chapter 1 PROBLEM - Yi Chen Cost Acc 10/16/2011 CHAPTER 1...

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Yi Chen Cost Acc 10/16/2011 CHAPTER 1 PROBLEM 1. How does the cost accounting function assist in the management of a business? Cost accounting provides the detailed cost information that management needs to control current operations and plan for the future. Management uses this information to decide how to allocate resources to the most efficient and profitable areas of the business. 6. Why is unit cost information important to management? Unit cost information is useful in making a variety of important marketing decision such as: 1) Determining the selling price of a product 2) Meeting competition 3) Bidding on contacts 4) Analyzing profitability 9. Define “responsibility accounting.” Responsibility accounting is the assignment of accountability for cost or production results to those individuals who have the most authority to influence them. It requires a cost information system that traces the data to cost centers and their managers. 11. What are the requirements for becoming a Certified Management Accountant? Requirements for becoming Certified Management Accountant are: the candidate
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This note was uploaded on 11/01/2011 for the course ACC 200 taught by Professor Minliu during the Spring '11 term at Universidad Europea de Madrid.

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chapter 1 PROBLEM - Yi Chen Cost Acc 10/16/2011 CHAPTER 1...

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