Cost Management: A Strategic Emphasis 7th Edition

ISBN 13

978-0077733773

ISBN 10

0077733770

Authors

David Stout, Edward Blocher, Gary Cokins, Paul Juras

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364 documents found.

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978-0077733773 Chapter 1 Cases Part 1

Chapter 1 - Cost Management and Strategy Chapter 1 Cost Management and Strategy Teaching Notes for Cases 1-1. Critical Success Factors The critical success factors for Kirstens business, including the proposed new publishing business are related to the needs of these customers, which probably includes, now and into the future: timeliness of the

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 1 Cases Part 2

Chapter 1 - Cost Management and Strategy 1.3 POGS at the Park, POGS at home: C-ing Business Expansion Opportunities This article explains the competitive environment for a minor league baseball team. An innovative manager of the team uses strategic cost management concepts for achieving greater profitability. Discussion Questions 1. Explain whether Greg

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 1 Lecture Note Part 1

Chapter 01 - Cost Management and Strategy Chapter 1 Cost Management and Strategy Learning Objectives 1. Explain the use of cost management information in each of the four functions of management and in different types of organizations with emphasis on the strategic management function. 2. Explain the contemporary business environment and how it has influenced cost

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 1 Lecture Note Part 2

Chapter 01 - Cost Management and Strategy 1-46 1-35 30 min. X 1-47 1-36 Revised 30 min. X X X 1-37 Deleted . 1-48 1-38 20 min. X 1-49 1-39 20 min. X X X 1-40 Deleted 1-50 1-41 Revised 15 min. X X 1-51 1-42 Revised 15 min. X X 1-43 Deleted 15 min. 1-52 New in 7e

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 1 Solution Manual Part 1

Chapter 01 - Cost Management and Strategy CHAPTER 1: COST MANAGEMENT AND STRATEGY QUESTIONS 1-1 Firms Using Cost Management. Here are some examples; there are many possible answers. 1. Walmart: to keep costs low by streamlining restocking and sales 2. Hewlett-Packard or Dell Computer: to keep costs low by improving manufacturing performance and by

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 1 Solution Manual Part 2

Chapter 01 - Cost Management and Strategy 1.24The IMA definition of management accounting states that: a. Management accounting is the process of gathering, reporting, and analyzing information for management decision making b. Management accounting is a profession that involves preparation and analysis of cost information, budgeting, performance measurement and analysis, to assist

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 1 Solution Manual Part 3

Chapter 01 - Cost Management and Strategy 1-38 Risk Management, Enterprise Sustainability, and Lean Accounting (40 min) 1. There are two IMA Statements on Management Accounting (SMA) on Enterprise Risk Management. Enterprise Risk Management: Frameworks, Elements and Integration (2006), and Enterprise Risk Management: Tools and Techniques for Effective Implementation (2007). The IMA

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 1 Solution Manual Part 4

Chapter 01 - Cost Management and Strategy PROBLEMS 1-45 Strategy; Downsizing Luxury (15 min) BMW, Tiffany, Audi and Mercedes-Benz are-well known luxury brands and their products are know to be among the most highly-regarded and expensive in their respective product markets. So it is clear that their competitive strategy is differentiation. Does the

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 1 Solution Manual Part 5

Chapter 01 - Cost Management and Strategy 1-52 Strategy: Cost-Cutting in the Pharmaceutical Industry (15 min) Valeant operates in the pharmaceutical industry, an industry that is known for its reliance on innovation, attention to safety, and customer confidence rather than cost-reduction. This is true for manufacturers of generic drugs as well as

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 10 Cases Part 1

Chapter 10 Strategy and the Master Budget Chapter 10 Strategy and the Master Budget Teaching Notes for Cases 10-1: 1Emerson Electric Company Background Emerson is an $8 billion company. Its successful strategy is efficient, quality, and low cost production. R&D does not get a great deal of attention from top management. Planning Process Top management sets sales growth and

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 10 Cases Part 2

Chapter 10 Strategy and the Master Budget Sales of motor homes have started to slow in recent months, partly because of high fuel prices. Motor- home retail sales fell about 21% to 7,328 units in the first two months of this year, compared with the same period a year ago, as RV

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 10 Cases Part 3

Chapter 10 Strategy and the Master Budget Rice also would like the task force to make a budget recommendation for the 2008 year with specific suggestions about how to cut recurring operating cost by 15% while achieving the units mission. Rice also would like the task force to make a budget

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 10 Cases Part 4

Chapter 10 Strategy and the Master Budget Exhibit 5 Activity Evaluation Matrix Performance Strategic Non-Strategic Perform Well Cell 1 Continue Cell 2 Drop or Create Niche Perform Poorly Cell 3 Improve Cell 4 Drop 10-31 Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 10 Cases Part 5

Chapter 10 Strategy and the Master Budget Reading 10-3: How Challenging Should Profit Budget Targets Be? This article argues for using highly achievable budget targets, and explains six key advantages for doing so, including the favorable effect on a managers commitment and confidence. The article also explains some of the risks of using highly

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 10 Cases Part 6

Chapter 10 Strategy and the Master Budget Reading 10-7: Planning for UncertaintyRolling Forecasts Corporate financial planning expert Steve Player highlights how CPA financial executives can use nimble rolling forecasts to replace annual budgets. Discussion Questions 1. According to the article, what are some of the most severe criticisms of conventional budgeting practices, such as those

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 10 Lecture Note

Chapter 10 - Strategy and the Master Budget Chapter 10 Strategy and the Master Budget Learning Objectives (LOs) 1. Describe the role of budgets in the overall management process. 2. Discuss the importance of strategy and its role in the master budgeting process. 3. Outline the budgeting process. 4. Prepare a master budget and explain the interrelationships

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 10 Solution Manual Part 1

Chapter 10 - Strategy and the Master Budget CHAPTER 10: STRATEGY AND THE MASTER BUDGET QUESTIONS 10-1 Compel strategic planning and facilitate implementation of strategic plans. An organizations strategy, strategic plans, and budgets are interrelated. Preparing budgets compels reviews of an organizations strategy and its strategic plans and can facilitate implementations of the strategic plan. Feedback

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 10 Solution Manual Part 10

Chapter 10 - Strategy and the Master Budget 10-56 (Continued-3) 2. What additional real-life refinements would you envision for the budgets you prepared above in (1)? What additional budgets would you anticipate preparing for the company were you in charge of the budget-preparation process? a) As the person in charge of the budget-preparation process,

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 10 Solution Manual Part 11

Chapter 10 - Strategy and the Master Budget 10-58 (Continued-4) Cell E8 contains the cost of the new compound, per pound of laundry; cell G99 contains the cost difference: the anticipated fine versus the increased processing cost attributable to the use of the new compound. Step Three: Results In other words, if the price of the

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 10 Solution Manual Part 2

Chapter 10 - Strategy and the Master Budget 10-26 Budgeted Cash Receipts and Disbursements (30 minutes) 1. Budgeted Cash Receipts: November: Cash sales = $120,000 Collection of accounts receivable: From Oct sales: ($100,000 0.95) 0.40 0.75 0.985 = $28,073 ($100,000 0.95) 0.40 0.25 = $9,500From Nov sales:($150,000 0.95) 0.60 0.75 0.985 = $63,163($150,000 0.95) 0.60 0.25 = $21,375

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 10 Solution Manual Part 3

Chapter 10 - Strategy and the Master Budget 10-33 Accounts Receivable Collections and Sensitivity Analysis (50 minutes) Original Assumptions/Data: Actual credit sales for March $130,000 Actual credit sales for April $160,000 Estimated credit sales for May $210,000 Estimated collections in month of sale 25% Estimated collections in first month following month of sale 60% Estimated

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 10 Solution Manual Part 4

Chapter 10 - Strategy and the Master Budget 10-37 (Continued) 2. Budgeted Operating Income--Current Year: Sales Revenue (2,500 units $1,500 per unit) = $3,750,00 0 Less: Variable Costs (2,500 units $1,000 per unit) = $2,500,00 0 Contribution Margin (2,500 units $500 per unit) =0 Contribution Margin (2,500 units $500 per unit) =0 Contribution Margin (2,500 units $500

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 10 Solution Manual Part 5

Chapter 10 - Strategy and the Master Budget 10-42 Activity-Based Budgeting (ABB) with Continuous Improvement (40 Minutes) 1. Unit-Level: Pick packing, Data entryLines Batch-Level: Requisition handling, Data entryRequisitions, Desktop delivery 2. Budgeted cost for each activity and for the division as a whole, February & March: Budgeted cost-driver rates: Cost-Reduction Cost-Driver Rates Activity Rate (per month)

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 10 Solution Manual Part 6

Chapter 10 - Strategy and the Master Budget the upcoming year. This increased evaluation of expenditures would make it 10-47 (Continued) difficult to include budgetary slack in the budget for the upcoming year and likely uncover opportunities of cost savings and operational improvements. c. The biggest disadvantage of ZBB is the significant amount of

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 10 Solution Manual Part 7

Chapter 10 - Strategy and the Master Budget 10-51 Spring Manufacturing CompanyComprehensive Profit Plan (90 Minutes, but much less if used in conjunction with 10-50 and completed with an Excel spreadsheet) 1. Sales Budget Spring Manufacturing Company Sales Budget 2016 C12 D57 Total Sales (in units) 12,000 18,000 30,000 Selling Price per Unit $160 $180 Total revenue

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 10 Solution Manual Part 8

Chapter 10 - Strategy and the Master Budget 10-52 (Continued-4) Schedule 2: Cost per UnitProduct D57: Inputs Cost Cost Element Unit Input Cost Quantity Per Unit RM-1 $2.00 7 $14.00 RM-2 $2.50 3.6 $9.00 RM-3 $0.50 0.8 $0.40 Direct labor $30.00 2 $60.00Variable factory OH ($293,472 35,950) $8.16334 2 $16.32668Fixed factory OH ($245,579 35,950) $6.83113 2 $13.66225Manufacturing

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 10 Solution Manual Part 9

Chapter 10 - Strategy and the Master Budget analysis is a tool that allows us to vary one or more of these inputs in order to examine the resulting effect on one or more budgets (e.g., operating income or cash 10-54 (Continued-3) flows). In essence, we attempt to determine how sensitive our budgets

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 11 Cases Part 1

Chapter 11 Decision Making with a Strategic Emphasis Chapter 11 Decision Making with a Strategic Emphasis Teaching Notes for Cases Case 11-1: Product-Promotion Strategies; Use of Probabilities Question 1: Exquisite Foods Incorporated (EFI) wishes to select the most profitable marketing alternative to promote Souffls for Microwaves. Recommend which of the three strategies presented above should

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 11 Cases Part 2

Chapter 11 Decision Making with a Strategic Emphasis Purchased Manufactured Manufactured In-line Skates In-line Skates Snowboard Bindings Total Units 6,000 1,000 12,000 Per Unit Total Per Unit Total Per Unit Total Selling price $98 $588,000 $98 $98,000 $60 $720,000 Variable costs Material 75 450,000 20 20,000 20 240,000 Machine cost - - 24 24,000

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 11 Cases Part 3

Chapter 11 Decision Making with a Strategic Emphasis For the vast majority of consumer products the Mass/Club channel will require the lowest trade margins followed by Grocery stores, and Convenience/Specialty stores. However, in the cola industry on-shelf pricing is usually the lowest in the grocery channel, because Supermarkets and Convenience stores

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 11 Cases Part 4

Chapter 11 Decision Making with a Strategic Emphasis Teaching Notes for Readings 11-28 Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-HillEducation. Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-HillEducation. Copyright 2016 McGraw-Hill Education. All rights

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 11 Lecture Note

Chapter 11 - Decision Making with a Strategic Emphasis Chapter 11 Decision Making with a Strategic Emphasis Learning Objectives LO 11-1 Define the decision-making process and identify the types of cost information relevant for decision making. LO 11-2 Use relevant cost analysis and strategic analysis to make special-order decisions. LO 11-3 Use relevant cost analysis and

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 11 Solution Manual Part 1

CHAPTER 11: DECISION MAKING WITH A STRATEGIC EMPHASIS QUESTIONS 11-1 Relevant costs are costs to be incurred at some future time and differ for each option available to the decision maker. Relevant costs in replacing equipment would include the cost of purchasing and installing the new equipment, the operating costs of the new equipment, and

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 11 Solution Manual Part 10

11-47 Profitability Analysis (45-50 min) 1. First, calculate the contribution margin per unit for traffic and commercial paint. The first step is to determine the unit cost of latex, as follows: Traffic Paint: (450 lbs. $32.00/lb.) 1,000 gallons = $14.40 per gallonCommercial Paint: (325 lbs. $32.00/lb.) 1,000 gallons = $10.40 per gallon Traffic Paint: (450

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 11 Solution Manual Part 2

11-22 (Continued) 4. Opportunity cost incurred if sales of 5,000 units to regular customers are lost by accepting the special sales order: Lost contribution margin, sales to regular customers: Selling price per unit = $20.00 Variable cost per unit: Direct materials = $2.00 Direct labor = $3.00 Contribution margin per unit

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 11 Solution Manual Part 3

11-27 (Continued) Check: Last year's total operating income = $168,000 Projected = $168,000* *($184,000 $16,000) + (31.82% $110,000) $80,000 + $45,000 Last year's total operating income = $168,000 Projected = $168,000* *($184,000 $16,000) + (31.82% $110,000) $80,000 + $45,000 Last year's total operating income = $168,000 Projected = $168,000* *($184,000 $16,000)

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978-0077733773 Chapter 11 Solution Manual Part 4

11-30 (continued-5) Note that the products have the same per unit profit, but Flash has the higher contribution margin per unit, and Clash has the higher contribution per direct labor hour (DLH). Thus, Flash would be the more profitable product without a labor constraint, while Clash is the most profitable product with the labor constraint.

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978-0077733773 Chapter 11 Solution Manual Part 5

11-33 Special Order (45-60 min) 1. In general, relevant cost equals the sum of out-of-pocket costs (variable + fixed), plus opportunity cost (if any). In the present case, these costs total $147,500, as follows: Out-of-Pocket Costs: Variable costs: Manufacturing cost (@ $17 per unit) $85,000 Fixed costs: One-Time Packing & Delivery Cost $2,500

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978-0077733773 Chapter 11 Solution Manual Part 6

11-36 Make or Buy (45-60 min) 1. Since the per-unit contribution margin for manufactured fans ($24) is higher than for purchased fans ($12), the company should manufacture as many fans as possible (15,000), and purchase the remainder (5,000) from Harris Products. The total contribution margin from this plan would be:(15,000 units $24/unit) + (5,000

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978-0077733773 Chapter 11 Solution Manual Part 7

11-39 (continued-2) and long-term pricing strategy to make sure it is consistent with the firms overall strategy. While it appears that the firms overallstrategy is cost leadership, so that lower prices arecompetitively advantageous, the pricing should be based on a the firms overall strategy. While it appears that the firms overallstrategy is cost

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978-0077733773 Chapter 11 Solution Manual Part 8

11-46 (Continued-1) $4.000 $27,435 $27,389 $4.250 $28,087 $27,944 $4.500 $28,739 $28,500 $4.750 $29,391 $29,056$5.000 $30,043 $29,611 $4.750 $29,391 $29,056$5.000 $30,043 $29,611 $4.750 $29,391 $29,056 $5.000 $30,043 $29,611 Based on the above analysis and graph, we see that for these two alternatives (gas-powered vs. hybrid model), and 60,000 miles total usageover a four-year period, the lifetime costs are close,

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978-0077733773 Chapter 11 Solution Manual Part 9

11-44 (continued-1) 2. The net first-year cost savings from closing the plant are estimated as $7,200 (in thousands), as follows: The depreciation amounts are not relevant to the decision because they represent portions of sunk costs that are being written off during 2016.Three-fourths of the annual pension expense ($3,000) is notrelevant because this amount

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 12 Cases Part 1

Chapter 12 Strategy and the Analysis of Capital Investments Chapter 12 Strategy and the Analysis of Capital Investments Teaching Notes for Cases 12-1: Floating Investments (Source: Paul Rouse and Leigh Houghton, Instructional Case: Floating Investments, Journal of Accounting Education, Vol. 20, No. 2 (2002), pp. 235-247.) Purpose The purpose of this case is

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978-0077733773 Chapter 12 Cases Part 2

Chapter 12 Strategy and the Analysis of Capital Investments Build a superstore at the Park Hill Acres location and expand the Webster Street storeBuild a superstore at the Park Hill Acres location and close the Webster Street store Build a superstore at the Park Hill Acres location and expand the Webster

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978-0077733773 Chapter 12 Cases Part 3

Chapter 12 Strategy and the Analysis of Capital Investments 12-21 Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2016 McGraw-Hill Education. All rights

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978-0077733773 Chapter 12 Cases Part 4

Chapter 12 Strategy and the Analysis of Capital Investments Reading 12-2: How ABC Was Used in Capital Budgeting This article presents a case study on the difference that ABC makes on the investment decision of a new project. A business forecast signaled Go to an interactive TV project, but the ABC analysis

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978-0077733773 Chapter 12 Cases Part 5

Chapter 12 Strategy and the Analysis of Capital Investments 1. Product/Service Mix (represented as a weighted average of type of scan (CPT code), its RVU, andthe number of scans; operationally, this variable was represented in binary form: % low-RVU scans,and % high-RVU scans. 2. Reimbursement Rates (i.e., projected reimbursement rate per

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978-0077733773 Chapter 12 Lecture Note Part 1

Chapter 12 - Strategy and the Analysis of Capital Investments Chapter 12 Strategy and the Analysis of Capital Investments Learning Objectives LO 12-1Explain the strategic role of capital-investment analysis LO 12-2Describe how accountants can add value to the capital-budgeting process LO 12-3 Provide a general model for determining relevant cash flows associated with capital- investment

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978-0077733773 Chapter 12 Lecture Note Part 2

Chapter 12 - Strategy and the Analysis of Capital Investments Effects of cash flows include direct and indirect (tax) effects. Direct effects include cash receipts, cash payments, or cash commitments. Indirect or tax effects are changes in income-tax payments precipitated by the investment decision. The sum of direct and indirect effects is net

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 12 Solution Manual Part 1

Chapter 12 - Strategy and the Analysis of Capital Investments CHAPTER 12: STRATEGY AND THE ANALYSIS OF CAPITAL INVESTMENTS QUESTIONS 12-1 Capital-budgeting decisions: (a) are long-term in nature (i.e., they affect profitability and cash flows for many years into the future), and (b) involve substantial amounts of investment funds (capital). Because of these, formal models that

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 12 Solution Manual Part 10

Chapter 12 - Strategy and the Analysis of Capital Investments 12-56 Sensitivity Analysis; Equipment-Replacement Decision (45-60 minutes) 1. The maximum amount of annual variable operating expenses, pre-tax, that would make this an attractive investment from a present-value standpoint = $99,206 as follows: Net investment outlay, time 0 = $460,000 Differential salvage value, e-o-y

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 12 Solution Manual Part 11

Chapter 12 - Strategy and the Analysis of Capital Investments SUM = $ 159,900 $ 115,833 12-58 (Continued-2) Alternatively: a) For 8%: ($14,545 10.935) + (0.116 $7,273) = $159,900 b) For 12%: ($14,545 7.943) + (0.042 $7,273) = $115,833 Estimated NPV of Proposed Investment (@ 8% discount rate): Net initial investment outlay, time

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 12 Solution Manual Part 12

Chapter 12 - Strategy and the Analysis of Capital Investments 12-61 Research Assignment, Strategy (45 Minutes) This assignment pertains to the following article: Thomas L. Barton and John B. MacArthur, The New Hue of Green for the Management Accountant, Strategic Finance (March 2011), pp. 36-41. The article focuses on investment in energy-renewal projects and the

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 12 Solution Manual Part 2

Chapter 12 - Strategy and the Analysis of Capital Investments EXERCISES 12-28 Determining Relevant Cash Flows: Asset-Purchase Decision (25 minutes) 1. Net cash outflow, project initiation (time period 0): Cost of new machine $2,500,000 Incremental net working capital required $30,000 Total $2,530,000 Incremental net working capital required $30,000 Total $2,530,000 Incremental net working capital

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 12 Solution Manual Part 3

Chapter 12 - Strategy and the Analysis of Capital Investments 12-34 Determining Cash Flows; Basic Capital Budgeting (15 minutes) 1. The after-tax cash flow from disposal of the old machinery = after-tax gain on sale = ($1,800 $0) (1 t) = $1,800 0.60 = $1,080 2. The PV of after-tax operating cash savings =

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 12 Solution Manual Part 4

Chapter 12 - Strategy and the Analysis of Capital Investments 12-39 (Continued) Step 2: Complete the following Goal Seek dialog box: Step 3: Results 4. Many firms raise the discount rate in evaluating a particular capital investment in view of uncertainties underlying the investment. This approach allows managers to factor in risks and uncertainties. The

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 12 Solution Manual Part 5

Chapter 12 - Strategy and the Analysis of Capital Investments 12-44 (Continued-1) PV factor Year CF PV CF Net investment outlay 1.000 0 ($480,000) ($480,000 ) After-tax cash inflow 0.909 1 $208,000 $189,072 After-tax cash inflow 0.826 2 $208,000 $171,808 After-tax cash inflow 0.751 3 $208,000 $156,208 NPV = $37,088 At a 10% discount rate, the

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978-0077733773 Chapter 12 Solution Manual Part 6

Chapter 12 - Strategy and the Analysis of Capital Investments 12-48 Basic Capital-Budgeting Techniques; Uneven Net Cash Inflows with Taxes and MACRS; Spreadsheet Application (60-75 minutes) 1. Unadjusted Payback Period: as shown by the above schedule, the payback period is between 5 and 6 years. Under the assumption that the cash inflows

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 12 Solution Manual Part 7

Chapter 12 - Strategy and the Analysis of Capital Investments 12-49 (Continued-4) 5. Modified internal rate of return (MIRR): A summary table for Problem12-49 appears below. 12-63 Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-HillEducation. Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 12 Solution Manual Part 8

Chapter 12 - Strategy and the Analysis of Capital Investments 12-73 Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-HillEducation. Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-HillEducation. Copyright 2016 McGraw-Hill Education. All rights reserved.

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 12 Solution Manual Part 9

Chapter 12 - Strategy and the Analysis of Capital Investments 12-54 (Continued-1) 2. The following spreadsheet excerpt contains the PV of each alternative: Sample Calculation: Cell D111 = after-tax cash operating cost ($48,000 = (8,000 machine hours $10/machine hour) 0.60) less tax savings on depreciation ($4,000 = (($120,000 $20,000)/10 years) 0.40) plus other

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978-0077733773 Chapter 13 Cases Part 1

Chapter 13 Cost Planning for the Product Life Cycle: Target Costing, Theory of Constraints, and Strategic Pricing Chapter 13 Cost Planning for the Product Life Cycle: Target Costing, Theory of Constraints, and Strategic Pricing Teaching Notes for Cases 13-1. Strategy; the Theory of Constraints 1. What is the firms competitive strategy? Information in the case suggests

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978-0077733773 Chapter 13 Cases Part 2

Chapter 13 Cost Planning for the Product Life Cycle: Target Costing, Theory of Constraints, and Strategic Pricing Let's discuss the elements of the target costing model and how these elements are developed. At this point in the discussion I usually write the target costing formula on the board and ask students

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 13 Lecture Note

Chapter 13 - Cost Planning for the Product Life Cycle: Target Costing, Theory of Constraints, and Strategic Pricing Chapter 13 Cost Planning for the Product Life Cycle: Target Costing, Theory of Constraints, and Strategic Pricing Learning Objectives 1. Explain how to use target costing to facilitate strategic management. 2. Apply the theory of constraints to strategic

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 13 Solution Manual Part 1

Chapter 13 - Cost Planning for the Product Life Cycle: Target Costing, Theory of Constraints, and Strategic Pricing CHAPTER 13: Cost Planning for the Product Life Cycle: Target Costing, Theory of Constraints, and Strategic Pricing QUESTIONS 13-1 Target costing is a method by which the firm determines the desired cost for the product, given a

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 13 Solution Manual Part 2

Chapter 13 - Cost Planning for the Product Life Cycle: Target Costing, Theory of Constraints, and Strategic Pricing 3. The airfare costs are the largest component of cost and this category could have room for improvement. By further negotiating group discount rates or searching for lower cost discount carriers, Take-a-Break could try lowering its

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 13 Solution Manual Part 3

Chapter 13 - Cost Planning for the Product Life Cycle: Target Costing, Theory of Constraints, and Strategic Pricing 13-39 (continued -1) b. Morrow appears to compete in what Robin Cooper calls the confrontation strategy (When Lean Enterprises Collide, Harvard Business School Press, 1995) wherein each competitor must simultaneously compete on the basis

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 13 Solution Manual Part 4

Chapter 13 - Cost Planning for the Product Life Cycle: Target Costing, Theory of Constraints, and Strategic Pricing 13-45 (continued) a small amount of product inventory so that the unmet demand of product, a small amount of product inventory so that the unmet demand of product, a small amount of product inventory

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 13 Solution Manual Part 5

Chapter 13 - Cost Planning for the Product Life Cycle: Target Costing, Theory of Constraints, and Strategic Pricing 13-48 Life-Cycle Costing; Ethics (25 min) 1. Kate Stephen's analysis based on the prepared report fails to consider the very significant amount of research and development and selling costs. It is unlikely that the two products

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978-0077733773 Chapter 14 Cases Part 1

Chapter 14 Operational Performance Measurement: Sales, Direct Cost Variances, and the Role of Nonfinancial Performance Measures Chapter 14 Operational Performance Measurement: Sales, Direct Cost Variances, and the Role of Nonfinancial Performance Measures Teaching Notes for Case Case 14-1: Pet Groom & Clean Case Summary of Key Data for the analysis First step: Analyze Total Sales and the

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978-0077733773 Chapter 14 Cases Part 2

Chapter 14 Operational Performance Measurement: Sales, Direct Cost Variances, and the Role of Nonfinancial Performance Measures Reading 14-5: Larry Grasso, Are ABC and RCA Accounting Systems Compatible with Lean Management?, Management Accounting Quarterly, Vol. 7, No. 1 (Fall 2005), pp. 12-27. This paper provides a critical analysis of several alternative cost systems

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978-0077733773 Chapter 14 Lecture Note

Chapter 14 - Operational Performance Measurement: Sales, Direct Cost Variances, and the Role of Nonfinancial Performance Indicators Chapter 14 Operational Performance Measurement: Sales, Direct Cost Variances, and the Role of Nonfinancial Performance Indicators Learning Objectives LO 14-1 Explain the essence of control systems in general and operational control systems in particular LO 14-2 Explain the

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 14 Solution Manual Part 1

Chapter 14 - Operational Performance Measurement: Sales, Direct-Cost Variances, and the Role of Nonfinancial Performance Measures CHAPTER 14: OPERATIONAL PERFORMANCE MEASUREMENT: SALES, DIRECT- COST VARIANCES, AND THE ROLE OF NONFINANCIAL PERFORMANCE MEASURES QUESTIONS 14-1 A master budget represents forecasted operating profit based on a single output level (planned sales) for an upcoming period. As such, this

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978-0077733773 Chapter 14 Solution Manual Part 2

Chapter 14 - Operational Performance Measurement: Sales, Direct-Cost Variances, and the Role of Nonfinancial Performance Measures 14-24 Master (Static) Budget Variance and Components (45 minutes) 1. Actual operating income = actual sales revenue actual variable costs actual fixed costs = $380,000 $210,000 $145,000 = $25,000 fixed costs = $380,000 $210,000 $145,000 = $25,000 fixed costs

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 14 Solution Manual Part 3

Chapter 14 - Operational Performance Measurement: Sales, Direct-Cost Variances, and the Role of Nonfinancial Performance Measures 14-30 Flexible Budget and Operating-Income Variances (40 minutes) 1. Budget data: Selling price: $81,000 18,000 units = $4.50 per unitVariable cost : $30,600 18,000 units = $1.70 per unit Selling price: $81,000 18,000 units = $4.50 per unitVariable

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978-0077733773 Chapter 14 Solution Manual Part 4

Chapter 14 - Operational Performance Measurement: Sales, Direct-Cost Variances, and the Role of Nonfinancial Performance Measures 14-37 Standard Costing and Journal Entries (40 minutes) 1. Materials Inventory (6,000 gals. $10.00/gal.) 60,000 Materials Purchase-Price Variance 2,700 Accounts Payable (6,000 gals. $10.45/gal.) 62,700To record, on open account, direct materials: 6,000 gals. @ standard cost of $10.00/gal.

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978-0077733773 Chapter 14 Solution Manual Part 5

Chapter 14 - Operational Performance Measurement: Sales, Direct-Cost Variances, and the Role of Nonfinancial Performance Measures 14-42 JIT and Process Cycle Time Efficiency (PCE) (45-50 minutes) 1. The terms value-added and non-value-added are defined from the perspective of the customer (i.e., an external perspective is taken). Because the perspective is external, the notions of

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978-0077733773 Chapter 14 Solution Manual Part 6

Q P SP AP SQ AQ [(AP SP) (AQ SQ)] SQ (AP SP) SP (AQ SQ) Chapter 14 - Operational Performance Measurement: Sales, Direct-Cost Variances, and The Role of Nonfinancial Performance Measures 14-45 (continued) Legend: AP = actual price per ton of raw material SP = standard price per ton of raw material AQ = actual tons of raw

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978-0077733773 Chapter 14 Solution Manual Part 7

Chapter 14 - Operational Performance Measurement: Sales, Direct-Cost Variances, and The Role of Nonfinancial Performance Measures 14-50 (Continued-1) 4. As with any new employee monitoring/performance-evaluation system, behavioral considerations are important for the implementation success of the new system. In the present case, one might anticipate the following employee and customer-service problems associated with the newly

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978-0077733773 Chapter 14 Solution Manual Part 8

Chapter 14 - Operational Performance Measurement: Sales, Direct-Cost Variances, and The Role of Nonfinancial Performance Measures 14-51 (Continued-2) the quality of information produced by the organizations comprehensive management accounting and control system. One desirable quality is that such information be timely. (Another qualitative characteristic might be accuracy.) The point is that to be useful/relevant to

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978-0077733773 Chapter 15 Cases Part 1

Chapter 15 Operational Performance Measurement: Indirect-Cost Variances and Resource-Capacity Management Chapter 15 Operational Performance Measurement: Indirect-Cost Variances and Resource-Capacity Management Teaching Notes for Readings Reading 15-1: Kennard T. Wing, Using Enhanced Cost Models in Variance Analysis for Better Control and Decision Making, Management Accounting Quarterly (Winter 2000), pp. 1-9. This article points out that oversimplifications of

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978-0077733773 Chapter 15 Cases Part 2

Chapter 15 Operational Performance Measurement: Indirect-Cost Variances and Resource-Capacity Management departments). The cost model used in the pilot implementation is depicted in Figure 1 of the article. Idle capacity costs (6% of total) were excluded from the cost base. Replacement-cost depreciation was used for product-costing purposes. Theoretical capacity was used as the denominator

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978-0077733773 Chapter 15 Lecture Note

Chapter 15 - Operational Performance Measurement: Indirect-Cost Variances and Resource-Capacity Management Chapter 15 Operational Performance Measurement: Indirect-Cost Variances and Resource-Capacity Management Learning Objectives 1. Distinguish between the product-costing and control purposes of standard costs for manufacturing overhead 2. Use flexible budgets to calculate and properly interpret standard cost variances for manufacturing overhead. 3. Record overhead costs

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978-0077733773 Chapter 15 Solution Manual Part 1

Chapter 15 - Operational Performance Measurement: Indirect-Cost Variances and Resource-Capacity Management CHAPTER 15: OPERATIONAL PERFORMANCE MEASUREMENT: INDIRECT-COST VARIANCES AND RESOURCE-CAPACITY MANAGEMENT QUESTIONS 15-1 The total factory overhead can be the same as the standard amount allowed for the current periods output while one or more of the components of the total factory overhead have significant variances. For

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978-0077733773 Chapter 15 Solution Manual Part 2

Chapter 15 - Operational Performance Measurement: Indirect-Cost Variances and Resource-Capacity Management 15-24 (Continued-1) 15-11 Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-HillEducation. Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-HillEducation. Copyright 2016 McGraw-Hill Education. All

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978-0077733773 Chapter 15 Solution Manual Part 3

Chapter 15 - Operational Performance Measurement: Indirect-Cost Variances and Resource-Capacity Management 15-31 Three-Variance Factory Overhead Analysis (40 minutes) 1. Standard variable factory overhead rate per direct labor hour (DLH): = Budgeted Total Variable Factory Overhead Budgeted Total Direct Labor Hours = $15,000 2,500 hours = $6.00/DLH = $15,000 2,500 hours = $6.00/DLH = $15,000 2,500 hours

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978-0077733773 Chapter 15 Solution Manual Part 4

Chapter 15 - Operational Performance Measurement: Indirect-Cost Variances and Resource-Capacity Management Note: An Excel spreadsheet solution file for this assignment is embedded below. You can open this object by doing the following: 1. Right click anywhere in the worksheet area below. 2. Select worksheet object and then select Open. 3. To return to the Word

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978-0077733773 Chapter 15 Solution Manual Part 5

Chapter 15 - Operational Performance Measurement: Indirect-Cost Variances and Resource-Capacity Management 15-38 (Continued-1) 3. If the fixed factory overhead rate was based on practical capacity rather than theoretical (maximum) capacity, Yuba Machine Company's reported operating income at May 31, 2017 would be $12,000 less, not $90,000 as reported. The revised CGS calculation follows. Cost of goods

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978-0077733773 Chapter 15 Solution Manual Part 6

Chapter 15 - Operational Performance Measurement: Indirect-Cost Variances and Resource-Capacity Management 15-41 (Continued-1) does say, however, that when practical capacity is used to set fixed overhead rates, then allocated cost (to outputs) equals the ratio of actual output to practical capacity. Further, this Regulation stipulates that any resulting fixed overhead variance, when the fixed overhead

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978-0077733773 Chapter 15 Solution Manual Part 7

Chapter 15 - Operational Performance Measurement: Indirect-Cost Variances and Resource-Capacity Management 15-45 Four-Variance Analysis; Journal Entries (60-75 Minutes) 1. Standard Factory Overhead Rates Variable factory OH $3,600,000 600,000 DLHs = $ 6.00per DLH Fixed factory OH $3,000,000 600,000 DLHs = $ 5.00 per DLH Total $11.00 per DLH a. & b. Variable manufacturing overhead variances FB

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978-0077733773 Chapter 15 Solution Manual Part 8

Chapter 15 - Operational Performance Measurement: Indirect-Cost Variances and Resource-Capacity Management efficiency of the customer order-handling process. (Note: this cost might increase a bit to cover the cost of the TQM initiative.) 15-48 (Continued-2) Note, however, that the cost of unused capacity increases, from $72,000 (90% capacity utilization) to $180,000 (75% capacity utilization). Practical

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978-0077733773 Chapter 15 Solution Manual Part 9

Chapter 15 - Operational Performance Measurement: Indirect-Cost Variances and Resource-Capacity Management 15-51 Decision-Making under Uncertainty (Appendix) (30-40 minutes) 1. Payoff Table Possible Courses of Action Action Action State of the Market Expected Value of Each Action Strong Weak Prob. = 0.3 Prob. = 0.7Advertising $22,000,000 $8,000,000 $12,200,000No Advertising $15,000,000 $10,000,000 $11,500,000Yes, the firm has a higher expected profit with advertising ($12,200,000)

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978-0077733773 Chapter 16 Cases

Chapter 16 Operational Performance Measurement: Further Analysis of Productivity and Sales Chapter 16 Operational Performance Measurement: Further Analysis of Productivity and Sales Teaching Notes for Cases Case 16-1 Dallas Consulting Group* This case serves as a review of sales variances. Since all costs are fixed, it is unnecessary to do a variance analysis based on contribution.

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978-0077733773 Chapter 16 Lecture Note Part 1

Chapter 16 - Operational Performance Measurement: Further Analysis of Productivity and Sales Chapter 16 Operational Performance Measurement: Further Analysis of Productivity and Sales Learning Objectives 1. Explain the strategic role of the flexible budget in analyzing productivity and sales. 2. Calculate and interpret the measures for total productivity, partial operational productivity and partial financial

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978-0077733773 Chapter 16 Lecture Note Part 2

Chapter 16 - Operational Performance Measurement: Further Analysis of Productivity and Sales 3. Obtain Information and Conduct Analyses of the Alternatives Schmidt calculates the sales quantity, market share and market size variances. Schmidt also conducts further economic analysis which shows that, in the coming years, the dollar will likely fall against

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978-0077733773 Chapter 16 Solution Manual Part 1

Chapter 16 - Operational Performance Measurement: Further Analysis of Productivity and Sales CHAPTER 16: OPERATIONAL PERFORMANCE MEASUREMENT: FURTHER ANALYSIS OF PRODUCTIVITY AND SALES QUESTIONS 16-1 Productivity is the ratio of output to input. It is a measure of the amount of output produced per unit or per dollar of input. produced per unit or per

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978-0077733773 Chapter 16 Solution Manual Part 2

Chapter 16 - Operational Performance Measurement: Further Analysis of Productivity and Sales 16-32 Financial Partial Productivity and Total Productivity (20 min) 1. Financial partial productivity: Prior year Current year (1) Output 400,000 490,000 (2) Direct materials: Quantity 160 180 Unit cost x 3,375 x $3,250Total direct materials cost $540,000 $585,000 Unit cost x 3,375 x $3,250Total direct materials

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978-0077733773 Chapter 16 Solution Manual Part 3

Chapter 16 - Operational Performance Measurement: Further Analysis of Productivity and Sales 16- 40 Sales Variances; Quarter to Quarter (20 min) 1. Contribution Income Statement for Hathaway 16-21 Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-HillEducation. Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction

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978-0077733773 Chapter 16 Solution Manual Part 4

Chapter 16 - Operational Performance Measurement: Further Analysis of Productivity and Sales 16-45 Partial Operational and Financial Productivity; Total Productivity (30 min) 1. Operational Partial Productivity MF LI Difference DM 20,000 240,000 = 0.0833 20,000 180,000 = 0.1111 0.0278F*DL 20,000 100,000 = 0.2 20,000 120,000= 0.1667 0.0333 U DM 20,000 240,000 = 0.0833

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978-0077733773 Chapter 16 Solution Manual Part 5

Chapter 16 - Operational Performance Measurement: Further Analysis of Productivity and Sales 16-49 (continued -1) 3. MEMO TO: Rajat Patel, Integrated Medical Care FROM: Joseph Marin, Marin & Associates I have calculated the financial partial productivity measure for IMC for the current and prior year and the supporting documentation is attached. Nursing productivity improved by

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978-0077733773 Chapter 16 Solution Manual Part 6

Chapter 16 - Operational Performance Measurement: Further Analysis of Productivity and Sales 16-54 Market Size and Market Share Variances (15 min) WS= Welcome Signs; BH= Birdhouses 1. Budget Actual (per month)____ Dianes Designs Industry Share Dianes Designs Industry Share WS 50 3,000 1.6667% 45 3,000 1.5%BH 25 200 12.5% 35 175 20% WS 50 3,000 1.6667%

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978-0077733773 Chapter 16 Solution Manual Part 7

Chapter 16 - Operational Performance Measurement: Further Analysis of Productivity and Sales 16-57 Comparative Income Statements and Sales Performance Variances; Current to Prior Year (25 min) 1. 16-58 Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-HillEducation. Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction

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978-0077733773 Chapter 17 Cases Part 1

Chapter 17 The Management & Control of Quality Chapter 17 The Management & Control of Quality Teaching Notes for Cases Case 17-1: Precision Systems, Inc. This case illustrates that quality cost information can play an important role in alerting top management about the importance of quality improvement in a non-manufacturing department of a manufacturing

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978-0077733773 Chapter 17 Cases Part 2

Chapter 17 The Management & Control of Quality their contact with the hospital's staff. For instance, even if a therapist is highly skilled, if the therapistis abrupt or rushed during therapy, the patient may evaluate the quality of treatment as low.Perceptions may also differ for different treatments. For instance, while customer

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978-0077733773 Chapter 17 Cases Part 3

Chapter 17 The Management & Control of Quality Teaching Notes for Readings Reading 17-1: GE Takes Six Sigma Beyond the Bottom Line by G. T. Lucier and S. Seshadri, Strategic Finance (May 2001), pp. 40-46. This article reports the success of GE Medical Systems Inc.'s Six Sigma effort. It describes the training programs for employees

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978-0077733773 Chapter 17 Cases Part 4

Chapter 17 The Management & Control of Quality Reading 17-7: Brian H. Maskell and Frances A. Kennedy, Why Do We Need Lean Accounting and How Does It Work? The Journal of Corporate Accounting and Finance (March/April 2007), pp. 59-73. (Published online in Wiley InterScience, www.interscience.wiley.com, DOI 10.1002/jcaf.20293.) The authors of this article offer a

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978-0077733773 Chapter 17 Cases Part 5

Chapter 17 The Management & Control of Quality Reading 17-10: Keith T. Jones and Clement C. Chen, The Pervasive Success of 6 Sigma at Caterpillar: Accounting and Finance Efforts Are a Good Example, by Strategic Finance (April 2010), pp. 29-33. The increasingly competitive marketplace has for some time now made it necessary for organizations

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978-0077733773 Chapter 17 Lecture Note

Chapter 17 - The Management and Control of Quality Chapter 17 The Management and Control of Quality Learning Objectives 1. Discuss the strategic importance of quality 2. Define accountings role in the management and control of quality 3. Develop a comprehensive framework for the management and control of quality 4. Understand two approaches for setting performance expectations

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978-0077733773 Chapter 17 Solution Manual Part 1

Chapter 17 - The Management and Control of Quality CHAPTER 17: THE MANAGEMENT AND CONTROL OF QUALITY QUESTIONS 17-1 As shown in Exhibit 17.1, investments in quality can lead to improved business processes, which in turn result in improved quality of outputs (goods and services). Improvement in quality of outputs reduces external failure costs (e.g.,

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978-0077733773 Chapter 17 Solution Manual Part 2

Chapter 17 - The Management and Control of Quality 17-37 (Continued) The request by Sanchez is unethical because it would suppress information that could influence an understanding of the results of operations by the company. Also, by withholding information about the contingent liability, Sanchez is not communicating information objectively. 2. Resolution of Ethical Conflictthe IMA

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978-0077733773 Chapter 17 Solution Manual Part 3

Chapter 17 - The Management and Control of Quality 17-42 (Continued) X Probability, f(x) x*f(x) (x 0.199991) 2 f(x) 0.1996 0.02 0.003992 0.00000000305762 0.1997 0.05 0.009985 0.00000000423405 0.1998 0.12 0.023976 0.00000000437772 0.1999 0.11 0.021989 0.00000000091091 0.2000 0.45 0.090000 0.00000000003645 0.2001 0.10 0.020010 0.00000000118810 0.2002 0.08 0.016016 0.000000003494480.2003 0.05 0.010015 0.000000004774050.2004 0.02 0.004008 0.00000000334562= 0.199991 0.00000002541900 0.2002 0.08 0.016016

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978-0077733773 Chapter 17 Solution Manual Part 4

Chapter 17 - The Management and Control of Quality 17-48 (Continued) 3. There are likely opposing points of view. Companies that are included in portfolios of high performance in the environmental (or social) area are certainly likely to favor such disclosures. Stockholders (and potential investors) may favor such disclosures, particularly since the external failure costs

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978-0077733773 Chapter 17 Solution Manual Part 5

Chapter 17 - The Management and Control of Quality 17-55 (Continued-2) Note: The following chart is no longer available on the FirstEnergy website, but is viewed as instructive nonetheless. Radioactive Waste Produced: Projected (2007) vs. Actual (First Three Quarters 2007) and Projected Data for 2008 2007 2008 Projected Quantity Actual Quantity Projected Quantity Measure High-LevelRadioactive Waste0.0032 0.0032 0.0032 Lbs./1,000

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978-0077733773 Chapter 17 Solution Manual Part 6

Chapter 17 - The Management and Control of Quality 17-62 (Continued-1) Educationemployees as well as managers need to be educated regarding the reasons for change (i.e., the business purpose for the change); as well, these individuals need continuous education in order to achieve the continuous-improvement standards embodied in a lean enterprise.Change in Internal Reporting

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978-0077733773 Chapter 17 Solution Manual Part 7

Chapter 17 - The Management and Control of Quality 17-66 (Continued-2) Since JIT involves smooth and efficient flows throughout the entire value chain, have suppliers and customers been consulted and included in any planning efforts regarding the implementation of JIT?Has the cost of collecting, reporting, and interpreting key nonfinancial qualityindicators been factored into the

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978-0077733773 Chapter 17 Solution Manual Part 8

Chapter 17 - The Management and Control of Quality 17-71 (Continued-1) 5. Data for Trend Analysis (2016 and 2017 Category Results) 6. Bar Chart: COQ Report, 2016 and 2017 12345 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% Duncan Materials: COQ Trend Analysis 201 6 COQ Category % to CGS COQ Categories: 1 = Prevention Costs 4 = External Failure Costs 1 = Prevention Costs 4 = External Failure Costs 1

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978-0077733773 Chapter 17 Solution Manual Part 9

Chapter 17 - The Management and Control of Quality 17-74 (Continued-2) 3. The report indicates that prevention, appraisal, and internal failure costs have increased from 2016 to 2017. The external failure cost category decreased by 64%. It is likely that the intensive efforts to improve quality has begun to pay offas, indicated by a

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978-0077733773 Chapter 18 Cases Part 1

Chapter 18 Management Control and Strategic Performance Measurement Chapter 18 Management Control and Strategic Performance Measurement Teaching Notes for Cases 18-1 Industrial Chemical Company; Decentralization; Cost SBUs; International Background To begin class discussion you may wish to point out to your students that most of our study in management accounting typically concerns the budgeting, control,

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978-0077733773 Chapter 18 Cases Part 2

Chapter 18 Management Control and Strategic Performance Measurement Suggested Answer: The balanced scorecard was originally designed as a performance diagnostic system that supplements financial numbers with nonfinancial indicators expected to be drivers of future performance (Robert S. Kaplan and David P. Norton, The Balanced Scorecard:Measures that Drive Performance, Harvard Business Review, January-February 1992,pp. 71-79).

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978-0077733773 Chapter 18 Lecture Note Part 1

Chapter 18 - Strategic Performance Measurement: Cost Centers, Profit Centers, and the Balanced Scorecard Chapter 18 Strategic Performance Measurement: Cost Centers, Profit Centers, and the Balanced Scorecard Learning Objectives 1. Identify the objectives of management control. 2. Identify the types of management control systems. 3. Explain the objectives and applications of strategic performance measurement for cost

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978-0077733773 Chapter 18 Lecture Note Part 2

Chapter 18 - Strategic Performance Measurement: Cost Centers, Profit Centers, and the Balanced Scorecard Exhibit 2: Risk Neutral and Risk Averse Utility Functions Using mathematical transforms such as the square root or the logarithm of the dollars of expected return provides a practical approach for representing risk-averse utility curves. When developing incentive

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978-0077733773 Chapter 18 Solution Manual Part 1

Chapter 18 - Strategic Performance Measurement: Cost Centers, Profit Centers, and the Balanced Scorecard CHAPTER 18: STRATEGIC PERFORMANCE MEASUREMENT: COST CENTERS, PROFIT CENTERS, AND THE BALANCED SCORECARD QUESTIONS 18-1 Performance evaluation can be thought of as the process by which managers at all levels in the firm gain information about the performance of tasks within

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978-0077733773 Chapter 18 Solution Manual Part 10

Chapter 18 - Strategic Performance Measurement: Cost Centers, Profit Centers, and the Balanced Scorecard 18-64 Research Assignment; Sustainability (45 min) The project upon which the article is based is a research project funded by the Institute of Management Accountants (IMA). Suggested solutions for each of the discussion questions follow: 1. What is

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978-0077733773 Chapter 18 Solution Manual Part 2

Chapter 18 - Strategic Performance Measurement: Cost Centers, Profit Centers, and the Balanced Scorecard 18-27 Research and Development: Risk Aversion and Performance Measurement (20 min) 1. Risk aversion, the tendency to avoid actions with uncertain outcomes (even with good probability of success), is a common trait among managers. This leads frequently to a choice of

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978-0077733773 Chapter 18 Solution Manual Part 3

Chapter 18 - Strategic Performance Measurement: Cost Centers, Profit Centers, and the Balanced Scorecard 18-34 Outsourcing; Choice of Strategic Business Unit (15min) 1. P&G probably used a cost center to manage the print services unit, which would be a common approach for managing this department. Commonly it is viewed as a service

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978-0077733773 Chapter 18 Solution Manual Part 4

Chapter 18 - Strategic Performance Measurement: Cost Centers, Profit Centers, and the Balanced Scorecard 18-40 Financial Incentives and Auto Repair/Inspection Companies (20 min) The findings of the research suggest that in fact the financial incentives of the auto repair shop are to pass vehicles that fail the emissions test because many of the

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978-0077733773 Chapter 18 Solution Manual Part 5

Chapter 18 - Strategic Performance Measurement: Cost Centers, Profit Centers, and the Balanced Scorecard 18-45 (continued -1) PART THREE Reconciling Difference in Operating Income between Full and Variable Costing 2015 2016 Change in Inventory in Units 1,000 (1,000) Multiply times Fixed Overhead Rate $ 8.00 $ 8.00 =Difference in Operating Income $ 8,000

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978-0077733773 Chapter 18 Solution Manual Part 6

Chapter 18 - Strategic Performance Measurement: Cost Centers, Profit Centers, and the Balanced Scorecard 18-50 (continued -1) Other GAAP issues include differences between profit centers in: a) Judgments of the allowance for bad debts b) Inventory valuation (FIFO vs LIFO or other method)c) For long-lived assets: capitalization policy and depreciation methodsd) Revenue and expense

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978-0077733773 Chapter 18 Solution Manual Part 7

Chapter 18 - Strategic Performance Measurement: Cost Centers, Profit Centers, and the Balanced Scorecard 18-53 (continued -2) Variable Costs Variable Variable Total Units Mfg Selling Variable Sold Cost/unit Cost/Unit Cost (1) (2) (3) (1)x[(2)+(3)] United States Pharmaceutical 64,000 $4.00 $2.00 $384,000 Sports 72,000 9.50 2.50 864,000 Appliances 32,000 8.25 2.25 336,000 Canada Pharmaceutical 16,000 4.00 2.00 96,000 Sports 72,000 9.50

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978-0077733773 Chapter 18 Solution Manual Part 8

Chapter 18 - Strategic Performance Measurement: Cost Centers, Profit Centers, and the Balanced Scorecard 18-56 (continued -1) There are at least two possible approaches: 1. develop a charge-back system for printing and duplicating, so that each of the users of this service will be directly charged for the service. The effect will be to reduce

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978-0077733773 Chapter 18 Solution Manual Part 9

Chapter 18 - Strategic Performance Measurement: Cost Centers, Profit Centers, and the Balanced Scorecard 18-62 Contribution Income Statement for Profit Centers (40 min) 1. Data Summary: 18-81 Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or

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978-0077733773 Chapter 19 Cases Part 1

Chapter 19 Strategic Performance Measurement: Investment Centers Chapter 19 Strategic Performance Measurement: Investment Centers Teaching Notes for Cases Case 19-1: Investment Centers 1. The prior performance measurement system was called performance income, and is best described as a profit center method. The focus was on divisional profits. 2. The new system called asset management, is best described

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978-0077733773 Chapter 19 Cases Part 2

Chapter 19 Strategic Performance Measurement: Investment Centers 19-11 Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or

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978-0077733773 Chapter 19 Cases Part 3

Chapter 19 Strategic Performance Measurement: Investment Centers ROI for the entire firm (absent any efficiency gains) was left unchanged by the transfers, 11.76% (see Table 6). The practice continued in year two (see Table 4): two segments were transferred from Jills division to Jacks division. As a result, the ROI of both divisions

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978-0077733773 Chapter 19 Cases Part 4

Chapter 19 Strategic Performance Measurement: Investment Centers correct incentive, from the standpoint of the organization as a whole: subunit 2 will reject the special (supplemental) offer of $240 per unit from an external buyer. As such, subunit 1 would sell in the external market. Both it and the firm as a whole are

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978-0077733773 Chapter 19 Lecture Note Part 1

Chapter 19 - Strategic Performance Measurement: Investment Centers & Transfer Pricing Chapter 19 Strategic Performance Measurement: Investment Centers & Transfer Pricing Learning Objectives LO 19-1 Explain the use and limitations of return on investment (ROI) for evaluating investment centers. LO 19-2 Explain the use and limitations of residual income for evaluating investment centers. LO 19-3

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978-0077733773 Chapter 19 Lecture Note Part 2

Chapter 19 - Strategic Performance Measurement: Investment Centers & Transfer Pricing 6. Measuring the Level of Investment: Allocating Shared Assets. As in joint cost allocation, top management should trace the assets to the business units that used them and allocate the assets that cannot be traced on a basis that is as

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978-0077733773 Chapter 19 Solution Manual Part 1

Chapter 19 - Strategic Performance MeasurementInvestment Centers CHAPTER 19: STRATEGIC PERFORMANCE MEASUREMENT INVESTMENT CENTERS QUESTIONS 19-1 Investment centers are commonly used when there are a number of business units to be compared, and/or when top management intends to evaluate the economic performance of the business unit relative to alternative investments. By definition, managers of these business units

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978-0077733773 Chapter 19 Solution Manual Part 10

Chapter 19 - Strategic Performance MeasurementInvestment Centers shifted to Country A (via the transfer price), the total income-tax expense decreased. The moreincome shifted to a country that imposes a lower tax rate, the higher the after-tax earnings (and cashflow) of the company. shifted to Country A (via the transfer price), the total

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978-0077733773 Chapter 19 Solution Manual Part 11

Chapter 19 - Strategic Performance MeasurementInvestment Centers Total Cost per Unit = $1,000 $1,200 $1,900 Op. Income/Unit = $100 $600 $100 $800 Income Tax/Unit = $30 $90 $35 $155 After-tax Income $70 $510 $65 $645 Op. Income/Unit = $100 $600 $100 $800 Income Tax/Unit = $30 $90 $35 $155 After-tax

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978-0077733773 Chapter 19 Solution Manual Part 2

Chapter 19 - Strategic Performance MeasurementInvestment Centers 19-24 Target Sales Price; Return on Investment (ROI) (20 minutes) 1. ROI = Operating Income Investment (avg. total assets) Let X = target Operating Income: 25% = X $1,000,000 Target Operating Income = $250,000 25% = X $1,000,000 Target Operating Income = $250,000 25% =

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978-0077733773 Chapter 19 Solution Manual Part 3

Chapter 19 - Strategic Performance MeasurementInvestment Centers 19-31 (Continued-1) In the current situation, we have: Transfer Price: Incremental Cost per unit = $500 Opportunity Cost per Unit = $650 $500 = $150 Transfer Price = $650 At this price, the Fabrication (i.e., producing) Division would be indifferentbetween selling internally and

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978-0077733773 Chapter 19 Solution Manual Part 4

Chapter 19 - Strategic Performance MeasurementInvestment Centers 19-36 (Continued-1) Further, such differences likely have incentive effects. For example, if the division in question currently generates an ROI greater than, say, 15% (or even 11%), it is not clear that the manager of the division would be motivated to accept the proposed investment, in spite of

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978-0077733773 Chapter 19 Solution Manual Part 5

Chapter 19 - Strategic Performance MeasurementInvestment Centers employee commitment or financial performance). Such analysis can 19-38 (Continued-1) take various forms, from the simple (e.g., looking for statistically significant differences between organizational subunits) to the complex (e.g., using nonlinear, multiple regression). Once the key drivers of organizational performance have been identified, the management accounting and control system

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978-0077733773 Chapter 19 Solution Manual Part 6

Chapter 19 - Strategic Performance MeasurementInvestment Centers 19-42 Calculating Return on Investment (ROI) and Residual Income (RI); Comparing Results (25 minutes) 1. a. ROI = Operating Income Average Assets = $2,440,000 {[$16,000,000 + ($16,000,000 1.06)] 2} = $2,440,000 (($16,000,000 + $15,094,340) 2)= $2,440,000 $15,547,170 = 15.69% = $2,440,000 (($16,000,000 + $15,094,340) 2)= $2,440,000 $15,547,170 =

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978-0077733773 Chapter 19 Solution Manual Part 7

Chapter 19 - Strategic Performance MeasurementInvestment Centers 19-45 EVA NOPAT and EVA Capital; Financing Approach (60 Minutes) 1. Students should understand that EVA is an approximation of an entity's true (i.e., "economic") profits for a period. This measure of profitability is defined as the difference between the entity's NOPAT (net operating profits after tax)

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978-0077733773 Chapter 19 Solution Manual Part 8

Chapter 19 - Strategic Performance MeasurementInvestment Centers 19-47 General Transfer-Pricing Rule; Goal Congruence (30-40 Minutes) 1. Using the general guideline presented in the chapter, the minimum price at which the Transmission Division (i.e., the producer) would sell standard transmissions to the Auto Division (i.e., the buyer) is $1,350 per unit, the incremental costs. The

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978-0077733773 Chapter 19 Solution Manual Part 9

Chapter 19 - Strategic Performance MeasurementInvestment Centers 19-49 (continued) If Partial Sales to Division A are OK: Division B should sell as many units as possible (in this case 50,000 of total demand) to outside consumers. The remaining capacity (20%, or 12,500 units) should be used to provide Division A with equipment. 2. Assuming that Division

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978-0077733773 Chapter 2 Cases Part 1

Chapter 2 - Implementing Strategy: The Value Chain, the Balanced Scorecard, and the Strategy Map Chapter 2 Implementing Strategy: The Value Chain, the Balanced Scorecard, and the Strategy Map Teaching Notes for Cases 2-1. Atlantic City Casino: Value Chain Analysis; The Balanced Scorecard Most cases in value chain analysis are in the retailing or

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978-0077733773 Chapter 2 Cases Part 2

Chapter 2 - Implementing Strategy: The Value Chain, the Balanced Scorecard, and the Strategy Map 2-2 Applying the Balanced Scorecard to Small Companies (Note: This article is referred to in the text of chapter 2) The use of the balanced scorecard for developing and evaluating progress for a strategy is illustrated in these

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978-0077733773 Chapter 2 Lecture Note

Chapter 02 - Implementing Strategy: The Value Chain, the Balanced Scorecard, and the Strategy Map Chapter 2 Implementing Strategy: The Value Chain, the Balanced Scorecard, and the Strategy Map Learning Objectives 1. Explain how to implement a competitive strategy by using Strengths-Weaknesses-Opportunities- Threats (SWOT) Analysis 2. Explain how to implement a competitive strategy by focusing on

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978-0077733773 Chapter 2 Solution Manual Part 1

Chapter 02 - Implementing Strategy: The Value Chain, the Balanced Scorecard, and the Strategy Map CHAPTER 2: IMPLEMENTING STRATEGY: THE VALUE CHAIN, THE BALANCED SCORECARD, AND THE STRATEGY MAP QUESTIONS 2-1 The two types of competitive strategy (per Michael Porter, as explained in chapter one) are cost leadership and differentiation. Cost

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978-0077733773 Chapter 2 Solution Manual Part 2

Chapter 02 - Implementing Strategy: The Value Chain, the Balanced Scorecard, and the Strategy Map 2-35 Which of the following statements about the value-chain is correct? a. The two phases of the activities of the value-chain are the upstream activities and the downstream activities b. A company need not operate in all activities

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978-0077733773 Chapter 2 Solution Manual Part 3

Chapter 02 - Implementing Strategy: The Value Chain, the Balanced Scorecard, and the Strategy Map Financial: operating margin, cost per patient-day, percentage of overdue patient accounts, sales growth Customer: patient satisfaction, speed of service, number of referring physicians, measures of patient health (re-admits for complications,) Internal Processes : patient complaints, percentage of procedures

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978-0077733773 Chapter 2 Solution Manual Part 4

Chapter 02 - Implementing Strategy: The Value Chain, the Balanced Scorecard, and the Strategy Map 2-54 The Balanced Scorecard (20 min) An example of a balanced scorecard for Tartan Corp follows: Financial Sales, sales growth, by product and region Earnings, as above Activity-based product costs Return on investment, by product line New investment, by product line Internal Cycle time Waste of

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978-0077733773 Chapter 2 Solution Manual Part 5

Chapter 02 - Implementing Strategy: The Value Chain, the Balanced Scorecard, and the Strategy Map 2-59 Strategy Requirements Under the Baldrige National Quality Award Program (30 min) The Baldrige program should be a good process for a firm not only in developing and revising its strategy, but also in strategy implementation.

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978-0077733773 Chapter 2 Solution Manual Part 6

Chapter 02 - Implementing Strategy: The Value Chain, the Balanced Scorecard, and the Strategy Map 2-64 (continued -1) Source: James R. Hagerty, Harley, With Macho Intact, Tries to Court More Women, The Wall Street Journal, October 31, 2011, p B1 Harley Shows Its Feminine Side, Bloomberg Businessweek, October 4, 2010, p 25; James R.

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978-0077733773 Chapter 2 Solution Manual Part 7

Chapter 02 - Implementing Strategy: The Value Chain, the Balanced Scorecard, and the Strategy Map 2-69 (continued -1) 3. In the 2011-2014 period Mexicos peso has been stable relative to the U.S. dollar; The Canadian dollar also has been relatively stable to the U.S. dollar. These relatively stable exchange rates support, in

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978-0077733773 Chapter 20 Cases Part 1

Chapter 20 Management Compensation, Business Analysis, and Business Valuation Chapter 20 Management Compensation, Business Analysis, and Business Valuation Teaching Notes for Cases 20-1. Midwest Petro-Chemical Company: Evaluation of a Firm; Strategy Adapted from teaching note provided by the case authors, David A. Kunz and Keith A. Russell 1. The case does not provide much information about the

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978-0077733773 Chapter 20 Cases Part 2

Chapter 20 Management Compensation, Business Analysis, and Business Valuation Profitability Ratios Relevance 2008 2009 2010 2011 2012 2013 Return on Total Assetsefficiency and effectiveness in using Total Assetsefficiency and effectiveness in using Total Assets efficiency and effectiveness in using A measure of managements available assets. 6.46% 6.29% 5.23% 4.02% 3.68%Return on EquityA measure of managements

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978-0077733773 Chapter 20 Cases Part 3

Chapter 20 Management Compensation, Business Analysis, and Business Valuation frequently are evaluated, and receive a large part of their compensation, based on sales. Such compensation systems are used to: (1) motivate sales persons to spend their time selling units; (2) focus sales persons attention on selling and sales-related activities; (3) get

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978-0077733773 Chapter 20 Cases Part 4

Chapter 20 Management Compensation, Business Analysis, and Business Valuation Thus, in the first three years following the implementation of CIPP, the plan seems to have successfully created a win-win situation for the manufacturing employees and John Deere as a whole. Employees received larger compensation in the form of one time bonuses for

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978-0077733773 Chapter 20 Cases Part 5

Chapter 20 Management Compensation, Business Analysis, and Business Valuation The correlation measures for customer survey and wait time are used to determine the amount of the compensation sub-pool for each of these BSC measures, as follows: 20-41 Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of

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978-0077733773 Chapter 20 Cases Part 6

Chapter 20 Management Compensation, Business Analysis, and Business Valuation 20-2 The Role of Strategy This article presents a careful look at the role of local culture in the desirability of different management control systems. Local culture is defined in terms of Hofstedes research paradigm, including the measures: individualism, uncertainty avoidance, power distance, masculinity,

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978-0077733773 Chapter 20 Lecture Note

Chapter 20 - Management Compensation, Business Analysis, and Business Valuation Chapter 20 Management Compensation, Business Analysis, and Business Valuation Learning Objectives LO 20-1 Identify and explain the types of management compensation LO 20-2 Identify the strategic role of management compensation and the different types of compensation used in practice LO 20-3 Explain the three characteristics of

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978-0077733773 Chapter 20 Solution Manual Part 2

Chapter 20 - Management Compensation, Business Analysis, and Business Valuation 20-27 Alternative Compensation Plans (20 min) 1. On the negative side, stock option incentives tied to share prices are influenced by the broad economic factors affecting the stock market, many of which are uncontrollable by the managers. On the plus, the use of stock options

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978-0077733773 Chapter 20 Solution Manual Part 3

Chapter 20 - Management Compensation, Business Analysis, and Business Valuation 20-35 (continued -1) 4. A down-side to the switch to IFRS is that companies will have to study the IFRS carefully and determine for example whether the company will use the cost model or the revaluation model for long- lived assets, both of

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978-0077733773 Chapter 20 Solution Manual Part 4

Chapter 20 - Management Compensation, Business Analysis, and Business Valuation 20-45 Incentive Pay Formula Development (30 min) 1. There are two goals, a goal for number of customers and a price goal: Customer goal: 300/day target customers x 365 days = 109,500 customers weight x $12,800 = $6,400 $6,400/109,500 = $ .058 per customer served Price goal: $6.88

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978-0077733773 Chapter 20 Solution Manual Part 5

Chapter 20 - Management Compensation, Business Analysis, and Business Valuation 20-50 (continued -1) distress at the time of the study, the presence of this distress may have influenced the overall results. 4. The answers here could vary widely. One observation is that the information is applicable only to the airline industry, and

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978-0077733773 Chapter 20 Solution Manual Part 6

Chapter 20 - Management Compensation, Business Analysis, and Business Valuation 20-53 (continued -1) A financial ratio analysis of BPPs liquidity shows a company that is improving quite well on all measures. The receivables turnover and inventory turnover ratios are both significantly better than the industry average and have improved significantly from 2015

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978-0077733773 Chapter 4 Cases Part 1

Chapter 4 Job Costing Chapter 4 Job Costing Teaching Notes For Cases 4-1. Constructo Inc. (Under or Overapplied Overhead) This case has the learning objectives of: (1) explaining when it is appropriate for a company to use a job costing system, (2) calculating overhead applied to various jobs, (3) determining the total cost

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978-0077733773 Chapter 4 Cases Part 2

Chapter 4 Job Costing Exhibit TN-1 Existing Overhead Cost Allocation System Cost Center Component Component Component Group Part Group Part Group Part 4-7 Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the

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978-0077733773 Chapter 4 Lecture Note

Chapter 04 - Job Costing Chapter 4 Job Costing Learning Objectives LO 4-1 Explain the types of costing systems. LO 4-2 Explain the strategic role of product costing. LO 4-3 Explain the flow of costs in a job costing system. LO 4-4 Explain the application of factory overhead costs in a job costing system. LO 4-5 Calculate

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978-0077733773 Chapter 4 Solution Manual Part 1

Chapter 04 - Job Costing CHAPTER 4: JOB COSTING QUESTIONS 4-1 The strategic role of costing is to provide accurate cost information that is need for product pricing, profitability analysis of products and customers, evaluation of for product pricing, profitability analysis of products and customers, evaluation of for product pricing, profitability analysis of

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978-0077733773 Chapter 4 Solution Manual Part 2

Chapter 04 - Job Costing 4-31 Cost Flows; Applying Overhead (20 min) 1. Predetermined Overhead Rate = $1,980,000 66,000 machine hours = $30 per machine-hour = $30 per machine-hour = $30 per machine-hour 2. Journal Entries: a. Materials Inventory 900,000 Accounts Payable 900,000 180,000 lbs x $5 = $900,000 b. Work-in-Process Inventory 525,000 ($600,000 -

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978-0077733773 Chapter 4 Solution Manual Part 3

Chapter 04 - Job Costing 4-41 Plantwide vs. Departmental Overhead Rate (30 min) 1. Budgeted Overhead = ($150,000 + $94,000) + ($80,000 + $163,000) = $487,000 Budgeted Direct Labor-hours = 1,000 units x (15 + 10) hours = 25,000 hours Predetermined Overhead Rate = $487,000 25,000 = $19.48 per direct labor-hour

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978-0077733773 Chapter 4 Solution Manual Part 4

Chapter 04 - Job Costing 4-46 (Continued -1) h. Selling& Administrative Expense 2,400 Accumulated Depreciation 2,400 i. Advertising Expense 5,500 Cash 5,500 j. Factory Overhead 13,500 Cash 13,500 k. Selling & Administrative Expense 13,250 Cash 13,250 l. Applied Overhead = $14.50 x 6,450 DL hour = $93,525 Work-in-Process Inventory 93,525 Factory overhead 93,525 m. Finished Goods Inventory

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978-0077733773 Chapter 4 Solution Manual Part 5

Chapter 04 - Job Costing 4-48 (continued -6) 4-41 Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-HillEducation. Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-HillEducation. Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or

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978-0077733773 Chapter 5 Cases Part 1

Chapter 5 Activity-Based Costing and Customer Profitability Analysis Chapter 5 Activity-Based Costing and Customer Profitability Analysis Teaching Notes for Cases 5-1 Blue Ridge Manufacturing (Activity-Based Costing for Marketing Channels) Case Description: Blue Ridge Manufacturing produces and sells towels for the U.S. sport towel market. A sport towel is a towel that has the promotion

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978-0077733773 Chapter 5 Cases Part 2

Chapter 5 Activity-Based Costing and Customer Profitability Analysis The following points should come out in the discussion: Segment Net income declines because SG&A allocation to segment was too low under the Sales dollar method. Marketing costs (price promotions, merchandising, shipping and SG&A) now total $13,125,000 - 44% of sales and 530% of

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978-0077733773 Chapter 5 Cases Part 3

Chapter 5 Activity-Based Costing and Customer Profitability Analysis The following questions were not part of the requirements in the case competition. The questions could serve as the basis for the final question in the live presentations at the Annual Meeting. Also, the suggested solutions might give you ideas as to what

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978-0077733773 Chapter 5 Cases Part 4

Chapter 5 Activity-Based Costing and Customer Profitability Analysis The Value Chain Timber; do we harvest our own timber? Sorting and preparing timber; receiving the lumber in the pulp plant Pulp manufacturing Debarking; a 16x100 ft drum; tumbling the logs Chipping; into 1 cubes Digesting; heat and soak with chemicals Bleaching; brown to white Paperboard production Headbox; mix pulp cubes with

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978-0077733773 Chapter 5 Cases Part 5

Chapter 5 Activity-Based Costing and Customer Profitability Analysis 6. Identify the activity drivers for overheads activity-cost pools identified in this study and explain the reasons for the selection? Gasoline Sales Attendants (Labor): Volume of gasoline sold (a unit-level activity driver). The principal responsibility of a kiosk attendant is to receive payments from customers

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978-0077733773 Chapter 5 Lecture Note Part 1

Chapter 05 - Activity-Based Costing and Customer Profitability Analysis Chapter 5 Activity-Based Costing and Customer Profitability Analysis Learning Objectives LO 5-1 Explain the strategic role of activity-based costing. LO 5-2 Describe activity-based costing (ABC), the steps in developing an ABC system, and the benefits and limitations of an ABC system. LO 5-3 Determine product costs

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978-0077733773 Chapter 5 Lecture Note Part 2

Chapter 05 - Activity-Based Costing and Customer Profitability Analysis 3. Steps in ABC Costing Step 1 Identify resource costs and activities Step 2 Assign overhead to activity center or cost pools using resource consumption cost driver Step 3 Costs are assigned to products according to the number of the activities needed to complete the

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 5 Solution Manual Part 1

Chapter 5 - Activity-Based Costing and Customer Profitability Analysis CHAPTER 5: ACTIVITY-BASED COSTING AND CUSTOMER PROFITABILITY ANALYSIS QUESTIONS 5-1 Undercosting a product may appear to have increased the reported profit the product earned (assuming the firm did not lower its selling price because of the reported lower product cost). However, the increased profit is,

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978-0077733773 Chapter 5 Solution Manual Part 2

Chapter 5 - Activity-Based Costing and Customer Profitability Analysis 5-31 Applications of ABC Costing in Government (20 min) 1,2. Some of the examples are noted in the text, including the U.S. Postal Service, the U.S. Patent Office, and the U.S. Army. Others include the U.S. Coast Guard, the US. National Security Agency

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978-0077733773 Chapter 5 Solution Manual Part 3

Chapter 5 - Activity-Based Costing and Customer Profitability Analysis 5-38 (continued) 3. The total value chain cost provides the firm a long-term perspective of the product cost, in addition to the short term manufacturing cost. Different industries have different cost structures. For example, firms in the information technology industries are likely to

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978-0077733773 Chapter 5 Solution Manual Part 4

Chapter 5 - Activity-Based Costing and Customer Profitability Analysis 5-42 (continued-1) The budgeted unit costs per pound are: Mona Loa Coffee Malaysian Coffee Direct unit costs: Direct materials $4.20 $3.20 Direct labor 0.30 $4.50 0.30 $3.50 Indirect unit costs: Purchasing 0.02 1.00 (4 orders $500 100,000 lbs.) (4 orders $500 2,000 lbs.) Material handling 0.12 2.40(30 setups $400 100,000

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978-0077733773 Chapter 5 Solution Manual Part 5

Chapter 5 - Activity-Based Costing and Customer Profitability Analysis 5-45 (continued-3) Activity-based costing provides ADA with more detailed and better estimates of product costs. For example by using ABC, ADA becomes aware that the cost of Diomycin is lower ($0.4818 per capsule compared to $0.545 under current costing), meaning that it can

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978-0077733773 Chapter 5 Solution Manual Part 6

Chapter 5 - Activity-Based Costing and Customer Profitability Analysis 5-48 Personnel Planning; TDABC(30 min) 1. Unlike a manufacturing company, almost all costs for a service company are indirect in nature. Almost all of these costs are supplied in advance; short-term spending is generally not affected by fluctuations in demand or produce/service mix.

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 6 Cases Part 1

Chapter 6 - Process Costing Chapter 6 Process Costing Teaching Notes for Cases and Articles Teaching Notes For Cases 6-1. The Rossford Plant (Two Production Processes with the Traditional Volume-Based Costing System) The Rossford Plant case focuses on issues of cost system design in the plant, which produces similar products with very differently arranged production processes.

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 6 Cases Part 2

Chapter 6 - Process Costing PROCESS COSTING SYSTEM FULL SOLUTION Question 1: What journal entries should be made to record this periods activities? The case information is used to generate the following journal entries. Account Titles Debits1Credits , Cash 48,600.00 Sales Froth 48,600.00 Direct Materials Inventory: Barley Extract 4,200.00 Direct Materials Inventory: Wheat Extract 2,750.00 Direct Materials

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978-0077733773 Chapter 6 Lecture Note

Chapter 06 - Process Costing Chapter 6 Process Costing Learning Objectives 1. Identify the types of firms or operations for which a process costing system best supports the organizations competitive strategy 2. Explain and calculate equivalent units 3. Describe the five steps in process costing 4. Demonstrate the weighted-average method of process costing 5. Demonstrate the FIFO

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978-0077733773 Chapter 6 Solution Manual Part 1

Chapter 06 - Process Costing CHAPTER 6: PROCESS COSTING QUESTIONS 6-1 A company that should use a process costing system typically has homogenous products, which pass through a series of similar processes or departments.These firms usually engage in continuous mass production of a few products. products, which pass through a series of

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978-0077733773 Chapter 6 Solution Manual Part 2

Chapter 06 - Process Costing 6-29 (continued -1) 3. As in most process industries, sustainability issues arise in the manufacture of refined sugar. For example, the sugar company produces a large amount of shredded cane as one of the outputs of the milling process. The shredded cane is called bagasse and

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978-0077733773 Chapter 6 Solution Manual Part 3

Chapter 06 - Process Costing 6-37: Weighted Average Method (20 min) 1.,2. Note: Units finished = units from Beginning WIP completed this period +units started and finished this period = 5,000 + 12,000 =17,000 Note: Units finished = units from Beginning WIP completed this period +units started and finished this period = 5,000 +

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978-0077733773 Chapter 6 Solution Manual Part 4

Chapter 06 - Process Costing 6-43 (continued -1) 4. The request is a violation of the controllers responsibility to prepare accurate production cost reports. The ethical principles of integrity and objectivity require the controller to use the best available estimate of percentage completion. Since there is a high level of ending WIP, the change from 40%

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978-0077733773 Chapter 6 Solution Manual Part 5

Chapter 06 - Process Costing 6-49 (continued -1) 2. a. 48,000b. 46,000c. 43,6003. $35.45 a. 48,000b. 46,000c. 43,6003. $35.45 a. 48,000 b. 46,000 c. 43,600 3. $35.45 4. a. $69,167 b. $65,793c. $1,487,167d. $119,060 b. $65,793c. $1,487,167d. $119,060 b. $65,793 c. $1,487,167 d. $119,060 6-41 Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Copyright 2016 McGraw-Hill Education. All

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978-0077733773 Chapter 6 Solution Manual Part 6

Chapter 06 - Process Costing 6-52 Implementing Process Cost Systems; Activity-based Costing; Standard Costing (25 min) Case 1: Because of the moderate volatility in materials prices and because of the relatively large percentage of costs in ending work-in-process, the FIFO method should be chosen over the weighted-average method in this case. The

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 7 Cases Part 1

Chapter 7 - Cost Allocation: Departments, Joint Products, and By-Products Chapter 7 Cost Allocation: Departments, Joint Products, and By- Products Teaching Notes for Cases 7-1. Revenue Allocation; Utility Industry; Strategy This case concerns the process used in the state of Texas to subsidize companies in the heavily regulated telecommunications industry so that the historical goal of

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978-0077733773 Chapter 7 Cases Part 2

Chapter 7 - Cost Allocation: Departments, Joint Products, and By-Products Case 7-3 Business Services Corporation The case involves the allocation of the indirect costs associated with holding and distributing replacement parts used in servicing the computer and other business products sold to customers under a service agreement. The company has two business units,

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 7 Lecture Note

Chapter 07 - Cost Allocation: Departments, Joint Products, and By-Products Chapter 7 Cost Allocation: Departments, Joint Products, and By-Products Learning Objectives 1. Identify the strategic role and objectives of cost allocation. 2. Explain the ethical issue of cost allocation. 3. Use the three steps of departmental cost allocation. 4. Explain the problems in implementing the different

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978-0077733773 Chapter 7 Solution Manual Part 1

Chapter 07 - Cost Allocation: Departments, Joint Products, and By-Products CHAPTER 7: COST ALLOCATION: DEPARTMENTS, JOINT PRODUCTS, AND BY-PRODUCTS QUESTIONS 7-1 The four objectives in the strategic role of cost allocation are to achieve effective cost management through methods which: 1. Determine accurate departmental and product costs as a basis for evaluation the performance of

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978-0077733773 Chapter 7 Solution Manual Part 2

Chapter 07 - Cost Allocation: Departments, Joint Products, and By-Products 7-24 Cost Allocation and Taxation at Nonprofit Organizations (10 min) The nonprofit has an incentive to allocate a relatively large portion of the common costs to the business activity to reduce taxes, but current Treasury regulations require that the cost allocation be reasonable.

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978-0077733773 Chapter 7 Solution Manual Part 3

Chapter 7 - Cost Allocation: Departments, Joint Products, and By-Products 7-30 Joint Products; As the text notes, the physical units method often involves inappropriate allocation of costs as the physical measure may be unrelated to the ultimate value of the different joint products. This appears to be true in the production

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 7 Solution Manual Part 4

Chapter 7 - Cost Allocation: Departments, Joint Products, and By-Products 7-35 (continued-2) The Step Method 7-31 Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright

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978-0077733773 Chapter 7 Solution Manual Part 5

Chapter 7 - Cost Allocation: Departments, Joint Products, and By-Products 7-38 (continued -2) The Reciprocal Method 7-41 Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright

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978-0077733773 Chapter 7 Solution Manual Part 6

Chapter 7 - Cost Allocation: Departments, Joint Products, and By-Products 7-40 (continued -2) The Reciprocal Method 7-51 Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of

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978-0077733773 Chapter 7 Solution Manual Part 7

Chapter 7 - Cost Allocation: Departments, Joint Products, and By-Products 7-43 (continued -1) 4. No, NBP should not process RBL further. Increase in sales revenue: 80,000 x ($12 - $10) = $160,000 Increase in cost 200,000 Decrease in operating profit $ 40,000 Increase in cost 200,000 Decrease in operating profit $ 40,000 Increase in cost 200,000

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 7 Solution Manual Part 8

Chapter 7 - Cost Allocation: Departments, Joint Products, and By-Products 7-47 (continued -1) 2. Quality Chemical should not sell H-35 after additional processing as the incremental revenue of the sales beyond the split-off point is less than the incremental cost of further processing. Per gallon sales value after additional processing $6.25 Per gallon sales value at

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 8 Cases Part 1

Chapter 8 - Cost Estimation Chapter 8 Cost Estimation Teaching Notes for Cases 8-1. High-Low Method and Regression Analysis 1, 2. The spreadsheet below shows the analysis of the Brenham Hospital data using both regression and high-low methods. Before either method is applied, a scattergraph is prepared, as shown in the middle of the

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 8 Cases Part 2

Chapter 8 - Cost Estimation Case 8-5 Predicting the Effect of Poverty on High School Graduation Rate High School graduation rates are a key measure of economic development and potential for economic growth. The data below show the graduation rates and the percentage of children in poverty for each of the states

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 8 Lecture Note Part 1

Chapter 08 - Cost Estimation Chapter 8 Cost Estimation Learning Objectives 1. Explain the strategic role of cost estimation. 2. Apply the six steps of cost estimation. 3. Use each of the cost estimation methods: the high-low method and regression analysis. 4. Explain the implementation issues of the cost estimation methods. 5. Use learning curves in cost estimation

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 8 Lecture Note Part 2

Chapter 08 - Cost Estimation An Illustration Cost Estimation: The Use of Regression Analysis in the Gaming Industry Harrahs own many large casinos throughout the world, but particular in Las Vegas, where it operates The Flamingo, Caesars Palace, and Paris Las Vegas. Harrahs competes in a business that is very focused on

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 8 Solution Manual Part 1

Chapter 08 - Cost Estimation CHAPTER 8: COST ESTIMATION QUESTIONS 8-1 Cost estimation is the process of developing a well-defined relationship between a cost object and its cost driver for the purpose of predicting the cost. The cost predictions are used in each of the management functions: To predict future Costs oTo facilitate strategy development and

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 8 Solution Manual Part 2

Chapter 08 - Cost Estimation 8-30 Cost Relationships (10 min) N = Number of Cleaning Services The cost function equation is: y = a + (b x N) y = $165,000 + ($35 x N) The cost function equation is: y = a + (b x N) y = $165,000 + ($35

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 8 Solution Manual Part 3

Chapter 08 - Cost Estimation 8-36 Cost Estimation: High-Low method (30 min) 1. Model to fit: Maintenance Expense = a + b x M (machine hours) The highest and lowest points are months 5 and 10, respectively. The high-low method is as follows: Change in Total Maintenance Expense = $3,100 - $2,220 = $880 Change in Total

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 8 Solution Manual Part 4

Chapter 08 - Cost Estimation 8-42 (continued -1) Cost equation using 10 openings as the cost driver (home 9): Variable costs: $4,700 - $3,242= $162 19 - 10 Fixed costs: $4,700 = Fixed Cost + ($162 x 19) Fixed Cost = $1,622 Equation for Home 9 (10 openings): Total Cost = $1,622 + ($162 x no.

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 8 Solution Manual Part 5

Chapter 08 - Cost Estimation 8-45 (continued -1) The global nature of the Pilot Shops operations adds another limitation to the analysis. The purchasing and shipping costs will vary with international business conditions and also with fluctuations in foreign currencies. Moreover, customs restrictions and charges areinvolved in international trade. foreign currencies. Moreover, customs restrictions and

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 8 Solution Manual Part 6

Chapter 08 - Cost Estimation 8-50 (continued -1) To potentially improve the measurement of the employment rate, the regression analysis shown below uses the unemployment rate for college graduates 25 years or older (also from the Bureau of Labor Statistics site). Again, the results are not significant. Overall, there appears to be no

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 8 Solution Manual Part 7

Chapter 08 - Cost Estimation 8-55 Cross-Sectional Regression; Ranks; Follows from 8-54 (35 min) The regression results are shown below. Note that none of the independent variables are significant. To examine the possibility that the size of the company may be a confounding factor in this analysis, an additional regression was run

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 8 Solution Manual Part 8

Chapter 08 - Cost Estimation 8-57 Cross-Sectional Regression (30 min) 1. Regression Statistics Multiple R 0.976518934 R Square 0.953589229 999 Adjusted R Square 0.95001917 Standard Error 25458.32309 Observations 15 ANOVA df SS MS F Significance F Regression 1 1.73119E+11 1.73E+11 267.1074 4.77053E-10 Residual 13 8425640789 6.48E+08Total 14 1.81545E+11 CoefficientsStandardError t Stat P-valueIntercept -5225.263287 10780.40244 -0.4847 0.635954TPD 157.5079291 9.637390778 16.34342 4.77E-10 Residual 13

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 9 Cases Part 1

Chapter 9 Short-Term Profit Planning: Cost-Volume-Profit Analysis Chapter 9 Short-Term Profit Planning: Cost-Volume-Profit Analysis Teaching Notes for Cases Case 9-1: CVP Analysis; Strategy This problem can perhaps be visualized most easily by first constructing a table that shows the effects on pre-tax income of the various alternatives. Prior Year Keep Old Use New Purchase & Budgeted Carrier

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 9 Cases Part 2

Chapter 9 Short-Term Profit Planning: Cost-Volume-Profit Analysis TN-1: Example of Spreadsheet Solution for Alltel Case Alltel Pavilion EXPECTED PAYING ATTENDANCE 8,251 GIVEN TOTAL REVENUE FROM TICKETING PER CAPITA $ 26.99 GIVEN TOTAL REVENUE FROM ANCILLARIES PER CAPITA $ 13.09 GIVEN LESS 10% OF REVENUE 1.31 13.09 0.1 LESS VARIABLE EXPENSES 1.74 0.17 + 0.35 +

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 9 Cases Part 3

Chapter 9 Short-Term Profit Planning: Cost-Volume-Profit Analysis As before, B = TR VC FC = (sp*X) (vc*X) FC = $5X = $60X $48X $600,000 = $5X $7X = $600,000 X = 85,715 units = $60X $48X $600,000 = $5X $7X = $600,000 X = 85,715 units = $60X $48X $600,000 = $5X $7X = $600,000

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 9 Lecture Note Part 1

Chapter 09 - Short-Term Profit Planning: Cost-Volume-Profit (CVP) Analysis Chapter 9 Short-Term Profit Planning: Cost-Volume-Profit (CVP) Analysis Learning Objectives LO 9-1 Explain cost-volume-profit (CVP) analysis, the CVP model, and the strategic role of CVP analysis. LO 9-2 Apply CVP analysis for breakeven planning. LO 9-3 Apply CVP analysis for profit planning. LO 9-4 Apply CVP for

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 9 Lecture Note Part 2

Chapter 09 - Short-Term Profit Planning: Cost-Volume-Profit (CVP) Analysis Another analytical approach to sensitivity analysis is to express the factors of the CVP model as random variables, and then to examine the outputs of the model probabilistically. This approach also has the benefit of mathematical precision noted above, but it requires a

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 9 Solution Manual Part 1

Chapter 09 - Short-Term Profit Planning: Cost-Volume-Profit (CVP) Analysis CHAPTER 9 SHORT-TERM PROFIT PLANNING: COST-VOLUME-PROFIT (CVP) ANALYSIS QUESTIONS 9-1 The underlying relationship depicted in a cost-volume-profit (CVP) analysis is that costs, revenues, and operating profits (Y) all change in a predictable way as the volume of activity (X) changes. A CVP model, therefore, depicts (or captures)the short-term

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 9 Solution Manual Part 2

Chapter 09 - Short-Term Profit Planning: Cost-Volume-Profit (CVP) Analysis 9-24 Cost Planning: The Cost of an MBA; Time Value of Money (20 minutes) Using the present value factor (4.212) for an annuity for five years at 6% shows that the present value of $23,742 per year is $100,000 ($100,000 4.212); this means that

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 9 Solution Manual Part 3

Chapter 09 - Short-Term Profit Planning: Cost-Volume-Profit (CVP) Analysis 9-32 Further Analysis--Degree of Operating Leverage (DOL) (40-45 min) 1. Demonstrating that DOL represents the % change in operating income DOL = CM Operating Income (OI), for any given sales volume (Q) New level of OI = DOL percentage change in sales volume = (CM

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 9 Solution Manual Part 4

Chapter 09 - Short-Term Profit Planning: Cost-Volume-Profit (CVP) Analysis 9-37 (Continued-1) 4. BE units = F contribution margin per unit = ($500,000 + $160,000) ($80.00 $41.50)/unit = $660,000 $38.50/unit = 17,143 units B= Sales variable costs fixed costs = [Q (unit contribution margin)] F = [20,000 units ($80.00 $41.50*)/unit] ($500,000 + $160,000) = $770,000

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 9 Solution Manual Part 5

Chapter 09 - Short-Term Profit Planning: Cost-Volume-Profit (CVP) Analysis 9-40 (Continued-1) Step Two: Run Goal Seek Step Three: Results Thus, at 1,280 tests per year, the total cost under each of the two decision alternatives would be the same: $256,000. 3. Current number of patients per year needing analysis = 3,000 # needing blood-gas

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 9 Solution Manual Part 6

Chapter 09 - Short-Term Profit Planning: Cost-Volume-Profit (CVP) Analysis 9-44 CVP Analysis; Uncertainty/Sensitivity Analysis (60-75 min) 1. To break even, during the first year of operations, 3,649 clients (rounded up) must visit the law office being considered by Don Carson and his colleagues as calculated below. Breakeven Calculation: $0 = Total revenue variable cost (supplies)

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 9 Solution Manual Part 7

Chapter 09 - Short-Term Profit Planning: Cost-Volume-Profit (CVP) Analysis 9-46 (Continued-1) Total Relevant Cost, Current Plan = Total Relevant Cost, Proposed Plan ($43.50 Q) + $6,000,000 = ($58.75 Q) + $3,000,000 ($58.75 $43.50)/unit Q = $6,000,000 $3,000,000 Q = $3,000,000 $15.25/unit Q = 196,722 units (The above calculations show that at

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 9 Solution Manual Part 8

Chapter 09 - Short-Term Profit Planning: Cost-Volume-Profit (CVP) Analysis 9-48 (Continued-4) The above data table provides the results of a sensitivity analysis. Specifically, we are looking at the sensitivity of the breakeven point to the assumption regarding sales mix for the two products. Based on the above results management will form a judgment as

Cost Management: A Strategic Emphasis 7th Edition

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978-0077733773 Chapter 9 Solution Manual Part 9

Chapter 09 - Short-Term Profit Planning: Cost-Volume-Profit (CVP) Analysis 9-50 (Continued-1) $4.000 $27,435 $27,389 $4.250 $28,087 $27,944 $4.500 $28,739 $28,500 $4.750 $29,391 $29,056 $5.000 $30,043 $29,611 Based on the above analysis and graph, we see that for these two alternatives (gas-powered vs. hybrid model), and 60,000 miles total usageover a four-year period, the lifetime costs are

Cost Management: A Strategic Emphasis 7th Edition

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Accounting Chapter 1 1 Cost Management Has Moved From A Traditional Role Of Product Costing And Operational Control To A Broader Strategic Focus

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Accounting Chapter 1 2 The Competitive Strategy Of Differentiation Is Implemented By A Firm’s Targeted, Careful Attention To

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Accounting Chapter 1 3 Explain These Ideas, Using As A Framework Your Need To Develop A Plan For Interviewing Successfully For A Challenging Professional

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Accounting Chapter 10 1 The Process Of Planning Business Actions In The Near Future And Expressing Them As Formal Plans Of Action Is Called

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Accounting Chapter 10 2 Budgets Can Serve As The Standard Against Which Actual Performance Is Measured. When Compensation Is Based On This Comparison

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Accounting Chapter 10 3 The Estimated Total Cash Collections By Fresplanade Co. During November From Collection Of Accounts Receivable

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Accounting Chapter 10 4 All Sales Are On Account And A Provision For Bad Debts Is Made For Each Month At Three Percent Of Sales For The Month

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Accounting Chapter 10 5 All Of The Following Represent Alternative Approaches To The Traditional Budget-preparation Process Except Which One Of The Following

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Accounting Chapter 10 6 A Business Develops A Budget For Many Reasons Beyond Wanting To Know What Future Profits Will Be

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Accounting Chapter 10 7 Grey Company Is Considering Replacing Its Existing Cutting Machine With A New Machine That, According To The Manufacturer

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Accounting Chapter 11 1 Done On A Regular Basis, Relevant Cost Pricing In “special-order Decisions” Can Erode Normal Pricing Policies And Lead To

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Accounting Chapter 11 2 In View Of The Labor Shortage, Which Of The Two Products Is Most Profitable, And How Much Is The Contribution Margin, Per Direct Labor Hour

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Accounting Chapter 11 3 The Sand Cruiser Is A Takeout Food Store At A Popular Beachside Resort. Teresa Texton, Owner Of The Sand Cruiser

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Accounting Chapter 11 4 The Robinson-Patman Act, Administered By The U.S. Federal Trade Commission, Addresses Pricing That Could Substantially Damage

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Accounting Chapter 11 5 The Best Way To Allocate Scare Resources To Attain A Specific Objective, Such As The Maximization Of Operating Income

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Accounting Chapter 11 6 Determine Which Product Should Be Produced In Priority, Given The Labor Constraint, And Explain Why

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Accounting Chapter 11 7 Joe Green Enterprises Has Met All Production Requirements For The Current Month And Has An Opportunity To Produce Additional Units Of Product With Its Excess Capacity

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Accounting Chapter 12 1 Which Of The Following Is Not One Of The More Common Strategic Benefits Provided By Capital Investment Projects

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Accounting Chapter 12 2 Which Of The Following Methods Can Be Used To Deal Formally With Uncertainty In The Capital-budgeting Process

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Accounting Chapter 12 3 Which Of The Following Would Not Be Considered A Benefit Of Conducting Post-implementation Audits Of Capital Investment Projects

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Accounting Chapter 12 4 If A Company Must Choose Between Two Mutually Exclusive Investment Projects, The Best General Method To Employ For Decision-making Purposes

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Accounting Chapter 12 5 The Best Method For Determining The Expected Outcome Of The Investment, Based On An Assumed Probability Distribution Associated Both Sales And Costs

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Accounting Chapter 12 6 The Capital Budgeting Decision Technique That Reflects The Time Value Of Money And Is Calculated As The Present Value Of The Future

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Accounting Chapter 12 7 Compute The Amount Of Annual Before-tax Savings That Must Be Generated By The New Tractor To Have A Payback Period Of 3 Years.

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Accounting Chapter 12 8 What Is The Primary Deficiency Of The Traditional DCF Analysis You Conducted Above In Requirement

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Accounting Chapter 12 9 Under The Assumption That Cash Inflows Occur Evenly Throughout The Year, What Is The Estimated Payback Period For This Investment

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Accounting Chapter 13 1 Many Firms Choose To Achieve Target Cost Through Redesign Of The Product Or Service Because They Recognize That Design Decisions

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Accounting Chapter 13 2 The Manufacturing Cost Of Each Unit Is Calculated Using Activity-based Costing, Using The Following Manufacturing Cost Pools

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Accounting Chapter 13 3 The Management Accountant At Jang Manufacturing Co. Collected The Following Data In Preparation For A Life-cycle Analysis On One Of Its Products

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Accounting Chapter 13 4 Which Of The Following Is A Common Form Of Value Engineering In Which The Design Team Prepares Several Possible Designs Of The Product,

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Accounting Chapter 13 5 The Gargus Company, Which Manufactures Projection Equipment, Is Ready To Introduce A New Line Of Portable Projectors

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Accounting Chapter 13 6 Explain Why Gail May Be Wrong In Her Assessment Of The Relative Performances Of The Two Product Lines.

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Accounting Chapter 13 7 What Price Should Amanda Charge Per Rental For The Business To Make A Twenty Percent Life Cycle Profit

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Accounting Chapter 14 1 One Important Short-term Financial Goal For A Company Is To Earn The Projected Operating Income For The Period

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Accounting Chapter 14 2 Which One Of The Following Is The Difference Between The Actual Direct Labor Hours Worked And The Standard Direct Labor Hours Allowed

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Accounting Chapter 14 3 Europa Company Manufactures Only One Product. Presented Below Is Direct Labor Information For November

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Accounting Chapter 14 4 Marv Company’s Direct Labor Costs For Manufacturing Its Only Product Were As Follows For October

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Cost Management: A Strategic Emphasis 7th Edition

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Accounting Chapter 14 5 Sheldon Company Manufactures Only One Product And Uses A Standard Cost System. During The Past Month, Manufacturing Operations For The Company

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Cost Management: A Strategic Emphasis 7th Edition

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Accounting Chapter 14 6 Poke Man Bunch Inc., Manufactures Poke Monster Figures And Has The Following Data From Its Operation For The Year Just Completed

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Cost Management: A Strategic Emphasis 7th Edition

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Accounting Chapter 15 3 The Following Information For The Past Year Is Available From Thin News Co., A Company That Uses Machine Hours To Apply Factory Overhead

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Cost Management: A Strategic Emphasis 7th Edition

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Accounting Chapter 15 4 Blue Cap Co. Uses A Standard Cost System And Flexible Budgets For Control Purposes. The Following Budgeted Information Pertains

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Cost Management: A Strategic Emphasis 7th Edition

Exam Prep

Accounting Chapter 15 5 What Were The Total Actual Direct Labor Hours Worked By Oslund Company During The Past Month

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Cost Management: A Strategic Emphasis 7th Edition

Exam Prep

Accounting Chapter 15 6 A Comprehensive Management Accounting And Control System Regarding Manufacturing Overhead Costs

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Cost Management: A Strategic Emphasis 7th Edition

Exam Prep

Accounting Chapter 15 7 In Terms Of The Variance-investigation Decision Under Uncertainty, Which Of The Following Items Contains A Cross-listing Of Costs Associated

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Cost Management: A Strategic Emphasis 7th Edition

Exam Prep

Accounting Chapter 15 8 How Such Measures Might Be Supplemented To Better Meet The Planning And Control Needs Of Management.

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Cost Management: A Strategic Emphasis 7th Edition

Exam Prep

Accounting Chapter 15 9 Management Is Currently Deciding Whether Or Not To Investigate A Cost Variance That Was Identified By The Accounting System

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Cost Management: A Strategic Emphasis 7th Edition

Exam Prep

Accounting Chapter 16 1 Which One Of The Following Uses The Number Of Units Of An Input Factor In Its Assessment Of Productivity

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Cost Management: A Strategic Emphasis 7th Edition

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Accounting Chapter 16 2 Gutsen Communications Inc. Manufactures A Scrambling Device For Cellular Phones. The Main Component Of The Scrambling Device Is A Very Delicate Part

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Cost Management: A Strategic Emphasis 7th Edition

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Accounting Chapter 16 3 Nappon Co. Has Two Products Named X And Y. The Firm Had The Following Master Budget For The Year Just Completed

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Cost Management: A Strategic Emphasis 7th Edition

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Accounting Chapter 16 4 Folsom Fashions Sells A Line Of Women’s Dresses. The Company Uses Flexible Budgets To Analyze Its Performances

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Cost Management: A Strategic Emphasis 7th Edition

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Accounting Chapter 16 5 Jackson, Inc., Manufactures Two Products That It Sells To The Same Market. Excerpted Below Are Its Budgeted And Actual Operating Results For The Year Just Completed

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Cost Management: A Strategic Emphasis 7th Edition

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Accounting Chapter 16 6 Gourmet Aroma Coffee House Has An Exclusive Contract With Columbia Exporters. Two Brands Of Gourmet Coffee Are Imported,

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Cost Management: A Strategic Emphasis 7th Edition

Exam Prep

Accounting Chapter 16 7 Wheat Inc. Has An Exclusive Contract With An Exporter. Two Brands Of Wheat Are Imported, Labeled AB And CD

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Cost Management: A Strategic Emphasis 7th Edition

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Accounting Chapter 16 8 Showtime Is A Group Of Aspiring Musicians And Actors Who Perform In Theaters And Dinner Clubs. It Has A Matinee And Evening Show

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Cost Management: A Strategic Emphasis 7th Edition

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Accounting Chapter 17 1 The Taguchi Quality Loss Function (QLF) Demonstrates That As The Quality Measure Of A Product Declines, The Loss Due To Quality Defects

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Cost Management: A Strategic Emphasis 7th Edition

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Accounting Chapter 17 2 A Graphical Representation Of Frequency Of Occurrence Of The Factors Contributing To An Indicated Quality Problem

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Cost Management: A Strategic Emphasis 7th Edition

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Accounting Chapter 17 3 Which Of The Following Items Represents A Quadratic Loss Function Associated With Deviation Of Actual Quality From Target Quality

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Cost Management: A Strategic Emphasis 7th Edition

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Accounting Chapter 17 4 Which Of The Following Is Not True Regarding The Determination Of Relevant Costs And Relevant Revenues Associated With Quality-related Initiatives

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Cost Management: A Strategic Emphasis 7th Edition

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Accounting Chapter 17 5 Cari And Jeremy Just Bought A Bed And Breakfast Inn At A Very Attractive Price. The Business Had Been Doing Poorly

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Cost Management: A Strategic Emphasis 7th Edition

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Accounting Chapter 17 6 The Amount Of Change In The Estimated Losses (or Total Quality Cost) When The Deviation From The Quality Characteristic Doubled

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Cost Management: A Strategic Emphasis 7th Edition

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Accounting Chapter 17 7 Define Each Of These Two Dimensions. How, Conceptually, Can Cost Management Contribute To The Management Of Each Of These Two Dimensions Of Quality

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Cost Management: A Strategic Emphasis 7th Edition

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Accounting Chapter 18 1 The Process By Which Managers At All Levels In The Firm Gain Information About The Performance Of Tasks Within The Firm And Judge

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Cost Management: A Strategic Emphasis 7th Edition

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Accounting Chapter 18 2 Bradbo Allocated The Monthly Costs Of The Baking Facility To The Two Restaurants Based On The Number Of Tables Served

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Cost Management: A Strategic Emphasis 7th Edition

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Accounting Chapter 18 3 The Six Steps Ittner And Larcker Propose For Maximizing The Value Of Nonfinancial Measures When Using A Balanced Scorecard

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Cost Management: A Strategic Emphasis 7th Edition

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Accounting Chapter 18 4 In The Principal-agent Model, The Manager Is Modeled As Having All Of The Following Elements Except

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Cost Management: A Strategic Emphasis 7th Edition

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Accounting Chapter 18 5 Sand And Sea Resorts Owns And Operates Two Resorts In A Coastal Town. Both Resorts Are Located On A Barrier Island That Is Connected

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Cost Management: A Strategic Emphasis 7th Edition

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Accounting Chapter 18 6 The Daniels Tool & Die Corporation Has Been In Existence For A Little Over Three Years; Its Sales Have Been Increasing Each Year As It Has Built A Reputation

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Cost Management: A Strategic Emphasis 7th Edition

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Accounting Chapter 18 7 Lawson Company Had The Following Manufacturing Information For The Current Year. Assume The Same Per Unit Costs Occurred In The Prior Yea

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Cost Management: A Strategic Emphasis 7th Edition

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Accounting Chapter 19 1 Under The Notion Of Controllability, It Is Most Appropriate For Top Management To Evaluate The Profitability Of An Investment Center In Terms Of

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Cost Management: A Strategic Emphasis 7th Edition

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Accounting Chapter 19 2 A Division’s After-tax Cash Operating Income Less Depreciation And Less An Imputed Cost Of Capital Is Called Its

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Cost Management: A Strategic Emphasis 7th Edition

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Accounting Chapter 19 3 One Approach To Measuring The Short-term Financial Performance Of A Business Unit Considered An Investment Center Is Return On Investment

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Cost Management: A Strategic Emphasis 7th Edition

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Accounting Chapter 19 4 Which Of The Following Items Would Most Likely Not Be Incorporated Into The Calculation Of A Division’s Investment Base

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Cost Management: A Strategic Emphasis 7th Edition

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Accounting Chapter 19 5 Which Method For Computing Profitability Would Each Manager Likely Choose? Show Supporting Calculations

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Cost Management: A Strategic Emphasis 7th Edition

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Accounting Chapter 19 6 What Solution Would Be Best For Edwards Inc., Assuming Division B Has The Ability To Operate At Full Capacity

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Cost Management: A Strategic Emphasis 7th Edition

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Accounting Chapter 19 7 What Changes To The Divisional Manager’s Compensation Contract Might Corporate Management Make That Would Better Align

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Cost Management: A Strategic Emphasis 7th Edition

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Accounting Chapter 19 8 What Would The Operating Income For Each Of The Two Divisions Be If The Transfer Price From Cutting To Assembly Was Set

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Cost Management: A Strategic Emphasis 7th Edition

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Accounting Chapter 19 9 What Are The Primary Factors Affecting The Setting Of Transfer Prices Between Divisions Of A Company That Operates In Different Countries

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Cost Management: A Strategic Emphasis 7th Edition

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Accounting Chapter 2 1 The Balanced Scorecard Can Be Made More Effective By Developing It At A Detail Level So That Employees

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Cost Management: A Strategic Emphasis 7th Edition

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Accounting Chapter 2 2 A Firm Succeeds On Its Ability To Deliver Products To Customers More Quickly Than Rival Companies In Its Industry

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Cost Management: A Strategic Emphasis 7th Edition

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Accounting Chapter 2 3 Present A Value Chain For Gordon Manufacturing With At Least Five Activities And Explain The Role Of Each Activity In The Value Chain

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Cost Management: A Strategic Emphasis 7th Edition

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Accounting Chapter 20 1 As A Firm’s Strategy Changes To Respond To Different Stages Of A Product’s Life Cycle, Compensation

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Cost Management: A Strategic Emphasis 7th Edition

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Accounting Chapter 20 2 Firms Typically Provide Benefits (perks) To Employees To Enhance Motivation. Which Of The Following Would Not Be An Example Of A Perk

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Cost Management: A Strategic Emphasis 7th Edition

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Accounting Chapter 20 3 There Is Always A Current Tax Deduction For The Firm For Which Of The Following Types Of Compensation

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Cost Management: A Strategic Emphasis 7th Edition

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Accounting Chapter 20 4 The Harrison Bicycle Company Had The Following Operating Results For 2015-2016. In Addition, The Company Paid Dividends In Both 2015 And 2016

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Cost Management: A Strategic Emphasis 7th Edition

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Accounting Chapter 20 5 Harold Small Joined Morton Electric Company Eight Months Ago As Vice President Of Personnel Administration

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Cost Management: A Strategic Emphasis 7th Edition

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Accounting Chapter 20 6 Wilson & Associates Is A Medium-size Marketing Organization Specializing In Professional Promotion And Publicity Services

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Cost Management: A Strategic Emphasis 7th Edition

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Accounting Chapter 20 7 Complete A Business Valuation For The Jackson Company Based On 2016 Financial Statement Information.

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Cost Management: A Strategic Emphasis 7th Edition

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Accounting Chapter 3 1 Since Indirect Cost Cannot Be Conveniently Or Economically Traced Directly To A Cost Pool Or Cost Object, The Management Accountant Will

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Cost Management: A Strategic Emphasis 7th Edition

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Accounting Chapter 3 2 When Production Levels Are Expected To Decline Within A Relevant Range, What Effects Would Be Anticipated With Respect To Each Of The Following

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Cost Management: A Strategic Emphasis 7th Edition

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Accounting Chapter 3 3 In Order To Assure That Accounting Information Is Accurate And To Avoid Potentially Costly Mistakes In The Decision Making Process

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Cost Management: A Strategic Emphasis 7th Edition

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Accounting Chapter 3 5 Dave’s Lighting Inc. Produces Lamps For The Construction Industry. During The Year, The Company Incurred The Following Costs

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Cost Management: A Strategic Emphasis 7th Edition

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Accounting Chapter 3 A Significant Jump In New Housing Starts In The Region Has Triggered A 25 Percent Increase In Orders For The Filter Units

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Cost Management: A Strategic Emphasis 7th Edition

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Accounting Chapter 4 1 If A Firm Is Following The Cost Leadership Strategy, And Overhead Accounts Are Complex, Then The

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Cost Management: A Strategic Emphasis 7th Edition

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Accounting Chapter 4 2 The Company Uses A Predetermined Overhead Rate Based On Direct Labor Hours To Apply Overhead To Individual Jobs

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Cost Management: A Strategic Emphasis 7th Edition

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Accounting Chapter 4 3 A Job In Which A Quantity Of Products Is Ordered By A Single Customer Is More Likely To Be An Example Of

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Cost Management: A Strategic Emphasis 7th Edition

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Accounting Chapter 4 4 At The Conclusion Of The Fiscal Year, Overapplied Overhead Could Be Explained By Which Of The Following

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Cost Management: A Strategic Emphasis 7th Edition

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Accounting Chapter 4 5 Which Method Of Accumulating Product Costs, Job Costing Or Process Costing, Would Be More Appropriate In Each Of The Following Situations

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Cost Management: A Strategic Emphasis 7th Edition

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Accounting Chapter 4 6 Prepare Journal Entries For The April Transactions. Record Job-specific Items In Individual Work-in-Process Accounts

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Cost Management: A Strategic Emphasis 7th Edition

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Accounting Chapter 5 1 If The Usage Of Project Activities Is Not Proportional To The Number Of Units Produced, Then Some Managers Will Be Overcharged

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Cost Management: A Strategic Emphasis 7th Edition

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Accounting Chapter 5 2 Which Of The Following Would Be The Most Appropriate Cost Driver To Allocate Factory Electricity Costs To Products

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Cost Management: A Strategic Emphasis 7th Edition

Exam Prep

Accounting Chapter 5 3 National Uses A Volume-based Costing System To Apply Factory Overhead Based On Direct Labor Dollars. The Unit Prime Costs Of Each Product Were As Follows

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Cost Management: A Strategic Emphasis 7th Edition

Exam Prep

Accounting Chapter 5 4 An Adaptation Of ABC Costing That Simplifies ABC By Assigning Resource Costs Directly To Cost Objects Is Called

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Cost Management: A Strategic Emphasis 7th Edition

Exam Prep

Accounting Chapter 5 5 The Company’s Plant Is Partially Automated. The Budget For The Year Includes $432,000 Payroll For 4,800 Direct Labor-hours

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Cost Management: A Strategic Emphasis 7th Edition

Exam Prep

Accounting Chapter 5 6 The Company’s Plant Is Partially Automated. Listed Below Is Cost Driver Information Used In The Product-costing System

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Cost Management: A Strategic Emphasis 7th Edition

Exam Prep

Accounting Chapter 5 7 Compute The Unit Manufacturing Cost Of Each Job Under The Firm’s Current Volume-based Costing System

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Cost Management: A Strategic Emphasis 7th Edition

Exam Prep

Accounting Chapter 5 8 Determine The Unit Cost For Each Of The Two Products Using The Traditional Two-stage Allocation Method. Round Calculations To 2 Decimal Places

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Cost Management: A Strategic Emphasis 7th Edition

Exam Prep

Accounting Chapter 5 9 The Answer Depends On The Competitive Strategy Of The Firm. The Gross Profit Margin Ratios Show That Omega Is The Better Customer Of The Two

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Cost Management: A Strategic Emphasis 7th Edition

Exam Prep

Accounting Chapter 6 1 In Process Costing, Unit Product Cost Is Calculated By Dividing Process Cost In Each Department By The Equivalent Units Produced

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Cost Management: A Strategic Emphasis 7th Edition

Exam Prep

Accounting Chapter 6 2 Material Q Is Also Added In The Mixing Department, But Not Until Units Of Product Are Forty Percent Completed With Regard To Conversion

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Cost Management: A Strategic Emphasis 7th Edition

Exam Prep

Accounting Chapter 6 3 Which Method Is (are) Used To Prepare The Departmental Production Cost Report When Using A Process Cost System

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Cost Management: A Strategic Emphasis 7th Edition

Exam Prep

Accounting Chapter 6 4 Giddings Pharmaceutical Company Is A Maker Of Drugs For High Blood Pressure And Uses A Process Costing System

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Cost Management: A Strategic Emphasis 7th Edition

Exam Prep

Accounting Chapter 6 5 Edenton Boat Company Manufactures Small Pleasure Boats On An Assembly-line Basis. The Units Are Started In The Department A

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Cost Management: A Strategic Emphasis 7th Edition

Exam Prep

Accounting Chapter 6 6 Marshall Company Uses The Weighted-average Process Costing In Accounting For Its Production Activities

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Cost Management: A Strategic Emphasis 7th Edition

Exam Prep

Accounting Chapter 7 1 A Key Ethical Issue In Cost Allocation Involves Costing In An International Context, Because The Choice Of A Cost Allocation Method Can Affect

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Cost Management: A Strategic Emphasis 7th Edition

Exam Prep

Accounting Chapter 7 2 Additional Processing Requires No Special Facilities, And Production Costs Of Further Processing Are Entirely Variable And Traceable To The Products Involved

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Cost Management: A Strategic Emphasis 7th Edition

Exam Prep

Accounting Chapter 7 3 For The Purposes Of Cost Accumulation, Which Of The Following Are Identifiable As Different Individual Products Before The Split-off Point

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Cost Management: A Strategic Emphasis 7th Edition

Exam Prep

Accounting Chapter 7 4 Each Product May Be Sold At The Split-off Point Or Processed Further. Additional Processing Requires No Special Facilities

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Cost Management: A Strategic Emphasis 7th Edition

Exam Prep

Accounting Chapter 7 5 When Significant Differences Exist In Costs Allocated To Production Departments, Cost Management Should Use What Method To Find A More Accurate Cost Allocation

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Cost Management: A Strategic Emphasis 7th Edition

Exam Prep

Accounting Chapter 7 6 Calculate The Gross Margin For Each Of The Three Products Using The Cost Allocation For The Physical Measure Method In Part

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Cost Management: A Strategic Emphasis 7th Edition

Exam Prep

Accounting Chapter 8 1 Which Of The Four Types Of Cost Drivers-activity-based, Volume-based, Structural And Executional-are Often Best Related To Linear Cost Estimation Methods

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Cost Management: A Strategic Emphasis 7th Edition

Exam Prep

Accounting Chapter 8 2 The Cost Behavior Pattern Of The Maintenance Costs Must Be Determined. The Accounting Staff Suggested That Linear Regression

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Cost Management: A Strategic Emphasis 7th Edition

Exam Prep

Accounting Chapter 8 3 During The Past Three Months, The Actual Direct Labor Hours And The Total Factory Overhead Allocated Were As Follows Past Three Months, The Actual Direct Labor Hours And The Total Factory Overhead Allocated Were As Follows

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Cost Management: A Strategic Emphasis 7th Edition

Exam Prep

Accounting Chapter 8 4 Georgia Meadows Company Uses The High-low Method To Analyze Production Costs. The Following Information Relates To The Production Data

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Cost Management: A Strategic Emphasis 7th Edition

Exam Prep

Accounting Chapter 8 5 Which Of The Following Means That Two Or More Independent Variables Are Highly Correlated With Each Other

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Cost Management: A Strategic Emphasis 7th Edition

Exam Prep

Accounting Chapter 8 6 Kumar Co. Is Attempting To Predict Its Maintenance Costs More Accurately. Maintenance Costs Are A Mixed Cost

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Cost Management: A Strategic Emphasis 7th Edition

Exam Prep

Accounting Chapter 8 7 Peter Has Decided To Try Regression Analysis To Improve The Hiring Of Temporary Workers. By Summarizing The Daily Labor-hours Into

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Cost Management: A Strategic Emphasis 7th Edition

Exam Prep

Accounting Chapter 9 1 From A Strategic Management Perspective, The Primary Reason A Firm Performs CVP Analysis Is To Find The Level Of Sales That

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Cost Management: A Strategic Emphasis 7th Edition

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Cost Management: A Strategic Emphasis 7th Edition

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