Managerial Accounting Creating Value In A Dynamic Business Environment 10th Global Edition Ronald W. Hilton, David E. Platt, Platt Hilton, Mcgraw-Hill - Solutions

10-4. Distinguish between perfection and practical standards Which type of standard is likely to produce the best motivadional effects?
10-3. Describe two methods of setting standard
10-2. What is meant by the phrase management by exception?
10-1. List the three parts of a control system, and explain how such a system works
9-20. What are the primary differences in budgeting between manufacturing and nonmanufacturing fums?
9-19. Buefly describe three issues that create special chal- lenges for mulanational fums in preparing the budgets
9-18. Last the steps you would go through in developing a budget to meet your college expenses
9-17. Discuss this comment by a small-town bank president "Budgeting is a waste of time I've been running this business for 40 years I don't need to plan
9-16. Why is participative budgeting often an effective management tool?
9-15. How can an organization help to reduce the problems caused by budgetary slack?
9-14. Define the term budget slack, and briefly describe a problem it can cause
9-13. Discuss the importance of predictions and assumptions in the budgeting process
9-12. How can a company's board of directors use the budget to influence the future direction of the firm'
9-11. What is the purpose of a budget manual
9-10. Descube the role of a budget director
9-9. Grve three examples of how the city of Boston could use a budget for planning purposes
9.8 How does e-budgeting make use of the Internet?
9-7.How does activity-based budgeting explain the logic of budgeting?
9.6 What is meant by the term operational budgets? List three operational budgets that would be prepared by Cook County Hospital in Chicago
9-5. Give an example of how general economic tiende would atect sales forecasting in the unline industry
9.4 Draw a flowchart similar to the one in Exhibit 9-1 for a service station The service station provides automotive maintenance services in addition to selling gasoline and related products
9.3 Explain what a master budget is, and list five of its parts
9.2 Use an example to explain how a budget could be used to allocate resources in a university
9-1. Explain how a budget facilitates communication and coordination
8.20 Dolphin Company manufactures two-person sailboats with a variable cost of $1000 The sailboats sell for $1,750 each Budgeted fixed manufacturing overhead for the most recent year was $11,000,000 Planned and actual production for the year were the same Required: Under each of the following
8-19. Explain thee strategies of envuonmental cost management
8-18. Define the following types of environmental costs private social, visible, hidden, monitoring abatement, and both on-site and off-site remediation
8-17. Briefly explain the purpose of a cause-and-effect (or fishbone) diagram
8-16. "An ounce of prevention is worth a pound of curc Interpret this old ad-ge in light of Exhibit 8-6
8-15. What is meant by a product's grade, as a characteristic of quality? Give an example in the service industry
8-14 Distinguish between a product's quality of design and ris quality of conformance
8-13. Explain the difference between observable and hidden quality costs
8-12. List and define four types of product quality costs
8-11. Explain how the accounting definition of an asset is related to the choice berween absorption and variable costing
8-10. Which is more consistent with cosi-volume-profit analysis, variable costing or absorption costing? Why?
8-9. Why do proponents of variable costing prefer variable costing when making pricing decisions?
8.8 Why do proponents of absorption costing argue that absorption costing is preferable as the basis for pricing decisions?
8-7.Will variable and absorption costing result in signifi- cantly different income measures in a JIT setting? Why?
8-6. Explain why some management accountants believe that absorption costing may provide an incentive for managers to overproduce inventory
8.5. Why do mary managers prefer variable costing over absorption costing?
8-4. When inventory increases, will absorption-costing or variable-costing income be greater? Why?
8-3. The team direct costing is a misnomet Variable costing is a better term for the product-costing method. Do you agree or disagree? Why?
8-2. Timing is the key in distinguishing between absorption and variable costing Explain this statement
8-1. Briefly explain the difference between absorption cost- ing and variable costing
7-22 Explain briefly how activity-based costing (ABC) affects cost-volume-profit analysis
7-21. A company with an advanced manufacturing environ- ment typically will have a higher break-even point greater operating leverage and large safety margin than a labor-intensive fum True or false? Explain
7-20. Two companies have identical fixed expenses unit van- able expenses and profits Yet one company has set a much lower price for its product Explain how this can happen
7-19. How could cost-volume-profit analysis be used in bud- geting? In making a decision about advertising?
7-18. How can a hotel's management use cost-volume-profit analysis to help in deciding on room rates?
7-17. A cat tental agency tents subcompact, compact, and full-size automobiles What assumptions would be made about the agency's sales mix for the purpose of a cost-volume-profit analysis?
7-16. What does the team sales mux mean How is d weighted-average unit conatibution margin computed?
7-15. When sales volume increases. which company will experience a larger percentage increase in profit company X, which has mostly fixed expenses. 01 company Y, which has mostly variable expenses?
7-14. East Company manufactures VCRs using a completely automated production process West Company also man- ufactures VCRs, but its products are assembled manually How will these two firms cost structures differ Which company will have a higher operating leverage factu?
7-13. What is the difference between a manufacturing com- pany's gross margin and its total contribution margin?
7-12. Why do many operating managers prefer a contubu- tion income statement instead of a traditional income statement?
7-11. List the most important assumptions of cost-volume- profit analysis
7-10. How can a profit-volume graph be used to predict a company's profit for a particular sales volume?
7-9. An art museum covers its operating expenses by charging a small admission fee The objective of the nonprofit organization is to break even A local arts enthusiast has just pledged an annual donation of $10,000 to the museum How will the donation affect the museum's break-even attendance level?
7-8. What will happen to a company's break-even point if the sales price and unit variable cost of its only product increase by the same dollar amount?
7-7. In a strategy meeting a manufacturing company's president said. If we raise the price of our product the company's break-even point will be lower" The financial vice president responded by saying Then we should 18ise our price. The company will be less likely to incur a loss 'Do you agree with
7-6. Delmarva Oyster Company has been able to decrease its anable expenses per pound ef oysters harvested How ill this affect the fum's break-even sales volume?
7-5. Suppose the fixed expenses of a travel agency increase What will happen to its break-even point measured in number of clients served? Why?
7-4. What does the term safety margin mean?
7.3 What information is conveyed by a cost-volume-profit graph in addition to a company's break-even point?
7-2. What is the meaning of the term unit contribution margin? Contibution to what?
7-1. Bnefly explain each of the following methods of com- puting a break-even point in units (a) contribution- margin approach, (b) equation approach, and (c) graphical approach
6.49 Refer to the data and accompanying information in the preceding casc Required: 1. Use the high-low method to estimate the cost behavior for the clinic's administrative costs Express the cost behavior in formula foim (Y = a + bx) What is the variable cost per patient? 2. Build a spreadsheet:
6.48 (Note Instructors who wish to cover all three cost estimation methods with the same data set may assign this case in conjunction with the following case) "I don't understand this cost report at all, exclaimed Jetf Mahoney, the new ly appointed administrator of Valley General Hospital "Our
6.47 Outside Environment, Inc. provides commercial landscaping services in San Diego Sasha Cairns, the fum's ownes, wants to develop cost estimates that she can use to prepare bids on jobs After analyzing the fum's costs, Cains has developed the following preliminary cost estimates for each 1,000
6.46 Jefferson County Airport handles several daily commuter flights and many private flights. The county budget officer has compiled the following data regarding anport costs and activity over the past year Month January Flights Originating at Jefferson County Airport Airport Costs $20,000 1,200
6.45 Kandolph Dana owns a catering company that prepares banquets and parties for business functions throughout the year Dana's business is seasonal, with a heavy schedule during the summer months and the year-end hohdays During peak periods there are extra costs, however, even during nonpeak
6.44 Shortly after being hired as a cost analyst with Florida International Airlines, Kim Williams was asked to prepare a tepori that focused on passenger ucketing cost The auline writes most of its own tickets, makes little use of travel agents, and has seen an increased passenger interest in
6.43 The controller of Saratoga Auto Cylinder Company believes that the identification of the vanable and fixed components of the firm's costs will enable the firm to make better planning and control deci- sions Among the costs the controller is concerned about is the behavior of indirect-materials
6.42 Shenandoah Valley Golf Association is a nonprofit, private organization that operates three 18-hole golf courses in Vuginia The organization's financial director has just analyzed the course maintenance costs incurred by the golf association during recent summers. The courses are maintained by
6.41 Refer to the data in the preceding problem for Nantucket Manne Supply Required: 1. Build a spreadsheet: Construct an Excel spreadsheet and use the Excel commands to perform a least-squares regression Estimate of the variable- and fixed-cost components in the company's material-handling
6.40 (Note: Instructors who wish to cover all three cost-estimation methods with the same data set may assign this problem in conjunction with the next one) Nantucket Maine Supply is a wholesalet fei a large variety of boating and fishing equipment The company's controller, Alan Denney, has
6.39 The following selected data were taken from the accounting records of Manitoba Manufacturing Com- pany The company uses direct-labor hours as its cost driver for overhead costs Month January February March April Mav Junc Direct-Labor Hours 28 000 27,000 30,000 20 000 33,000 40,000
6.38 Lone Mountain Extraction, which mines ore in Idaho, uses a calendar year for both financial-reporting and tax purposes The following selected costs were incuned in December the low point of activity. when 1 400 tons of ore were extracted Straight-line depreciation Charitable coninbutions"
6.37 Liberty Bell Fitness, Inc. operates a cham of fitness centers in Philadelphia The tum's condoller is accumulating data to be used in preparing its annual profit plan for the coming year The cost beha: 101 pattern of the fum's equipment inaintenance costs must be determined The accounting staff
6.36 The Piedmont School of Music has hned you as a consultant to help in analyzing the behavior of the school's costs Use the account-classification method of cost estimation to classify each of the following costs as variable fixed, or semivariable Before classifying the costs, choose an
6.36 11. Your winery exports wine to several Pacific Rim counties In one nation, you must pay a tariff for every case of wine brought into the country The tauff schedule is the following 0 to 6 000 cases per year 6,001 to 12 000 cases per year Above 12,000 cases per y68 $11 per case $14 per case
6.35 For each of the following cost items (1 through 11) choose the graph (a through I) that best represents it 1. The cost of uulities at a university. For low student emollments, utility costs increase with enroll- ment, but at a decreasing rate For large student enrollments, utility costs
6.34 Recent monthly costs of providing on-board flight service incurred by New England Anlines are shown in the following table Month July August September October Number of Passengers 16,000 17,000 16.000 10,000 15,000 17.000 Cost of On-Board Flight Service $54,000 54,000 57,000 60,000 54,000
6.33 Gator Beach Marts, a chain of convenience grocery stores in the Fort Lauderdale area, has store hours that fluctuate from month to month as the tourist trade in the community varies. The utility costs for one of the company's stores are listed below for the past six months Total Hours of
6.32 The State Department of Taxation processes and audits income-tax returns for state residents The state tax commissione has recently begun a program to estimate the costs of running the department The independent variable used in the program is the number of returns processed. The analysis
6.31 Weathereye, Inc manufactures weather satellites. The final assembly and testing of the satellites is a largel, manual operation involving dozens of highly tramed electonics technicians The follow- ing learning curve has been esumated for the firm's newest satellite model, which is about to
6.30 Refer to the data in the preceding exercise Required: 1. Diaw a scatter diagram and graph the company's energy cost behavior using the visual-fit method 2. Predict the energy cost for a month in which 78,000 pints of applesauce are produced 3. What peculiarity is apparent from the scatter
6.29 Jonathan Macintosh is a highly successful upstate New York orchardman who has formed his own com- pany to produce and package applesauce Apples can be stored for several months in cold storage, so applesauce production is relatively uniform throughout the year The recently hued controller for
6.28 Visit the website of one of the following companies, or a different company of your choosing www.ls.com www.apple.com ople Computer Several decirc www.ge.com www.basing.com Ford Honewall Required: www.ford.com/us www.honeywell.com Read about the company's products and operations Then list five
6.27 The Kansas City Veterinary Laboratory performs a variety of diagnostic tests on commercial and domes tic animale The lab has cured the following costs over the past year Diagnostic Tests Month January Completed 1,525 Cust $30100 February 2250 36 500 Merch 3:50 50,000 April 3'00 47,900 May
6.26 The behavior of the annual maintenance and repair cost in the Grounds Department of the Allegheny Public School District is shown by the solid line in the following graph The dashed line depicts a semivanable-cost approximation of the depattraent's repair and maintenance costRequired 1. What
6.25 Brazilia Bus Tours has incurred the following bus maintenance costs during the recent tourist season (The real is Brazil's national monetary unit On the day this excicise was written the real was equivalent in value to 43 US dollar) Month November Miles Traveled Maintenance by Tour Buses
6.24 Lancaster Meat Company produces one of the best sausage products in southeastern Pennsylvania The company's controller used the account-classification method to compile the following informationa. Depreciation schedules revealed that monthly depreciation on buildings and equipment is $21,000b.
6.23 Draw graph of the cost behavior for each of the following costs incurred by the Valley View Hospital The hospital measures monthly activity in patient days Label both axes and the cost line in each graph 1. The cost of food varies in proportion to the number of patient days of activity In
6.22 WMIB is an independent television stadon tun by a major state university The station's broadcast hours vary during the year depending on whether the university is in session. The station's production- crew and supervisory costs are as follows for August and October Cast Cost Item Behavior Cost
6-21. Briefly describe two methods that can be used to evalu- ate a particular least-squares regression line
6-20. Last several possible cost divers that could be used by a cruise line such as Carnival
6-19. Distinguish between simple regression and multiple
6-18. Use an equation to express a least-squares regression line Interpret cach team in the equation
6-17. Explain the meaning of the term least squares in the least-squares regression method of cost estimation

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Managerial Accounting Creating Value In A Dynamic Business Environment 10th Global Edition Ronald W. Hilton, David E. Platt, Platt Hilton, Mcgraw-Hill - Solutions

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