Cost And Management Accountıng

Yanıt Açıklaması: Decisions related to the implementation of general plans and programs are called operational decisions.

Yanıt Açıklaması: Over the years, budgeting techniques have taken different forms in order to improve the efficiency of planning and executing the operations. Different approaches are developed for different companies, depending on the nature and variety of their operations. If the operations are suggested to incur cumulatively over the years, “incremental budgeting” is preferable; whereas “zero-based budgets” may be better for planning each year separate than the preceding one. On the other hand, companies with a high variety of activities may plan for and assess the performance of their operations by using the “Activity-Based Budgeting (ABB)” technique. As a philosophy of continuous improvement, it may be the best choice to apply kaizen budgeting instead of the other techniques.

Yanıt Açıklaması: Benefits of budgeting can be explained as follows: Efficient Resource Allocation Communication Coordination Performance Evaluation Time Management Motivation

Yanıt Açıklaması: There are many benefits that result from the preparation and use of budgets. For example, businesses can better coordinate their activities, employees become more cost conscious and try to conserve resources, the company reviews its organization plan and changes it when necessary, etc. Benefits of budgeting can be explained as follows: Efficient Resource Allocation Communication Coordination Performance Evaluation Time Management Motivation

Yanıt Açıklaması: The standard cost for direct materials has three facets as quality, quantity, and price.

Yanıt Açıklaması: Financial leverage, is the use of debt in financing the acquisition of new assets. By using debt financing, a return that is generated over equity is increased as well as the tax to pay decreases, because of interest expense.

Yanıt Açıklaması: Management accounting information system has many key qualities. These are: Relevance Reliability Comparability Understandability

Yanıt Açıklaması: How companies price their products or services are mainly based on supply and demand for products and services. However, on supply and demand,there areeffects of customers, competitors, costs and political and legal regulations. For this reason, businesses should take these four factors into consideration while making pricing decisions. Customer Demands Impacts of the Competitors Costs Political and legal regulations

Yanıt Açıklaması: In order to use their time more effectively, managers separate the deviations as significant and insignificant deviations and follow up only the material ones. This is called management by exceptions.

Yanıt Açıklaması: Businesses should take these four factors into consideration while making pricing decisions (Kaygusuz and Dokur, 2012: 235). Customer Demands Impacts of the Competitors Costs Political and legal regulations

Yanıt Açıklaması: The costing methods by the scope of product cost coverage are; • Full Costing Method • Normal Costing Method • Variable Costing Method • Direct Costing Method • Throughput Costing Method

Yanıt Açıklaması: Under the time-based system, the important point is the time that employee spends at work. The measure of time can be the hour, day, week or month. Under this system, productivity is ignored, only time is considered.

Yanıt Açıklaması: Compute output in terms of total cost is not one of them

Yanıt Açıklaması: The correct answer is option E. Direct labor costs incurred in a service company are tracked by 740 Cost of Production of Services account.

Yanıt Açıklaması: Overtime work is defined in the Labor Act of Turkey Law no. 4857. Article 41 states that overtime work is work which exceeds forty-five hours a week.

Yanıt Açıklaması: The accounting system, in which standard costs and associated variances are recorded in the formal accounting records is called the “standard costing”.

Yanıt Açıklaması: Traditional standard costing systems are blamed for focusing too much on the efficiency of direct labor, which loses its relative value in modern production systems. Therefore, this is not one of the benefits; it shows a drawback.

Yanıt Açıklaması: Strong cost is not one of them

Yanıt Açıklaması: Differential cost is the difference in total cost that will arise from the selection of one alternative to the other

Yanıt Açıklaması: A budget represents the detailed plan of how the company will acquire and use financial and other resources during the following budget period. It includes both financial and non-financial aspects to better guide the operations and project their results. In terms of planning, budgets translate the goals and strategies into operational terms for the corresponding time span, usually a fiscal year. In summary, budgets are the statements that quantitatively represent the management’s plans for a specific period of time. As also understood from the information given, the statements in the options I, II, III and IV are correct, so the correct anser is D. The statement in the option V is not correct because of the fact that budget is a quantitative expression of the managements’ plans for a specific period of time, either in physical or financial terms or both.