremental analysis in terms of making decision.
What are the prospects of incremental analysis in the ethical manufacturing organization?
How the concept of incremental analysis is relevant in the context of management accounting?
Chapter 9 Solutions
Principles of Accounting Volume 2
Ch. 9 - Which of the following is nor a common goal of an...Ch. 9 - Which of the following does not describe a...Ch. 9 - In centralized organizations, primary decisions...Ch. 9 - A key advantage of a decentralized organization is...Ch. 9 - Strategic decisions occur ______. A. frequently...Ch. 9 - Segments are uniquely identifiable components of...Ch. 9 - Organizational charts _____. A. list the salaries...Ch. 9 - In a centralized organization, where are goals...Ch. 9 - Managers in decentralized organizations make...Ch. 9 - Which of the following is not a type of...
Ch. 9 - A system that establishes financial accountability...Ch. 9 - A responsibility center in which managers are held...Ch. 9 - A responsibility center structure that considers...Ch. 9 - An important goal of a responsibility accounting...Ch. 9 - Costs that a company or manager can influence are...Ch. 9 - An example of an uncontrollable cost would include...Ch. 9 - Internal costs that are charged to the segments of...Ch. 9 - A transfer pricing arrangement that uses the price...Ch. 9 - A transfer pricing structure that considers the...Ch. 9 - What is a management control system? What are its...Ch. 9 - Identify and describe the levels of management,...Ch. 9 - Discuss the difference between centralized and...Ch. 9 - Identity a company where you recently shopped....Ch. 9 - Discuss the difference between daily and strategic...Ch. 9 - Define segments and describe how identifying...Ch. 9 - Choose a company and describe how a specific...Ch. 9 - Choose a company and explain how a specific issue,...Ch. 9 - Assume you are the manager of a local Starbucks....Ch. 9 - Assume you are the manager of a local Starbucks....Ch. 9 - Lavell started out mowing lawns in the...Ch. 9 - Describe the concept of responsibility accounting.Ch. 9 - Describe the concept of a cost center and, using a...Ch. 9 - Describe the concept of a profit center and, using...Ch. 9 - Explain the benefits of a return on investment...Ch. 9 - Explain the benefits of a residual income...Ch. 9 - Discuss the concept of controllable and...Ch. 9 - Discuss the concept of transfer pricing.Ch. 9 - Discuss the advantages and disadvantages of a...Ch. 9 - Discuss the advantages and disadvantages of a...Ch. 9 - Discuss the advantages and disadvantages of a...Ch. 9 - Assume you have been hired by Hilton Hotels and...Ch. 9 - Consider the national nonprofit organization the...Ch. 9 - The following information is from Bluff Run Golf...Ch. 9 - The following information is from Daves Sporting...Ch. 9 - Assume you are the department B manager for...Ch. 9 - As manager of department B in MarIeys...Ch. 9 - Based on your research of the market in the...Ch. 9 - Using the information in the previous exercises...Ch. 9 - Assume you have been hired by Cabelas Sporting...Ch. 9 - Assume you are the regional manager for a hotel...Ch. 9 - The following information is from Dessert Dynasty....Ch. 9 - The following information is from Good Read Books....Ch. 9 - Assume you are the warehouse manager for Vinnies...Ch. 9 - As manager of the warehouse for Vinnies Vinyls,...Ch. 9 - Discuss how, as warehouse manager for Vinnies...Ch. 9 - Determine the operating income for Vinnies Vinyls...Ch. 9 - Use the following information to answer the...Ch. 9 - The income statement comparison for Forklift...Ch. 9 - Assume you are the leather department manager at...Ch. 9 - Financial information for BDS Enterprises for the...Ch. 9 - Using the information from BDS Enterprises,...Ch. 9 - Management of Great Springs Bottled Water Company...Ch. 9 - The following revenue data were taken from the...Ch. 9 - Use the following information to answer the...Ch. 9 - The income statement comparison for Rush Delivery...Ch. 9 - Assume you are the manager for the semi-trucks...Ch. 9 - Financial information for Lighthizer Trading...Ch. 9 - Using the information for Lighthizer Trading...Ch. 9 - Management of Green Peak Tea Company has asked...Ch. 9 - The following revenue data were taken from the...Ch. 9 - You have just been elected president of a...
Additional Business Textbook Solutions
Find more solutions based on key concepts
E9-15 Identifying and correcting internal control weakness
Learning Objective 1
Suppose The Right Rig Dealers...
Horngren's Accounting (11th Edition)
Quick ratio (Learning Objective 7) 510 min. Calculate the quick assets and the quick ratio for each of the foll...
Financial Accounting, Student Value Edition (4th Edition)
When calculating a ratio with numbers from the balance sheet and income statement, why must you use the balance...
Construction Accounting And Financial Management (4th Edition)
S6-2 Determining inventory costing methods
Ward Hard ware does not expect costs to change dramatically and want...
Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
LO 3, 4 (Learning Objectives 3, 4: Evaluate business operations through financial statements; correct errors; c...
Financial Accounting (12th Edition) (What's New in Accounting)
Which of the following is any reporting period shorter than a full year (fiscal or calendar) and can encompass ...
Principles of Accounting Volume 1
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Assume you have been hired by Cabelas Sporting Goods. As part of your new role in the accounting department, you have been tasked to set up a responsibility accounting structure for the company. As your first task, your supervisor has asked you to give an example of a cost center, profit center, and an investment center within the Cabelas organization. Your supervisor is a little unsure of the difference between a profit center and investment center and would like you to explain the difference.arrow_forwardWhich of the following key decisions is a financial manager likely to make? A. Manage the promotion and positioning of a brand or product B. How much finance should be raised C. Plan and coordinate an organization’s workforce D. What production method to use for a new productarrow_forwardReferring to the dimensions and applicable Return on Investment aspects (ROI) listed below: Provide a simple description of how the concepts and principles would apply in a practical work environment to improve work results,1. Financial impact2. Human development impact3. Innovation output4. Technology alignment5. Alignment with company strategyarrow_forward
- you are working with the accounting department in your organization to make a decision regarding a capital investment you feel is needed to improve productivity in your department. The organization has limited resources and you are trying to prove why your department needs the resources more than other departments in the company. Provide an example of a possible capital investment to use in your argument to management.arrow_forward1. Managerial accounting helps managers make planning decisions. Which of the following is related to the Planning function? Group of answer choices Establishing goals at the beginning of a period and identifying steps on how to achieve them Comparing actual results with the expected results at the end of a period Monitoring business operations during a period Evaluating mid-level managers and providing feedback 2. Classification of Direct and Indirect costs is based on: Group of answer choices When the costs are reported to income statement. How easily and cost-effectively product costs can be traced to cost objects. When the costs are reported to balance sheet. Whether the costs are substantial part of the total product costs. 3. The finished goods inventory account is used to record: Group of answer choices The costs of products that are complet and ready to sell The cost of materials not yet put into production The costs of products that are in production but that…arrow_forwardTypes of decisions that managers make include all of the following except: a.choosing which products to sell b.designing performance evaluation systems c.setting tax rates d.hiring employees e.All of these are decisions that managers makearrow_forward
- Answer the following questions: How various types of incremental analysis help management to make an effective decision? What is the relationship between the opportunity cost and rational decision making? Describe the effectiveness and prospect of incremental analysis in the context of ethical organization that ties with management accounting. Describe the effectiveness of incremental analysis in terms of making decision. What are the prospects of incremental analysis in the ethical manufacturing organization? How the concept of incremental analysis is relevant in the context of management accounting?arrow_forwarda. what quantitative/qualitative factors would you use for performance management? b. how well does your current workplace performance management system actually measure performance? c. which performance measures are present or missing?arrow_forwardConduct research and provide an overview of what performance evaluation entails in managerial accounting. How is performance evaluation used in managerial accounting? Identify and explain (3) methods of performance evaluation you feel are essential in a business and why. (Provide examples)arrow_forward
- Waterfield Company is looking for a way to help its executive managers assess how its three divisions are meeting the company’s goals and objectives for the performance of its purchasing department. Which of the following metrics might be used for this purpose? a. customer satisfaction rating b. the material price variance c. the amount of time employees spend in training d. operating incomearrow_forwardImage attached below. Questions 1. Explain how the manager if each division will react to the opportunity if their performance is evaluated against residual income. 2. Explain how the manager of each division will react to the opportunity if their performance is evaluated against ROI. 3. Are ROI and residual income appropriate for evaluating the performance of the divisional managers. 4. What additional measures could be used for performance evaluation.arrow_forward1. Which of the following is an example of qualitative factors that can effect investment decisions? Select one: a. All of the choices b. Over time, how will the quality of goods produced impact the company financially? c. How will any changes affect worker productivity? Will they have any impact on employee morale? d. How will the proposed acquisition or upgrade affect the company’s flexibility?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax CollegeManagerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage LearningCornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage Learning
- Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College
Managerial Accounting: The Cornerstone of Busines...
Accounting
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser...
Accounting
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Cengage Learning
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Inspection and Quality control in Manufacturing. What is quality inspection?; Author: Educationleaves;https://www.youtube.com/watch?v=Ey4MqC7Kp7g;License: Standard youtube license