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Accounting for Decision Making

Discussion question #1 : You notice several members of the manufacturing production area using reports not created by the accounting department. What might some of the symptoms be that is causing this? how can it be corrected?

Discussion question # 2 : Why is the relevant range important? What happens to costs if they greatly exceed the upper range of the relevant range?

Discussion question # 3: What are cost drivers? Give at least three examples of cost drivers used by your employer in your local unit.

Discussion question # 4: CVP relationships are unimportant in nonprofit organizations. Do you agree? Explain?

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Discussion question #1 : You notice several members of the manufacturing production area using reports not created by the accounting department. What might some of the symptoms be that is causing this? how can it be corrected?
1. The members of the manufacturing production may have found the reports created by the accounting department too long and difficult to fill.
2. The production people may be viewing the accountants with distrust.
3. The production managers may be issuing custom made forms to the production people.
4. The reports created by the accounting department may not be suitable for manufacturing data.
5. The accounting department may not be fully cognizant of the needs of the manufacturing production area. Needless information may be required by reports created by the accounting department.
This situation can be corrected by:
1. Developing new forms in consultation with the production people;
2. Involving the production managers in the development of forms;
3. Ascertaining the needs of the production department before development of ...

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