Required Textbook: Braun, Karen, and Tietz, Wendy (2018). Managerial Accounting, 5th Edition. Pearson (ISBN: 978-0134128528) You must have access to the textbook yourself. I do not have it to provide. Do not use another student’s work. This will be submitted in Turn-In checker.
1. P8-52A, page 498: Outsourcing decision given alternative use of capacity
2. P8-57B, page 500: Product mix decision under constraint
3. S8-8, page 480: Replace a department
4. E8-47B, page 495: Sell as is or process further
Essay Question:
How do you account for financial losses in order to maintain quality customer service, for example, a restaurant that gives a free meal to an upset customer or a company that gives repeat customers a discount? From the viewpoint of a management accountant, how would this cost be classified and how would it figure into a company’s financial statements?