Where does the management accounting function fit into an organization's structure?
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Distinguish planning decisions from control decisions.
Explain the term supply chain and its importance to cost management.
Name the four areas in which standards of ethical conduct exist for management accountants in the United States. What organization sets forth these standards?
For each of the following items, identify which of the manage- ment accounting guidelines applies: cost–benefit approach, behavioral and technical considerations, or different costs for different purposes. 1\. Analyzing whether to keep the billing function within an organization or outsource it 2\. Deciding to give bonuses for superior performance to the employees in a Japanese subsidiary and extra vacation time to the employees in a Swedish subsidiary. 3\. Including costs of all the value-chain functions before deciding to launch a new product, but including only its manufacturing costs in determining its inventory valuation. 4\. Considering the desirability of hiring an additional salesperson. 5\. Giving each salesperson the compensation option of choosing either a low salary and a high-percentage sales commission or a high salary and a low- percentage sales commission. 6\. Selecting the costlier computer system after considering two systems. 7\. Installing a participatory budgeting system in which managers set their own performance targets, instead of top management imposing performance targets on managers. 8\. Recording research costs as an expense for financial reporting purposes (as required by U.S. GAAP) but capitalizing and expensing them over a longer period for management performance-evaluation purposes. 9\. Introducing a profit-sharing plan for employees.
Dell Computer incurs the following costs: a. Utility costs for the plant assembling the Latitude computer line of products b. Distribution costs for shipping the Latitude line of products to a retail chain c. Payment to David Newbury Designs for design of the XPS 2-in-1 laptop d. Salary of computer scientist working on the next generation of servers e. cost of Dell employees' visit to a major customer to demonstrate Dell's ability to interconnect with other computers f. Purchase of competitors' products for testing against potential Dell products g. Payment to business magazine for running Dell advertisements h. cost of cartridges purchased from outside supplier to be used with Dell printers
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