Assume that the marginal revenue product schedules of accountants and instructors are similar. Which of the following explains why accountants have greater beginning wages than school teachers? 1 Accountants have lower human capital than instructors. b. Accountants face fewer opportunities than instructors. 3. Accounting businesses offer a more pleasant working atmosphere than schools. 4. Accountants are in short supply as comparison to instructors. 5. Teaching majors graduate from college at a lower rate than accounting majors.

Assume that the marginal revenue product schedules of accountants and instructors are similar. Which of the following explains why accountants have greater beginning wages than school teachers? 1 Accountants have lower human capital than instructors. b. Accountants face fewer opportunities than instructors. 3. Accounting businesses offer a more pleasant working atmosphere than schools. 4. Accountants are in short supply as comparison to instructors. 5. Teaching majors graduate from college at a lower rate than accounting majors.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter9: Responsibility Accounting And Decentralization

Section: Chapter Questions

Problem 1EB: Assume you have been hired by Cabelas Sporting Goods. As part of your new role in the accounting...

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Assume accountants and teachers have identical marginal revenue product schedules. Which of the following provides an explanation for why accountants receive higher starting salaries than school teachers? a. Accountants have less human capital than school teachers. b. Accountants have lower opportunity cost than school teachers. c. Accounting firms provide a more pleasant work environment than schools provide. d. The supply of accountants is low relative to the supply of teachers. e. Fewer teaching majors graduate from college each year than accounting majors.
The chair of the FASB at one time noted that “the flowof standards can only be slowed if (1) producers focus less on quarterly earnings per share and taxbenefits and more on quality products, and (2) accountants and lawyers rely less on rules and law and moreon professional judgment and conduct.” Explain his comment.
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A paper published in the Harvard Business Review points out a new way to calculate economic profit that could be more appropriate for service firms and other people-intensive companies. Instead of focusing on investment and return on investment, the focus is on employee productivity, in terms of both generating revenues and reducing costs. The approach is to first determine economic profit in the conventional way, except that we ignore taxes, so that economic profit is before tax, as follows: Economic profit = Operating profit − Capital charge Assume the following information for a hotel chain that wishes to adopt the new method. The firm has $100 million in operating profit, has $1 billion in investment, and uses a cost of capital rate of 5%, so the capital charge is $50 million and the economic profit is $50 million. Relevant calculations are contained in Part 1 of the following schedule: Part 1: Economic Profit (in thousands, except cost of capital rate) Revenue $…
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Consider the following statement: Many corporations require all staff accountants to hold not only a degree in accounting but also to have a CPA license. There is a substantially higher cost to hiring CPAs. In your discussion post, address the following: Speculate on why corporations do not lower their explicit payroll cost by hiring accountants without a CPA. Consider how asymmetric information, moral hazard, and adverse selection may impact the perception of risk.
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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.
Qualified accountants have superior knowledge of tax and financial reporting What sort of power do they exert over other managers in an organisation OA Coercive power Expert power Referent power Reward power The cross elasticity of demand between Product M and Product N is positive. What is the correct description of both Product M and Product N ? Complementary goods Veblen goods Giffen goods Substitute goods
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