Southwoods is a medium-sized accounting firm that provides services in the areas of audit, taxation and investment
Question:
Cost classifications:
(a) Research and development.
(b) Design.
(c) Production/delivery.
(d) Marketing.
(e) Customer support.
(f) Fixed costs.
(g) Variable costs (identify cost driver).
(h) Professional labour.
(i) Overheads.
Costs:
1. Salaries of staff who work directly on audit assignments.
2. Salary of the financial planning consultant who provides investment advice to retirees.
3. Salary of a research assistant who investigates and develops new financial planning products.
4. Salary of the receptionist.
5. Costs of advertising financial planning products.
6. Cost of telephone calls. These relate primarily to follow-up calls to taxation clients.
7. Depreciation on photocopiers used in the provision of all services.
8. Cost of preprinted stationery used in the preparation of taxation returns.
9. Salaries of staff who are directly involved in the preparation of taxation returns.
10. Depreciation on office computing equipment used in the provision of all services.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Management Accounting
ISBN: 9781760421144
7th Edition
Authors: Kim Langfield Smith, Helen Thorne, David Alan Smith, Ronald W. Hilton
Question Posted: