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TEST BANK For Managerial Accounting: Creating Value in a Dynamic Business Environment, 13th Edition by Hilton | Verified Chapter's 1 - 17 | Complete$22.49
TEST BANK For Managerial Accounting: Creating Value in a Dynamic Business Environment, 13th Edition by Hilton | Verified Chapter's 1 - 17 | Complete Chapter 1: The Changing Role of Managerial Accounting in a Dynamic Business Environment Chapter 2: Basic Cost Management Concepts Chapter 3: Product C...
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,CHAPTER 1 CT
The Crucial Role of Managerial Accounting in a D
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ynamic Business Environment CT CT
FOCUS ON ETHICS (Located before the Chapter Summary in the text.)
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The focus-on-
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ethics inset for Chapter 1 is the IMA Statement of Ethical Professional Practice. Instructors can
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use this list of ethical principles and standards to lead a class discussion. The discussi
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on can also range to consideration of how these standards may have been violated b
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y accountants and managers involved in the various ethical scandals uncovered over the
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past several years. It is also useful to discuss the pros and cons of the procedures that I
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MA suggests for its members when they believe they know about ethical lapses in their or
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ganizations.
ANSWERS TO REVIEW QUESTIONS CT CT CT
1-1 The explosion in e-
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commerce will affect managers in significant ways. One effect will be a drastic re
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duction in paper work. Millions of transactions between businesses are now being
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conducted electronically with no hard- CT CT CT CT
copy documentation. Along withthis method of communicating for business trans
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actions comes the very significant issue of information security. Businesses need t
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o find ways to protect confidential information in their own computers, in cloud
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computing data centers, and while moving across the internet, while at the sa
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me time sharing the information necessary to complete transactions. Another effect
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of e- CT
commerce is the dramatically increased speed with which business transactions ca
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n be conducted. In addition, there will be dramatic changes in the way managerial a
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ccounting procedures are carried out, one example being cloud-
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based budgeting, which is the enterprise-
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wide and electroniccompletion of a company’s budgeting process using cloud-
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based software and data storage.
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, 1-2 Plausible goals for the organizations listed are as follows:
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(a) Amazon.com: (1) To achieve and maintain profitability, and (2) to grow on-
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line sales of their many products. Amazon is also famous (infamous) for wantin
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g to have every product in the world on its site.
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(b) American Red Cross: (1) To raise funds from the general public sufficient to ha
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ve resources available to meet any disaster that may occur, and (2) to provi
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de assistance to people who are victims of a disaster anywhere in the world on shor
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t notice.
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(c) General Motors: (1) To earn income sufficient to provide a good return on t
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he investment of the company's stockholders, and (2) to provide the highest-
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quality product possible. CT CT
(d) Wal-
Mart: (1) To penetrate the retail market in virtually every location in the United State
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s, and (2) to grow over time in terms of number of retail locations, total assets, a
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nd earnings. Also, to be competitive with Amazon in the e-retail space.
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(e) City of Seattle: (1) To maintain an urban environment as free of pollution a
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s possible, and (2) to provide public safety, police, and fire protection to the cit
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y's citizens.
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(f) Hertz: (1) To be a recognizable household name associated with rental car
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services, and (2) to provide reliable and economical transportation services to the co
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mpany's customers. CT
1-3 The four basic management activities are listed and defined as follows:
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(a) Decision making: Choosing among the available alternatives.
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(b) Planning: Developing a detailed financial and operational descriptio
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n ofanticipated operations.
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(c) Directing operations: Running the organization on a day-to-day basis.
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(d) Controlling: Ensuring that the organization operates in the intended manne
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r andachieves its goals.
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