Chapter 1, Problem 1.36ACT

Discussion Questions

1. 1. What are the three main areas of management’s responsibility? How are these three areas interrelated? How does managerial accounting support each of the responsibility areas of managers?
2. 2. What is the Sarbanes-Oxley Act of 2002 (SOX)? How does SOX affect financial accounting? How does SOX impact managerial accounting? Is there any overlap between financial and managerial accounting in terms of the SOX impact? If so, what are the areas of overlap?
3. 3. Why is managerial accounting more suitable for internal reporting than for financial accounting?
4. 4. How can what is taught in managerial accounting help you in other careers other than accounting?
5. 5. A company currently has all of its managerial accountants reporting to the controller. What might be inefficient about this organizational structure? How might the company restructure? What benefits would the restructuring offer?
6. 6. What skills are required of a management accountant? In what college courses are these skills taught or developed? What skills would be further developed in the workplace?
7. 7. What is the Institute of Management Accountants (IMA)? What is the American Institute of Certified Public Accountants? How could being a member of a professional organization help a person’s career?
8. 8. How might a Certified Management Accountant (CMA) certification benefit a person in his or her career? What skills are assessed on the CMA exam?
9. 9. What are the four ethical standards in the Institute of Management Accountants’ Statement of Ethical Professional Practice? Describe the meaning of each of the four standards. How does each of these standards impact planning, directing, and controlling?
10. 10. What business trends are influencing managerial accounting today? How do these trends impact management accountants’ roles in the organization?
11. 11. The effect of sustainability on the planet (environment) is probably the most visible component of the triple bottom line. For a company with which you are familiar, list two examples of its sustainability efforts related to the planet.
12. 12. One controversial area regarding sustainability is whether organizations should use their sustainability progress and activities in their advertising. Do you think a company should publicize its sustainability efforts? Why or why not?