11 Jan “Organizations typically
Week 1 discussion
DQ1
Variable Overhead Costs
How do managers decide on what basis to determine variable overhead costs and fixed overhead costs?
DQ2
Flexible Budgets and Activity-Based Costing
Can the flexible-budget variance approach for analyzing overhead costs be used in activity-based costing? If yes, why? If no, why not?
Week 2 discussion
DQ1
Customer Profitability
If a customer-profitability profile can highlight more profitable customers from less profitable customers, should this information be used to drop certain customers in an effort to improve profitability?
DQ2
Sales Variances
What insights might managers gain into the causes of a sales-volume variance by subdividing it into components covered in this chapter?
Week 3 discussion
DQ1
Cost Behavior
“High correlation between two variables means that one is the cause and the other is the effect.” Do you agree? Explain.
DQ2
Pricing Decisions
“Relevant costs for pricing decisions are full costs of the product.” Do you agree? Explain.
Week 4 discussion
DQ1
Relevant Costs
“Variable costs are always relevant, and fixed costs are always irrelevant.” Do you agree or disagree? Why?
DQ2
Costs of Quality and Constraints
“Companies should focus on financial measures of quality because these are the only measures of quality that can be linked to bottom-line performance.” Do you agree or disagree? Explain.
Week 5 discussion
DQ1
Spoilage, Rework, and Scrap
What are spoilage, rework, and scrap, and how are they accounted for under job order versus process costing systems? Why are they treated differently?
DQ2
EOQ—Is It Perfect?
How can companies reduce the conflict between the EOQ decision model and models used for performance evaluation?
Week 6 discussion
DQ1
Capital Budgeting
“Capital budgeting has the same focus as accrual accounting.” Do you agree or disagree? Explain.
DQ2
Discounted Cash Flows
What is the essence of the discounted cash flow methods?
Week 7 discussion
DQ1
Divisions and Differences
“Organizations typically adopt a consistent decentralization or centralization philosophy across all their business functions.” Do you agree or disagree? Explain.
DQ2
Evaluation Issues
“Residual Income is not identical to ROI, although both measures incorporate income and investment into their computations.” Do you agree or disagree? Explain.
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