Accounting 101

Chapter 1 Homework

#31:

1. Saab Automobile – Production Decision the management accountant would have to evaluate the decision to outsource the product or cost to make it in-house. Based on his cost findings he could make a decision.

2. Boeing Company – Management accountant would take the lead role on this decision. They would decide most profitable price and how to sell them online.

3. St. Mary’s Hospital – Management Accountant would take leadership role. He would have to decide if they can afford the new equipment.

4. Amazon.com – management accountant would take lead role. They would analyze how the new program will affect sales based on different viewpoints.

5. Mission Foods – Production Decision. They would have to consider their capacity of production and if the special order will affect their normal product/sales pattern.

6. Kmart – This would be a management account leadership role. They would have to perform a SWOT analysis for all companies involved. This would give them a start to the analysis.

7. Dell Computers – This would be a management accountant issue. They would have to evaluate the cost of training vs additional profits from higher production.

8. Ford Motor Company – Management account would take on leadership role. They would need to evaluate overall cost vs ROI. They would need to work with production management to make the final decision.

#36: Objectives of Management Accounting

Prepare 100 word descriptions of the principle ways that accountants participate in managing an entity?

Management accounting participates in a very different manor then a traditional financial accountant. Typically management accounts produce information for managers with the organization. They identify, process, measure and analyze information that helps internal management set organization goals and targets. They do not have many constraints other than the requirement of improved management decisions to exceed cost of information....