What are some differences between financial and managerial accounting?
What does the value-added principle mean as it applies to managerial accounting information? Give an example of value-added information that may be included in managerial accounting reports but is not shown in publicly reported financial statements.
What are the two dimensions of a total quality management (TQM) program? Why is TQM being used in business practice? (Appendix B)
How does product costing used in financial accounting differ from product costing used in managerial accounting?
What does the statement “costs can be assets or expenses” mean?
Why are the salaries of production workers accumulated in an inventory account instead of being expensed on the income statement?
How do product costs affect the financial statements? How does the classification of product cost (as an asset vs. an expense) affect net income?
What is an indirect cost? Provide examples of product costs that would be classified as indirect.
How does a product cost differ from a general, selling, and administrative cost? Give examples of each.
Why is cost classification important to managers?
What is cost allocation? Give an example of a cost that needs to be allocated.
How has the Institute of Management Accountants responded to the need for high standards of ethical conduct in the accounting profession?
What are some of the common ethical conflicts that accountants encounter?
What costs should be considered in determining the sales price of a product?
What is a just-in-time (JIT) inventory system? Name some inventory costs that can be eliminated or reduced by its use.
What does the term reengineering mean? Name some reengineering practices. (Appendix B)
What does the term activity-based management mean? (Appendix B)
What is a value chain? (Appendix B)
What do the terms value-added activity and nonvalue-added activity mean? Provide an example of each type of activity. (Appendix B)
