Question

Your father is on the board of directors of a not-for-profit organization, For Seniors Only. One of its services is to prepare simple tax returns for senior citizens. Each return takes about the same amount of time and effort. Student volunteers from a local university help prepare returns. A small staff of part-time accountants is employed throughout the tax season. The busiest time is just before the returns are due in April, when student volunteers are busy with midterms. Because of this schedule conflict, additional help is hired for several weeks. To predict costs for the month of April, the board would like to know the average cost for a tax return prepared by paid employees. Some returns will be in process at the beginning and end of each month.

REQUIRED
A. Is process costing appropriate in this situation? Explain your answer.
B. What information do you need to determine the cost of preparing tax returns for the month of April?
C. List and explain the procedures you would use to determine the estimated cost per tax return prepared by paid employees.



$1.99
Sales0
Views86
Comments0
  • CreatedJanuary 26, 2015
  • Files Included
Post your question
5000