Managerial Accounting Creating Value in a Dynamic Business Environment 12th edition Ronald Hilton, David Platt - Solutions

Explain the impact of an increase in the level of activity (or cost driver) on (a) total variable cost and (b) variable cost per unit.
Since you have always wanted to be an entrepreneur, invent your own product and describe at least five steps used in its production. Required:Explain how you would go about identifying non–value-added costs in the production process.
Which of the following university cost drivers is likely to be associated with the behavior of variable costs? (a) Number of students, (b) Number of disciplines offered for study,(c) Urban versus rural location.
What are transferred-in costs?
Martin Chuzzlewit purchased a vacant lot outside of London for £1,350,000, because he heard that a shopping mall was going to be built on the other side of the road. He figured that he could make a bundle by putting in a fast-food outlet on the site. As it turned out, the rumor was false. A
Based on the discussions in this chapter, what would you expect is meant by the term non–value-added costs? (We will define the term formally in the next chapter.)
Give examples of each of the four primary management activities in the context of a national fast-food chain such as Chipotle.
The volume of business-to-consumer (B2C) electronic retail transactions is estimated to exceed $2 trillion, and business-to-business (B2B) e-commerce transactions are estimated at over an additional $1 billion. What additional decision-making challenges does this explosion in e-commerce present to
Give an example of managerial accounting information that could help a manager make each of the following decisions. 1. The president of Budget Rent a Car is deciding whether to add luxury cars to the rental car fleet. 2. The production manager in a Volvo Trucks plant is deciding whether
For each of the following activities, explain which of the objectives of managerial accounting activity is involved. In some cases, several objectives may be involved. 1. Developing a bonus reward system for the managers of the various offices of the AAA (American Automobile Association)
What does the following statement by a managerial accountant at Caterpillar imply about where in the organization the managerial accountants are located? “[We] are a partner with all of the other functions in the business here.”
Provide three examples of ways in which Walt Disney Company could apply insights from big data and data analytics to promote the success of their ESPN sports television operation.
A loom operator in a textiles factory earns $16 per hour. By contract, the employee earns $24 (time and a half) for overtime hours. The operator worked 45 hours during the first week of May, and overtime is paid after the usual 40 hours. Required: 1. Compute the loom operator’s
List several product costs incurred in the production of a backpack.
Give examples to illustrate how the city of Tampa, Florida, could use cost information in planning, controlling costs, and making decisions.
Cape Cod Shirt Shop manufactures T-shirts and decorates them with custom designs for retail sale on the premises. Several costs incurred by the company are listed below. For each cost, indicate which of the following classifications best describe the cost. More than one classification may apply to
Suppose you paid $150 for a ticket to see your university’s football team compete in a bowl game. Someone offered to buy your ticket for $400, but you decided to go to the game. Required: 1. What did it really cost you to see the game? 2. What type of cost is this?
Give three examples of cost drivers in the airline industry that could apply to a particular flight.
Bodin Company manufactures finger splints for kids who get tendonitis from playing video games. The firm had the following inventories at the beginning and end of the month of January.? The following additional data pertain to January operations.? Raw material purchased
Why are some manufacturing firms switching from direct-labor hours to machine hours or production time as the basis for overhead application?
Describe how a large retailer such as Lowes would assign overhead costs to the products it sells in its stores.
A-1 Products manufactures wooden furniture using an assembly-line process. All direct materials are introduced at the start of the process, and conversion cost is incurred evenly throughout manufacturing. An examination of the company’s Work-in-Process Inventory account for June revealed the
Question for classroom or small-group discussion. Now that we have studied different kinds of costs and the systems used to accumulate them, let’s think about how these concepts might apply in the social media industry. Suppose you are the CFO (chief financial officer) of Facebook, Twitter,
Why was Dronze Inc.’s management being misled by the traditional product-costing system? What mistakes were being made?
How can an activity-based costing system alleviate the problems Dronze Inc.’s management was having under its traditional, volume-based product-costing system?
Non–value-added costs occur in non-manufacturing organizations, just as they do in manufacturing firms. Required: Identify four potential non–value-added costs in (1) An airline, (2) A bank, (3) A hotel.
Think carefully about a recent visit to a sit-down restaurant. List as many activities as you can think of that were performed by the restaurant’s employees for its customers. Required: For each activity on your list, indicate the following: 1. Value-added or
Explain why maintaining their medical-services provider network is treated as a product-sustaining-level activity by Blue Cross Blue Shield.
The customer profitability analysis for Dronze Inc., which is displayed in Exhibit 5–14, ranks customers by operating income. An alternative, often-used approach is to rank customers by sales revenue. Required: 1. List the customer numbers in the left-hand column of Exhibit 5–14 by
WMEJ is an independent television station run 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 July and September. 1. Compute the cost
Hold a classroom discussion (or debate) arguing the following two viewpoints, A: Sound data analytics is the key to using data for decision making. This is where the story embedded in the data is unlocked. Data visualization is all fluff—just a bunch of pretty pictures. B: Data
The Iowa City Veterinary Laboratory performs a variety of diagnostic tests on commercial and domestic animals. The lab has incurred the following costs over the past year. Required: 1. Plot the data above in a scatter diagram. Assign cost to the vertical axis and the number of diagnostic
Define big data, data analytics, and data visualization.
Using graphs, show how a semivariable (or mixed) cost behavior pattern can be used to approximate (a) A stepvariable cost (b) A curvilinear cost.
East Company manufactures DVD players using a completely automated production process. West Company also manufactures DVD players, but its products are assembled manually. How will these two firms’ cost structures differ? Which company will have a higher operating leverage factor?
The European Division of Worldwide Reference Corporation produces a pocket dictionary containing popular phrases in six European languages. Annual budget data for the coming year follow. Projected sales are 100,000 books. Required: 1. Calculate the break-even point in units and in sales

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