Chapter 1 solutions EXERCISES 1-16 (15 min.) Value chain and classification of costs, computer company. Cost Cost Ite Item m a. b. c. d. e. f.
g. h. 1-1!
(15 min.) Value chain and classification of costs, pharmaceutical company. Cost Cost Ite Item m a. b. c. d. e. f. g. h.
1.1"
Value lue Chai Chain n Busi Busine ness ss un unct ctio ion n Production Distribution Design of products and processes Research and development Customer service or marketing Design of products and processes (or research and development) Marketing Production
Value lue Chai Chain n Busi Busine ness ss un unct ctio ion n Marketing Design of products and processes Customer service Research and development Marketing Production Marketing Distribution
(15 min.) Value chain and classification of costs, fast-food restaurant. Cost Cost Ite Item m a. b. c. d. e. f. g. h.
Value lue Chai Chain n Busi Busine ness ss un unct ctio ion n Production Distribution Marketing Marketing Marketing Production Design of products and processes (or research and development) Customer service
1-1#
(1 min.) $ey success factors. Chan%e in &perations' (ana%ement )ccountin% a. b. c. d. e.
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(1 min.) $ey success factors. Chan%e in &perations' (ana%ement )ccountin% a. b. c. d. e.
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ecision Planning Control Control Planning Planning
(1&15 min.) lannin% and control decisions. )ction a. b. c. d. e.
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$ey Success actor $ime and cost and efficienc" $ime and cost and efficienc" %ualit" and cost and efficienc" !nnovation and #ualit" Cost and efficienc"
(1&15 min.) lannin% and control decisions. )ction a. b. c. d. e.
1-**
$ey Success actor !nnovation Cost and efficienc" and #ualit" $ime $ime and cost and efficienc" Cost and efficienc"
ecision Planning Control Planning Planning Control
(15 min.) i/e-step decision-ma0in% process, manufacturin%. )ction
Step in ecision-(a0in% rocess
a. b. c. d. e. f. g.
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(15 min.) i/e-step decision-ma0in% process, ser/ice firm. )ction a. b. c. d. e. f.
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'btain information. Make predictions about the future. !dentif" the problem and uncertainties. !mplement the decision evaluate performance and learn. Make predictions about the future. Make decisions b" choosing among alternatives. 'btain information.
Step in ecision-(a0in% rocess Make decisions b" choosing among alternatives. !dentif" the problem and uncertainties. 'btain information andor make predictions about the future. 'btain information andor make predictions about the future. Make predictions about the future. 'btain information.
(1&15 min.) rofessional ethics and reportin% di/ision performance.
1. Mende*+s ethical responsibilities are ,ell summari*ed in the !M-+s /tandards of 0thical Conduct for Management -ccountants (02hibit 134 of te2t). -reas of ethical responsibilit" include the follo,ing • • • •
Competence Confidentialit" !ntegrit" Credibilit"
$he ethical standards related to Mende*+s current dilemma are integrit" competence and credibilit". 6sing the integrit" standard Mende* should carr" out duties ethicall" and communicate unfavorable as ,ell as favorable information and professional 7udgments or opinions. Competence demands that Mende* perform her professional duties in accordance ,ith relevant la,s regulations and technical standards and provide decision support information that is accurate. Credibilit" re#uires that Mende* report information fairl" and ob7ectivel" and disclose deficiencies in internal controls in conformance ,ith organi*ational polic" andor applicable la,. Mende* should refuse to book the 89 of sales until the goods are shipped. :oth financial accounting and management accounting principles maintain that sales are not complete until the title is transferred to the bu"er. 9. Mende* should refuse to follo, Dalton+s orders. !f Dalton persists the incident should be reported to the corporate controller. /upport for line management should be ,holehearted but it should not re#uire unethical conduct.
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(1&15 min.) rofessional ethics and reportin% di/ision performance.
1. ;ilson+s ethical responsibilities are ,ell summari*ed in the !M-+s /tandards of 0thical Conduct for Management -ccountants (02hibit 134 of te2t). -reas of ethical responsibilit" include the follo,ing • • • •
Competence Confidentialit" !ntegrit" Credibilit"
$he ethical standards related to ;ilson+s current dilemma are integrit" competence and credibilit". 6sing the integrit" standard ;ilson should carr" out duties ethicall" and communicate unfavorable as ,ell as favorable information and professional 7udgments or opinions. Competence demands that ;ilson perform his professional duties in accordance ,ith relevant la,s regulations and technical standards and provide decision support information that is accurate. Credibilit" re#uires that ;ilson report information fairl" and ob7ectivel" and disclose deficiencies in internal controls in conformance ,ith organi*ational polic" andor applicable la,. ;ilson should refuse to include the 815 of defective inventor". :oth financial accounting and management accounting principles maintain that once inventor" is determined to be unfit for sale it must be ,ritten off. !t ma" be 7ust a timing issue but reporting the 815 of inventor" as an asset ,ould be misleading to the users of the compan"+s financial statements. 9. ;ilson should refuse to follo,
