Questions and Answers of Financial And Management Accounting

Please list the various types of continuous improvement-based action controls and provide a brief description of them.
Using the data provided for Sam’s Kayak, separate the variable and fixed costs using the cost variability formula, then use your results to develop Sam’s cost formula. Sam's Kayak Manufacturing
What is a cost pool? Give an example of one.
Redwood Grills makes a custom line of outdoor grills. It has a broad network of retail stores that distributes its products across the country. It has compiled the following information about its
Certainty Seedlings is a medium- sized nursery located in Western Pennsylvania. Recently, Joel Beale, the company’s owner, completed a course in business planning and analysis. He decided he would
Easy Air wants to get a handle on how effectively it is using its available capacity. Rudy has done a basic study, resulting in the information contained in the DB 4.1a and DB 4.1c templates in your
What does the term homogeneous mean? Heterogeneous? How do they impact the nature of cost pools?
Landry Associates produces a broad range of components for stereos and similar electronic products. It has been having problems with profitability over the past few years. It runs a number of
Franklin and Sons handles investment portfolios for a variety of customers. One unit of the company deals specifically with small investors. It has compiled the following information about its small
It was Monday morning at 8 a.m. John was pacing the front of the room, waiting for each of his key managers to make their way to a seat. As he glanced around, he saw a lot of weary and anxious
Chewy Treats, Inc., makes several lines of caramel-based candies and treats. Each product runs on its own set of machines. The lines Chewy makes are Wrapped Caramels, Chocolate-Covered Caramels,
Sherry has also made progress tackling many of Easy Air’s activity-based costs. The information contained in the DB 4.2a and DB 4.2c templates in your database is the result of her work. In
List and explain the features of accurate cost pools.
Hightower Enterprises manages apartment buildings for various small investors. It spends a significant amount of time on two activities: maintenance and rent collection. Sort the following costs into
Energetic Treadmills is a medium- sized company that makes three models of treadmills on one large machine. The products share this machine. The machine is run 4,000 hours per year. Other information
Define overhead. What problems does it create in cost analysis? Use the features of an accurate cost pool as the basis for your analysis.
Puff ’n Stuff makes various small toys for dogs and cats using a large machine that cuts the fabric and machine- stitches the seams. The toys are then hand- stuffed and packaged. For Step 1, sort
Majestic Toys makes three different types of stuffed animals for various arcades across the country. The information on the work done on the factory’s machines is contained in the following
Define a resource driver and give an example of one that could be used to create a machine-based cost pool.
Baby Care makes “Binkies,” a specialty line of pacifiers using one large machine that both makes and packages the pacifier. The machine’s managed capacity cost is $250,000 per year to run one
Daisy Bakeries is a medium- sized bakery producing four lines of products: bread, cakes, pies, and cookies. It is currently charging its $750,000 of overhead to the product lines based on the number
What does the term capacity mean? How do we use it in developing a cost estimate?
Sure Seed Company makes a lawn repair mixture that is sold in five-pound bags. One machine mixes the seed, soil, fertilizer, and special ingredients to make the lawn repair mix . The machine runs two
Clip-A - Long makes binder clips of various sizes. The clips are made on one machine that takes precut strips of metal, bends them, adds the flange that helps hold the papers, and then boxes them in
CalcOne makes small, solar-charged, 10-key handheld calculators from purchased parts. It is a manual operation consisting of three stages. Materials cost $1.25. Several back office employees handle
Define managed and committed capacity costs. What are their primary differences? Specifically, how does their activity driver change?
Bernelli Machining operates as a job shop making various metal parts for tractors. It has several large customers across the country who order parts when their own facilities run out of capacity.
What is productive capacity? Nonproductive? Idle capacity? Why are these different types of capacity utilization important?
Ajax Pool Services does a wide range of pool maintenance and repair jobs over the course of a swimming season in New England. The company has five vans and five work crews. Some crews consist of one
What does the term cost of preparedness mean? Which type of capacity cost (managed or committed) does it include?
Muldoon’s Window Washing Company handles basic window washing, power washing, and light window maintenance. It divides its company into the following activities and cost pools.REQUIRED:a. Calculate
What is the cost driver in capacity-based costing? How does it differ from the activity driver(s)?
Sullivan’s Auto Repair does small repair jobs on automobiles, including oil changes, brake jobs, and tire repair. It divides its company into the following activities and cost pools.REQUIRED:a.
Get Up ’n Go Fitness Club is an exercise club that offers four basic products: weight training, supervised fitness routines, aerobics, and swimming. It currently charges the firm’s $1,500,000
For the following list of control measures, please note whether it is an action (A ), results (R), or personnel (P) control.a. Number of exams givenb. Instructions on how a case should be writtenc.
Eastern Productions is a medium- sized maker of promotional films and advertisements for the beverage industry. It has six salespeople on pay roll. The following table shows the results against plan
Easy Air has put in place some very difficult or “stretch” goals for the upcoming year, as the table recreated from the chapter indicates.REQUIRED:a. Using the data above, as recreated for you in
Scott Randall operates a small manufacturing company that makes basic sound pre-amplifiers. Scott buys the wafer from one company, then does the slicing and packaging himself. He has several
Marty Smith recently graduated from college. He has been hired by Stevenson Associates as a sales associate. Stevenson provides payroll services for a broad range of manufacturing and service
Ernesto’s Sub Shop offers six different kinds of sandwiches. Using the data below, perform a simple gap analysis of Ernesto’s sales.REQUIRED:Perform a simple gap analysis of Ernesto’s sales.
Arthur Treidmont owns a small landscaping business in the Deep South. He can work most of the year, although in summer, his workforce slows down in response to the heat index—it is simply too hot.
You have just been hired as an intern by Easy Air and have been assigned to Sanjiv to help him with the major analysis of Easy Air’s operational and profit performance. As a first part of the task,
Free and Easy, a local window-cleaning operation, has been having trouble maintaining its profitability. The company president, June Williams, has asked you to come in and help her identify why she
Angie’s Repair Shop does custom sewing repairs for customers, including sewing on buttons and putting in new zippers. Angie went to business school, so she knows that she needs to keep an eye on
Basic Manufacturing, a maker of hose fittings, uses point of action controls on the plant floor to help its workforce stay on target to continuously improve performance. Two measures are made for
Singleterry Products makes rods and piston housings for various types of motors. Having a perfect fit is critical if an engine is going to work properly and not leak oil. If it is too tight a fit,
You have been hired by C&L Tools to evaluate its sales performance. You are given the following numbers for the company ’s four salespeople:Perform a gap analysis for these four salespeople,
Ajax Programming does freelance programming jobs, including blog and website design, for a wide variety of businesses and individual consumers. The company has grown from a simple start-up with only
Rapid Car Wash is a franchiser of car wash companies across the northeastern United States. It has grown from simply owning one car wash to now having more than 100 franchisees. Lately, top
Janice Dean teaches several accounting classes at Blank ton State University. She has always relied on her syllabus and its honor code to regulate the behavior of her students. Over the past few
For the following list of undesirable outcomes, please note whether it is an example of behavioral displacement (B), gamesmanship (G), operating delays (O), or negative attitudes (N).a. Salesman
Bryan Owens is a part- time manager at Rusty ’s Steak House. The owner of Rusty ’s spends his time split between Rusty ’s and three other restaurants he owns, so he has to rely on his managers
Using the template in the chapter workbook that contains the direct costs of flying passengers for Easy Air, do the following computations on the worksheet for DB 3.1:1. Calculate the average number
Adelle Watson owns a small manufacturing company, Easy Bake, which makes one product, a ceramic pie plate that features even heating that helps prevent pie shells from getting burnt in patches. It is
Create a table that compares the seven basic features of a resource to the following resources: raw materials, labor, machines, and buildings. Basically, set up a table that looks like this:For
Nestor Travel Services books airline flights, cruises, and various package tours for its customers. These booking operations use the same resources, in roughly the same quantities.REQUIRED:Using the
You are now going to do a simple breakeven point for number of passengers on a flight for the years 20x4 to 20x6. Go to the worksheet that says “Template for DB 3.2.” Complete the breakeven
Judy Holmes, owner and primary manager of Holmes Industry, has recently completed a course in management accounting. She has decided to try to take a look at her company, which makes a variety of
Pete’s Lawn Care is a medium- sized company with customers in three counties in northwestern Connecticut. Pete cuts grass and provides basic cleanup services for his customers, with each job taking
You are now going to do a bit of analysis of Easy Air’s profitability performance, specifically complete a CV P analysis. Go to the worksheet that says “Template for DB 3.3.” Using the
Smith and Company manufactures pens in a variety of ink colors. Each pen sells for $0.75. While the colors vary, the costs of making a pen are pretty constant, as suggested by the table
What are the primary differences between management accounting and financial accounting?
Using the following list of tasks, identify the type of manager who would have responsibility for the task’s planning and completion. Use “T ” for top management, “P” for process managers,
Bill Larkin, president of LM Landscaping, has recently completed a course in management accounting, giving him new skills with which to analyze his company. He pulls together the following
How does the BPA perspective influence the practice of management accounting?
Using the following list of tasks, identify the type of manager who would have responsibility for the task’s planning and completion. Use “T ” for top management, “P” for process managers,
Tim Carswell has recently graduated from his state university, majoring in accounting. He has taken a job with a medium-sized firm that offers financial accounting, audit, and consulting services to
What is the key attribute that changes data into information?
For the following list of decisions and activities, please identify which domain is a effected. Specifically, use “P” for process, “R” for product, “C” for customer/markets, “S” for
Where do costs occur in organizations?
For the following list of decisions and activities, please identify which domain is a effected. Specifically, use “P” for process, “R” for product, “C” for customer/markets, “S” for
What is the management process?
What are the five decision domains? What are the responsibilities of each?
What are the primary types of managers in an organization? How do their tasks differ?
You have taken a job for the summer. One day you come across some data that just does not seem to make sense. You go to your supervisor, who tells you that the data is fine and to return to work. You
What are the four components of the IMA Statement of Ethical Professional Practice? Why do we need an ethical code in this area of management?
What are the primary differences between financial accounting measures and the managerial accounting measures? What is a CSF?
What is a KPI? How does it differ from a CSF ?
What are the eight basic characteristics of an effective measurement?
How are measurements used in the management process?
What is a vision statement? How does it differ from a mission statement?
What are the three levels of objectives used by a firm and how do they differ?
What are the various types of action controls an organization can use? Please be as specific as you can.
What are the primary differences between gap analysis, trend analysis, and variance analysis?
A dam Smith, owner of PB Manufacturing, uses one performance measure—units sold—to evaluate his sales staff. Recently he has noted that while units sold are increasing, he is actually making far
What does it mean to have goal congruence in a firm?
Tom Perdy works at the local insurance company, South County Insurers. The company only uses results controls. Increasingly, Sam has noticed other salespeople making special deals with customers or
What are the three different types of controls we use in business planning and analysis (BPA)?
What does “dysfunctional consequences” mean in BPA ?
Please list the key dysfunctional consequences of control and provide an example of each that reflects what might happen during the course of a semester.
What is the relationship between a cost and a price, if any? When do we need to know these relationships?
What is the difference between a direct and an indirect cost? When does knowing these differences lead to changes in decision making?
For the following list of resources, note whether they would be direct (D) or indirect (I) to making a cake:a. Ovenb. Flourc. Eggsd. Cake pane. Sugarf. Butterg. Cooling rackh. Vanillai. Plate
What is the basic cost estimate? How is it used in making decisions?
For the following list of resources, note whether they would be direct (D) or indirect (I) to making a canoe:a. Plasticb. Machinesc. Peopled. Nylon corde. Paddlesf. Buildingg. Laborh. Managementi.
Rogers Manufacturing makes ball bearings that are used in several industries. The ball bearings are sold with lubricant so they are ready to install. Each set sells for $50. The following is
What are the different definitions of cost that are used in management accounting? Please briefly describe them.
Using the information in the following table, please develop an activity-based variable cost estimate for each of the activities described. Cost per Unit of Work Done Activity Cost Work Done (Driver)
What does “unavoidable” mean when we talk about a cost? Why is it important?
Angie’s Cleaning Service does routine cleaning of houses. She charges $100 for a house taking four hours of cleaning, her standard product offering. Each time she cleans, she uses $5 in variable

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