Accounting Cases- Kaplan
Chapter 1
Question 1.1
When Mr. Drucker says, "Be data literate" he means that one should know how to use data effectively to the company 's benefit. There are two challenges that one faces in attempting to be data literate. The first challenge is deciding what information to use, what is should be used for and how it should be used. The second challenge is how to test and put the data together with the existing information system to make them effective in a company 's decision process. The most difficult challenge will be bringing the computer based data processing and the accounting system together to ensure the most beneficial decisions for a company.
Question 1.2
The best combination of paradigms for the 21st century as Ferrara sees it is a combination of Paradigms C and D. This may even be amplified by adding elements of Paradigm B. Although Paradigm D is effective and efficient it is not sufficient alone. Paradigm D uses the concept of price led costing and focuses on the issue of continuous improvement but it does not take into consideration the actual costs which should be determined by using the ABC method because it is more precise. This is where the notion of Paradigm C comes in. Using these two Paradigms in conjunction with each other gives real meaning to ABC 's role of forcing consideration of alternative cost structures. To more effectively consider the entire scope adding in elements from Paradigm B will be beneficial. Distinguishing between fixed and variable costs will more accurately portray totals in the product-line income statement. Combining elements from these three paradigms will allow us to include aspects of product life cycles and products that are expected to be cash users versus cash generators during different stages of their life cycles in our analysis of product-line income statements.
Question 1.3
According to Mersereau it is often accountants who are the first to resist accounting
Question 1.1
When Mr. Drucker says, "Be data literate" he means that one should know how to use data effectively to the company 's benefit. There are two challenges that one faces in attempting to be data literate. The first challenge is deciding what information to use, what is should be used for and how it should be used. The second challenge is how to test and put the data together with the existing information system to make them effective in a company 's decision process. The most difficult challenge will be bringing the computer based data processing and the accounting system together to ensure the most beneficial decisions for a company.
Question 1.2
The best combination of paradigms for the 21st century as Ferrara sees it is a combination of Paradigms C and D. This may even be amplified by adding elements of Paradigm B. Although Paradigm D is effective and efficient it is not sufficient alone. Paradigm D uses the concept of price led costing and focuses on the issue of continuous improvement but it does not take into consideration the actual costs which should be determined by using the ABC method because it is more precise. This is where the notion of Paradigm C comes in. Using these two Paradigms in conjunction with each other gives real meaning to ABC 's role of forcing consideration of alternative cost structures. To more effectively consider the entire scope adding in elements from Paradigm B will be beneficial. Distinguishing between fixed and variable costs will more accurately portray totals in the product-line income statement. Combining elements from these three paradigms will allow us to include aspects of product life cycles and products that are expected to be cash users versus cash generators during different stages of their life cycles in our analysis of product-line income statements.
Question 1.3
According to Mersereau it is often accountants who are the first to resist accounting