Questions from Cost Management

Q: This chapter deals with control systems associated with business processes, such

This chapter deals with control systems associated with business processes, such as operating processes. Provide a definition and some examples of operating processes. In what other processes would an...

Q: Describe how a just-in-time (JIT) manufacturing

Describe how a just-in-time (JIT) manufacturing system is fundamentally different from a conventional manufacturing system. List two primary financial benefits associated with a shift to JIT manufactu...

Q: One of the purported benefits of moving to a JIT system is

One of the purported benefits of moving to a JIT system is improvements in customer response time (CRT). Define the following terms: total customer response time, manufacturing (production) cycle time...

Q: Explain how standard costs and flexible budgets can be used for short

Explain how standard costs and flexible budgets can be used for short-term profit analysis—that is, for financial control purposes.

Q: Given the following attributes of an investment project with a 5-

Given the following attributes of an investment project with a 5-year life and an after-tax discount rate of 12%, calculate both the IRR and MIRR of the project using the built-in functions in Excel:...

Q: Explain what is meant by the term management by exception(see

Explain what is meant by the term management by exception(see, for example, www.myaccountingcourse. com/accounting-dictionary/management-by-exception). What is the relationship between the process of...

Q: Should the performance of a division be deemed less than satisfactory if

Should the performance of a division be deemed less than satisfactory if all of its variances are “unfavorable”? Explain.

Q: Explain the possible causes for direct materials price and direct materials usage

Explain the possible causes for direct materials price and direct materials usage (efficiency) variances. Who in the organization normally has influence over or responsibility for each of these varian...

Q: Explain some of the possible causes of direct labor rate and direct

Explain some of the possible causes of direct labor rate and direct labor efficiency variances. Who normally has responsibility for or influence over each of these variances?

Q: Will overtime premiums affect direct labor variances? If so, which

Will overtime premiums affect direct labor variances? If so, which ones?