Reference no: EM132921082

Question - The Inground Sprinkler Supply sells sprinkler systems suited for large or small yards. The company has decided to adopt an activity-based costing system. Last year the company incurred $1,000,000 in overhead costs related to the following activities: Activity Allocation Base Overhead Cost Purchasing number of purchase orders $ 350,000 Material handling number of shipments received 200,000 Quality inspection number of inspections 450,000 The activities for large and small yard systems were as follows: Large Small purchase orders 15,000 20,000 shipments received 7,500 12,500 inspections 11,500 11,000.

1. If a customer requested a bid on a specially designed sprinkler that would probably require four inspections, how much quality inspection overhead would you include in the bid?

2. Explain how managerial accountants help managers plan, control, and evaluate.

3. How do the subject matter of reports and the verification of reports differ between financial accounting and managerial accounting?

4. What is the purpose of management accounting?

5. Who are the primary users of the information gathered by managerial accountants?

6. What are the key differences between financial accounting and managerial accounting?

7. Other than accounting skills, what six qualities must be prevalent in a managerial accountant?

8. Explain how having more than one of the accounting credentials would be beneficial to an accounting career.

9. If there are deviations from the stated goals and objectives, what steps can managers take to get back on track? Provide at least two specific examples.

10. What are some activities and tasks a manager might perform when engaging in the controlling function of management responsibilities?