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Students should review the following statements and write 3paragraphs that provide support for your answers:
1. Managers should base pricing decisions on both cost and market factors. In addition, they must also consider legal issues. Describe the influence that the law has on pricing decisions.
2. "It is impossible to use Discounted Cash Flow methods for evaluating investments in research and development. There are no cost savings to measure, and we don't even know what products might come out of our R&D activities." This is a quote from an R&D manager who was asked to justify investment in a major research project based on its expected net present value. How would you respond to this statement?
Do you agree or disagree? Explain.
Why is it important to investigate both price (rate) and volume (efficiency) variances when rewarding employees for satisfactory work when performance evaluations are based on meeting budgets?
What is the manager's prior probability that his competitor is planning to introduce a new product and what is his revised probability of a new product given that the competitor is building a new plant?
Identify a set of criteria for evaluating accounting theories. Drawing on your understanding of accounting as a system of measurement and apply the criteria from part a) to the historical cost approach to accounting measurement.
sales mix decisiondr. massy who specializes in internal medicine wants to analyze his sales mix to find out how the
Recognize tools for changing the budget and describe the process. Do you think this process is proper, or do you think it lets changes to be made without proper oversight?
Discuss how overheads can be over- or under-applied and how the company should deal with the over- or under-application and evaluate whether ABC should be introduced. (Hint: remember to consider both the costs and benefits of any action recommended.)
Find a newspaper article or web page report of an item of accounting news, i.e. it refers to a current event, consideration, comment or decision that has been published after November 2013
During May, the number of equivalent full units of materials applied to units produced by Department Q totaled 50,000, computed as follows: beginning inventory, 7,000 equivalent full units; units started and completed in May, 35,000 equivalent ful..
Discuss the issues that must be taken into consideration when setting selling prices, which is the usual reason given for the need to know the full cost.
Based on this information prepare a Balance Sheet, Income Statement and Statement of Retained Earnings.
Why do we use the overall cost of capital for investment decisions even when only one source of capital will be used?
The following materials standards have been established for a particular product: What is the materials quantity variance for the month?
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