As controller of the city of Oakly Heights, you have been asked to provide information to the mayor and city council that would be helpful in answering a variety of questions.
Required:
a. For each of the questions below, classify the needed information as an example of either full cost accounting, differential accounting, or responsibility accounting.
(1) As a result of a recent wage increase for airport workers, what does it now cost to operate the municipal airport?
(2) Should the city continue to own and operate its own garbage trucks or contract with a private firm?
(3) What does it cost to prepare and mail annual tax notices to property owners?
(4) Is the new police chief doing a better job than the former one?
(5) Should the city close its jail and contract with the county for detention of prisoners?
(6) Which department head is doing the best job of staying within his or her budget?
b. In addition to management accounting information, what other types of information might be useful in attempting to answer each of the questions above?
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