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Actions Shares. No notes for slide. Garrison Norren 11th ed, Managerial Accounting, solution of chapter 1 1. Solutions Manual, Chapter 1 1 Chapter 1 Managerial Accounting and the Business Environment Solutions to Questions Managerial accounting is concerned with providing information to managers for use within the organization. Financial accounting is con- cerned with providing information to stockholders, creditors, and others outside of the organization.
All three activities involve decision making. A staff position is not directly related to the achievement of those objectives; rather, it is sup- portive, providing services and assistance to other parts of the organization.
First, reduced setup time allows a company to produce in smaller batches, which in turn reduces the level of inventories. Second, re- duced setup time allows a company to spend more time producing goods and less time getting ready to produce. Third, the ability to rapidly change from making one product to making another al- lows the company to respond more quickly to cus- tomers.
Finally, smaller batches make it easier to spot manufacturing problems before they result in a large number of defective units.
Process Reengineering involves completely redesigning business processes from the ground up—often with the use of outside consultants. If management re- sponds by laying off workers, morale will almost certain suffer. At non-con- straints, increases in capacity just add to the al- ready-existing excess capacity.
Therefore, im- provement efforts should ordinarily focus on the constraint. The result would be less funds raised in capital markets, fewer goods and services avail- able for sale, lower quality, and higher prices. All rights reserved. Line 2. Directing and motivating 3. Budgets 4. Planning 5. Staff 6. Decentralization 7.
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