EBK COST ACCOUNTING
EBK COST ACCOUNTING
15th Edition
ISBN: 9780100804043
Author: Rajan
Publisher: YUZU
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Textbook Question
Chapter 1, Problem 1.30P

Management accounting guidelines. For each of the following items, identify which of the management accounting guidelines applies: cost–benefit approach, behavioral and technical considerations, or different costs for different purposes.

  1. 1. Analyzing whether to keep the billing function within an organization or outsource it.
  2. 2. Deciding to give bonuses for superior performance to the employees in a Japanese subsidiary and extra vacation time to the employees in a Swedish subsidiary.
  3. 3. Including costs of all the value-chain functions before deciding to launch a new product, but including only its manufacturing costs in determining its inventory valuation.
  4. 4. Considering the desirability of hiring an additional salesperson.
  5. 5. Giving each salesperson the compensation option of choosing either a low salary and a high-percentage sales commission or a high salary and a low-percentage sales commission.
  6. 6. Selecting the costlier computer system after considering two systems.
  7. 7. Installing a participatory budgeting system in which managers set their own performance targets, instead of top management imposing performance targets on managers.
  8. 8. Recording research costs as an expense for financial reporting purposes (as required by U.S. GAAP) but capitalizing and expensing them over a longer period for management performance-evaluation purposes.
  9. 9. Introducing a profit-sharing plan for employees.
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Management accounting guidelines.  For each of the following items, identify which of the management accounting guidelines applies: cost–benefit approach, behavioral and technical considerations, or different costs for different purposes. Analyzing whether to keep the billing function within an organization or outsource it. Deciding to give bonuses for superior performance to the employees in a Japanese subsidiary and extra vacation time to the employees in a Swedish subsidiary. Including costs of all the value-chain functions before deciding to launch a new product, but including only its manufacturing costs in determining its inventory valuation. Considering the desirability of hiring an additional salesperson. Giving each salesperson the compensation option of choosing either a low salary and a high-percentage sales commission or a high salary and a low-percentage sales commission. Selecting the costlier computer system after considering two systems. Installing a participatory…
For each of the following items, identify which of the management accounting guidelines applies: cost-benefit approach, behavioral and technical considerations, or different costs for different purposes. Analyzing whether to keep the billing function within an organization or outsource it Deciding to give bonuses for superior performance to the employees in a Japanese subsidiary and extra vacation time to the employees in a Swedish subsidiary Including costs of all the value-chain functions before deciding to launch a new product, but including only its manufacturing costs in determining its inventory valuation Considering the desirability of hiring one more salesperson Giving each salesperson the compensation option of choosing either a low salary and a high-percentage sales commission or a high salary and a low-percentage sales commission Selecting the costlier computer system after considering two systems Installing a participatory budgeting system in which managers set…
For each of the following items, identify which of the managementaccounting guidelines applies: cost–benefit approach, behavioral and technical considerations, ordifferent costs for different purposes.1. Analyzing whether to keep the billing function within an organization or outsource it.2. Deciding to give bonuses for superior performance to the employees in a Japanese subsidiary andextra vacation time to the employees in a Swedish subsidiary.3. Including costs of all the value-chain functions before deciding to launch a new product, but includingonly its manufacturing costs in determining its inventory valuation.4. Considering the desirability of hiring an additional salesperson.5. Giving each salesperson the compensation option of choosing either a low salary and a high-percentagesales commission or a high salary and a low-percentage sales commission.6. Selecting the costlier computer system after considering two systems.7. Installing a participatory budgeting system in which…
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