Managerial Accounting

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Chapter 1 Managerial Accounting and the Business Environment Solutions to Questions 1-1 A strategy is a game plan that enables a company to attract customers by distinguishing itself from competitors. The focal point of a company’s strategy should be its target customers. 1-2 Customer value propositions fall into three broad categories—customer intimacy, operational excellence, and product leadership. A company with a customer intimacy strategy attempts to better understand and respond to its customers’ individual needs than its competitors. A company that adopts an operational excellence strategy attempts to deliver products faster, more conveniently, and at a lower price than its competitors. A company that has a product…show more content…
1-14 Enterprise risk management is a process used by a company to proactively identify the risks that it faces and to manage those risks. 1-15 The stakeholder groups include customers, suppliers, stockholders, employees, communities, and environmental and human rights advocates. Exercise 1-1 (5 minutes) 1. Line 2. Organization chart 3. Staff 4. Decentralization 5. Controller 6. Chief Financial Officer Exercise 1-2 (20 minutes) 1. strategy 2. Six Sigma 3. business process 4. corporate governance 5. enterprise risk management 6. manufacturing cell 7. stakeholders 8. constraint 9. nonconstraint 10. value chain 11. Corporate social responsibility 12. supply chain management 13. lean thinking model; pulls 14. customer value proposition 15. The Sarbanes-Oxley Act of 2002 16. non-value-added activity 17. Theory of Constraints Exercise 1-3 (15 minutes) If cashiers routinely shortchanged customers whenever the opportunity presented itself, most of us would be careful to count our change before leaving the counter. Imagine what effect this would have on the line at your favorite fast-food restaurant. How would you like to wait in line while each and every customer laboriously counts out his or her change? Additionally, if you

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