Questions from Managerial Accounting


Q: “As a practical matter, planning and control mean exactly the

“As a practical matter, planning and control mean exactly the same thing.” Do you agree? Explain.

See Answer

Q: How can budgeting assist a company in planning its workforce staffing levels

How can budgeting assist a company in planning its workforce staffing levels?

See Answer

Q: What is a relevant cost?

What is a relevant cost?

See Answer

Q: How will relating product contribution margins to the amount of the constrained

How will relating product contribution margins to the amount of the constrained resource they consume help a company maximize its profits?

See Answer

Q: Are variable costs always relevant costs? Explain.

Are variable costs always relevant costs? Explain.

See Answer

Q: “Sunk costs are easy to spot—they’re simply the fixed

“Sunk costs are easy to spot—they’re simply the fixed costs associated with a decision.” Do you agree? Explain.

See Answer

Q: “All future costs are relevant in decision making.” Do you

“All future costs are relevant in decision making.” Do you agree? Why?

See Answer

Q: What are cash equivalents, and why are they included with cash

What are cash equivalents, and why are they included with cash on a statement of cash flows?

See Answer

Q: Prentice Company is considering dropping one of its product lines. What

Prentice Company is considering dropping one of its product lines. What costs of the product line would be relevant to this decision? Irrelevant?

See Answer

Q: What is the danger in allocating common fixed costs among product lines

What is the danger in allocating common fixed costs among product lines or other segments of an organization?

See Answer