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
S
Books
FREE
Study Help
Expert Questions
Accounting
General Management
Mathematics
Finance
Organizational Behaviour
Law
Physics
Operating System
Management Leadership
Sociology
Programming
Marketing
Database
Computer Network
Economics
Textbooks Solutions
Accounting
Managerial Accounting
Management Leadership
Cost Accounting
Statistics
Business Law
Corporate Finance
Finance
Economics
Auditing
Tutors
Online Tutors
Find a Tutor
Hire a Tutor
Become a Tutor
AI Tutor
AI Study Planner
NEW
Sell Books
Search
Search
Sign In
Register
study help
business
management accounting
Management Accounting 5th Edition Don R Hansen, Maryanne M Mowen - Solutions
Barrett’s Department Store purchases a wide variety of merchandise. Purchases are made evenly throughout the month, and all are on account. On the first of every month, Barrett’s accounts payable clerk pays for all of the previous month’s purchases. Terms are 2/10, n/30 (that is, a 2 percent
A formal master budgeting process is important to many companies. Locate a manufacturing plant in your community that has headquarters elsewhere. Interview the controller for the plant regarding the master-budgeting process. Ask when the process starts each year, what schedules and budgets are
In a similar sense as companies, the U.S. government must prepare a budget each year. However, unlike private, for-profit companies, the budget and its details are available to the public. The entire budgetary process is established by law. The government makes available a considerable amount of
Explain the cost assignment process. lop52
Define tangible and intangible products and explain why there are different product cost definitions. lop52
Prepare income statements for manufacturing and service organizations. lop52
Explain the differences between functional-based and activity- based management accounting systems. lop52
What is meant by product- costing accuracy? lop52
How will increasing accuracy of product costing improve decision making? lop52
Why does Randy feel that the division's product costs are not very accurate? lop52
Is assigning costs accurately as important for services as it is for tangible products? lop52
What is meant by “product-costing accuracy”? lop25
What is a cost object? Give some examples. lop25
What is an activity? Give some examples of activities within a manufacturing firm. lop25
What is a direct cost? an indirect cost? lop25
What does traceability mean? What is tracing? lop25
What is allocation? lop25
What are drivers? Give an example of a driver. lop25
Explain the difference between direct tracing and driver tracing. lop25
Explain how driver tracing works. lop25
What is a tangible product? lop25
What is a service? lop25
Explain how services differ from tangible products. lop25
Give three examples of product cost definitions.Why do we need different product cost definitions? lop25
Identify the three cost elements that determine the cost of making a product (for external re- porting). lop25
How do the income statements of a manufactur- ing firm and a service firm differ? lop25
Describe some of the major differences between a functional-based cost management system and an activity-based cost management system. lop25
When would a company choose an activity-based cost management system over a functional-based system? What forces are moving firms to imple- ment activity-based cost management systems? lop25
Harry Whipple, owner of an ink jet printer, has agreed to allow Mary and Natalie, two friends who are pursuing a Masters degree in English, to print several papers for their graduate English courses. However, he has imposed two conditions. First, they must supply their own paper. Second, they must
Limon Hospital has two types of patients: normal care and intensive care. On a daily basis both types of patients consume resources necessary for their care. For example, they occupy beds, receive nursing help, use care supplies (lotion, gauze, tissue, etc.), have bedding, towels, and clothes
Hummer Company uses manufacturing cells to produce its products (a cell is a manufacturing unit dedicated to the production of subassemblies or products). One manufacturing cell produces small motors for lawn mowers. Suppose that the motor manufacturing cell is the cost object. Assume that all or a
The following activities are performed within a manufacturing firm. Classify each activity according to its value-chain activity category (for example, activity: grinding parts; value-chain activity category: producing). lop25 a. Advertising products b. Repairing goods under warranty c. Designing a
Three possible product cost definitions were introduced: value-chain, operating, and traditional. Identify which of the three best fits the following situations (Gustify your choice):a. Setting the price for a new product.b. Valuation of finished goods inventories for external reporting. lop25 c.
Bisby Company manufactures fishing rods. At the beginning of July, the following information was supplied by its accountant: lop25 Raw materials inventory $40,000 Work-in-process inventory 21,000 Finished goods inventory 23,200 During July, direct labor cost was $43,500, raw materials' purchases
Laworld, Inc. manufactures small camping tents. Last year 200,000 tents were made and sold for $60 each. The actual unit cost for a tent follows: lop25 Direct materials $18.00 Direct labor 12.00 Overhead 16.00 Total unit cost $46.00 The only selling expenses were a commission of $2 per unit sold
Cariari Manufacturing produces two different models of cameras. One model has an automatic focus; the other requires the user to focus manually. The two products are produced in batches (an equal number of batches is used for each product). Each time a batch is produced, the equipment must be
Hayward Company, a manufacturing firm, has supplied the following information from its accounting records for the year 2001 (in 1,000s): lop25 Direct labor cost $10,500 Purchases of raw materials 15,000 Factory insurance Supplies used Commissions paid Factory supervision Advertising Material
Lance Peckam owns and operates three Confiable Muffler outlets in Tucson, Arizona. Confiable Muffler specializes in replacing mufflers—replacing them with mufflers that have a lifetime guarantee. Confiable is a franchise popular throughout the Southwest. In April, purchases of materials equaled
Parker Company produces chemicals used in the mining industry. Each plant is dedicated to producing a single industrial chemical. One of its plants produces an electrolyte used in the copper industry’s solvent extraction process. During the most recent year, the electrolyte plant produced and
Listed below are costs that are to be assigned to certain cost objects. For each case, identify possible drivers that could be used for the cost assignment. Example: Cost:Setting up equipment; Object: Products; Driver: Number of setups used by each product. lop25 Cost a. Processing checks in a bank
Following is a list of cost items described in the chapter and a list of brief descriptive settings where the items are described. Match the items with the settings. There may be more than one cost classification associated with each setting; however, select the setting that seems to fit the item
The following actions are associated with either activity-based management ac- counting or functional-based management accounting. lop25 a. Budgeted costs for the maintenance department are compared with the actual costs of the maintenance department. b. The maintenance department manager receives
Berry Company is an architectural firm. The firm is located in Detroit, Michigan, and employs ten professionals and five staff. The firm does design work for small and medium-size construction businesses. The following data are provided for the year ended July 31, 2001: lop25Required:1. Prepare a
W. W. Phillips Company produced 4,000 leather recliners during the year. These recliners sell for $400 each. Phillips had 500 recliners in finished goods inventory at the beginning of the year. At the end of the year there were 700 recliners in finished goods inventory. Phillip’s accounting
Melissa Vassar has decided to open a printing shop. She has secured two contracts.One is a five-year contract to print a popular regional magazine. This contract calls for 5,000 copies each month. The second contract is a three-year agreement to print tourist brochures for the state. The state
Define and describe cost behavior for fixed, variable, and mixed costs. lop5
Explain the role of the resource usage model in understanding cost behavior.lop5
Separate mixed costs into their fixed and variable components using the high-low method, the scatterplot method, and the method of least squares.lop5
Evaluate the reliability of a cost equation.lop5
Explain the role of multiple regression in assessing cost behavior.lop5
Describe the use of managerial judgment in determining cost behavior.lop5
Suppose that the division re- duces the demand for the re- work activity. Will resource spending be reduced by the same proportion for this activ- ity? Is there a difference be- tween resource spending and resource usage?lop5
Suppose that I know the total cost of rework activity and the total number of units re- worked. Given this informa- tion, can I determine how much of this total cost is vari- able? How much is fixed? Is knowing fixed- and variable- cost behavior important?lop5
What role does management play in determining cost be- havior?lop5
Can you think of reasons other than those suggested by the scenario that make it impor- tant for managers to under- stand cost behavior?lop5
Why is knowledge of cost behavior important for managerial decision making? Give an example to illustrate your answer.lop5
How does the length of the time horizon affect the classification of cost as fixed or variable? What is the meaning of short run? long run?lop5
Explain the difference between resource spending and resource usage.lop5
What is the relationship between flexible re- sources and cost behavior?lop5
What is the relationship between committed re- sources and cost behavior?lop5
Explain the difference between committed and discretionary fixed costs. Give examples of each.lop5
Describe the difference between a variable cost and a step cost with narrow steps. When is it rea- sonable to treat these step costs as if they were variable costs?lop5
What is the difference between a step cost with narrow steps and a step cost with wide steps?lop5
What is an activity rate?lop5
Why do mixed costs pose a problem when it comes to classifying costs into fixed and variable categories?lop5
Why is a scattergraph a good first step in de- composing mixed costs into their fixed and vari- able components?lop5
Describe how the scatterplot method breaks out the fixed and variable costs from a mixed cost. Now describe how the high-low method works. How do the two methods differ?lop5
What are the advantages of the scatterplot method over the high-low method? the high-low method over the scatterplot method?lop5
Describe the method of least squares. Why is this method better than either the high-low method or the scatterplot method?lop5
What is meant by the "best-fitting line"?lop5
26. Is the best-fitting line necessarily a good-fitting line? Explain.lop5
Describe what is meant by "goodness of fit." Explain the meaning of the coefficient of deter- mination.lop5
What is the difference between the coefficient of determination and the coefficient of correlation? Which of the two measures of goodness of fit do you prefer? Why?lop5
When is multiple regression required to explain cost behavior?lop5
Some firms assign mixed costs to either the fixed or variable cost categories without using any for- mal methodology to separate them. Explain how this practice can be defended.lop5
The salary paid to a plant supervisor is $80,000 per year. The plant is capable of producing 80,000 pounds of a chemical per year.Required:1. Prepare a table that shows how the cost of plant supervision behaves in total and on a per-unit basis as production increases from 0 to 80,000 pounds, using
Kilroy Company determined that the best driver for its material-moving activity is “miles traveled.” They also discovered that the cost of fuel for forklifts doubled as the miles traveled doubled. The fuel cost for 10,000 miles was $11,500 and for 20,000 miles was $23,000.Required:1. Prepare a
State University’s football team just received a bowl game invitation and the students and alumni are excited. Holiday Travel Agency, located close to campus, decided to put together a bowl game package. For $16,000, a 737 jet could be chartered to take up to 170 people to and from the bowl city.
Action Figures, Inc., is a manufacturer of molded plastic action figures that fast food restaurants purchase to include in children’s meal packs. Each action figure takes about 1.5 ounces of plastic costing $0.20 per ounce and is molded in a mold. Every month or so, Action Figures contracts with
Jackson Company manufactures air-conditioning compressors. Based on past experience, Jackson has found that its total cost of moving materials can be represented by the following formula: Cost of moving materials = $90,000 + $0.20X, where X =pounds of materials moved. The activity of moving
For the following activities and their associated resources, identify: (1) an activity driver, and (2) flexible resources or committed resources. Also, label each resource as one of the following with respect to the cost driver: (1) variable, (2) committed fixed, or (3) discretionary fixed.lop5
Alva Community Hospital has five laboratory technicians responsible for doing a series of standard blood tests. Each technician is paid a salary of $30,000 and is capable of processing 4,000 tests per year. The lab facility represents a recent addition to the hospital and cost $300,000. It is
Betty Yeager has been operating a dental practice for the past five years. As part of her practice, she provides a dental hygiene service. She has found that her costs for this service increase with patient load. Costs for this service over the past eight months are as follows:Required:1. Prepare a
Suppose that you have the following data:Required:1. Using the high-low method, prepare a cost formula for inspection cost.2. Using regression, prepare a cost formula for inspection cost. Comment on the usefulness of the coefficient of determination to evaluate the reliability of the regression
During the past year, the high and low levels of resource usage occurred in April and October, respectively (for three different resources). The three resources are associated with the machining activity. Machine hours is the activity driver. The total costs of the three resources and the activity
The method of least squares was used to develop a cost equation to predict the cost of purchasing goods. Eighty data points were used for the regression. The following computer output was received:Required:1. What is the cost formula?2. Using the cost formula, predict the cost of purchasing if
Materhorn, a manufacturer of VCRs, is interested in determining the cost of its warranty repair activity. Two cost drivers have been identified that are believed to be important in explaining the cost of this activity: the number of defective products produced and the hours of inspection. To see if
The graphs on page 97 represent cost behavior patterns that might occur in a com- pany’s cost structure. The vertical axis represents total cost and the horizontal axis represents activity output.Required:For each of the following situations, choose the graph that best illustrates the cost
Rolertyme Company manufactures roller skates. With the exception of the rollers, all parts of the skates are produced internally. Neeta Booth, president of Rolertyme, has decided to make the rollers instead of buying them from external suppliers. The company needs 100,000 sets per year (currently
Monson Medical Clinic offers a number of specialized medical services, one of which is cancer care. Because of the reputation the clinic’s physicians (oncologists) have developed over the years, demand for these services is strong. As a result, Monson recently added a 100-bed cancer wing to the
Farnsworth Company has gathered data on its overhead activities and associated costs for the past ten months. Tracy Heppler, a member of the controller’s department, has convinced management that overhead costs can be better estimated and controlled if the fixed and variable components of each
Kimball Company has developed the following cost formulas:The company has a policy of producing on demand and keeps very little, if any, finished goods inventory (thus, units produced = units sold).The president of Kimball Company has recently implemented a policy that any special orders will be
Describe the differences between job-order costing and process costing, and identify the types of firms that would use each method. lop5
Describe the cost flows and prepare the journal entries associated with job-order costing. lop5
Identify and set up the source documents used in job-order costing. lop5
Does Applegate Construction Company produce a product or provide a service? Would the buyer of a typical subdivision house answer this question differently than a customhouse buyer? lop5
List some examples of direct materials, direct labor, and overhead for Applegate’s typical subdivision home. List some examples of each for custom homes. Is Jay Applegate right—will the accounting system need to change? How? lop5
Explain the differences between job-order costing and process costing. lop5
Explain the role of cost drivers in assigning over- head costs to jobs. lop5
Explain how overhead is assigned to production when a predetermined overhead rate is used. lop5
Showing 2300 - 2400
of 5025
First
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
Last
Step by Step Answers
Get 50% OFF
Claim Now
