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Extra info for Cost Accounting: Foundations and Evolutions (Available Titles Cengagenow)
Prepare a “then-versus-now” comparison. b. What ﬁve skills do you believe are the most important for management accountants to possess? Discuss the rationale for your choices. Do you think these skills have changed over the past 10 years? Why or why not? Internet 17. 1 (Interview; research) Call a local company and set up an interview with the ﬁrm’s cost or management accountant. The following questions can be used as starting points for the interview: • What is your educational background? • What was your career path to attain this position?
Supply—managing raw materials received from vendors. Companies often develop longterm alliances with suppliers to reduce costs and improve quality. Johnson Controls is the supplier for some General Motors cars’ seating systems, electronics, instrument panels, overhead systems, ﬂoor consoles, door systems, and cargo management systems. The relationship is working well, given that Johnson Controls is considered one of GM’s top suppliers almost every year. In many instances, suppliers become extensions of a company’s upstream operations.
However, simply because two items change together does not prove that the predictor causes the change in the other item. For instance, assume that every time you see a Tundra commercial during a sports event, the home team wins the game. If this is consistent, observable behavior, you can use a Tundra commercial to predict the winning team—but viewing the commercial does not cause the team to win! In contrast, a predictor that has an absolute cause-and-eﬀect relationship to a cost is called a cost driver.