Accounting for Decision Making and Control for the 9th Edition-Solution Manual

Managerial Accounting and Control Solution Manual for the 9th Edition

PART II:  ANSWERS TO ISSUES AND SCENARIOS

Chapter 1

Overview

Issue 1–1:             Answers for MBA Students (10 minutes)

[Utilizing financial data for decision-making and oversight]

The two viewpoints collectively spotlight the polarities in the trade-offs of utilizing financial data for decision-making and oversight. In the initial instance, there is more scrutiny of alternative expenses that are challenging to quantify using typical financial data. In the subsequent instance, there is less intended emphasis on alternative expenses and a greater focus on oversight.

Issue 1–2:             Answers for Insufficiency of One Expense System (15 minutes)

                        [Economic Competitiveness]

The initial segment of the statement depicts the conflict and tension that emerge when a singular accounting system is employed for various objectives. This aspect of the declaration accurately delineates practical implications. Nevertheless, the statement encounters a few dilemmas, such as:

• While the statement delineates the drawbacks of utilizing a singular system (“a single system … can’t perform important managerial functions adequately”), it overlooks the advantages derived from utilizing a single system (reduced accounting costs, streamlined audit processes, reduced perplexity).
• Since the statement disregards the advantages of a singular system, it fails to acknowledge the principle of economic competitiveness. It sidesteps the query of how flourishing (prosperous) entities can compete if a singular system “can’t perform important managerial functions adequately.”
• Additionally, the statement presumes that administrators are confined to their internal accounting systems, neglecting other alternative sources of information. Routinely, administrators devise their personalized ad hoc, “offline” information systems for decision-making. These systems incorporate spreadsheets, informal observations, and “strategic wandering.”

Finance-Related Exam Resources

Solution Manual For Financial Information Systems 12th Edition By Romney Paul

Test Bank For Financial Information System 1st Edition by Vernon Richardson