财务会计英文版课后习题答案Ch15.docx

财务会计英文版课后习题答案Ch15.docx

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财务会计英文版课后习题答案Ch15

CHAPTER15

DISCUSSIONQUESTIONS

1.DonaldsonBrowndevelopedtheideaofusingthereturnoninvestment（ROI）formulatoevaluatethefinancialperformanceofthedifferentdivisionsofacompany.Thisideawasrevolutionarybecauseitcametobewidelyusedbymanagementindiscoveringandanalyzingproblemsacrosslargeanddiverseorganizations.Itcontinuestobeheavilyusedtodayasavaluablemanagementtoolinanyindustry.

2.Managementaccountingprovidesmanytoolsthatenablemanagerstoaccuratelyanalyzeandevaluatecompanyperformance.Thesetoolsenablemanagerstopinpointproblems.Oncemanagersidentifyproblems,theycanplanandimplementstrategiestofixtheproblemsandgainacompetitiveadvantage.Also,anunderstandingofthevariouscostconceptsallowsmanagerstomakecorrectcostingandpricingdecisions,whichcanresultinagreatcompetitiveadvantage.

3.Managementaccountinginformationcanhelpcompaniestobecompetitiveandprofitablebecauseithelpsmanagersunderstandproductcostsandothercostsandhowchangesinvolume,prices,andotherfactorswillaffectprofitability.Withmoreaccurateinformation,managementknowswheretocutcosts,whereproductivityshouldbeincreased,andsoforth.

4.Managers（internaldecisionmakers）usedifferenttypesofaccountinginformationthandoinvestorsorcreditors（outsidedecisionmakers）partlybecausetheymakedifferenttypesofdecisions.Moreimportantly,managementaccountingprovidesmuchmoredetailedandproprietaryinformationtocompanymanagerscomparedtotheinformationprovidedbyfinancialaccountingtooutsideinvestorsandcreditors.Manyexamplescanbeusedtoillustratethedifferencesbetweenfinancialandmanagementaccounting.Twomajordifferences—timefocusandsegments—arediscussedindetailhere.Managerswillspendalotofeffortprojectingtheprofitabilityof

potentialdecisionsonsalesbyassessingtheimpactofvariableandfixedcosts（suchasadvertisingexpenditures）.Ontheotherhand,aninvestordoesn’thaveaccesstovariableandfixedcostdataandsowillanalyzethesalestrendinprioryears'incomestatements（pasttimefocus）toevaluatethecompany'sgrowthpotential.Amanagerwouldneedtoknowtheprojectedsalesofaparticularproduct（segment）todecidehowmanyunitstopurchaseorproduce,whileaninvestorwouldbeinterestedintotalsales（wholeorganization）tocomparethecompanytoothersintheindustry.

5.Wewoulddisagreewiththestatementfortworeasons.First,managersrealizethatoutsideinvestorsandcreditorsmakeinvestmentandlendingdecisionsbasedinpartuponthesefinancialstatements.Iftheorganizationneedstoraisecapital,itsfinancialperformance（asmeasuredbythesestatements）mustbefavorable.Second,externalfinancialstatementsarealsosignalsformanagementaction.Ifprofitsarefallingordebtisbecomingtoohighasapercentageoftotalequity,managementmustdecideonacourseofactiontoimprovefutureperformance（asmeasuredbythesefinancialstatements）.

6.Externalusersoffinancialstatementsneedassurancethatthestatementswerepreparedusingconsistentmeasurements.Theadherencetogenerallyacceptedaccountingprinciples（GAAP）inthepreparationofthestatementshelpstoassuretheuserthatthisyear'sstatementsarepreparedonabasisconsistentwiththatoflastyear's.Also,followingGAAPhelpstheusertojudgewhetheronecompany'sperformanceiscomparablewithanothercompany's.Internalusersarelessconcernedaboutcomparingtheircompany'sperformancewiththatofothercompanies.Asapracticalmatter,sufficientlydetailedoperatinginformationonothercompaniesisgenerallynotavailabletofacilitatethecomparisonsmanagementmightliketomake.Further,sincemanagerscanrequestinternalinformationfollowingacustomizedformat,theyareobviouslylessconcernedthatreportformatsareconsistentacrossdifferentdecisions.Forexample,amanagercouldrequestthattheinventoryofeachsegmentberevaluedatcurrentreplacementcost.Suchaninternalreportwouldbelabeledwiththeappropriateassumptions,andthemanagerwouldknowthatthemeasurementhadbeenadaptedinordertoberelevanttotheneedsofaparticulardecision.

7.Planningisdefinedasoutliningtheactivitiesthatneedtobeperformedforanorganizationtoachieveitsobjectives.Planningconsistsofrecognizingneedsand/oropportunities,identifyingandevaluatingthealternatives,andimplementingdecisions.

Controllingisdefinedasmonitoringtheexecutionofplans.Controllingconsistsofestablishingexpectations,creatingperformancemeasures,gatheringresults,andcomputingvariances.

Evaluatingconsistsofanalyzingtheresultsofaproject,providingfeedbacktothosewhoparticipatedintheproject,andrewardingperformance.Afterevaluatingprojects