New Semester Started Get 50% OFF Study Help! --h --m --s Claim Now

Question Answers

Textbooks

Find textbooks, questions and answers

Oops, something went wrong!

Change your search query and then try again

Result Not Found

Books FREE
Study Help
Tutors
AI Study Planner NEW
Sell Books

Search
Sign In
Register

study help
business
managerial accounting

Accounting concepts and applications 11th Edition Albrecht Stice, Stice Swain - Solutions

Which one of the following statements is false?a. The costs of capital for an organization include the interest costs expected by long-term debt holders and the return expected by the owners or stockholders.b. The cost of capital will generally include an implicit cost related to current
Which one of the following statements is false?a. Economic value added is a relatively new measure that is based on a traditional measure of residual income.b. Economic value added is an after-tax measure of value added by the organization to its owners.c. Economic value added requires a careful
Which one of the following is the correct formula for EVA®?a. Net operating profit before tax – (Cost of capital × Invested capital)b. Net operating profit after tax – (Cost of capital × Invested capital)c. Net operating profit after tax – (Cost of capital × Total assets)d. Net operating
Which one of the following statements is false?a. Carrying large amounts of inventory can be very costly for a company.b. JIT environments are usually “push” systems.c. JIT inventory systems started in Japan.d. JIT emphasizes reduction of non-value-added activities.e. Under a JIT system,
Which one of the following statements is false?a. Total quality management is simply a general endorsement of quality in a company.b. W. Edward Deming was instrumental in the quality revolution in Japan during the1960s.c. Total quality management shifted some companies’ focus from costs to
Which one of the following is not a type of costs of quality?a. Appraisal costsb. Adaptive costsc. Internal failure costsd. Prevention costse. External failure costs
Which one of the following statements is false?a. Companies that use the Balanced Scorecard do not need to focus on financial performance.b. The Balanced Scorecard is not an exact formula that can be automatically implemented in any organization.c. Companies using the Balanced Scorecard should
Which one of the following statements is false?a. Leading measures focus on fulfilling customer expectations.b. Outcome measures focus on whether improvements in leading measures result in more satisfied customers.c. A decreasing market share is a good indication of high customer satisfaction.d.
Which one of the following statements is false?a. One type of service-after-sale process is the organization’s commitment to warranty its product.b. Research and development projects can require a very long payback period.c. An operations process that has six sigma quality allows for only 3.4
Which one of the following statements is false?a. Developing employee productivity is an ultimate result of building learning and growth in an organization.b. Poorly run organizations often have low employee morale.c. Outcome performance measures, such as output per employee, can be used to
Which one of the following statements is false?a. All measures of a Balanced Scorecard should link together to eventually support the ultimate financial goals of a company.b. A company should use every possible performance measure available.c. Leading measures indicate the potential success of
Which one of the following represents the correct cause-and-effect sequence of leading and lagging measures in an organization?a. Learning and Growth S Internal Processes S Customer S Financialb. Financial S Learning and Growth S Internal Processes S Customerc. Customer S Internal Processes S
Which one of the following statements is true?a. The same Balanced Scorecard can be implemented at all organizations for maximum success.b. Management accountants may build performance measurement systems that are irrelevant to the strategy of the organization.c. A correctly implemented Balanced
The accounting industry is currently facing pressure in each of the following areas except:a. The need to better emphasize relevant, rather than just reliable, datab. The need to grow at a faster rate than other industries to keep up with business demandsc. The demand to allow continual access to
At the end of 2012, Hatch Industries had the following balance sheet:Hatch Industries would like to compute its EVA® for the year. Help the accountant at Hatch Industries prepare for that computation by determining invested assets from the balance sheetabove.
Firefly Travel Services has recently shifted its performance measurement system to include Economic Value Added (EVA®). The Firefly accountant gathered the following data for 2012:Operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Jessica began a day care business three years ago and has worked hard to make it successful. She originally invested $4,000 of her own money and borrowed $10,000 from the bank to start her business. She has two employees and pays herself a management salary. She hopes to make a return on her $4,000
Below is a list of activities performed by the Ibapah Bijou, a movie theater. Indicate whether each activity is a value-added activity (VA) or a non-value-added activity (NVA).a. Redesigning the staff uniformsb. Cooking popcornc. Counting the ticket stubs at night to make sure no one got in freed.
Some of the costs in the list below are costs of quality. For each cost, indicate by the appropriate letter what type of cost it is: prevention cost (P), appraisal cost (A), internal failure cost (I), external failure cost (E), or not a cost of quality (N/A).a. Cost of raw materials used in
Sara’s Stylish Suppers prepares food for wholesale to gourmet restaurants. Quality is very important to consumers of gourmet food. Following is a list of costs that Sara incurred during 2012:Wages paid during downtime to fix machinery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
The following are possible performance measures of customer satisfaction:1. Purchase cost to customer 2. Customer defection rate 3. Returns by customers 4. Number of new customers 5. Time to complete contract6. Percent of total units sold7. Customer survey response8. Costs to recruit
The following are possible performance measures of internal processes:1. Cost of replacement parts2. Lead time (order to delivery)3. Lead time (idea to working model)4. Product returns per million5. Payback on R&D costs6. Percentage of sales from new products7. Production defects per million8.
The following are performance measures of learning and growth:1. Number of new certifications or degrees2. Average life cycle time of personal computers3. Assessment of effective communication4. Employee turnover rate5. Output per employee6. Average yearly training or education hours per employee7.
The following are examples of performance measures in a Balanced Scorecard:1. ROI2. Percentage of employees having leadership opportunities3. Repair cycle time4. Quality rankings by other agencies5. ROE6. Design cycle time7. Six sigma8. Systems R&D expense per total systems expenseClassify each of
Listed below are a number of scorecard measures for a manufacturing company.a. Number of new customersb. Percentage of customers who place multiple ordersc. Percentage of on-time deliveriesd. Number of worker accidentse. Number of customer complaints about productsf. Number of employees who
Recall from the chapter the discussion of the oil drillers from the former Soviet Union who won a production competition based on the number of meters drilled. Those drillers determined that the first 100 meters of drilling were the easiest, so they simply drilled dry wells that never exceeded 100
Albert Einstein once commented that “sometimes what can be counted doesn’t count, and what can’t be counted is what really counts.” A business executive stated, “The first indication we don’t know what we are doing is a preoccupation with numbers.” How do you think these two
You have just been hired as the CFO of Bridger Bank, a small community bank in your town. Management is currently in the process of creating a Balanced Scorecard management system. You have been given the following list of performance measures:a. Return on equityb. Sales calls to potential
After graduating with MBA degrees in international business, Mike and John decided to form an import business. Both had spent significant time in Southeast Asia during college working in the school’s study abroad program. They recognized an opportunity to import sports clothing and shoes out of
Sperry Space and Aeronautics is a research and development firm that contracts with the government to design specialized equipment for use in the NASA space shuttle program. Its income statements and year-end balance sheets for 2011 and 2012 are shown below. The board of directors for Sperry
The president of Penman Corporation, John Burton, has asked you, the company’s controller, to advise him on whether Penman should develop a just-in-time (JIT) inventory system. Your research concludes that there is a high cost associated with inventory storage facilities; that inventories use a
DeeAnn Martinez is preparing to open her own CPA firm. DeeAnn is a smart businessperson and wants to maximize her profits. She has not yet decided whether to run a low-quality CPA firm (basically offering to sign the financial statements of anyone who will pay her fee), an average CPA firm, or a
Martin, Inc., manufactures pleasure and fishing boats. Management’s goals and objectives for the company are:1. Goal: To be the industry leader in market share in North AmericaObjectives:• Maintain sufficient cash balances to assure liquidity and solvency• Expand sales within current
You are an optometrist with your own practice. For the past 20 years, you have focused almost exclusively on profitability of your practice as your sole performance measure. In fact, you have been quite profitable. However, during the past two years, a number of new, low-cost, commercial optometric
ServiceComm, Inc., is a technology company that manufactures, installs, and services cellular towers for cellular phone companies. These towers provide greater connectivity for cellular users. It is a subcontractor for tower installation companies and provides service for most of the large cellular
The dean of your business school has determined that there are four major drivers of success for her business school. Those success drivers are having outstanding (1) faculty, (2) students, (3) curricula, and (4) alumni and recruiter support.Required:Based on these drivers of success, develop a
As an accountant and active member of a local church, you have been asked by your pastor to help him develop a Balanced Scorecard management system for the church. He is seriously interested in continuous improvement and believes that by identifying and monitoring the right performance
A friend of yours is currently the president of a large company. She asks your opinion on a decision she is trying to make about how to obtain funds for her company in order to cover several years of operating losses. She works with a good company and is confident that earnings are about to turn
You are the leader of a group of investors that is planning to open a nationwide chain of seafood restaurants called “Starving Sailor Restaurant.” You are preparing for tomorrow’s strategy meeting. The investor group is considering two strategies for how the restaurant chain will be operated.
How Soon Can You Make Us a Balanced Scorecard? You are currently the controller for a large manufacturing company. The president of the company calls you to his office and states the following: “I just went to a round-table discussion with presidents of other companies, and they told me that the
Can a just-in-time inventory system help companies minimize inventory costs, or is JIT too expensive and cumbersome to implement? Lately, you have heard a lot of talk about just-in-time inventory systems and how they help companies, like Wal-Mart, keep track of inventory. You know that a JIT system
By encouraging employees to work harder and to increase quality, are companies lowering overall costs, or are they increasing waste and inefficiency of materials? You have just been hired to work as a part-time accountant for a small, local flower shop. Jim, the manager, feels the costs of doing
Use the income statement and balance sheet for Wal-Mart (see Appendix A) to gather the necessary information to calculate Wal-Mart’s Economic Value Added (EVA®) for 2009 and 2008. Wal-Mart’s weighted average cost of capital (WACC) has been estimated to be anywhere between 8% and 13%.1.
If you are like most people, you probably do not pay much attention to the shelves in a grocery store except to take the food off of them. The aluminum parts that make up the shelves are part of a product family known as aluminum extrusions. Many aluminum extrusions are manufactured by a company in
The ideas of W. Edward Deming received little attention in the United States in the late 1940s and early 1950s. Deming then moved to Japan, where his ideas were accepted and implemented almost immediately. As a result, industries in Japan, like automobile production, quickly developed a reputation
Martin Beemer is the purchasing manager for the police department in a large metropolitan city.The city has 13,000 police officers. The city currently purchases police uniforms from three different manufacturers, one of which is SunKing, International (a Korean company). Martin recently agreed (in
In wholesale and retail companies, inventory is composed of the items that have been purchased for resale. What types of inventory does a manufacturing firm have?
What comprises the cost of inventory?
Why is it more difficult to account for the inventory of a manufacturing firm than for that of a merchandising firm?
Who owns merchandise during shipment under the terms FOB shipping point?
When is the cost of inventory transferred from an asset to an expense?
Which inventory method (perpetual or periodic) provides better control over a firm’s inventory?
Is the accounting for purchase discounts and purchase returns the same with the perpetual and the periodic inventory methods? If not, what are the differences?
Are the costs of transporting inventory into and out of a firm treated the same way? If not, what are the differences?
Why is it usually important to take advantage of purchase discounts?
Why are the closing entries for inventory under a periodic system more complicated than those for a perpetual system?
Why is it necessary to physically count inventory when the perpetual inventory method is being used?
What adjusting entries to Inventory are required when the perpetual inventory method is used?
What is the effect on net income when goods held on consignment are included in the ending inventory balance?
Explain the difference between cost flow and the movement of goods.
Which inventory cost flow alternative results in paying the least amount of taxes when prices are rising?
Would a firm ever be prohibited from using one inventory costing alternative for tax purposes and another for financial reporting purposes?
Why is it necessary to know which inventory cost flow alternative is being used before the financial performances of different firms can be compared?
What can the inventory turnover ratio tell us? Discuss.
Which one of the following is not an example of inventory?a. Cranes at a construction siteb. Books on the shelves of a bookstorec. Apples in a supermarketd. Screws to be used in assembling tables at a carpentry shope. Computer software for sale at a computer store
Which one of the following costs is not included in inventory?a. Salaries paid to assembly workersb. Direct materials used in assemblyc. Salary paid to the company presidentd. Rent paid for use of the company factorye. Salary paid to the factory supervisor
Collin Wholesale sold $5,000 inventory to Jennifer Company on December 27, year 1, with shipping terms of FOB destination. The inventory arrived on January 2, year 2. Which company owns the inventory at year-end (December 31, year 1)?
Using the following data, compute cost of goods sold.Inventory, December 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 45,000Inventory, January 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,000Cash,
Johnson Company purchased (on account) 250 tables to be resold to customers. The cost of each table was $150. Make the journal entry to record this transaction under (1) A perpetual inventory system and (2) A periodic inventory system.
Johnson Company incurred $920 in shipping costs related to the inventory purchases in PE 7-5. The company paid for the shipping costs in cash. Make the journal entry necessary to record this transaction under (1) A perpetual inventory system and (2) A periodic inventory system.
Johnson Company returned 20 of the tables purchased in PE 7-5 because of defects in assembly. Make the journal entry necessary to record this return under(1) A perpetual inventory system and(2) A periodic inventory system.Data from PE 7-5Johnson Company purchased (on account) 250 tables to be
Johnson Company paid for the tables purchased in PE 7-5 (less the tables returned in PE 7-7). Because the company paid within 10 days, it received a 2% discount on the purchase. Make the journal entry necessary to record this transaction under(1) A perpetual inventory system and(2) A periodic
Johnson Company sold 70 tables on account for $200 each that were purchased in PE 7-5. Make the journal entry or entries necessary to record this transaction under(1) A perpetual inventory system and(2) A periodic inventory system. Don’t forget the impact of the tables returned in PE 7-7, the 2%
A dissatisfied customer returned six of the tables that were sold in PE 7-9. Make the journal entry or entries necessary to record this transaction under(1) A perpetual inventory system and(2) A periodic inventory system.Data from PE 7-9Johnson Company sold 70 tables on account for $200 each that
Refer to the data in PE 7-5 through 7-10. Assume the beginning balance in the inventory account was $0 for the periodic inventory system. A physical count of the inventory at the end of the period shows the ending balance of inventory is $24,550. Prepare the necessary entries for a periodic
Boyd Company’s perpetual inventory records show that the ending inventory balance should be $182,000. However, a physical count of the inventory reveals the true ending balance of inventory to be $178,500. Prepare the journal entry necessary to record inventory shrinkage for the period.
Seipke Company uses a periodic inventory system. Beginning inventory was $6,000. Net purchases (including freight in, purchase returns, and purchase discounts) were $23,000. The physical count of inventory at the end of the year revealed ending inventory to be $7,500. Compute cost of goods sold.
Arellano Company uses a periodic inventory system and overstated its ending inventory by $20,000. How will this inventory error affect reported net income for the company?
Pearcy Company reports the following activity during October related to its inventory of cameras: Oct. 1 Beginning inventory consisted of 8 cameras costing $100 each.3 Purchased 12 cameras costing $110 each.14 Purchased 7 cameras costing $115 each.20 Purchased 15 cameras costing $125 each.29 Sold
Refer to the data in PE 7-15. Determine(1) The cost of goods sold for the month and(2) The ending inventory balance for October 31 using the FIFO cost flow assumption.Data from PE 7-15Pearcy Company reports the following activity during October related to its inventory of cameras:Oct. 1 Beginning
Refer to the data in PE 7-15. Determine(1) The cost of goods sold for the month and(2) The ending inventory balance for October 31 using the LIFO cost flow assumption.Data from PE 7-15Pearcy Company reports the following activity during October related to its inventory of cameras:Oct. 1 Beginning
Refer to the data in PE 7-15. Determine(1) The cost of goods sold for the month and(2) The ending inventory balance for October 31 using the average cost flow assumption. Round unit costs to the nearest tenth of a cent.Data from PE 7-15Pearcy Company reports the following activity during October
Using the following data, compute inventory turnover.Inventory, December 31, year 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 75,000Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300,000Sales . . . . . . . . . . . . .
Refer to the data in PE 7-19. Compute number of days’ sales in inventory.Data from PE 7-19Inventory, December 31, year 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 75,000Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Using the following data, compute number of days’ purchases in accounts payable.Accounts payable, December 31, year 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 52,000Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Company A has consignment arrangements with Supplier B and with Customer C. In particular, Supplier B ships some of its goods to Company A on consignment, and Company A ships some of its goods to Customer C on consignment. At the end of 2012, Company A’s accounting records showed:Goods on
On June 24, 2012, Reed Company sold merchandise to Emily Clark for $75,000 with terms 2/10, n/30. On June 30, Clark paid $39,200, receiving the cash discount on her payment, and returned $10,000 of merchandise, claiming that it did not meet contract terms. Assuming that Reed uses the perpetual
Orser Furniture purchases and sells dining room furniture. Its management uses the perpetual method of inventory accounting. Journalize the following transactions that occurred during October 2012:Oct. 2 Purchased on account $27,000 of inventory with payment terms 2/10, n/30, and paid $650 in cash
On June 24, 2012, Mowen Company sold merchandise to Jack Simpson for $105,000 with terms 2/10, n/30. On June 30, Simpson paid $58,800, receiving the cash discount on his payment, and returned $15,000 of merchandise, claiming that it did not meet contract terms.Assuming that Mowen Company uses the
Complete the Cost of Goods Sold section for the income statements of the following fi vecompanies:
Shannon Parts uses the periodic method of inventory accounting.1. Journalize the following transactions relating to the company’s purchases in 2012:Jan. 24 Purchased $18,000 of inventory on credit, terms 2/10, n/30.30 Paid $17,640 to pay off the debt from the January 24 purchase.Mar. 14 Purchased
Deer Company’s perpetual inventory records show an inventory balance of $120,000. Deer Company’s records also show cost of goods sold totaling $240,000. A physical count of inventory on December 31, 2012, showed $92,000 of ending inventory. Adjust the inventory records assuming that the
As of December 31, 2012, Whitney Company had the following account balances:Inventory (beginning) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $125,000Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The accounts of Berrett Company have the following balances for 2012:Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $520,000Inventory, January 1, 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,000Purchase
Cleopatra, Inc., which uses the perpetual inventory method, recently had an agency count its inventory of frozen burritos. The agency left the following inventory sheet:Complete the inventory calculations for Cleopatra (items a€“d) and provide the journal entry necessary to adjust ending
E€™s Diamond Shop is computing its inventory and cost of goods sold for November 2012. At the beginning of the month, these items were in stock:During the month, the shop purchased four type A rings at $600, two type B rings at $450, and five type C rings at $300 and made the following
For each of the descriptions listed below, identify the inventory costing method to which it applies. The costing methods are average cost, LIFO, and FIFO.1. The value of ending inventory does not include the cost of the most recently acquired goods.2. In a period of rising prices, cost of goods
Jeff erson's Jewelry Store is computing its inventory and cost of goods sold for November 2012. At the beginning of the month, the following jewelry items were in stock (rings were purchased in the order listed):During the month, the company purchased the following rings: four type A rings at $600,
The following transactions took place with respect to Model B computers in Jackson’s Computer Store during November 2012:Assuming the periodic inventory method, compute cost of goods sold and ending inventory using the following inventory costing alternatives:(a) FIFO,(b) LIFO, (c) Average
The following data are available for 2012, regarding the inventory of two companies:Compute inventory turnover and number of days€™ sales in inventory for both companies. Which company is handling its inventory moreefficiently?

Showing 5600 - 5700 of 58739

First
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
Last

Step by Step Answers

Services

Sitemap
Fun
Definitions
Become Tutor
Used Textbooks
Study Help Categories
Recent Questions
Expert Questions
Campus Wear
Sell Your Books

Company Info

Security
Copyrights
Privacy Policy
Terms & Conditions
SolutionInn Fee
Scholarship
Online Quiz
Give Feedback, Get Rewards

Get In Touch

About Us
Contact Us
Career
Jobs
FAQ
Student Discount
Campus Ambassador

Secure Payment

Download Our App

© 2026 SolutionInn. All Rights Reserved