“Managers will always choose the alternative that maximizes operating income or minimizes costs in the decision model.” Do you agree? Why?

Q: Discuss how the strategic management accounting technique target costing could offer Green…

A: Target costing is a strategic cost management technique, it helps in cost reduction of the entity…

Q: What makes the cost-benefit analysis more difficult for information systems than most other…

A: Cost Benefit Analysis: Cost benefit analysis is conducted to determine whether the proposed system…

Q: What are the optimal prices and profits for pure bundling.

A: Financial Management: Financial management comprises of two words i.e. Finance and management.…

Q: Some managers believe machine performance is more important in a JIT environment than in a non-JIT…

A:

Q: “Management should always maximize sales of the product with the highest contribution margin per…

A: Yes, the given statement is correct.

Q: Managers often assume a strictly linear relationship between cost and the level of activity.Under…

A: There are 3 main types of cost: a. Variable cost b. Fixed cost b. Mixed Costs Variable costs are…

Q: 1)What is cost behavior analysis? and Why is cost behavior analysis important to management?…

A: A break-even point is a point or number of units at which all the revenues generated by the company…

Q: Managers often assume a strictly linear relationship between cost and the level of activity.How can…

A: The managers often assume the strictly linear relationship between the cost and the level of…

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: We can begin to answer ROI questions only if we know the goal that the marketing action was intended…

A: Return on Investment (ROI) is a presentation measure used to assess the productivity or benefit of…

Q: Give an example of how a manager can decrease variable costs while increasing fixed costs?

A: Variable Cost: Variable costs are costs which are directly vary with the change in production.…

Q: Consultant Frank Alvarez recently commented that the mostcommon error made by his clients is…

A: Given case is: Consultant Frank Alvarez recently commented that the mostcommon error made by his…

Q: Which of the following explains why managers compare the budgeted costs to actual costs?   a.…

A: Managers measures budgeted expenses at the end of the year and provide an average of the costs that…

Q: minimize overall risk

A: A manager has to make different decisions related to choosing a project.  A project giving a higher…

Q: “Sunk costs are easy to spot—they’re simply the fixed costs associated with a decision.” Do…

A: Sunk cost: Sunk cost is the cost that has been incurred as a result of past events and such cost…

Q: Managers often assume a strictly linear relationship between cost and volume. How can thispractice…

A: Cost:   Cost can be defined as the cash and cash equivalent which is incurred against the products…

Q: In a drop or continue decision, only the variable costs identified with a product are relevant in a…

A: The given statement is true.

Q: Michael Porter argues a firm cannot be at the same time a cost leader and a differentiator. Do…

A:

Q: what is tactical cost analysis?  what steps in the tactical decision making model correspond to…

A: The application of appropriate cost data to determine the solution that gives the company a greater…

Q: In what way can the use of ROI as a performance measure for investment centers lead to bad…

A: ROI:   It is a measure on the amount of return on a particular investment with respect to the…

Q: Why can cost benefit analysis be difficult to carry out?

A: Introduction: Cost benefit analysis can be defined as a process which is undertaken by an…

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: Is activity-based costing always beneficial to an organization? in what situations would itb…

A: Activity based costing is a system of costing in which  allocated on the basis of activity done .it…

Q: When constrained by a limiting resource, managers often seek to produce those products which have:…

A: if a manager constrained by limiting resource, he can be to produce those products which have the…

Q: What is value-chain analysis? What role does it play in strategic cost analysis?

A:

Q: In your own words, explain what differential costs mean. How are fixed costs and variable costs…

A: The cost can be classified on the basis of nature variable or fixed. The variable cost are directly…

Q: Why is an incremental analysis necessary when conducting a rate of return analysis for cost…

A: Incremental analysis considers only the relevant cash flows and it does not consider the…

Q: “We are already measuring total factor productivity. Measuring partial productivities would be of no…

A: Total factor productivity: It measures the ratio of aggregate productivity. It is computed by…

Q: When constrained by a limiting resource, managers often seek to produce those products which have:…

A: When constrained by some budget or limited sources managers often try to make products which lie in…

Q: When making decisions, managers should consider a. revenues that differ between alternatives. b.…

A: The explanation for the given options:   a. A manager on the verge of making decisions must consider…

Q: better the company’s future performance. Do you agree o

A: Operating Leverage Operating leverage measures a company’s fixed costs as a percentage of its total…

Q: Explain with an example why managers find it difficult to adopt a decision alternative even when the…

A: Below is the answer-

Q: Give an example of how a manager can increase variable costs while decreasing fixed costs?

A: Fixed costs refers to those which do not change according to the change in units of productions.…

Q: return

A: The term profitability refers to metric which is used to measure profits. An analysis is made on how…

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: There are times when accepting a negative or zero NPV project makes sense. Explain what a zero NPV…

A: Net present value means the difference between present value of cash inflow and present value of…

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…