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Reporting in Action — BTN 21-1
1. For foreign subsidiaries that do not use the U.S. dollar as their functional
currency, Apple reports the annual adjustment (“translation gains and
2. a. As reported in its footnote, the assets and liabilities of foreign
b. Revenues and expenses (e.g. sales revenue) are translated at the
c. Assets and liabilities of foreign subsidiaries (e.g. property, plant and
Comparative Analysis — BTN 21-2
1. Apple and Google sales figures for the most recent 3 years—data
available from Appendix A—are shown below ($ millions):
Two Years
Prior
One Year
Prior
Current
Year
One
Year
Ahead
Two Years
Ahead
2. Predictions will vary among students. Generally, predictions should
reflect both the trend in the company’s sales data and current industry
Ethics Challenge — BTN 21-3
A typical answer might include four individuals selected from the following
specialty areas (answers will vary among students):
Specialty Information Input and Explanation
Engineer..................................Scientific support for quantity standard.
Production manager..............Actual amount or quantity used in production.
standards.
The ethical challenge for a manager responsible for setting and/or revising
standards is to select the right individuals for the team and to purposely avoid
biases in establishing the standards.
Communicating in Practice — BTN 21-4
MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
Variance Cost of Goods Sold Gross Margin
Part 2. Unfavorable Increase Decrease
Part 3. A favorable (unfavorable) variance means that actual costs are
Financial and Managerial Accounting, 6th Edition
Taking It to the Net — BTN 21-5
1. Benchmarking is a method whereby organizations try to look to other
organizations to identify “best practices” so as to improve and attain
2. Given that a benchmark can be considered as a standard, companies
Teamwork in Action — BTN 21-6
Answers will vary depending on the two industries selected. Two examples
are identified and briefly described below:
Entrepreneurial Decision — BTN 21-7
To: Chris Sugai, President
Niner Bikes
Re: Management Accounting Quote Interpretations
Quote 1: “Variances are not explanations”
The author of this quote is emphasizing that variances are only a starting
Quote 2: “Management’s goal is not to minimize variances.”
The author of this quote understands that the real objective of management is
to maximize the value of the firm for the stakeholders. For example, it might
Financial and Managerial Accounting, 6th Edition
Hitting The Road — BTN 21-8
1. A typical cheese pizza has three main raw materials: dough, sauce, and
cheese.
2. Observe that the national chain probably follows specific measurement
3. These observations reflect an important issue for pizza businesses and for
smaller, local businesses in particular. Excess raw materials applied to
Global Decision — BTN 21-9
1. Samsung’s sales figures for the most recent 2 years — data available from
its website — are shown below (₩ millions)
Sales
One Year
Prior
Current
Year
One Year
Ahead
Two Years
Ahead
2. Predictions will vary among students. Generally, predictions should reflect
both the trend in the company’s sales data and current industry and
