Managerial Accounting Questions

  

Include sources and examples to illustrate your understanding of the material.
1. Your co-worker states, “I don’t know why we spent so much money on that new job order costing system. I can do everything we need on an Excel spreadsheet. If the CFO had listened to me, we could have saved tons of money.” Would it have been desirable to follow your co-worker’s advice? Why or why not?
2. You have decided to go into business with your friend and start a catering business. Which method of costing would be appropriate for the business? What factors would need to be considered for such a venture? How could the wrong costing method create inaccurate results? Explain.

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