成本管理会计书后题答案.doc

CHAPTER 1 QUESTIONS FOR WRITING AND DISCUSSION 1 A management accounting information system is an information system that produces outputs using inputs and processes needed to satisfy specific managerial objectives 2 The inputs of a management accounting information system are economic events The processes transform the inputs into outputs and are such things as collecting measuring storing analyzing reporting and managing Typical outputs include special reports product costs customer costs performance reports budgets and personal com munication 3 The three objectives of a management accounting information system are listed as follows To provide information for costing out services products and other objects of interest to management to provide information for planning controlling evaluation and continuous improvement and to provide information for decision making 4 All organizations manufacturing merchan dising and services must have a good management accounting information system Management accounting concepts and procedures are not restricted to any one type of organization 5 The users of management accounting information are managers and workers within the organization Anyone internal to an organization is a potential user of management accounting information 6 Management accounting information is used to cost out objects for example services and products and to aid in planning controlling evaluation continuous improvement and decision making 7 Both financial and nonfinancial information should be provided by the management accounting information system Nonfinancial information provides insights useful for controlling operations it is easily used by operational workers Financial information is critical for evaluating the success of operational control 8 Continuous improvement means searching for ways of increasing overall efficiency and productivity of activities by reducing waste increasing quality and reducing costs 9 Employee empowerment is allowing operational workers to plan control and make decisions without explicit authorization from middle and higher level managers 10 Operational workers must be informed so that they can evaluate and monitor the effectiveness of their decisions 11 Planning establishes performance standards feedback compares actual performance with planned performance and controlling uses feedback to evaluate deviations from plans 12 Performance reports are formal reports that compare actual data with planned data or benchmarks and thus provide signals to managers that allow them to take corrective actions 13 Management accounting differs from financial accounting in the following major ways 1 internally focused 2 no mandated rules 3 financial and nonfinancial subjective information possible 4 emphasis on the future 5 internal evaluation and decisions based on very detailed information 6 broad multidisciplinary 14 The requirement to prepare reports for external users created a demand for a particular accounting information system This system was geared to produce inventory costs Aggregate average cost information apparently was sufficient for most internal decisions Thus management accounting became an extension of the financial accounting system This outcome was probably due to a favorable cost benefit tradeoff The incremental cost of producing more accurate product costs was not offset by the incremental benefits of improved decision making However significant changes in the competitive environment have increased the cost of making bad decisions thus increasing the benefits of more accurate information Also information technology has decreased the cost of processing data These two events have led to a demand for an improved management accounting information system 15 Activity based management is an important approach that focuses management s attention on activities with the objective of improving the value received by the customer and the profit achieved by providing this value It is important because it is the heart of the contemporary management accounting system offering increased accuracy in product costing through the use of activity costing and the ability to evaluate and control activities through process value analysis 16 Customer value is the difference between customer realization what a customer receives and customer sacrifice what a customer gives up Focusing on customer value forces managers to consider the entire set of value chain activities including what happens after a product is sold This creates a demand for a broader set of information than that found in a traditional system 17 The internal value chain is the set of activities required to design develop produce market distribute and service a product the product can be a service To increase customer value managers must assess the effect each activity in the chain has on customer value keeping those that add value and eliminating those that do not 18 Industrial value chain is the linked set of value creating activities from raw materials through the end use customer Understanding the industrial value chain is important because it enables a manager to identify the important internal and external linkages and use these linkages to create a competitive advantage 19 Supply chain management is concerned with managing material flows starting with suppliers and upstream suppliers moving to production and finishing with the distribution of finished goods to customers and downstream customers Supply chain management focuses on the entire industrial value chain because potential benefits may be reaped by understanding upstream suppliers and downstream customers 20 E business is any business transaction or information exchange that is executed using information and communication technology Management accountants provide information for e business settings e g the cost of processing an electronic transaction versus the cost of a paper transaction 21 Managing the value chain requires a cross functional perspective Because of the interrelationships that exist in the value chain a decision can affect many different functions Information must be gathered and reported so that these effects can be assessed and decision making improved 22 Decreasing the time required to perform activities may increase quality and decrease costs The management accounting system should be able to document the relationship between time reductions and such things as quality and cost both on a projected or before the fact basis and on an after the fact basis This enhances planning controlling and decision making 23 A line position has direct responsibility for carrying out the basic missions of an organization A staff position has indirect responsibility for the basic missions and provides a supportive role for line activities 24 Yes For most organizations the controller should be a member of the top management staff The controller is the financial expert of an organization and can provide critical advice and insights 25 The controller is responsible for both internal and external accounting These responsibilities usually include diverse activities such as taxes SEC reports cost accounting bud geting internal auditing financial accounting and systems accounting 26 Ethical behavior is concerned with making right choices and usually involves sacrificing individual self interest for the well being of others It is possible to teach ethical behavior in virtually any course By being introduced to ethical dilemmas in management accounting students can be made aware of the behavior that is expected in the business world and in particular for management accountants 27 Yes There is some evidence that ethical behavior actually is good business In other words the market and consumers appreciate ethical behavior and are willing to reward those who adopt it 28 Yes As management accountants become more informed about what behavior is acceptable and what is not we should expect a favorable response This response can be reinforced by the IMA imposing sanctions for serious violations of the code 29 The three forms of certification are the CMA the CPA and the CIA Although each certification can be valuable for management accountants the CMA is tailored to fit their needs The CPA has a public accounting orientation and the CIA has an internal auditing orientation Only the CMA specifically addresses the professional requirements of a management accountant 30 The four parts are 1 economics finance and management 2 financial accounting and reporting 3 management reporting analysis and behavioral issues and 4 decision analysis and information systems The parts reveal the interdisciplinary nature of management accounting EXERCISES 1 1 1 Inputs a d f j 2 Processes b g m 3 Outputs c h i l 4 System objectives e k n 1 2 1 E 2 B 3 c 1 3 Joan Dennison is staff She is in a support role she prepares reports and helps explain and interpret them Her role is to help the line managers more effectively carry out their responsibilities Steven Swasey is a line manager He has direct responsibility for producing a garden hose Clearly one of the basic objectives for the existence of a manufacturing firm is to make a product Thus Steven has direct responsibility for a basic objective and therefore holds a line position 1 4 a By the time most students graduate from high school they have not had much exposure to business Therefore they do not have full knowledge of acceptable behavior for the business environment Students may not know that certain practices are unethical because they may not be familiar with the behavioral norms associated with these practices Once students begin to learn business practices they begin to see what ethical dilemmas can arise in a business context They then are able to apply the moral training they have had to deal with the situations Furthermore evidence exists that ethical reasoning can be changed for the better Thus instruction in ethics can be a vital part of a student s education b Sacrificing self interest is a choice that each person must make Others may be influenced by those individuals who behave ethically Individuals committed to ethical behavior produce societies committed to ethical behavior not vice versa c While this sounds noble many would disagree that managers are first seeking to serve others and accept personal financial rewards as a by product of a good job Pursuit of self interest and personal financial well being is not necessarily unethical It is only when this pursuit is done at the expense of the collective good that the behavior becomes questionable d It is often true that unethical firms and individuals suffer financially In the long run there is some evidence that ethical behavior pays off It is doubtful however that every unethical firm or individual is wiped out financially There are too many notable exceptions for example the selling of drugs by organized crime 1 5 a CPA b CIA c CMA d CPA e CPA f CMA g CMA CPA CIA h CMA CPA CIA PROBLEMS 1 6 1 Excellence teams and minicompanies both have the objective of involving production line personnel more fully in the management process so that the company can take advantage of the direct contact and knowledge that operating workers have about production and their work environment This will hopefully translate into continuous improvement of operating performance The objectives seem to be realized Duffy has increased profits and reduced costs attributing much of the change to the contributions of the excellence teams The same is true for the minicompanies much of the success in quality improvements appears to be grounded in this organizational change 2 Employee empowerment is a key element of continuous improvement Operating workers have tremendous skills knowledge and firsthand contact with the operating environment all of which can be exploited to discover new and more efficient ways of producing As employees are allowed more input their self esteem grows and their commitment to the company increases Morale also increases making for a more pleasant and productive environment There are potential disadvantages Too much latitude in employee empowerment might sidetrack employees to the point where they begin to attack personalities discuss and argue about wage and hour considerations or other grievances or try to become involved in hiring firing and disciplinary matters Many of these matters are best left centralized and some skillful management is needed to ensure that operating employees are primarily involved in improving efficiency 3 Management accounting information should be used to inform empowered employees so that they can identify problems and monitor and evaluate the effects of decisions they make 4 Quality culture means that the employees of the organization have an internal commitment to producing high quality products and services A learning organization means that the employees are always seeking new and better ways of doing things they have a commitment to continuous improvement 1 7 1 The total product is the product and its features processing speed disk drives software packages and so on the service the operating and maintenance requirements and the delivery speed 2 One company is emphasizing low costs and the other is attempting to differentiate its PC by offering faster delivery and higher quality service 3 The Confiar s service component and its delivery time appear to be better than Drantex s Thus the realization of these features appears to outweigh the additional sacrifice the additional operating and maintenance cost associated with the Confiar PC The implications for management accounting are straightforward The management accounting information system should collect and report information about customer realization and sacrifice Much of this information is external to the firm but clearly needed by management 4 Better quality and shorter delivery time increase customer realization while lowering the price decreases customer sacrifice In total customer value has increased and presumably this should make the Drantex PC much more competitive This example illustrates how quality time and costs are essential competitive weapons It also illustrates how critical it is that the management accounting system collect and report data concerning these three dimensions 1 8 Planning The management accountant gains an understanding of the impact on the organization of planned transactions i e analyzing strengths and weaknesses and economic events both strategic and tactical and sets obtainable goals for the organization The development of budgets is an example of planning Controlling The management accountant ensures the integrity of financial information monitors performance against budgets and goals and provides information internally for decision making Comparing actual performance against bud geted performance and taking corrective action where necessary is an example of controlling Internal auditing is another example Evaluating Performance The management accountant judges and analyzes the implications of various past and expected events and then chooses the optimum course of action The management accountant also translates data and communicates the conclusions Graphical analysis such as trend bar charts or regression and reports comparing actual costs with budgeted costs are examples of evaluating performance Ensuring Accountability of Resources The management accountant implements a reporting system closely aligned to organizational goals that contributes to the measurement of the effective use of resources and safeguarding of assets Internal reporting such as comparison of actual to budget is an example of accountability External Reporting The management accountant prepares reports in accordance with generally accepted accounting principles and then disseminates this information to shareholders creditors and regulatory and tax agencies An annual report or a credit application are examples of external reporting CMA adapted 1 9 Confidentiality Top management has violated the ethical standard of refraining from using confidential information acquired in the course of their work for unethical or illegal advantage personally personal job security Integrity Top management clearly is in violation of the standard to avoid actual or apparent conflicts of interest and advise all appropriate parties other shareholders of any potential conflict The motivation for top management in this circumstance appears to be reinforced by the favorable bonus situation which is in violation of the standard to refuse any gift or favor bonus that would influence or appear to influence their actions By telling Deerling to restrict the disclosure of the changes top management is clearly in violation of the standard to communicate unfavorable as well as favorable information Objectivity Top management s restriction and distortion of Alert s financial information violates the standard to communicate information fairly and objectively To resolve the ethical dilemma Roger Deerling should first determine if the company has an established policy in place If so he should follow the prescribed policies in resolving the ethical conflict If there is no policy then the specific steps are as follows To confront top management about the unethical behavior unless Deerling believes they are involved in which case the problem should be presented to the next higher level the chairman of the board of directors If this fails then the issue can be taken to the audit committee and the board of directors To clarify relevant concepts by confidential discussion with an objective advisor to obtain possible courses of action To resign and submit an informative memorandum to the chairman of the board of directors if all levels of internal review have been exhausted and the conflict still exists CMA adapted CHAPTER 2 QUESTIONS FOR WRITING AND DISCUSSION 1 Product costing accuracy means assigning the cost of the resources consumed by a cost object to that cost object 2 A cost object is any item for which costs are measured and assigned including such things as products plants projects departments and activities 3 An activity is a basic unit of work performed within an organization Examples include material handling inspection purchasing billing and maintenance 4 A direct cost is a cost that can be traced to a cost object An indirect cost is a cost that cannot be traced to cost objects 5 Traceability is the ability to assign a cost directly to a cost object in an economically feasible way using a causal relationship Tracing is the assignment of costs to cost objects using either an observable measure of the cost object s resource consumption or factors that allegedly capture the causal relationship 6 Allocation is the assignment of indirect costs to cost objects based on convenience or assumed linkages 7 Drivers are factors that cause changes in resource usage activity usage costs and revenues Resource drivers measure the demands placed on resources by activities and are used to assign the cost of resources to activities Example time used to assign the cost of supervision to individual activities Activity drivers measure the demands placed on activities by cost objects and are used to assign the cost of activities to cost objects Example number of inspection hours used to assign the cost of inspection to individual products 8 Direct tracing is the process of assigning costs to cost objects based on physically observable causal relationships Driver tracing is assigning costs using drivers which are causal factors The driver approach relies on identification of factors that allegedly capture the causal relationship Direct tracing relies on physical observation of the causal relationship and therefore is more reliable 9 Driver tracing is the use of drivers to trace costs to cost objects Often this means that costs are first traced to activitie