Explain with an example why managers find it difficult to adopt a decision alternative even when the relevance cost analysis shows the superiority of this decision alternative to maximize operating income over other decision alternatives. What might the company do to reduce the pressure on management and decrease the ethical conflict?

Q: There are some M&As, which are driven by cognitive errors such as managers’ hubris. Explain how…

A: The phrases "mergers" and "acquisitions" are sometimes used interchangeably although their meanings…

Q: Explain the following in simple words or explanation: Would scenario planning cause the company to…

A: Scenario analysis or scenario planning is defined as the method that describes the strategic…

Q: Cost accounting logic can lead managers to keep their resources busy all the time, increasing…

A: Cost accounting deals with allocating costs to several cost objects such as products, services, and…

Q: Which of the following is false regarding activity-based costing (ABC)?      a. Companies that have…

A: Activity based costing is a type and method of costing methodology, in which all indirect costs or…

Q: Which one of the following statement is not correct? Group of answer choices -Opportunity costs are…

A: Managerial accounting is helpful in decision-making related to a product whether the product should…

Q: Which of the following is not a consideration when a manager is deciding to discontinue a product or…

A: The management can take decision to discontinue the product or product line in case, its leading to…

Q: Southwest Airlines' activities to achieve lower cost have been well documented in academics and…

A: The answer for the multiple choice question and relevant explanation are presented hereunder :

Q: hat way can the use of ROI as a performance measure for investment centers lead to bad decisions?…

A: ROI is the return on investment in which the there is consideration for the current year profit only…

Q: Break-even analysis is of limited use to management because a company cannot survive by just…

A: Breakeven analysis involves comparison of fixed cost, variable cost and sales price to derive the…

Q: What is turnover? What does it measure? Describe this in your own words. Writing a formula is not a…

A: What is the Turnover   Turnover is the Gross sale made by the company. A company may selling the…

Q: rrier to entry that helps increase the threat of new entrants for an incumbent firm using a…

A: In the context of a competition, cost leadership refers to a company's claim to be the cheapest…

Q: Prime indicators of problems with a conventional costing system include company profits being eroded…

A: Product cost refers to the cost or expense which is incurred for creating the product and this cost…

Q: The strategy that the company could take to maintain the competitive advantages are Cost Leadership,…

A: Competitive advantage refers to factors that allow a company to produce goods or services better or…

Q: Cost calculation

A: Cost is the amount incurred in production of product, carrying out a process, conduct of sales or…

Q: “Managers will always choose the alternative that maximizes operating income or minimizes costs in…

A: Operating income: Income that is derived from business revenues after deducting operating expenses…

Q: What questions should managers answer when considering outsourcing?

A:

Q: Why does the high cost of the system negatively impact the organization's bottom line?

A: The question is based on the concept of bottom line of a company and its relationship with high cost

Q: Should a firm have a firm grasp of the concepts of differential cost, opportunity cost and sunk cost…

A: Costs: It refers to the monetary value of expenditures incurred for carrying out operating and…

Q: a) Explain how differential analysis assist managers in evaluating special order decisions? (No…

A: a) Special order refers to a unique one-time order made by a customer(usually one-time)…

Q: he following sentences relate to achieving the financial goal of cost minimization. Which of the…

A: Cost minimization is a concept by which producers try to figure out how costs should be reduced.…

Q: Which of the following promotes goal congruence (aligned goals between segment managers and top…

A: 1) Correct option is return on investment as a performance evaluation measure    Explanation: The…

Q: Why should managers worry about product overcosting or undercosting?

A: A product is said to be over costing when it consumes low level of resources but is reported to have…

Q: In what ways might using ROI as a performance indicator for investment centers lead to poor…

A: ROI: It measures the amount of return on a specific investment to the cost of the investment. The…

Q: Which of the following statements is not correct about ESG? a.A mature ESG presence helps companies…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: What are the ethical issues that Dunlap's management team mat have created by adopting a short run…

A: Albert John Dunlap was an American Corporate executive who was famous many theories which are useful…

Q: Monopolists sometimes practice price discrimination to O a. get rid of surplus product. O b,…

A: Correct answer:Option d:Increase profit

Q: “A customer-profitability profile highlights those customers a company should drop to improve…

A: Customer profitability analysis: Customer profitability analysis is a management accounting tool…

Q: Criticisms of return on investment as the only performancemeasure include:a. ROI focuses on…

A: Return on investment is a measure used compare the benefit received by the investors when compared…

Q: Explain and give an example as to how a manager can manipulate the return on investment figure in…

A: Return on Investment The profit or loss received by an investor on investing a particular amount in…

Q: we considered different allocation methods and considered which one might be “better.” Why might a…

A: The direct allocation method is a way of charging the cost of service departments to other areas of…

Q: Prepare a report from Mary Jane to Don explaining how these changes will affect Mirabel’s overall…

A: The changes whether in sales price or the costs which are associated with the manufacturing of…

Q: How can conflicts arise between the decision model used by a manager and the performance evaluation…

A: Upper management experiences a continuing struggle: ensuring that lower-level managers' performance…

Q: Agency theory suggests that one way to motivate managers to act in the best interests of the…

A: Here discuss about the details of the agency theory which act against disputes and problems which…

Q: Some argue against corporate involvement in socially responsible behavior because the costs incurred…

A:

Q: Which one of the following statement is not correct? O Both fixed and variable costs influence…

A: The incorrect statement is "opoortunity costs are only considered when resources are limited" This…

Q: How may using ROI as a success indicator for investment centers lead to poor decisions? How does the…

A: ROI: It calculates the amount of return on a particular investment about the investment's cost. The…

Q: Explain how a CVP analysis would be useful for determining whether the investment is worth it. Also,…

A: Cost value analysis (CVP) determines how the changes in costs and volume affects operating income…

Q: Why might a manager exhibit a behavioral tendency to inappropriately consider sunk costs in making a…

A: Sunk Costs: Sunk costs are those costs incurred in the past and it cannot be changed unless if any…

Q: Which of the followings is NOT an advantage of financial institutions in consumption smoothing? A.…

A: Financial Institutions Institutions involved in financial transactions such as lending and borrowing…

Q: Critics of absorption costing have increasingly emphasized its potential for leading to undesirable…

A: Absorption Costing: The absorption costing is a method used to allocate the fixed manufacturing…

Q: Provide 2 examples of situation where the use of ROI can lead to decisions which may harm the future…

A: Return on investment: Return on investment (ROI) or return on costs is a ratio between net income…

Q: Which of the following costs are always incremental and relevant in decision analysis?       a)…

A: Avoidable  costs are those costs that can be avoided if some production is stopped or outsourcing of…

Q: Describe an adverse selection problem a company is facing. What is the source of the asymmetric…

A: When one party in a transaction has more or better information than another. Generally, this type of…

Q: way a manager could improve turnover

A: Turnover is a important term used in accounting, taxation and business. The success of the business…

Q: Which of the following statement is correct about cost-benefit analysis? O A. Costs and benefits…

A: Option A. Costs And Benefits Must Be Put Into Common Units (such As Dollars) If They Are To Be…