T. Turnover due to low job satisfaction may be desirable if it facilitates the introduction of new ideas into the firm if downsizing due to attrition reduces the size of the workforce if it frees up positions to allow for promotion from within O a, b & c turnover is never desirable; it is a costly behavior to the firm and should be kept to a minimum

T. Turnover due to low job satisfaction may be desirable if it facilitates the introduction of new ideas into the firm if downsizing due to attrition reduces the size of the workforce if it frees up positions to allow for promotion from within O a, b & c turnover is never desirable; it is a costly behavior to the firm and should be kept to a minimum

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter10: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 7DQ: (a) Explain how return on investment might lead a divisional manager to reject new investments that...

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Which of the following statements are false? SELECT ALL THAT APPLY a. One of the dangers of allocating common fixed costs to a product line is that such allocations can make the line appear less profitable than it really is. b. A new fixed cost that must be paid if a special offer is accepted is not relevant in making the decision. c. A cost that will be incurred regardless of which course of action a manager takes is relevant to the manager's decision. d. Your Company is considering replacing Machine X. The original cost of Machine X is not relevant to this decision.
Why might relevant costs analysis be bad for a company if used too frequently? Multiple Choice It overemphasizes short-term goals and neglects long-term goals. It complicates the job of managers. It focuses too much on strategy and not enough on financial measures. It could lead to a permanent change in the production process of the company. It overemphasizes long-term goals and neglects short-term goals.
Criticisms of return on investment as the only performancemeasure include:a. ROI focuses on short-term decisions.b. ROI is focused on only one component of the value chain.c. Managers evaluated based only on ROI are sometimesmotivated not to make an investment that is in the bestinterest of the organization as a whole.d. All of the above.
Which of the following is NOT one of the common exit barriers? Select one: O a. A high return unit may provide input for low-return units so the firm may not like to quit high-return business. O b. Emotional attachment to the business may ruin if the company does not exit the business for sentimental reason O. The cost of exit is high. The terminal benefits of redundant workers are high O d. Investment in plant and machinery has no alternative use and cannot be sold off
Why would a company want to provide job applicants with a balanced, honest, and realistic portrayal of a job position? a. To discourage candidates b. To increase recruitment costs c. To prevent negative postings on social media d. To reduce turnover
1)What is cost behavior analysis? and Why is cost behavior analysis important to management? 2)“Break-even analysis is of limited use to management because a company cannot survive by just breaking even.” Do you agree? Agree or not agree, please describe your line of reasoning.
2. What are some possible drawbacks to using standard costs that Sarah might consider? a. Standards limit operating improvements because employees may be discouraged from improving beyond the standards. b. Standards may become “stale” in a dynamic manufacturing environment. c. Employees may focus only on efficiency improvement and their own operations rather than considering the larger objectives of the organization. d. Since standards are impossible to attain, they are a distraction from the work at hand. e. Since standards never change, they do not reflect reality.
2. What are some possible drawbacks to using standard costs that Sarah might consider? a. Standards limit operating improvements because employees may be discouraged from improving beyond the standards. b. Standards may become “stale” in a dynamic manufacturing environment. c. Employees may focus only on efficiency improvement and their own operations rather than considering the larger objectives of the organization. d. Since standards are impossible to attain, they are a distraction from the work at hand. e. Since standards never change, they do not reflect reality. Answers a, b and c b, c and d c, d and e a, d and e b, d and e
Explain with an example why managers find it difficult to adopt a decision alternative even when the relevance cost analysis shows the superiority of this decision alternative to maximize operating income over other decision alternatives. What might the company do to reduce the pressure on management and decrease the ethical conflict?
When a company is decentralized, top management will have little time to focus on long-term strategy because they will be too focused on managing day to day operations. True O False Select all of the below that are advantages of decentralization. Decentralization allows companies to duplicate costs. Decentralization provides training. Decentralization improves customer and supplier relations. Decentralization improves motivation and retention.
Break-even analysis is of limited use to management because a company cannot survive by just breaking even." Do you agree with this statement? Please explain. Discuss the components of the Contribution Margin Income Statement, how does management use this in the decision making process?
(a) Explain how return on investment might lead a divisional manager to reject new investments that could be profitable for the company as a whole. (b) How can this disadvantage be overcome?