Questions from Management Accounting

Q: From the perspective of a firm selling goods or providing services,

From the perspective of a firm selling goods or providing services, not all customers are profitable, as some will cost a lot more to serve than others. Therefore, to be commercially viable, a busines...

Q: Until recently, Xu Ji Electric Co Ltd was a typical state

Until recently, Xu Ji Electric Co Ltd was a typical state-owned Chinese enterprise manufacturing electrical products such as relays. From an accounting point of view, this implied a manual bookkeeping...

Q: Raab, Shoemaker and Mayer (2007) developed a workable ABC

Raab, Shoemaker and Mayer (2007) developed a workable ABC model for a restaurant operation in the USA that enabled previously undistributed indirect operating expenses to be traced to individual me...

Q: Fast fashion refers to clothes that are designed and manufactured quickly and

Fast fashion refers to clothes that are designed and manufactured quickly and sold to consumers at extremely low prices. New garments arrive in stores weekly, or even more frequently, and cost so li...

Q: The remuneration system that is applied in healthcare organizations in number of

The remuneration system that is applied in healthcare organizations in number of a countries (e.g. Australia, the USA, Switzerland, Spain and Italy) enables ABC profitability analysis to be applied in...

Q: As reflected in RWVs 11.3, costing healthcare is a

As reflected in RWVs 11.3, costing healthcare is a challenge. While ABC may offer some benefits to healthcare costing, the adoption rates of ABC are not high, and its implementation is often complex....

Q: The CGMA website offers management accountants a collection of tools and resources

The CGMA website offers management accountants a collection of tools and resources which are useful to identify, assess and respond to (or manage) various types of risk faced by an organization. For...

Q: Management accountants would typically perform a risk assessment as follows: identify

Management accountants would typically perform a risk assessment as follows: identify the risks, assess their impact and probability, and develop appropriate risk responses. Although very practical,...

Q: Each individual’s attitude to risk lies somewhere on a continuum with risk

Each individual’s attitude to risk lies somewhere on a continuum with risk-seeking at one extreme and risk-averse at the other extreme. The same logic generally applies to organizations or even for...

Q: All businesses have to continually engage in capital investment to improve and

All businesses have to continually engage in capital investment to improve and maintain processes, equipment and facilities. Governments also invest in infrastructure projects like roads, rail and u...