Cost Structure, Op Leverage, and Indifference Points
Cost Structure and Profit Stability Which cost structure is more stable or more profitable? A higher proportion of variable costs or a higher proportion of…
Cost Structure, Op Leverage, and Indifference Points
Four Primary Ethical Issues Relating to Management Accountants
1. Competence: Management accountants have a responsibility to perform their professional duties in accordance with relevant laws and regulations and to keep abreast of current…
Practical Considerations in Resolving an Ethical Conflict
• The first step is to discuss the problem with your immediate superior unless it appears this individual is involved in the conflict. • Communication…
Use of Multiple Overhead Rates
If all production departments in a manufacturing business have the same mix of labour and machines, and all jobs require the same amount of work…
Disposal of Under/Over Applied Overhead
There are two methods of closing out the under or over applied balance in the MO account at the year-end. 1. Close the balance out…
Types of Relevant Cost Decisions
1. Accept/Reject a Special Order Special orders are one-time orders from non-regular customers usually at a price below normal selling price. They may be orders…
Accounting for Costs Relating to Idle Time, Overtime Premium, and Employee Benefits
Idle Time Idle time represents the labour cost of direct labour employees who are unable to perform their assigned duties due to machine breakdowns, material…
Linking the Reward System to Strategically Relevant Performance Outcomes
1. The most dependable way to keep people focused on strategy execution and the achievement of performance targets is to generously reward and recognize individuals…
Striking the Right Balance Between Rewards and Punishment
1. While most approaches to motivation, compensation, and people management accentuate the positive, companies also embellish positive rewards with the risk of punishment. 2. As…
Strategy-Facilitating Motivational Practices
1. Financial incentives generally lead the list of motivating tools for trying to gain wholehearted employee commitment to good strategy execution and operating excellence. 2….