What are some of the common management decisions that can be aided by the use of accounting information and procedures? Explain.
What will be an ideal response?
Managers have five primary functions in a business: planning, organizing, staffing, directing, and controlling the combined efforts of the firm. Each of these functions requires making decisions, both large and small. The primary purpose of managerial accounting is to support good decision making.
Managerial accounting is both a source of information that is used in decision making and a methodology to reduce the complexity of the information used to make a decision. By definition, managerial accounting deals with only financial information. By limiting the information being considered to financial concerns, the complexity of the alternatives is reduced. Managerial accounting further reduces information complexity by evaluating information for relevance to the decision to be made. For financial purposes, any decision that was made in the past cannot be changed and is therefore irrelevant to any decision to be made today. Information that is the same for two or more alternatives cannot be used to choose between them.
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A) fact B) anecdote C) quotation D) question E) statistic
Research shows that most frauds are discovered by:
a. external auditors. b. perpetrators. c. audit committee members. d. employees and managers.
Mesa Telcom has three divisions, commercial, retail, and consumer, that share the common costs of the company's computer server network. The annual common costs are $2,400,000. You have been provided with the following information for the upcoming year: ConnectionsTime on Network (hours)Commercial60,000120,000Retail80,000150,000Consumer100,000330,000The cost accountant determined $1,700,000 of the server network's costs were fixed and should be allocated based on the number of connections. The remaining costs should be allocated based on the time on the network. What is total server network costs allocated to the Consumer Division (rounded to the nearest whole dollar), assuming the company uses dual-rates to allocate common costs?
A. $1,200,000. B. $954,896. C. $750,000. D. $1,093,333.
What are some of the ethical and social challenges faced by operations managers?
What will be an ideal response?