Questions from Managerial Accounting


Q: Other than the one(s) mentioned in the text,

Other than the one(s) mentioned in the text, give an example of an action that management might take to improve financial performance in the short run that could prove detrimental in the long run.

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Q: Explain the balanced scorecard approach to performance evaluation. What advantages does

Explain the balanced scorecard approach to performance evaluation. What advantages does this approach have over using only financial measurements?

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Q: What are the four dimensions of a balanced scorecard? What does

What are the four dimensions of a balanced scorecard? What does each dimension represent?

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Q: Why must a company consider its incentive and reward system when implementing

Why must a company consider its incentive and reward system when implementing a balanced scorecard approach?

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Q: Why are incentive systems that emphasize long-term performance more consistent

Why are incentive systems that emphasize long-term performance more consistent with a balanced scorecard approach?

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Q: Why does decentralization create the need for responsibility accounting in an organization

Why does decentralization create the need for responsibility accounting in an organization?

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Q: What is a transfer price?

What is a transfer price?

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Q: Explain why two managers employed by the same company may be diametrically

Explain why two managers employed by the same company may be diametrically opposed to each other when considering a transfer price.

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Q: Explain the meaning of minimum and maximum transfer prices and identify who

Explain the meaning of minimum and maximum transfer prices and identify who (the buyer or the seller) would determine each.

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Q: What is the market-price method of transfer pricing?

What is the market-price method of transfer pricing?

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