1. This unit focused on the two basic types of accounting methods, job order and process costing, used for valuing products as they are being produced. Think about the industry that you currently work in or the one in which you would like to work in. What type of costing method is typically used in that industry? Why do you think they use that costing method? Do you feel that a different type of method might work better? Why?
2. Describe ways in which you, as a managerial accountant, might incorporate break-even analysis when working with an organization’s income and expenses. How might you explain this concept to your organization’s management team?
3. In general, most people in the United States invest and save money through financial institutions. These banks are considered a safe place to keep our money and take advantage of interest-bearing accounts. However, what would happen if suddenly these financial institutions failed and “went under?” Think about some of the effects of this situation. Do you think individuals should stop relying on banks to invest? Explain.
4. You overheard a group of people who were talking about interest rates at a restaurant yesterday. They mentioned that the United States was running a trade deficit. What effect would a trade deficit have on interest rates, if any? Explain.
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