Critical Thinking

1. Is it possible to make good decisions without thinking critically? Why or why not? 2. How would you determine when short term or long term goals should drive a decision? 3. What is the relationship between critical thinking (CT) and ethics? NOTE: Response should include an example

opinion required

Judy Burkett, an able mechanical engineer, was informed that she would be promoted to assistant factory manager. Judy was pleased but uncomfortable. In particular, she knew little about accounting. She had taken a course once in financial accounting. Judy planned to enroll in a management accounting course as soon as possible. Meanwhile, she asked you, a cost accountant, to describe the functions of managerial accounting and state three or four principal distinctions between financial and management accounting. Prepare your written response to Judy.

Accountants as Internal Consultants

Marmon Company is a collection of more than 100 different operating companies with revenues of more than $6 billion. Its member companies manufacture such diverse products as copper tubing, water purification products, railroad tank cars, and store fixtures, and they provide services such as credit information for banks. This page {see attached} describes the role of accountants in Marmon. Others have described accountants as "internal consultants." 1. Discuss how accountants at Marmon can act as internal consultants. 2. What kind of background and knowledge would an accountant require to be an effective internal consultant? 3. Data gathered by accountants is not only used intern... click for more

Preparing for Reduced Budgets; Discretionary / Committed Costs

Dr. Stephanie White, the Chief Administrator of Uptown Clinic, a community mental health agency, is concerned about the dilemma of coping with reduced budgets next year and into the foreseeable future, but increasing demand for services. In order to plan for reduced budgets, she must first identify where costs can be cut or reduced and still keep the agency functioning. Attached are some data from the past year. 1. Identify which costs you think are likely to be discretionary or committed costs. 2. One possibility is to eliminate all discretionary costs. What do you think of this recommendation? 3. How would you advise Dr. White to prepare for reduced budgets?

Activity Based Costing in the Information Age

Activity based costing systems provide a much more accurate picture of product costs than do traditional product costing systems. This exercise focuses on an article presented on the Web site of the ACA Group, an alliance of highly trained and experienced consultants and instructors. The ACA Group provides in-house training, management consulting, and systems installation. You may recognize the names of some of the Group's clients including General Motors, Nissan Motor Company, Hughes Aircraft Company, Dole Packaged Foods, Gillette, Xerox, Gateway, and Anheiser Busch. The title of the article used for this exercise is entitled "Activity based Costing in the Information Age": http://www.thea... click for more