Managerial Accounting and the Business Environment 12th Edition
131. What would be the total external failure cost appearing on the quality cost report?
Use the following to answ
121. What would be the total appraisal cost appearing on the quality cost report?
125. What would be the total appraisal cost appearing on the quality cost report?
111. If Carne Company were to sell 40,000 units, the total expected cost per unit would be:
Use the following to answer questions 112-115: Marrell is employed on the assembly line of a
manufacturing company where she as
101. The cost of goods manufactured (finished) for the year (in thousands of dollars) was:
102. The cost of goods sold for the year (in thousands of dollars) was:
103. The net operating incom
91. If the net operating income was $40,000, then the beginning finished goods inventory was:
92-95:The following data (in thousands of dollars) have been taken from the accounting records
of Karson Corporation fo
81. Haag Inc. is a merchandising company. Last month the company's cost of goods sold was
$86,000. The company's beginning merchandise inventory was $20,000 and its ending
merchandise inventory was $21,000. What was the total amount of the companys mercha
71. In February direct labour was 60% percent of conversion cost. If the manufacturing overhead
cost for the month was $78,000 and the direct materials cost was $22, 000, the direct labour cost
72. In Marc
61. The following costs were incurred in February: Direct materials.
$39,000Direct labour . $18,000Manufacturing overhead .
$14,000Selling expenses . $13,000Administrative expenses .
$29,000 Prime costs during the month totalled:
51. Inspection of products would be classified as a (n):
A) Prevention cost.
B) Appraisal cost.
C) Internal failure cost.
D) External failure cost.
52. The cost of warranty repairs would be classified as a (n):
A) Prevention cost.
B) Appraisal cost.
40. Which of the following would be classified as a prevention cost on a quality cost report?
A) Debugging software errors.
B) Quality training.
C) Test and inspection of incoming materials.
D) Cost of field servicing and handling complaints.
41. Which of
Is there a conflict between Agency Theory and the concept of organizational stakeholders?
Agency theory is concerned with problems that occur in relationships between principals
(owners) and their agents (top management). Because agents are, in eff
What recommendations would you make to improve the effectiveness of today's boards of
directors? (LO 2)
The following are among the many suggestions often made:
Add more outsiders (people not affiliated with the corporation) to the board of
Should all CEOs be transformational leaders? Would you like to work for a
transformational leader? (LO 5)
According to the text, top management must successfully handle two responsibilities that are
crucial to the effective strategic management of the cor
What would be the result if the only insider on a corporations board were the CEO? (LO
One result would be a board composed primarily of outsiders who would be objective, but also
dependent upon the CEO for information about the company and its activit
Should a CEO be allowed to serve on another companys board of directors? (LO 2)
The majority of outside directors are active or retired CEOs of other corporations. The chapter
states that the average board member of a U.S. Fortune 500 firm serves on three
Who should and should not serve on a board of directors? What about environmentalists
or union leaders? (LO 2)
This is a wide-open question with no simple answer. Some may argue that representatives from
each stakeholder group in the corporation's task en
When does a corporation need a board of directors? (LO 1)
A board of directors is needed to protect the interests of the corporations owners, its
shareholders. By law, when a company incorporates, it must have a board of directors even if
the stock is onl
What are the issues that suggest the need for oversight of a particular companys
The board of directors holds the top management team responsible for implementing and guiding
the strategy set forth. There are several red flags that would
What are the roles and responsibilities of an effective and active Board of Directors?
The board of directors is required by law to direct the affairs of the corporation, but not to
manage them. Stuart has written that a board is responsible for (1) effec
Reconcile the strategic decision-making process depicted in Fig. 1.5 with the strategic
management model depicted in Fig. 1.2. (LO 3, LO 6)
The strategic management model depicts the key input variables (internal and external
environments) and the key out
What information is needed for the proper formulation of strategy? Why? (LO 3)
In order to properly formulate strategy, it is essential to have information on the important
variables in both the external and internal environments of the corporation. This
Does every business firm have business strategies? (LO 1)
Every business firm should have a business strategy for every industry or market segment it
serves. A business strategy aims at improving the competitive position of a business firm's
products or s
What is meant by a hierarchy of strategy? (LO 3)
A hierarchy of strategy is a term used to describe the interrelationships among the three levels of
strategy (corporate, business, and functional) typically found in large business corporations.
These are not found in the text and may be used by the instructor for classroom discussion
A1-1. Describe the triple bottom line. (LO 1)
The term used to describe a business sustainability is the triple bottom line. John Elkington
coined the phr
When is the planning mode of strategic decision making superior to the entrepreneurial
and adaptive modes? (LO 5)
The planning mode is generally superior to the entrepreneurial and adaptive modes when the
organization is fairly large, when knowledge is sp
Why are strategic decisions different from other types of decisions? (LO 5)
Strategic decisions deal with the long-run future of the entire organization and have three
characteristics that differentiate them from other types of decisions: (1) they are rar
What is a learning organization? Is this approach to strategic management better than the
more traditional top-down approach in which strategic planning is primarily done by top
management? (LO 3)
Simply put, a learning organization is one that is able to
How does strategic management typically evolve in a corporation? (LO 1)
Strategic management in a corporation appears to evolve through four sequential phases
according to Gluck, Kaufman, and Walleck. Beginning with basic financial planning, it develops
Why has strategic management become so important to today's corporations? (LO 1)
Research indicates that organizations that engage in strategic management generally outperform
those that do not. The attainment of an appropriate match or fit between an org
Organizational strategy can be divided roughly into two categories: a) formulation and b)
implementation. While there is legitimate crossover between the two, how would you
characterize the issues involved in each effort?
There are four basic phases of st