Critical Thinking

Pick any major television network and describe some planning and control activities that its managers would engage in.
If you had to decide whether to continue making a component part or to begin buying the part from an overseas supplier, what quantitative and qualitative factors would influence your decision?

Why is managerial accounting relevant to business and accounting majors and their future careers?

Why do management accountants need to understand their company’s strategy?

Pick any large company and describe three risks that it faces and how it responds to those risks. Provide three examples of how a company’s risks can influence its planning, controlling, and decision-making activities.

Pick any large company and explain three ways that it could segment its companywide performance.

Locate the website of any company that publishes a corporate social responsibility report (also referred to as a sustainability report). scribe three nonfinancial performance measures included in the report. Why do you think the company publishes this report?

Why do companies that implement Lean Production tend to have minimal inventories?

Why are leadership skills important to managers?

Why is ethics important to business?

Managers often assume a strictly linear relationship between cost and volume. How can this practice be defended in light of the fact that many costs are curvilinear?

“As a practical matter, planning and control mean exactly the same thing.” Do you agree? Explain.

Describe the flow of budget data in an organization. Who are the participants in the budgeting process, and how do they participate?

How can budgeting assist a company in planning its workforce staffing levels?

“The principal purpose of the cash budget is to see how much cash the company will have in the bank at the end of the year.” Do you agree? Explain.

What is the difference between delivery cycle time and throughput time? What four elements make up throughput time? What elements of throughput time are value-added and what elements are non–value-added?

Why do the measures used in a balanced scorecard differ from company to company? Why does the balanced scorecard include financial performance measures as well as measures of how well internal business processes are doing?

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