Questions from Managerial Accounting

Q: How do the terms standard and budget relate to one another and

How do the terms standard and budget relate to one another and how do they differ?

Q: Explain what the terms favorable variance and unfavorable variance mean.

Explain what the terms favorable variance and unfavorable variance mean.

Q: Explain how centralized and decentralized companies differ. What are the advantages

Explain how centralized and decentralized companies differ. What are the advantages and disadvantages of each?

Q: Explain how relying on return on investment for performance evaluation of investment

Explain how relying on return on investment for performance evaluation of investment center managers could lead to goal incongruence.

Q: How is residual income calculated?

How is residual income calculated?

Q: What benefit does residual income offer in comparison to return on investment

What benefit does residual income offer in comparison to return on investment when evaluating performance?

Q: How does EVA differ from residual income

How does EVA differ from residual income

Q: What are the primary limitations of financial measures of performance?

What are the primary limitations of financial measures of performance?

Q: Cartwell Inc. makes picture frames which are sold in a local

Cartwell Inc. makes picture frames which are sold in a local retail store and through various websites. Required: Determine each of the following: 1. Direct material. 2. Direct labor. 3. Manufacturin...

Q: Bluefield has decided to use an ABC costing system and has identified

Bluefield has decided to use an ABC costing system and has identified the following detailed information about its cost pools and cost drivers: Required: 1. Calculate Bluefield’s act...