CHAPTER 5
MANAGEMENT ACCOUNTING INFORMATION
FOR ACTIVITY AND PROCESS DECISIONS
TRUE/FALSE
1. Sunk costs are never relevant costs for decision making.
a. True
b. False
2. An example of a sunk cost is the amount of a guaranteed contract that has not yet been
paid.
a. True
b. False
3. Personal employee responses are not critical considerations for the business decision
maker.
a. True
b. False
4. For decision-making, differential costs assist in choosing between alternatives.
a. True
b. False
5. For a particular decision, differential revenues and costs are always relevant.
a. True
b. False
6. A cost may be relevant for one decision, but not relevant for a different decision.
a. True
b. False
7. Avoidable costs should be evaluated when deciding whether to discontinue a part, product,
product line, or business segment.
a. True
b. False
8. In make-or-buy decisions, facility-sustaining support costs are unavoidable if the facility
can be converted to another use.
a. True
b. False
9. For one-time-only special orders, flexible costs may be relevant but not capacity-related
costs.
a. True
b. False
10. Bid prices and costs that are relevant for regular orders are the same costs that are relevant
for one-time-only special orders.
a. True
b. False
11. When opportunity costs exist, they are always relevant.
a. True
b. False
12. Depreciation allocated to a product line is a relevant cost when deciding to discontinue that
product.
a. True
b. False
13. When replacing an old machine with a new machine, the book value of the old machine is a
relevant cost.
a. True
b. False
14. If a company is deciding whether to outsource a part, the reliability of the supplier is an
important factor to consider.
a. True
b. False
15. Sometimes qualitative factors are the most important factors in make-or-buy decisions.
a. True
b. False
16. If a company is deciding whether to outsource a part, the reliability of the supplier is an
important factor to consider.
a. True
b. False
17. Outsourcing is risk-free to the manufacturer because the supplier now has the responsibility
of producing the part.
a. True
b. False
18. The central goal of the facility layout design process is to streamline operations to increase
operating income.
a. True
b. False
19. In a process layout, batch production causes inventory costs.
a. True
b. False
20. The reduction of setup costs makes smaller batch sizes more feasible.
a. True
b. False
21. In batch processing, workers downstream can identify an upstream problem immediately.
a. True
b. False
22. The theory of constraints focuses on long-term initiatives to increase operating income.
a. True
b. False
23. A processing cycle efficiency (PCE) of 14% indicates better efficiency than a PCE of 50%.
a. True
b. False
24. When using a just-in-time manufacturing, a problem anywhere in the system can stop all
production.
a. True
b. False
25. Implementing a just-in-time inventory system requires a major cultural change for an
organization.
a. True
b. False
26. Global competition led to the development of international quality standards such as ISO
9000 2000 Standards.
a. True
b. False
27. External quality problems are expensive to fix.
a. True
b. False
28. Experience shows that it is more expensive to prevent defects than to detect and repair
them.
a. True
b. False
MULTIPLE CHOICE
29. Sunk costs:
a. are relevant
b. are differential
c. have future implications
d. are ignored when evaluating alternatives
30. A computer system installed last year is an example of:
a. a sunk cost
b. a relevant cost
c. a differential cost
d. an avoidable cost
31. Costs that cannot be changed by any decision made now or in the future are:
a. fixed costs
b. indirect costs
c. avoidable costs
d. sunk costs
32. For decision making, a listing of the relevant costs:
a. will help the decision maker concentrate on the pertinent data
b. will only include future costs
c. will only include costs that differ among alternatives
d. should include all of the above
33. Which of the following costs are NEVER relevant in the decision-making process?
a. capacity-related
b. historical costs
c. relevant costs
d. variable costs
34. When deciding to lease a new cutting machine or continue using the old machine, the
following costs are all relevant EXCEPT the:
a. $50,000 cost of the old machine
b. $20,000 cost of the new machine
c. $10,000 selling price of the old machine
d. $3,000 annual savings in operating costs if the new machine is purchased
35. In evaluating different alternatives, it is useful to concentrate on:
a. flexible costs
b. capacity-related costs
c. total costs
d. relevant costs
36. Relevant costs of a make-or-buy decision include all EXCEPT:
a. fixed salaries that will not be incurred if the part is outsourced
b. current direct material costs of the part
c. special machinery for the part that has no resale value
d. material-handling costs that can be eliminated
37. Which of the following would NOT be considered in a make-or-buy decision?
a. capacity-related costs that will no longer be incurred
b. flexible costs of production
c. potential rental income from space occupied by the production area
d. unchanged supervisory costs
38. Relevant costs in a make-or-buy decision of a part include:
a. setup overhead for the manufacture of the product using the outsourced part
b. currently used manufacturing capacity that has alternative uses
c. annual plant insurance costs that will remain the same
d. corporate office costs that will be allocated differently
39. When deciding to accept a one-time-only special order from a wholesaler, management
should do all of the following EXCEPT:
a. analyze product costs
b. consider the impact of the special order on future prices of their products
c. determine whether excess capacity is available
d. verify past design costs for the product
40. When there is excess capacity, it makes sense to accept a one-time-only special order for
less than the current selling price when:
a. incremental revenues exceed incremental costs
b. additional capacity-related costs must be incurred to accommodate the order
c. the company placing the order is in the same market segment as your current
customers
d. None of the above is correct.
41. When deciding whether to discontinue a segment of a business, managers should focus on:
a. equipment used by the segment that could become idle
b. reallocation of corporate costs
c. how total costs differ among alternatives
d. operating income per unit of the discontinued segment
42. Costs are relevant to a particular decision if they:
a. are flexible costs
b. are capacity-related costs
c. differ across the alternatives being considered
d. remain unchanged across the alternatives being considered
THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 43 THROUGH 46. Flowers-For-Everyone is considering replacing its existing delivery van with a new one. The new van can offer considerable savings in operating costs. Information about the existing van and the new van follow:
Existing van New van
Original cost $100,000 $180,000
Annual operating cost $ 35,000 $ 20,000
Accumulated depreciation $ 60,000 ---
Current salvage value of the existing van $ 45,000 ---
Remaining life 10 years 10 years
Salvage value in 10 years $ 0 $ 0
Annual depreciation $ 4,000 $ 18,000
43. Sunk costs include:
a. the original cost of the existing van
b. the original cost of the new van
c. the current salvage value of the existing van
d. the annual operating cost of the new van
44. Relevant costs for this decision include:
a. the original cost of the existing van
b. accumulated depreciation
c. the current salvage value of the existing van
d. the salvage value in 10 years
45. If Flowers-For-Everyone replaces the existing delivery van with the new one, over the next
10 years operating income will:
a. decrease by $180,000
b. increase by $150,000
c. decrease by $150,000
d. None of the above is correct.
46. Should Flowers-for-Everyone replace the existing van with the new van? What are the
savings or additional cost?
a. Yes replace, net savings of $15,000
b. Yes replace, net savings of $150,000
c. No replace, additional costs of $120,000
d. No replace, additional costs of $30,000
THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 47 AND 48.
Jim’s 5-year-old Geo Prizm requires repairs estimated at $3,000 to make it roadworthy again. His friend, Julie, suggested that he should buy a 5-year-old used Honda Civic instead for $3,000 cash. Julie estimated the following costs for the two cars:
Geo Prizm Honda Civic
Acquisition cost $15,000 $3,000
Repairs $ 3,000 ---
Annual operating costs
(Gas, maintenance, insurance) $ 2,280 $2,100
47. The cost(s) NOT relevant for this decision is(are):
a. the acquisition cost of the Geo Prizm
b. the acquisition cost of the Honda Civic
c. the repairs to the Geo Prizm
d. the annual operating costs of the Honda Civic
48. What should Jim do? What are his savings in the first year?
a. Buy the Honda Civic; $9,780
b. Fix the Geo Prizm; $5,518
c. Buy the Honda Civic; $180
d. Fix the Geo Prizm; $5,280
THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 49 THROUGH 51. Konrade’s Engine Company manufactures part TE456 used in several of its engine models. Monthly production costs for 1,000 units are as follows:
Direct materials $ 40,000
Direct labor 10,000
Flexible support costs 30,000
Capacity-related support costs 20,000
Total costs $100,000
It is estimated that 10% of the capacity-related support costs assigned to TE456 will no longer be incurred if the company purchases TE456 from the outside supplier. Konrade’s Engine Company has the option of purchasing the part from an outside supplier at $85 per unit.
49. If Konrade’s Engine Company accepts the offer from the outside supplier, the monthly
avoidable costs (costs that will no longer be incurred) total:
a. $ 82,000
b. $ 98,000
c. $ 50,000
d. $100,000
50. If Konrade’s Engine Company purchases 1,000 TE456 parts from the outside supplier per
month, then its monthly operating income will:
a. increase by $2,000
b. increase by $80,000
c. decrease by $3,000
d. decrease by $85,000
51. The maximum price that Konrade’s Engine Company should be willing to pay the outside
supplier is:
a. $80 per TE456 part
b. $82 per TE456 part
c. $98 per TE456 part
d. $100 per TE456 part
THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 52 AND 53.
Melodee’s Preserves currently makes jams and jellies and a variety of decorative jars used for packaging. An outside supplier has offered to supply all of the needed decorative jars. For this make-or-buy decision, a cost analysis revealed the following avoidable unit costs for the decorative jars:
Direct materials $0.25
Direct labor 0.03
Unit-related support costs 0.10
Batch-related support costs 0.12
Product-sustaining support costs 0.22
Facility-sustaining support costs 0.28
Total cost per jar $1.00
52. The relevant cost per jar is:
a. $0.28 per jar
b. $0.38 per jar
c. $0.72 per jar
d. $1.00 per jar
53. The maximum price that Melodee’s Preserves should be willing to pay for the decorative
jars is:
a. $0.28 per jar
b. $0.38 per jar
c. $0.72 per jar
d. $1.00 per jar
THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 54 AND 55.
Denly Company has three products, A, B, and C. The following information is available:
Product A Product B Product C Sales $60,000 $90,000 $24,000
Flexible costs 36,000 48,000 15,000
Contribution margin 24,000 42,000 9,000
Capacity-realted costs:
Avoidable 9,000 18,000 6,000
Unavoidable 6,000 9,000 5,400 Operating income $ 9,000 $15,000 $ (2,400) 54. Denly Company is thinking of dropping Product C because it is reporting a loss.
Assuming Denly drops Product C and does not replace it, operating income will:
a. increase by $2,400
b. increase by $3,000
c. decrease by $3,000
d. decrease by $5,400
55. Assuming Product C is discontinued and the space formerly used to produce Product C is
rented for $12,000 per year, operating income will:
a. increase by $6,600
b. increase by $9,000
c. increase by $12,000
d. increase by $14,400
56. Which of the following does NOT need to be considered when evaluating a make-or-buy
decision?
a. savings from an alternative use of the production equipment
b. the original cost of the production equipment
c. the quality of the supplier's product
d. the reliability of the delivery schedule
57. When making decisions:
a. quantitative factors are the most important
b. qualitative factors are the most important
c. appropriate weight must be given to both quantitative and qualitative factors
d. both quantitative and qualitative factors are unimportant
58. Employee morale at Dos Santos, Inc., is very high. This type of information is known as:
a. a qualitative factor
b. a quantitative factor
c. a differential factor
d. an opportunity cost
59. Which of following are risks of outsourcing the production of a part?
a. unpredictable quality
b. unreliable delivery
c. unscheduled price increases
d. All of the above are risks of outsourcing.
60. Which of the following minimize the risks of outsourcing?
a. the use of short-term contracts that specify price
b. the responsibility for on-time delivery is now the responsibility of the supplier
c. building close relationships with the supplier
d. All of the above minimize the risks of outsourcing.
61. When evaluating a make-or-buy decision, which of the following does NOT need to be
considered?
a. alternative uses of the production capacity
b. the original cost of the production equipment
c. the quality of the supplier's product
d. the reliability of the supplier's delivery schedule
62. In __________, all similar equipment or functions are grouped together.
a. a process layout
b. a product layout
c. cellular manufacturing
d. just-in-time production
63. Characteristics of a process layout include:
a. continuous processing
b. long production paths
c. small amounts of inventory
d. no work-in-process storage areas
64. In _______, equipment is organized to accommodate the production of a specific product.
a. a process layout
b. a product layout
c. cellular manufacturing
d. just-in-time production
65. Characteristics of a product layout include:
a. raw materials and purchased parts are delivered directly to the production line where
they are needed
b. low-volume production
c. a U-shaped layout
d. small batches of unique products
66. In __________, the plant is organized into areas where all machines used to manufacture a
group of similar products are close to each other.
a. a process layout
b. a product layout
c. cellular manufacturing
d. just-in-time production
67. Characteristics of cellular manufacturing include:
a. a layout that is usually circular like a cell
b. increasing the number of employees needed to produce a product
c. individual areas for employees so each can work independently without interruption
d. a flexible layout that can be easily adjusted to make a different product
68. The theory of constraints:
a. emphasizes long-term optimization
b. maintains that maximizing volume through production bottlenecks will increase
operating income
c. helps managers make special one-time decisions
d. suggests that some component parts should be outsourced
69. Constraints may include:
a. the availability of direct materials in manufacturing
b. linear square feet of display space for a retailer
c. direct labor in the service industry
d. All of the above are correct.
THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 70 THROUGH 74. Braun’s Brakes manufactures three different product lines, Model X, Model Y, and Model Z. Considerable market demand exists for all models. The following per unit data apply:
Model X Model Y Model Z Selling price $50 $60 $70
Direct materials 6 6 6
Direct labor ($12 per hour) 12 12 24
Variable support costs ($4 per machine-hour) 4 8 8
Fixed support costs 10 10 10
70. Which model has the greatest contribution margin per unit?
a. Model X
b. Model Y
c. Model Z
d. both Models X and Y
71. Which model has the greatest contribution margin per machine-hour?
a. Model X
b. Model Y
c. Model Z
d. both Models Y and Z
72. If there is excess capacity, which model is the most profitable to produce?
a. Model X
b. Model Y
c. Model Z
d. both Models X and Y
73. If there is a machine breakdown, which model is the most profitable to produce?
a. Model X
b. Model Y
c. Model Z
d. both Models Y and Z
74. How can Lisa Braun encourage her salespeople to promote the more profitable model?
a. Put all sales persons on salary.
b. Provide higher sales commissions for higher priced items.
c. Provide higher sales commissions for items with the greatest contribution margin per
constrained resource.
d. Both (b) and (c) are correct.
75. High levels of inventory result in all EXCEPT:
a. high moving, handling, and storage costs
b. increased product obsolescence and damage
c. increased financing costs
d. idle facilities
76. The implementation of just-in-time production results in all of the following EXCEPT:
a. decreased cycle times
b. reduced amount of waste
c. a slower pace for employees
d. structural changes
77. Characteristics of just-in-time manufacturing include all of the following EXCEPT:
a. the ability to process items in large batches
b. making a product only when the customer requires it
c. no work-in-process inventories
d. a problem anywhere can stop production
78. Measures of JIT (just-in-time) manufacturing reliability include all of the following
EXCEPT:
a. defect rates
b. labor and machine utilization ratios
c. cycle times
d. percent of on-time deliveries
79. Of the four quality costing categories, the most damaging category to the organization is:
a. prevention costs
b. appraisal costs
c. internal failure costs
d. external failure costs
80. __________ are incurred when a defective component is discovered before shipment to the
customer.
a. Prevention costs
b. Appraisal costs
c. Internal failure costs
d. External failure costs
81. _________ are incurred when a customer discovers a defect.
a. Prevention costs
b. Appraisal costs
c. Internal failure costs
d. External failure costs
82. Training employees in methods to maintain quality is an example of __________.
a. prevention costs
b. appraisal costs
c. internal failure costs
d. external failure costs
83. __________ include the cost of raw-materials inspections and assembly-line inspections.
a. Prevention costs
b. Appraisal costs
c. Internal failure costs
d. External failure costs
The following estimates have been prepared to evaluate the benefits from the reorganization:
Before the change After the change Total annual sales $600,000 $800,000
Costs as a percentage of sales:
Direct materials 23% 20%
Direct labor 9% 7%
Support costs 18% 13% Work-in-process inventory $125,000 $ 90,000 Inventory carrying costs are estimated to be 10% per year.
84. As a result of the layout reorganization, reduced levels of work-in-process inventory are
projected to decrease inventory carrying costs by:
a. $12,500
b. $ 9,000
c. $ 6,000
d. $ 3,500
85. As a result of the layout reorganization, incremental manufacturing costs are projected to:
a. increase by $84,000
b. increase by $20,000
c. decrease by $20,000
d. decrease by $16,500
86. As a result of switching to a cellular manufacturing operation, total benefits are projected to
increase by:
a. $216,500
b. $200,000
c. $183,500
d. $176,500
87. After the change, a decreased amount of work-in-process inventory is projected because:
a. of reduced cycle times resulting from a more continuous production flow
b. of lower financing costs and the reduced need for storage and handling
c. larger batches can be processed faster and more efficiently
d. All of the above are correct.
88. After the change, direct labor costs as a percentage of sales are projected to decrease
because:
a. less work-in-process inventory needs to be moved from location to location
b. fewer employees are needed to produce a product due to the new work design
c. less supervisors are needed to oversee operations
d. All of the above are correct.
The following estimates have been prepared to evaluate the benefits from the reorganization:
Before the change After the change Total annual sales $500,000 $750,000
Costs as percentage of sales:
Direct materials 20% 17%
Direct labor 8% 7%
Support costs 12% 6% Work-in-process inventory $100,000 $ 80,000 Inventory carrying costs are estimated to be 11% per year.
89. As a result of the layout reorganization, reduced levels of work-in-process inventory are
projected to decrease inventory carrying costs by:
a. $ 2,200
b. $ 7,500
c. $ 8,800
d. $11,000
90. As a result of the layout reorganization, incremental manufacturing costs are projected to:
a. decrease by $22,800
b. decrease by $25,000
c. increase by $25,000
d. increase by $40,000
91. As a result of switching to a cellular manufacturing operation, total benefits are projected to
increase by:
a. $222,800
b. $227,200
c. $272,800
d. $277,200
92. After the change, sales are projected to increase because:
a. of shorter delivery lead times
b. of higher sales prices
c. of the ability to process larger batch sizes
d. All of the above are correct.
93. After the change, work-in-process carrying costs are projected to decrease because of:
a. reduced costs in materials handling
b. lower financing costs
c. the decreased need for inventory storage
d. All of the above are correct.
EXERCISE / PROBLEM
94. Karen’s Cookie Company is considering replacing its giant cookie mixer with a new one.
The following data have been compiled to evaluate the decision.
Existing New
Original cost $8,000 $10,000
Annual operating cost $4,000 $2,200
Remaining life 5 years 5 years
Disposal value now $3,000 ---
Required:
a. What costs are relevant?
b. What costs are sunk?
c. What are the net cash flows assuming Karen’s Cookie Company purchases the new
cookie mixer?
95. Pat, a Pizzeria manager, replaced the convection oven just six months ago. Today, Turbo
Ovens Manufacturing announced the availability of a new convection oven that cooks
more quickly with lower operating expenses. Pat is considering the purchase of this faster, lower-operating cost, convection oven to replace the existing one they recently purchased.
Selected information about the two ovens is given below:
Existing New Turbo Oven
Original cost $60,000 $50,000
Accumulated depreciation $ 5,000 ---
Current salvage value $40,000 ---
Remaining life 5 years 5 years
Annual operating expenses $10,000 $ 7,500
Disposal value in 5 years $ 0 $ 0 Required:
a. What costs are sunk?
b. What costs are relevant?
c. What are the net cash flows over the next 5 years assuming the Pizzeria purchases the
new convection oven?
d. What other items should Pat, as manager of the Pizzeria, consider when making this
decision?
96. Quiett Truck manufactures part WB23 used in several of its truck models. 10,000 units are
produced each year with production costs as follows:
Direct materials $ 45,000
Direct labor 15,000
Flexible support costs 35,000
Capacity-related support costs 25,000
Total costs $120,000
Quiett Truck has the option of purchasing part WB23 from an outside supplier at $11.20 per unit. If WB23 is outsourced, 40% of the capacity-related costs cannot be immediately converted to other uses.
Required:
a. Describe avoidable costs. What amount of the WB23 production costs is avoidable?
b. Should Quiett Truck outsource WB23? Why or why not?
c. What other items should Quiett Truck consider before outsourcing any of the parts it
currently manufactures?
97. Freddie’s Fudge Factory currently makes fudge for retail and mail order customers. It also
offers a variety of roasted nuts. Fudge sales have increased over the past year, so Freddie is considering outsourcing the roasted nuts and using the roasting space to make additional fudge. A reliable supplier has quoted a price of $0.85 per pound for the roasted nuts. The following amounts reflect the in-house manufacturing costs per pound for the roasted nuts: Direct materials $0.50
Direct labor 0.06
Unit-related support costs 0.10
Batch-related support costs 0.04
Product-sustaining support costs 0.05
Facility-sustaining support costs 0.15
Total cost per pound $0.90
Required:
a. Should Freddie’s Fudge Factory outsource the roasted nuts? Why or why not? Discuss
all items that should be considered.
b. What incentives can Freddie offer the supplier of the roasted nuts to encourage
continued reliability?
98. Kirkland Company manufactures a part for use in its production. When 10,000 items
are produced, the costs per unit are:
Direct materials $0.60
Direct manufacturing labor 3.00
Flexible manufacturing support 1.20
Fixed manufacturing support 1.60
Total $6.40
Mike Company has offered to sell to Kirkland Company 10,000 units of the part for $6.00 per unit. The plant facilities could be used to manufacture another item at a savings of $9,000 if Kirkland accepts the offer. In addition, $1.00 per unit of fixed manufacturing support on the original item would be eliminated.
Required:
a. What is the relevant per unit cost for the original part?
b. Which alternative is best for Kirkland Company? By how much?
99. Lewis Auto Company manufactures a part for use in its production of automobiles.
When 10,000 items are produced, the costs per unit are:
Direct materials $ 12
Direct manufacturing labor 60
Flexible manufacturing support 24
Fixed manufacturing support 32
Total $128
Monty Company has offered to sell Lewis Auto Company 10,000 units of the part for
$120 per unit. The plant facilities could be used to manufacture another part at a
savings of $180,000 if Lewis Auto accepts the supplier’s of fer. In addition, $20 per unit of fixed manufacturing support on the original part would be eliminated.
Required:
a. What is the relevant per unit cost for the original part?
b. Which alternative is best for Lewis Auto Company? By how much?
100. Carey Manufacturing, Inc., is considering reorganizing its plant into manufacturing cells.
The following estimates have been prepared to evaluate the benefits from the
reorganization:
Before the change After the change Total annual sales $700,000 $850,000
Costs as percentage of sales:
Direct materials 10% 9%
Direct labor 6% 4%
Support costs 9% 7% Work-in-process inventory $200,000 $120,000 Inventory carrying costs are estimated to be 12% per year.
Required:
a. Why do the layout reorganization estimates include
1. a decrease in work-in-process inventory?
2. a decrease in direct material costs as a percentage of sales?
3. an increase in sales?
b. As a result of the layout reorganization, what amount of change is projected
1. from carrying reduced levels of work-in-process inventory?
2. for incremental manufacturing costs?
3. in total benefits?
CRITICAL THINKING / ESSAY
101. Are sunk costs considered relevant when choosing among alternatives? Explain.
102. Explain what revenues and costs are relevant when choosing among alternatives.
103. Assume you are a sophomore in college and are committed to earning an undergraduate degree. Your current decision is whether to finish college in four consecutive years or take
a year off and work for some extra cash.
a. Identify at least two revenues or costs that are relevant to making this decision.
Explain why each is relevant.
b. Identify at least two costs that would be considered sunk costs for this decision.
c. Comment on at least one qualitative consideration for this decision.
104. A restaurant is deciding whether it wants to update its image or not. It currently has a cozy appeal with an outdated décor that is still in good condition, menus and carpet that need to be replaced anyway, and loyal customers.
Identify for the restaurant management
a. those costs that are relevant to this decision,
b. those costs that are not differential,
c. and qualitative considerations.
105. Are relevant revenues and costs the only information needed by managers to select among alternatives? Explain using examples.
106. Explain the differences between a process layout, a product layout, and cellular manufacturing.
107. A motorcycle manufacturer is currently using a conventional processing system. Recently work-in-process has been piling up at two stations along the assembly line. To eliminate this problem, management discussed the possibility of implementing just-in-time
manufacturing. Discuss the advantages and concerns of implementing JIT.
108. In a just-in-time inventory system, explain
a. why suppliers become very important to the overall manufacturing process, and
b. what incentives can be offered to reward good suppliers.
109. Discuss the implications to employees of changing from a conventional manufacturing system to just-in-time production.
110. Discuss cost reductions that can result from reducing work-in-process inventory.
111. Snowboarding is a sport with a great amount of risk involved. On which type of quality costs should the snowboard manufacturer concentrate? Which costs should not be relied on? Explain why.
第七章管理会计基础
第一节 管理会计概述 第二节 产品成本核算概述 第三节 产品成本的归集和分配第四节 产品成本计算方法
第一节 管理会计概述
一、管理会计概念与管理会计体系 （一）管理会计概念与目标 【掌握】 （1）管理会计概念 管理会计是会计的重要分支，主要服务于单位（包括企业和行政事业单位，下同）内部管理需要，是通过利用相关信息，有机融合财务与业务活动，在单位规划、决策、控制和评价等方面发挥重要作用的管理活动。 （2）管理会计的目标 管理会计的目标是通过运用管理会计工具方法，参与单位规划、决策、控制、评价活动并为之提供有用信息，推动单位实现战略规划。
（3）管理会计的特点 和财务会计相比，管理会计有以下三个特定： 1、在服务对象方面 管理会计主要是强化单位内部经营管理、提高经济效益服务，属于“对内报告会计”； 财务会计主要是侧重于对外部相关单位和人员提供财务信息，属于“对外报告会计”。 2、在职能方面 管理会计侧重在“创造价值”，其职能是解析过去、控制现在、筹划未来的有机结合； 财务会计侧重在“记录价值”，通过确认、计量、记录和报告等程序提供并解释历史信息。 3、在程序与方法方面 管理会计采用的程序方法灵活多样，具有较大的可选性；财务会计通常方法固定。
（二）管理会计产生与发展 在西方，管理会计大致经历三个阶段： 一、1920~1950年代 ：成本决策与财务控制阶段 二、1950~1980年代 ：管理控制与决策阶段 三、1990~至今 ：强调价值创造阶段 在我国，引入较晚，但已在企业发挥作用： 包括：全面预算管理、平衡计分卡等绩效评价方法，作业成本法、标准成本法等成本管理方法在内的管理会计工具方法陆续在我国企业中得到运用，企业对管理会计的应用意识有所增强，应用水平有所提高。
第七章管理会计基础 第一节管理会计概述 一、管理会计概念与管理会计体系 1.概念：管理会计是会计的重要分支，主要服务于单位（包括企业和行政事业单位，下同）内部管理需要，是通过利用相关信息，有机整合财务与业务活动，在单位规划、决策、控制和评价等方面发挥重要作用的管理活动。 2.特点（与财务会计相比）： 3.管理会计至今大致经历了三个阶段 （1）20世纪20—50年代的成本决策与财务控制阶段 （2）20世纪50—80年代的管理控制与决策阶段 （3）20世纪90年代至今的强调价值创造阶段 4.主要任务和措施 （1）推进管理会计理论体系建设 （2）推进管理会计指引体系建设 （3）推进管理会计人才队伍建设 （4）推进面向管理会计的信息系统建设 二、管理会计指引体系 （一）管理会计基本指引 1.基本指引的定位和作用 管理会计基本指引在管理会计指引体系中起统领作用，是制定应用指引和建设案例库的基础。 【提示】不同于企业会计准则基本准则，管理会计基本指引只是对管理会计普遍规律和基本认识的总结升华，并不对应用指引中未做出描述的新问题提供处理依据。 2.原则和应用主题 单位应用管理会计，应当遵循以下原则： （1）战略导向原则 （2）融合性原则 （3）适应性原则 （4）成本效益原则 【提示】管理会计应用主体视管理决策主体确定，可以是单位整体，也可以是单位内
部的责任中心。 3.管理会计要素 单位应用管理会计，应包括应用环境、管理会计活动、工具方法、信息与报告四项管理会计要素。 （1）应用环境 管理会计应用环境是单位应用管理会计的基础，单位应用管理会计，首先应充分了解和分析其应用环境，包括外部环境和内部环境。外部环境主要包括国内外经济、社会、文化、法律、技术等因素，内部环境主要包括与管理会计建设和实施相关的价值创造模式、组织架构、管理模式、资源、信息系统等因素。 （2）管理会计活动 管理会计活动是单位管理会计工作的具体开展，是单位利用管理会计信息，运用管理会计工具方法，在规划、决策、控制、评价等方面服务于单位管理需要的相关活动。 （3）工具方法 管理会计工具方法是实现管理会计目标的具体手段，是单位应用管理会计师采用的战略地图、滚动预算管理、作业成本管理、本量利分析、平衡计分卡等模型、技术、流程的统称。 （4）信息与报告 管理会计信息包括管理会计应用过程中所使用和生成的财务信息和非财务信息，是管理会计报告的基本元素。 【提示】管理会计报告按期间可以分为定期报告和不定期报告；按内容可以分为综合性报告和专项报告等类别。单位可以根据管理需要和管理会计活动性质设定报告期间。一般应以公历期间作为报告期间，也可以根据特定需要设定报告期间。 （二）管理会计应用指引 在管理会计指引体系中，应用指引居于主体地位，是队单位管理会计工作的具体指导。（三）管理会计案例库 案例库是对国内外管理会计经验的总结提炼，是对如何运用管理会计应用指引的实例示范。 三、货币时间价值 （一）货币时间价值的含义 货币时间价值，是指一定量货币在不同时点的价值量差额。 例：某人将100万元存入银行1年，银行1年期存款利率为2%，则一年后可以从银行取得的本来和 =100+100×2%=102（万元）。 存入100万元，一年后取出102万元，多出的2万元即为货币时间价值，是货币进入社会再生产过程后的价值增值。 三、货币时间价值 （二）终值和现值 【提示】假定有关字母符号的含义如下：F为终值；P为现值；n为计算利息的期数,