12 questions in accounting due today. Questions are not related and should be answered separately along with the correlating question number on top and citation on the bottom. 5 references are required.
Describe the two assumptions used in cost estimation behavior. Give an example of one of the assumptions.
Question…with so much data to analyze and use, how important is precision in the collection of data? Anyone?
Hello everyone! I found the below linked article about estimating health care costs and thought it would be a good example to discuss in class! As you read this article on insurance companies’ attempt to identify costs in an effort to ease their cost estimation, think about whether the cost drivers presented are suitable or if other cost drivers would be more adequate, given the industry. Please post your thoughts:-) Anyone?
Hello everyone! Let’s say that a company invests considerable time and money to develop sophisticated cost functions that rate high on all evaluative criteria. In the course of using the cost functions, a manager notes that in several instances the actual costs were different from the predicted costs, resulting in lower profits during one quarter of the year…. The question of the value of the cost function is asked. Give some suggestions on how to answer the manager! Anyone?
I am also thinking…What are the methods that could be used to estimate a cost function assuming that no historical data exists? Anyone?
Your suggestions would be benchmarking! In my opinion, this is a very under-utilized method in collecting data when no historical data exists internally Your thoughts, anyone? Also, what other methods are listed in our readings?
Discuss how REA diagrams might be useful to auditors in understanding a client’s business processes. What if the client hasn’t prepared them in advance? What basic steps would the auditor perform to compile the information necessary to build the diagram him or herself? Does that time investment produce large enough benefits to the auditor? Explain your answer.
Class: Is there a difference between an Activity and an Entity? Explain your response.
Class: Using an academic organization as a model, describe an example of a MANY-to-MANY relationship.
Discuss why there cannot be one basic REA diagram that would work for all businesses. What might be some areas that could be similar from business to business? Select either the company for which you work or one that interests you. Describe the business processes that are unique to that company or industry that would require special handling in an REA diagram.
Class: Does every database table require a primary key? Explain why or why not and provide an example to support your response.
Constantly checking the AIS system is very important due to various reasons, including the need to comply with laws and regulations, and business rules. For instance, an auto apportionment (allocation) method should be reviewed to ensure that the variables (eg. store space, volume, or cost drivers for activity-based costing) have not changed. Else, there will be incorrect allocation of overheads. The database management system is part of the AIS, and it is critical for data storage and retrieval.
Class: Discuss some of th