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978-1111971724 Kinney 9e IM Ch 01 Lecture Note Part 1
Learning Objectives After completing this chapter, you should be able to answer the following questions: 1. What are the relationships among financial, management, and cost accounting? 2. What are the sources of authoritative pronouncements for the practice of cost accounting? […]
978-1111971724 Kinney 9e IM Ch 01 Lecture Note Part 2
Chapter 01: Introduction to Cost Accounting IM 8 ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. b. The controller is responsible for delivering […]
978-1111971724 Kinney 9e IM Ch 02 Lecture Note Part 1
publicly accessible website, in whole or in part. Learning Objectives After reading and studying Chapter 2, you should be able to answer the following questions: 1. Why are costs associated with a cost object? 2. What assumptions do accountants make […]
978-1111971724 Kinney 9e IM Ch 02 Lecture Note Part 2
Chapter 02: Cost Terminology and Cost Behaviors IM 9 d. All organizations (retailers, manufacturers, and service firms) need management and cost accounting techniques to help them find ways to reduce costs without sacrificing quality or productivity. LO.5 What are the […]
978-1111971724 Kinney 9e IM Ch 03 Lecture Note Part 1
Learning Objectives After reading and studying Chapter 3, you should be able to answer the following questions: 1. Why and how are overhead costs allocated to products and services? 2. What causes underapplied or overapplied overhead and how is it […]
978-1111971724 Kinney 9e IM Ch 03 Lecture Note Part 2
Chapter 03: Predetermined Overhead Rates, Flexible Budgets, & Absorption/Variable Costing IM 10 5. Plantwide versus Departmental Overhead Rates. a. Because companies may produce many types of products, a single plantwide overhead rate often does not produce relevant unit cost estimates. […]
978-1111971724 Kinney 9e IM Ch 04 Lecture Note Part 1
Chapter 04: Activity Based Management and Activity-Based Costing IM 1 Learning Objectives After reading and studying Chapter 4, you should be able to answer the following questions: 1. In an activity-based management system, what are value-added and non-value-added activities? 2. […]
978-1111971724 Kinney 9e IM Ch 04 Lecture Note Part 2
Chapter 04: Activity Based Management and Activity-Based Costing IM 10 ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. iv. Effectiveness of current cost […]
978-1111971724 Kinney 9e IM Ch 05 Lecture Note Part 1
Learning Objectives After reading and studying Chapter 5, you should be able to answer the following questions: 1. How do job order and process costing systems, as well as their related valuation methods, differ? 2. What are the fundamental characteristics […]
978-1111971724 Kinney 9e IM Ch 05 Lecture Note Part 2
Chapter 05: Job Order Costing IM 9 publicly accessible website, in whole or in part. 2. Text Exhibit 5.8 (p. 161) shows the job cost sheet at the completion of Job #PF108. a. The completed job cost sheet can be […]
978-1111971724 Kinney 9e IM Ch 06 Lecture Note Part 1
Learning Objectives After reading and studying Chapter 6, you should be able to answer the following questions: 1. Why are equivalent units of production used in process costing? 2. How are equivalent units of production, unit costs, and inventory values […]
978-1111971724 Kinney 9e IM Ch 06 Lecture Note Part 2
Chapter 06: Process Costing IM 11 publicly accessible website, in whole or in part. 1. Goods are transferred from a predecessor department to a successor department. a. For example, suppose a company has two departments, A and B. When the […]
978-1111971724 Kinney 9e IM Ch 07 Lecture Note Part 1
Learning Objectives After reading and studying Chapter 7, you should be able to answer the following questions: 1. Why are standard cost systems used? 2. How are material, labor, and overhead standards set? 3. How are material, labor, and overhead […]
978-1111971724 Kinney 9e IM Ch 07 Lecture Note Part 2
Chapter 07: Standard Costing and Variance Analysis IM 11 AP × AQ SP × AQ SP × SQ Labor Labor Rate Variance Efficiency Variance Total Labor Variance b. The labor rate variance (LRV) is the difference between the actual wages […]
978-1111971724 Kinney 9e IM Ch 07 Lecture Note Part 3
Chapter 07: Standard Costing and Variance Analysis IM 17 ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. a. One worker may oversee a […]
978-1111971724 Kinney 9e IM Ch 08 Lecture Note Part 1
Learning Objectives After reading and studying Chapter 8, you should be able to answer the following questions: 1. How are strategic planning and tactical planning related to budgeting? 2. What is the starting point of a master budget and why? […]
978-1111971724 Kinney 9e IM Ch 08 Lecture Note Part 2
Chapter 08: The Master Budget IM 9 publicly accessible website, in whole or in part. b. Cost of Goods Manufactured Schedule i. Management must prepare a schedule of cost of goods manufactured in order to determine cost of goods sold […]
978-1111971724 Kinney 9e IM Ch 09 Lecture Note Part 1
Learning Objectives After reading and studying Chapter 9, you should be able to answer the following questions: 1. What is the break-even point (BEP) and why is it important? 2. How is the BEP determined and what methods are used […]
978-1111971724 Kinney 9e IM Ch 09 Lecture Note Part 2
Chapter 09: Break-Even Point and Cost-Volume-Profit Analysis IM 10 ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. b. The margin of safety (See […]
978-1111971724 Kinney 9e IM Ch 10 Lecture Note Part 1
Learning Objectives After reading and studying Chapter 10, you should be able to answer the following questions: 1. What factors determine the relevance of information to decision making? 2. What are sunk costs, and why are they not relevant in […]
978-1111971724 Kinney 9e IM Ch 10 Lecture Note Part 2
Chapter 10: Relevant Information for Decision Making IM 8 publicly accessible website, in whole or in part. ii. Some important factors that affect the appropriate sales mix of a company are product selling prices, sales force compensation, and advertising expenditures; […]
978-1111971724 Kinney 9e IM Ch 11 Lecture Note Part 1
Learning Objectives After reading and studying Chapter 11, you should be able to answer the following questions: 1. How are the outputs of a joint process classified? 2. What management decisions must be made before beginning a joint process? 3. […]
978-1111971724 Kinney 9e IM Ch 11 Lecture Note Part 2
Chapter 11: Allocation of Joint Costs and Accounting for By-Product/Scrap IM 9 publicly accessible website, in whole or in part. 2. The value of by-product/scrap in a job order costing system should be credited to manufacturing overhead if the by-products/scrap […]
978-1111971724 Kinney 9e IM Ch 12 Lecture Note Part 1
Learning Objectives After reading and studying Chapter 12, you should be able to answer the following questions: 1. Why do organizations have management control systems? 2. What is a cost management system? 3. What are the organizational roles of a […]
978-1111971724 Kinney 9e IM Ch 12 Lecture Note Part 2
Chapter 12: Introduction to Cost Management Systems IM 10 posted to a publicly accessible website, in whole or in part. 1. A CMS is composed of three primary elements: motivational elements, informational elements, and reporting elements as detailed in text […]
978-1111971724 Kinney 9e IM Ch 13 Lecture Note Part 1
Learning Objectives After reading and studying Chapter 13, you should be able to answer the following questions: 1. Which factors determine whether a firm should be decentralized or centralized? 2. How are decentralization and responsibility accounting related? 3. What are […]
978-1111971724 Kinney 9e IM Ch 13 Lecture Note Part 2
Chapter 13: Responsibility Acctg., Support Dept. Cost Allocations & Transfer Pricing IM 11 publicly accessible website, in whole or in part. c. Text Exhibit 13.13 (p. 516) illustrates the step method of allocating support department costs to operating areas at […]
978-1111971724 Kinney 9e IM Ch 14 Lecture Note Part 1
Learning Objectives After reading and studying Chapter 14, you should be able to answer the following questions: 1. Why is a mission statement important to an organization? 2. What roles do performance measures serve in organizations? 3. What guidelines or […]
978-1111971724 Kinney 9e IM Ch 14 Lecture Note Part 2
Chapter 14: Performance Measurement, Balanced Scorecards, & Performance Rewards IM 11 LO.5: Why should company management focus on long-run performance? F. Differences in Perspectives 1. Financial measures are lagging indicators, or reflections of the results of past decisions. 2. Measurements […]
978-1111971724 Kinney 9e IM Ch 14 Lecture Note Part 3
Chapter 14: Performance Measurement, Balanced Scorecards, & Performance Rewards IM 18 ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. a. Individuals at different […]
978-1111971724 Kinney 9e IM Ch 15 Lecture Note Part 1
Learning Objectives After reading and studying Chapter 15, you should be able to answer the following questions: 1. Why do most capital budgeting methods focus on cash flows? 2. How is payback period computed, and what does it measure? 3. […]
978-1111971724 Kinney 9e IM Ch 15 Lecture Note Part 2
Chapter 15: Capital Budgeting IM 11 ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ii. Although depreciation is not a cash flow, it […]
978-1111971724 Kinney 9e IM Ch 15 Lecture Note Part 3
Chapter 15: Capital Budgeting IM 17 publicly accessible website, in whole or in part. 3. The appendix illustrates how to compute the present value of an annuity. LO.11: (Appendix 2) What are the advantages and disadvantages of the accounting rate […]
978-1111971724 Kinney 9e IM Ch 16 Lecture Note Part 1
Learning Objectives After reading and studying Chapter 16, you should be able to answer the following questions: 1. What are the functions of a cost control system? 2. What factors cause costs to change from period to period or to […]
978-1111971724 Kinney 9e IM Ch 16 Lecture Note Part 2
Chapter 16: Managing Costs and Uncertainty IM 11 publicly accessible website, in whole or in part. v. The generalized cost variance analysis model can then be used: AP × AQ SP × AQ SP × SQ Price Variance Efficiency Variance […]
978-1111971724 Kinney 9e IM Ch 17 Lecture Note Part 1
Learning Objectives After reading and studying Chapter 17, you should be able to answer the following questions: 1. What is quality, and from whose viewpoint should it be evaluated? 2. What is benchmarking, and why do companies engage in it? […]
978-1111971724 Kinney 9e IM Ch 17 Lecture Note Part 2
Chapter 17: Implementing Quality Costs IM 10 LO.5: What are the types of quality costs, and how are those types related? F. Types of Quality Costs 1. There are four types of quality costs. a. Prevention costs are costs whose […]
978-1111971724 Kinney 9e IM Ch 18 Lecture Note Part 1
Learning Objectives After reading and studying Chapter 18, you should be able to answer the following questions: 1. What value chain relationships are important to organizations? 2. What costs are associated with buying, producing, and carrying inventory? 3. How do […]
978-1111971724 Kinney 9e IM Ch 18 Lecture Note Part 2
Chapter 18: Inventory and Production Management IM 11 ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. a. A primary objective of JIT is […]
978-1111971724 Kinney 9e IM Ch 18 Lecture Note Part 3
Chapter 18: Inventory and Production Management IM 17 where EPR = economic production run quantity Q = estimated annual quantity produced in units S = estimated cost of setting up a production run C = estimated cost of carrying one […]
978-1111971724 Kinney 9e IM Ch 19 Lecture Note Part 1
Learning Objectives After reading and studying Chapter 19, you should be able to answer the following questions: 1. How do business process reengineering initiatives cause radical changes in the way firms execute processes? 2. How are competitive forces driving decisions […]
978-1111971724 Kinney 9e IM Ch 19 Lecture Note Part 2
Chapter 19: Emerging Management Practices IM 9 ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. a. Open-book management is a philosophy about increasing […]
978-1111971724 Kinney 9e_Excel_02-33_IE Excel
Exercise 2-33 Name: Enter the appropriate amounts in the gray-shaded cells of columns E and F. Enter amounts to be subtracted as negatives. If an answer is incorrect, the word “wrong” will appear. a. Irresistible Art Cost of Goods Manufactured […]
978-1111971724 Kinney 9e_Excel_02-34_IE Excel
Exercise 2-34 Name: Enter the appropriate amounts in the gray-shaded cells of columns E and F. Enter amounts to be subtracted as negatives. If an answer is incorrect, the word “wrong” will appear. a. Targé Co. Cost of Goods Sold […]
978-1111971724 Kinney 9e_Excel_02-35_IE Excel
Exercise 2-35 Name: Use the drop-down boxes to select the appropriate choices for columns C and D. Insert amounts in the gray-shaded cells of columns J and L. If an answer is incorrect, the word “wrong” will appear. a. 5,000 […]
978-1111971724 Kinney 9e_Excel_02-44_IE Excel
Problem 2-44 Name: Select accounts from the drop-down lists in columns C and D. Insert amounts in the gray– shaded cells of columns G, J, and L. If an anser is incorrect, the word “wrong” will appear. a. 1) 800,000 […]
978-1111971724 Kinney 9e_Excel_02-53_IE Excel
Problem 2-53 Name: a – b. Insert amounts in the gray-shaded cells of columns E, F, and H. If an answer is incorrect, the word “wrong” will appear. Beg. Bal. 72,000 136,200 #2) Issued materials #1) Purch. 570,000 End. Bal. […]
978-1111971724 Kinney 9e_Excel_03-26_IE Excel
Exercise 3-26 Name: Insert answers into the gray-shaded cells of columns E, G, I and K. If an answer is incorrect, the word “wrong” will appear. a. 250 300 350 400 Variable costs: Supplies 1,000$ 1,200$ 1,400$ 1,600$ Direct labor […]
978-1111971724 Kinney 9e_Excel_03-34_IE Excel
Exercise 3-34 Name: Fill in the correct data in the gray-shaded cells and run a regression in Excel. Excel may have different answers than the solution manual due to the precision of Excel. a. 50 175$ 44 162$ 40 154$ […]
978-1111971724 Kinney 9e_Excel_03-35_IE Excel
Exercise 3-35 Name: Fill in the correct data in columns C and F. Then run a regression in Excel. The word “wrong” will appear when incorrect data is input except for the formula because formats may vary. Excel may have […]
978-1111971724 Kinney 9e_Excel_03-43_IE Excel
Problem 3-43 Name: Fill in the correct data in columns C, E, and G. Then run a regression in Excel. The word “wrong” will appear when incorrect data is input except for the formula because formats may vary. Excel may […]
978-1111971724 Kinney 9e_Excel_03-44_IE Excel
SUMMARY OUTPUT Regression Statistics Multiple R R Square Adjusted R Square Standard Error Observations ANOVA df SS MS F Significance F Regression 1 6.92E+08 6.92E+08 108.8096 1.62E-05 Residual 7 44489230 6355604 Total 8 7.36E+08 Coefficients Standard Error t Stat P-value […]
978-1111971724 Kinney 9e_Excel_04-35_IE Excel
Exercise 4-35 Name: Insert amounts in the gray-shaded cells of columns C, E, and G. If an answer is incorrect the word “Wrong” will appear. a. Cost of finding best suppliers 375,000$ Number of phone calls made 75,000 Cost per […]
978-1111971724 Kinney 9e_Excel_04-41_IE Excel
Problem 4-41 Name: Insert your answers in gray-shaded cells. If an answer is incorrect, the word “wrong” will appear. a. Base wages 63,000,000$ Direct labor hours 3,150,000 Base wages per DLH 20.00$ Health care benefit costs 10,500,000$ Average number of […]
978-1111971724 Kinney 9e_Excel_04-45_IE Excel
Problem 4-45 Name: Insert your answers into the gray-shaded cells. If an answer is incorrect, the word “wrong” will appear. a. Umbrella: Overhead per unit of umbrellas 24$ Overhead rate per hour ÷30$ Percent of overhead 80% Minutes in an […]
978-1111971724 Kinney 9e_Excel_04-46_IE Excel
Problem 4-46 Name: Insert your answers in gray-shaded cells of columns D and F. If an answer is incorrect, the word “wrong” will appear. a. Indirect labor: Department 1 307,000$ Department 2 262,000 Machine 1,200,000 Power 400,000 Building 1,000,000 Purchasing […]
978-1111971724 Kinney 9e_Excel_04-47_IE Excel
Problem 4-47 Name: Insert your answers in the gray-shaded cells. If an answer is incorrect, the word “wrong” will appear. a. Utility costs 1,800,000$ ÷ Machine hours 90,000 Utility cost per MH 20$ Scheduling & setup costs 1,638,000$ ÷ Number […]
978-1111971724 Kinney 9e_Excel_04-48_IE Excel
Problem 4-48 Name: Insert your answers in the gray-shaded cells of columns B, E and G. If an answer is incorrect, the word “wrong” will appear. a. Predetermined overhead rate: Budgeted overhead 5,850,000$ Budgeted machine hours 1,000,000 Predetermined overhead rate […]
978-1111971724 Kinney 9e_Excel_05-18_IE Excel
Exercise 5-18 Name: Insert your answers in the gray-shaded cells of column G. If an amount is to be subtracted, enter it as a negative. If an answer is incorrect, the word “wrong” will appear. a. Cost of goods sold […]
978-1111971724 Kinney 9e_Excel_05-22_IE Excel
Exercise 5-22 Name: Insert your answers in the gray-shaded cells of columns C, G, and I. Enter amounts to be subtracted as negatives. If an answer is incorrect, an asterisk will appear. a. Direct material 2,850$ Direct labor 800 Applied […]
978-1111971724 Kinney 9e_Excel_05-42_IE Excel
Problem 5-42 Name: Fill in the shaded cells in columns B, C, E, G, and I as appropriate. Enter amounts to be subtracted as negatives. An asterisk (*) will appear if you have entered incorrect data. The journal entry accounts […]
978-1111971724 Kinney 9e_Excel_05-47_IE Excel
Problem 5-47 Name: Insert your answers in the gray-shaded cells of columns C, G, and I. Enter amounts to be deducted as negatives. If an entered answer is incorrect, an asterisk will appear. a-b. Direct material and raw material issued […]
978-1111971724 Kinney 9e_Excel_06-38_IE Excel
Exercise 6-38 Name: Insert your answers in the gray-shaded cells. If an answer is incorrect, an asterisk will appear. a. Fabrication: Beginning WIP inventory 5,000 Beginning WIP inventory 5,000 Started 40,000 Started & completed 33,200 Units accounted for 45,000 Ending […]
978-1111971724 Kinney 9e_Excel_06-44_IE Excel
Exercise 6-44 Name: Insert your answers in the gray-shaded cells. If an answer is incorrect, an asterisk will appear. Pounds started 120,000 Maximum normal spoilage percentage 8% Maximum normal spoilage allowed 9,600 Units Material Conversion Beginning inventory 36,000 Pounds started […]
978-1111971724 Kinney 9e_Excel_06-46_IE Excel
Exercise 6-46 Name: Insert your answers in the gray-shaded cells of columns E, G and I. If an answer is incorrect, an asterisk will appear. a. Units Material Conversion Beginning inventory 40,000 Pounds started 425,000 Pounds to account for 465,000 […]
978-1111971724 Kinney 9e_Excel_06-54_IE Excel
Problem 6-54 Name: Insert your answers in the gray-shaded cells of columns C, E, G and I. If an answer is incorrect, an asterisk will appear. a. Production Data: Units Beginning WIP inventory 12,000 Units started 90,000 Units to account […]
978-1111971724 Kinney 9e_Excel_06-55_IE Excel
Problem 6-55 Name: Insert your answers in the gray-shaded cells of columns B, C, E, G, and I. If an answer is incorrect, an asterisk will appear. a. Production Data: Units Beginning inventory 4,000 Units started 21,000 Units to account […]
978-1111971724 Kinney 9e_Excel_06-58_IE Excel
Problem 6-58 Name: Insert your answers in the gray-shaded cells of columns C, E, G, and I. If an answer is incorrect, an asterisk will appear. a. Production Data: Units Beginning inventory 8,000 Units started 36,000 Units to account for […]
978-1111971724 Kinney 9e_Excel_07-33_IE Excel
Exercise 7-33 Name: Insert your answers in the gray-shaded cells. If an answer is incorrect, the word “wrong” will appear. a. November production 4,800 Standard materials per bag ×0.50 Total square yards 2,400 b. November production 4,800 Standard labor per […]
978-1111971724 Kinney 9e_Excel_07-35_IE Excel
Exercise 7-35 Name: Insert your answers in the gray-shaded cells. If an answer is incorrect, the word “wrong” will appear. a. Actual machine hours 442,880$ ÷ 20$ = 22,144 MH MH budgeted 1,000,000$ ÷ 40$ = 25,000 MH MH applied […]
978-1111971724 Kinney 9e_Excel_07-53_IE Excel
Problem 7-53 Name: Insert your answers in the gray-shaded cells in columns B, D, F, H, and J. If an answer is incorrect, the word “wrong” will appear. a. Actual cost 33.05$ Expected cost (24.00) Cost difference 9.05$ b. Variable […]
978-1111971724 Kinney 9e_Excel_07-58_IE Excel
Problem 7-58 Name: Insert or select your answers in the gray-shaded cells. If an answer is incorrect, the word “wrong” will appear. a. Material price variance: Material price variance = AQ x (AP – SP) Aluminum Copper Total Actual price […]
978-1111971724 Kinney 9e_Excel_08-25_IE Excel
Exercise 8-25 Name: Insert your answers in the gray-shaded cells of columns D and F. If an answer is incorrect, the word “wrong” will appear.” a. Production Budget Boxes Trays Total Units of sales 42,000 30,000 72,000$ Units desired in […]
978-1111971724 Kinney 9e_Excel_08-28_IE Excel
Exercise 8-28 Name: Insert your answers in the gray-shaded cells of columns D, F, and H. If an answer is incorrect, the word “wrong” will appear. a. January February March Nov. sales 24,900$ – – Dec. sales 22,800 – – […]
978-1111971724 Kinney 9e_Excel_08-48_IE Excel
Problem 8-48 Name: Insert your answers in the gray-shaded cells of column F. Enter amounts to be subtracted as negatives. Enter formulas where appropriate. If an answer is incorrect, the word “wrong” will appear. a. Production Budget Sales budget 600,000 […]
978-1111971724 Kinney 9e_Excel_08-54_IE Excel
Problem 8-54 Name: Insert your answers in the gray-shaded cells of columns D, F, I, and K. Enter amounts to be subtracted as negatives. If an answer is incorrect, an asterisk “*” will appear. Beginning cash bal. –$ (95,000)$ Collections-Schedule […]
978-1111971724 Kinney 9e_Excel_09-09_IE Excel
Exercise 9-9 Name: Insert your answers into the gray-shaded cells of columns E and G. If an answer is incorrect, the word “wrong” will appear. a. Direct materials 150,000$ Direct labor 100,000 Manufacturing overhead 75,000 Total variable production cost 325,000$ […]
978-1111971724 Kinney 9e_Excel_09-14_IE Excel
Exercise 9-14 Name: Insert your answers into the gray-shaded cells of column F. If an answer is incorrect, the word “wrong” will appear. Sales 3,000,000$ Less variable costs 2,100,000 Contribution margin 900,000$ Less fixed costs 600,000 Profit 300,000$ Sales 3,000,000$ […]
978-1111971724 Kinney 9e_Excel_09-22_IE Excel
Exercise 9-22 Name: Insert your answers into the gray-shaded cells. Enter formulas where appropriate. If an answer is incorrect, the word “wrong” will appear. a. Daily Ferry Usage Daily tolls 1,450$ Divided by cost per passenger 0.50 People using ferry […]
978-1111971724 Kinney 9e_Excel_09-48_IE Excel
Problem 9-48 Name: Insert your answers into the gray-shaded cells of columns D, F and H. Insert formulas where appropriate. If an answer is incorrect, the word “wrong” will appear. a. 2013 2014 Sales 600,000$ 960,000$ Less Variable Expense 420,000 […]
978-1111971724 Kinney 9e_Excel_10-17_IE Excel
Exercise 10-17 Name: Insert your answers in the gray-shaded cells. If an answer is incorrect, the word “wrong” will appear. a. Relevant cost to manufacture 4.60$ Relevant cost to buy 4.00 Difference 0.60$ x Units required annually 120,000 Advantage to […]
978-1111971724 Kinney 9e_Excel_10-21_IE Excel
Exercise 10-21 Name: Insert your answers in the gray-shaded cells. Enter amounts to be deducted as negatives. If an answer is incorrect, the word “wrong” will appear. a. Individual Estate Corporate Sales price 350$ 1,200$ 750$ Variable costs (50) (200) […]
978-1111971724 Kinney 9e_Excel_10-41_IE Excel
Problem 10-41 Name: Insert your answers into the gray-shaded cells. Enter amounts to be subtracted as negatives. If an answer is incorrect, the word “wrong” will appear. a. Maximizing the contribution margin per unit of scarce resource: (Direct labor hours […]
978-1111971724 Kinney 9e_Excel_10-45_IE Excel
Problem 10-45 Name: Insert your answers in the gray-shaded cells. Enter amounts to be subtracted as negatives. If an answer is incorrect, an asterisk will appear. a. Fixed factory OH costs 350,000$ Fixed regional promo. costs 50,000 Total costs to […]
978-1111971724 Kinney 9e_Excel_11-18_IE Excel
Exercise 11-18 Name: Insert your answers in the gray-shaded cells of columns B, C, and E. Enter formulas where appropriate. If an answer is incorrect, the word “wrong” will appear. a. Units of output allocation: Total bottles 80,000 Perfume 270,000$ […]
978-1111971724 Kinney 9e_Excel_11-28_IE Excel
Exercise 11-28 Name: Insert your answers in the gray-shaded cells of columns D and F. Enter amounts to be subtracted as negatives. Enter answers as formulas where appropriate. If an answer is incorrect, the word “wrong” will appear. a. Joint […]
978-1111971724 Kinney 9e_Excel_11-42_IE Excel
Problem 11-42 Name: Insert your answers in the gray-shaded cells. Select accounts for the journal entries from the drop-down lists. If an answer is incorrect, the word “wrong” will appear. a. Joint Cost Allocation Total Cost Forever 57,713$ 60,893$ Fantasy […]
978-1111971724 Kinney 9e_Excel_11-47_IE Excel
Problem 11-47 Name: Insert your answers into the gray-shaded cells. Enter formulas where appropriate. Enter amounts to be subtracted as negative numbers. If an answer is incorrect, the word “wrong” will appear. a. Joint cost allocation: Checking 464,000$ Credit cards […]
978-1111971724 Kinney 9e_Excel_12-13_IE Excel
Exercise 12-13 Name: Insert your answers into the gray-shaded cells. Insert formulas in the answer cells of the table. If an answer is incorrect, the word “wrong will appear. Firm A Industry Average Net income 27% 10% Advertising 2% 17% […]
978-1111971724 Kinney 9e_Excel_13-27_IE Excel
Exercise 13-27 Name: Insert your answers in the gray-shaded cells. Insert formulas where appropriate. If an answer is incorrect, the word “wrong” will appear. Checking: Administration 202,500$ Personnel 135,000 Accounting 150,000 Direct costs 630,000 1,117,500$ Savings: Administration 270,000$ Personnel 90,000 […]
978-1111971724 Kinney 9e_Excel_13-28_IE Excel
Exercise 13-28 Name: Insert your answers in the gray-shaded cells. Insert formulas where appropriate. If an answer is incorrect, the word “wrong” will appear. Amount x Percent = Allocation Administration: Personnel 540,000$ 10% 54,000$ Accounting 540,000 10% 54,000 Checking 540,000 […]
978-1111971724 Kinney 9e_Excel_13-30_IE Excel
Exercise 13-30 Name: Insert your answers in the gray-shaded cells. If an answer is incorrect, the word “wrong” will appear. Administration HR Accounting Administration – 0.10 0.10 Human resources 0.10 – 0.10 Accounting 0.10 0.10 – Checking 0.30 0.30 0.40 […]
978-1111971724 Kinney 9e_Excel_13-31_IE Excel
Exercise 13-31 Name: Insert your answers in the gray-shaded cells. Insert amounts to be subtracted as negatives. If an answer is incorrect, the word “wrong” will appear. Type equation to show how much cost is allocated to each department S1 […]
978-1111971724 Kinney 9e_Excel_13-56_IE Excel
Problem 13-56 Name: Insert your answers in the gray-shaded cells. Enter amounts to be subtracted as negatives. If an answer is incorrect, the word “wrong” will appear. Answers will differ slightly than printed solution due to greater precision of Excel. […]
978-1111971724 Kinney 9e_Excel_13-58_IE Excel
Problem 13-58 Insert your answers in the gray-shaded cells. Enter answers as formulas where appropriate. If an answer is incorrect, the word “wrong” or an asterisk “*” will appear. a. Administrative Costs : Base: 800 Cost: 2,130,000$ % of Base […]
978-1111971724 Kinney 9e_Excel_14-32_IE Excel
Exercise 14-32 Name: Insert your answers into the gray-shaded cells. If an answer is incorrect, the word “wrong” will appear. a. ÷ Total time = MCE 2,750 23.64% b. Process productivity 650 1,141.6 units per hour c. Process quality yield […]
978-1111971724 Kinney 9e_Excel_14-33_IE Excel
Exercise 14-33 Name: Insert your answers into the gray-shaded cells. If an answer is incorrect, the word “wrong” will appear. a. ÷ Total time = MCE 144,000 35% b. Process productivity 50,300 68.79 units per hour c. Process quality yield […]
978-1111971724 Kinney 9e_Excel_14-34_IE Excel
Exercise 14-34 Name: Insert your answers into the gray-shaded cells. If an answer is incorrect, the word “wrong” will appear. a. ÷ Total time = MCE 25,000 61% b. Process productivity 15,160 6.89 units per hour c. Process quality yield […]
978-1111971724 Kinney 9e_Excel_14-44_IE Excel
Problem 14-44 Name: Insert your answers in the gray-shaded cells. If an answer is incorrect, the word “wrong” will appear. a. Sales 28,250,000$ Less operating expenses 25,885,000 Actual income 2,365,000$ Beginning assets 10,200,000$ Ending assets 12,300,000 Total assets 22,500,000$ Divided […]
978-1111971724 Kinney 9e_Excel_14-50_IE Excel
Problem 14-50 Name: Insert your answers into the gray-shaded cells. If an answer is incorrect, the word “wrong” will appear. a. ÷ Total time = MCE 62,000 30% b. Process productivity 18,600 55.00 units per hour c. Process quality yield […]
978-1111971724 Kinney 9e_Excel_15-23_IE Excel
Exercise 15-23 Name: Insert your answers in the gray-shaded cells or select from the drop-down list. If an answer is incorrect, the word “wrong” will appear. Point in Time Cash Flows xPV Factor =Present Value 0 (1,800,000)$ 1.0000 (1,800,000)$ 1 […]
978-1111971724 Kinney 9e_Excel_15-24_IE Excel
Exercise 15-24 Name: Insert your answers in the gray-shaded cells or select from the drop-down list. If an answer is incorrect, the word “wrong” will appear. a. Point in Time Description Cash Flows xPV Factor =Present Value 0 Initial outlay […]
978-1111971724 Kinney 9e_Excel_15-47_IE Excel
Problem 15-47 Name: Insert your answers in the gray-shaded cells or select from the drop-down list. If an answer is incorrect, the word “wrong” will appear. a. Point in Time Description Cash Flows xPV Factor = 0 Initial outlay (5,000,000)$ […]
978-1111971724 Kinney 9e_Excel_15-49_IE Excel
Problem 15-49 Name: Insert your answers in the gray-shaded cells or select from the drop-down list. If an answer is incorrect, the word “wrong” will appear. a. Point in Time Description Cash Flows x Discount Factor = Present Value 0 […]
978-1111971724 Kinney 9e_Excel_16-23_IE Excel
Exercise 16-23 Name: Insert your answers in the gray-shaded cells or select from drop-down list. If an answer is incorrect, the word “wrong” will appear. Rate Variance Payroll for week 2,780$ Regular hours worked 120 x Regular pay rate $20 […]
978-1111971724 Kinney 9e_Excel_16-24_IE Excel
Exercise 16-24 Name: Insert your answers in the gray-shaded cells or select from drop-down list. Enter formulas where appropriate. If an answer is incorrect, the word “wrong” will appear. a. Rate Variance Actual payroll for month 38,950$ Actual hours worked […]
978-1111971724 Kinney 9e_Excel_16-25_IE Excel
Exercise 16-25 Name: Insert your answers in the gray-shaded cells or select from drop-down list. Enter formulas where appropriate. If an answer is incorrect, the word “wrong” will appear. a. Variable Cost Analysis Actual variable costs 900,000$ Flexible budget: Actual […]
978-1111971724 Kinney 9e_Excel_16-37_IE Excel
Problem 16-37 Name: Insert your answers in the gray-shaded cells or select from drop-down list. Enter formulas where appropriate. If an answer is incorrect, the word “wrong” will appear. a. Actual Appropriation Excess Expenditure Variable 370,500$ 400,000$ 29,500$ Fixed 1,630,000 […]
978-1111971724 Kinney 9e_Excel_17-19_IE Excel
Exercise 17-19 Name: Enter the data in columns C and E below. When you have entered all data points, the scattergraph to the right and below will be correct. Observation Number Number of Slices of Pepperoni 136 235 341 433 […]
978-1111971724 Kinney 9e_Excel_17-38_IE Excel
Exercise 17-38 Name: Insert your answers into the gray-shaded cells in column G. If an answer is incorrect, the word “wrong” will appear. a. Defective units reworked 595 Cost per unit to rework 18 10,710$ b. Defective units 720 Less […]
978-1111971724 Kinney 9e_Excel_17-46_IE Excel
Problem 17-46 Name: Insert your answers into the gray-shaded cells or select from a drop-down list. Enter answers as formulas where appropriate. If an answer is incorrect, the word “wrong” will appear. a. Model Motor Wiring Housing All Other Blender […]
978-1111971724 Kinney 9e_Excel_17-51_IE Excel
Problem 17-51 Name: Insert your answers in the gray-shaded cells. Enter amounts to be subtracted as negatives. If an answer is incorrect, the word “wrong” will appear. a. Unit price for regular channel sales 260$ Less unit price for scrap […]
978-1111971724 Kinney 9e_Excel_18-23_IE Excel
Exercise 18-23 Name: Insert your answers into the gray-shaded cells. If an answer is incorrect, the word “wrong” will appear. Changes needed to costs: Estimated first-year costs per unit 145$ Target cost per unit 15 Amount that costs need to […]
978-1111971724 Kinney 9e_Excel_18-26_IE Excel
Exercise 18-26 Name: Insert your answers into the gray-shaded cells or select from the drop-down lists. If an answer is incorrect, the word “wrong” will appear. a. 302,000 302,000 608,000 608,000 600,000 600,000 900,000 900,000 894,000 894,000 8,000 8,000 1,490,000 […]
978-1111971724 Kinney 9e_Excel_18-33_IE Excel
Exercise 18-33 Name: Insert your answers into the gray-shaded cells or select from drop-down list. If an answer is incorrect, the word “wrong” will appear. Did Promotional Products complete the 180 units by 5 P.M.? Output 1-2 2-3 3-4 4-5 […]
978-1111971724 Kinney 9e_Excel_18-47_IE Excel
Problem 18-47 Name: Insert your answers in the gray-shaded cells or choose from drop-down list. If an answer is incorrect, the word “wrong” will appear. a. Year of Life Cycle Units Price Revenue Year 1 100,000 2.50$ 250,000$ Year 2 […]
978-1111971724 Solution Manual Ch.01 Kinney 9e SM_Final Part 1
1 CHAPTER 1 INTRODUCTION TO COST ACCOUNTING QUESTIONS 1. Management accounting stresses the informational needs of internal users over those of external users (the focus of financial accounting). Because of this perspective, management accounting provides information in a format that […]
978-1111971724 Solution Manual Ch.01 Kinney 9e SM_Final Part 2
Chapter 1 7 accessible website, in whole or in part. People skills Medium Sales skills Low Communication skills High Analytical skills High Ability to synthesize High Creative ability Medium Initiative Medium Computer skills Very high The primary change in the […]
978-1111971724 Solution Manual Ch.02 Kinney 9e SM_Final Part 1
13 CHAPTER 2 COST TERMINOLOGY AND COST BEHAVIORS QUESTIONS 1. The term cost is used to refer to so many different concepts that an adjective must be attached to identify which particular type of cost is being discussed. For example, […]
978-1111971724 Solution Manual Ch.02 Kinney 9e SM_Final Part 2
Chapter 2 23 34. a. Targé Co. Cost of Goods Sold Schedule For the Month Ended March 31, 2013 Beginning FG inventory (given) $ 125,000 Cost of goods manufactured 2,537,500 Cost of goods available for sale $2,662,500 Ending FG inventory […]
978-1111971724 Solution Manual Ch.02 Kinney 9e SM_Final Part 3
32 Chapter 2 accessible website, in whole or in part. d. Gross profit = 0.35 $1,431,000 = $500,850 S&A expenses = Gross profit – Net income = $500,850 – $125,000 = $375,850 e. Raw Material Inventory 555,000 Accounts Payable […]
978-1111971724 Solution Manual Ch.03 Kinney 9e SM_Final Part 1
41 CHAPTER 3 PREDETERMINED OVERHEAD RATES, FLEXIBLE BUDGETS, AND ABSORPTION/VARIABLE COSTING QUESTIONS 1. Although both variable and mixed costs change in total with activity measure changes, the difference is that variable costs change in direct proportion to such ac- tivity […]
978-1111971724 Solution Manual Ch.03 Kinney 9e SM_Final Part 2
Chapter 3 51 accessible website, in whole or in part. 32. a. Budgeted fixed overhead = $0.40 100,000 = $40,000 b. Actual (and budgeted) fixed overhead $40,000 Applied fixed overhead (45,000 $0.40) 18,000 Underapplied fixed overhead (absorption) $22,000 […]
978-1111971724 Solution Manual Ch.03 Kinney 9e SM_Final Part 3
Chapter 3 59 accessible website, in whole or in part. 43. a. MHs Total Cost = Variable Cost + Fixed Cost High activity 2,700 $13,160 $8,640 $4,520 Low activity (1,400) (9,000) 4,480 4,520 Differences 1,300 $ 4,160 Variable rate = […]
978-1111971724 Solution Manual Ch.04 Kinney 9e SM_Final Part 1
67 CHAPTER 4 ACTIVITY-BASED MANAGEMENT AND ACTIVITY-BASED COSTING QUESTIONS 1. Activity–based management is a management model that associates an organization’s activities with the value customers derive from the organization’s products. Efficien– cy and effectiveness are achieved by reducing the level […]
978-1111971724 Solution Manual Ch.04 Kinney 9e SM_Final Part 2
Chapter 4 77 b. Contracts: 21,000 $0.54 $11,340 Regulation: 27 $506 13,662 Court: 315 $230 72,450 Total $97,452 c. The rates will be used to bill other departments for the costs incurred in the le- gal department. […]
978-1111971724 Solution Manual Ch.04 Kinney 9e SM_Final Part 3
Chapter 4 87 accessible website, in whole or in part. e. Product A Product B Indirect labor Department 1 ($307,000) (Total ILHs for A = 2,500 + 5,000 + 252 = 7,752) (Total ILHs for B = 2,400 + 10,000 […]
978-1111971724 Solution Manual Ch.04 Kinney 9e SM_Final Part 4
96 Chapter 4 accessible website, in whole or in part. company might have chosen not to enter the market because it would have felt that it could not compete with the competition on this product. e. A non-value-added (NVA) activity […]
978-1111971724 Solution Manual Ch.05 Kinney 9e SM_Final Part 1
104 CHAPTER 5 JOB ORDER COSTING QUESTIONS 1. The two choices for cost accumulation are the job order and process costing sys- tems. A company should use job order costing when it is necessary and possible to trace costs to […]
978-1111971724 Solution Manual Ch.05 Kinney 9e SM_Final Part 2
114 Chapter 5 28. a. Some of the companies that have been found to engage in this practice are Fam- ily Dollar, Pep Boys, Taco Bell, Toys-R-Us, and Walmart. b. It is easier to doctor the records now than in […]
978-1111971724 Solution Manual Ch.05 Kinney 9e SM_Final Part 3
124 Chapter 5 accessible website, in whole or in part. Direct Labor (Est. $670,000) Overhead (Est. $402,000) Date Source Cost Date Source Cost 2013 July 31 Summary of time sheets for direct labor 2013 July 31 Journal entry of 7/31/13 […]
978-1111971724 Solution Manual Ch.05 Kinney 9e SM_Final Part 4
130 Chapter 5 accessible website, in whole or in part. b. Raw Material Precast Overhead—P Construction Overhead—C 1,150,000 1,150,000 500,000 150,000 25,000 26,895 1,485,000 1,000,000 5,000 98,750 60,000 221,595 425,000 36,320 18,650 175,000 5,000 5,000 225,000 54,050 43,850 Bal. 60,000 […]
978-1111971724 Solution Manual Ch.06 Kinney 9e SM_Final Part 1
136 accessible website, in whole or in part. CHAPTER 6 PROCESS COSTING QUESTIONS 1. A company that produces homogeneous goods in mass quantities is likely to use a process costing system. The company can either have a single department or […]
978-1111971724 Solution Manual Ch.06 Kinney 9e SM_Final Part 2
146 Chapter 6 c. Cost of goods transferred out $10,413,000 Ending WIP 707,625 Total cost to account for $11,120,625 32. a. BI cost $ 458,482.00 Cost to complete: DM (42,600 × 20% × $10.74) $ 91,504.80 DL (42,600 × 55% […]
978-1111971724 Solution Manual Ch.06 Kinney 9e SM_Final Part 3
156 Chapter 6 49. a. Gallons transferred out 242,000 Gallons in ending WIP 23,500 Total gallons to account for 265,500 Gallons in beginning WIP (36,000) Gallons started 229,500 b. Material Labor Overhead Beginning WIP Inventory 36,000 36,000 36,000 Started & […]
978-1111971724 Solution Manual Ch.06 Kinney 9e SM_Final Part 4
166 Chapter 6 accessible website, in whole or in part. Cost Data: Total Trans. In Material Conversion Cost in BI $ 173,413 $ 166,420 $ 0 $ 6,993 Current costs 3,457,760 2,828,000 383,640 246,120 Total to acct. for $3,631,173 $2,994,420 […]
978-1111971724 Solution Manual Ch.06 Kinney 9e SM_Final Part 5
172 Chapter 6 Cost of Goods Sold 59,500 Direct Material Variance 11,000 Conversion Cost Variance 48,500 64. a. Units Material Labor Overhead BI 14,800 Units started 385,000 Units to account for 399,800 BI completed 14,800 0 8,880 4,440 Units S&C […]
978-1111971724 Solution Manual Ch.07 Kinney 9e SM_Final Part 1
178 CHAPTER 7 STANDARD COSTING AND VARIANCE ANALYSIS QUESTIONS 1. The three primary uses of a standard cost system are to (1) assign per unit costs to production to value inventory, (2) control overhead spending, and (3) measure and evaluate […]
978-1111971724 Solution Manual Ch.07 Kinney 9e SM_Final Part 2
188 Chapter 7 accessible website, in whole or in part. Case A: Standard hours = 1,000 × 3.5 = 3,500 LRV = AQ (AP – SP) –$850 = 3,400 (AP – $7.25) –$850 = 3,400AP – $24,650 $23,800 = 3,400AP […]
978-1111971724 Solution Manual Ch.07 Kinney 9e SM_Final Part 3
198 Chapter 7 accessible website, in whole or in part. Actual Var. Conv. Costs Budgeted Var. Conv. Costs at Actual MHs Applied Var. Conv. Costs $6.50 × 83,000 $6.50 × 86,100 $551,230 $539,500 $559,650 $11,730 U $20,150 F Var. Conv. […]
978-1111971724 Solution Manual Ch.07 Kinney 9e SM_Final Part 4
208 Chapter 7 accessible website, in whole or in part. FOH Spending Variance 100 Cost of Goods Sold 2,980 VOH Spending Variance 1,680 VOH Efficiency Variance 640 FOH Volume Variance 760 To close OH variances for March c. Managers generated […]
978-1111971724 Solution Manual Ch.07 Kinney 9e SM_Final Part 5
216 Chapter 7 accessible website, in whole or in part. OH Budget for One Month Period OH and 15,000 (Under-) Charged Units of Output Overbudget Indirect labor $51,120 $52,500 $(1,380) Supplies—oil 9,900 7,500 2,400 Allocated support dept. VOH costs 9,600 […]
978-1111971724 Solution Manual Ch.08 Kinney 9e SM_Final Part 1
223 CHAPTER 8 THE MASTER BUDGET QUESTIONS 1. Budgeting translates goals and objectives into the resources, activities, and ar- rangements needed to accomplish those goals and objectives. That information is extended to assign activities and allocate resources to departments and […]
978-1111971724 Solution Manual Ch.08 Kinney 9e SM_Final Part 2
Chapter 8 233 31. a. Balance at October 1 $ 632,500 Remainder of September billings (480,000) Remainder of August billings $ 152,500 % of August billings uncollected at end of September ÷ 0.25 August billings $ 610,000 b. Remainder of […]
978-1111971724 Solution Manual Ch.08 Kinney 9e SM_Final Part 3
Chapter 8 243 accessible website, in whole or in part. d. Mfg. OH January February March Total Production 6,220 5,640 7,520 19,380 Var. cost per unit $1.30 $1.30 $1.30 $1.30 Total var. mfg. cost $ 8,086 […]
978-1111971724 Solution Manual Ch.08 Kinney 9e SM_Final Part 4
252 Chapter 8 accessible website, in whole or in part. Proof: Sales ($104.83 400,000) $ 41,932,000 CGS ($68.84 400,000) (27,536,000) Gross margin $ 14,396,000 Variable S&A ($41,932,000 0.08) (3,354,560) Fixed S&A ($2,600,000 1.075 0.20) (559,000) […]
978-1111971724 Solution Manual Ch.09 Kinney 9e SM_Final Part 1
261 CHAPTER 9 BREAK-EVEN POINT AND COST-VOLUME-PROFIT ANALYSIS QUESTIONS 1. The variable costing income statement classifies costs by the way they react rela- tive to changes in volume. Variable costs are deducted from revenues to determine contribution margin and then […]
978-1111971724 Solution Manual Ch.09 Kinney 9e SM_Final Part 2
Chapter 9 271 accessible website, in whole or in part. Racine Tire Co. Income Statement For the Month XXX Current Proposed Sales $60 (20,000; 23,000) $1,200,000 $1,380,000 Less variable expense $30 (20,000; 23,000) (600,000) (690,000) Contribution margin $ 600,000 $ […]
978-1111971724 Solution Manual Ch.09 Kinney 9e SM_Final Part 3
Chapter 9 281 42. a. Ducks Ducklings Sales $ 24.00 $12.00 Variable costs (12.00) (8.00) Contribution margin $ 12.00 $ 4.00 Mix × 1 × 5 Total contribution margin $ 12.00 $20.00 The average contribution margin ratio is $32 ÷ […]
978-1111971724 Solution Manual Ch.09 Kinney 9e SM_Final Part 4
Chapter 9 287 accessible website, in whole or in part. Miami Income Statements 2013 2014 Sales $ 600,000 $ 840,000 Less variable expensea (180,000) (252,000) Contribution marginb $ 420,000 $ 588,000 Less fixed expenses (300,000) (300,000) Net income before taxc […]
978-1111971724 Solution Manual Ch.10 Kinney 9e SM_Final Part 1
292 CHAPTER 10 RELEVANT INFORMATION FOR DECISION MAKING QUESTIONS 1. Relevance means that a factor should be considered in making a decision. A rele- vant cost is a cost that is applicable, pertinent, or logically related to making a de- […]
978-1111971724 Solution Manual Ch.10 Kinney 9e SM_Final Part 2
302 Chapter 10 accessible website, in whole or in part. fects on the various stakeholders including customers (competitor’s and Tate’s) of using the illegal workers and of not using the illegal workers. In ad- dition, there exists the legal issue […]
978-1111971724 Solution Manual Ch.10 Kinney 9e SM_Final Part 3
Chapter 10 309 accessible website, in whole or in part. Production levels: Basic (34,000 × 0.50) ÷ 10 1,700 Touring (34,000 × 0.30) ÷ 35 291 (rounded) Racing (34,000 × 0.20) ÷ 50 136 Contribution margin: Basic (1,700 × $216) […]
978-1111971724 Solution Manual Ch.11 Kinney 9e SM_Final Part 1
315 accessible website, in whole or in part. CHAPTER 11 COST ALLOCATION FOR JOINT PRODUCTS AND BY-PRODUCT/SCRAP QUESTIONS 1. Joint processing output is classified based on the relative sales value of each type of out- put. Joint products are those […]
978-1111971724 Solution Manual Ch.11 Kinney 9e SM_Final Part 2
Chapter 11 325 accessible website, in whole or in part. d. Joint cost allocated to jackets $ 138,000 Additional costs 20,000 Total cost for 16,000 jackets $ 158,000 Sales (12,000 $16.75*) $ 201,000 Cost for 12,000 jackets (0.75 […]
978-1111971724 Solution Manual Ch.11 Kinney 9e SM_Final Part 3
Chapter 11 335 accessible website, in whole or in part. b. c. Joint Sales Add’l NRV at Joint Product Value Cost Split-Off Percent* Cost* Premium $30,000 $1,500 $28,500 73 $11,665 Good 15,000 4,200 10,800 27 4,315 $39,300 100 $15,980 *rounded […]
978-1111971724 Solution Manual Ch.11 Kinney 9e SM_Final Part 4
Chapter 11 341 53. a. Total joint cost: Direct material Direct labor Overhead $37,500 12,000 11,000 $60,500 Sales value of scrap ($0.45 × 3,600 lbs.) Joint cost to be allocated (1,620) $58,880 b. Robes Beach Towels Revenues $ 20.00 $ […]
978-1111971724 Solution Manual Ch.12 Kinney 9e SM_Final Part 1
347 accessible website, in whole or in part. CHAPTER 12 INTRODUCTION TO COST MANAGEMENT SYSTEMS QUESTIONS 1. The only realistic method of evaluating whether costs are being effectively man- aged is to compare the benefits generated with the costs incurred. […]
978-1111971724 Solution Manual Ch.12 Kinney 9e SM_Final Part 2
Chapter 12 353 PROBLEMS 25. a. R&D activity should not be tightly controlled by the operating budget. Be- cause it is difficult to map the relationship between dollars expended and re- search and development, expenditures in this area should be […]
978-1111971724 Solution Manual Ch.13 Kinney 9e SM_Final Part 1
359 accessible website, in whole or in part. CHAPTER 13 RESPONSIBILITY ACCOUNTING, SUPPORT DEPARTMENT ALLOCATIONS, AND TRANSFER PRICING QUESTIONS 1. Four potential advantages of decentralization are: Better executed executive training and development Higher level of job satisfaction for […]
978-1111971724 Solution Manual Ch.13 Kinney 9e SM_Final Part 2
Chapter 13 369 27. Checking: Administration (0.30 ÷ 0.80) × $540,000 $ 202,500 Human resources (0.30 ÷ 0.80) × $360,000 135,000 Accounting (0.40 ÷ 0.80) × $300,000 150,000 Direct costs 630,000 $1,117,500 Savings: Administration (0.40 ÷ 0.80) × $540,000 $270,000 […]
978-1111971724 Solution Manual Ch.13 Kinney 9e SM_Final Part 3
Chapter 13 379 accessible website, in whole or in part. Original Flexible Budget Budget Actual Variance Revenues $ 90,000 $108,000 $102,000 $ 6,000 U Variable costs: Meals $ 9,540 $ 11,340 $ 13,041 (1,701) U Lodging 23,850 28,350 28,350 (0) […]
978-1111971724 Solution Manual Ch.13 Kinney 9e SM_Final Part 4
388 Chapter 13 accessible website, in whole or in part. Admin. L/A M/E Proc. Fin. Direct costs $ 2,130 $ 1,680 $ 2,370 $ 7,520 $ 7,200 Admin. (2,677) 134 201 1,339 1,004 Legal/Acctg. 355 (2,088) 167 689 877 Maint./Eng. […]
978-1111971724 Solution Manual Ch.14 Kinney 9e SM_Final Part 1
397 accessible website, in whole or in part. CHAPTER 14 PERFORMANCE MEASUREMENT, BALANCED SCORECARDS, AND PERFORMANCE REWARDS QUESTIONS 1. A mission statement expresses the organization’s purposes and identifies how the organization will meet its customers’ needs through its products or […]
978-1111971724 Solution Manual Ch.14 Kinney 9e SM_Final Part 2
Chapter 14 407 There would be an expectation of high process quality yield in a job shop because employees are more likely to be directly engaged in the production/service pro- cess and, thus, able to spot and correct defects as […]
978-1111971724 Solution Manual Ch.14 Kinney 9e SM_Final Part 3
Chapter 14 417 accessible website, in whole or in part. work days lost due to accidents percentage of appraisals completed on time percentage of positions filled from within the organization percentage of employees with personal development […]
978-1111971724 Solution Manual Ch.15 Kinney 9e SM_Final Part 1
426 accessible website, in whole or in part. CHAPTER 15 CAPITAL BUDGETING QUESTIONS 1. A capital asset is a long-lived asset acquired by a firm. Capital assets provide the essential production and distributional capabilities required by all organizations. 2. Cash […]
978-1111971724 Solution Manual Ch.15 Kinney 9e SM_Final Part 2
436 Chapter 15 c. Time Cash Flow PV Factor for 8% Present Value 0 $(190,000) 1.0000 $(190,000) 1 40,000 0.9259 37,036 2 33,000 0.8573 28,291 3 33,000 0.7938 26,195 4 33,000 0.7350 24,255 5 30,000 0.6806 20,418 6 30,000 0.6302 […]
978-1111971724 Solution Manual Ch.16 Kinney 9e SM_Final Part 1
445 accessible website, in whole or in part. CHAPTER 16 MANAGING COSTS AND UNCERTAINTY QUESTIONS 1. The cost control system is an integral part of the cost management system. The cost control system provides information for planning purposes and, subsequently, […]
978-1111971724 Solution Manual Ch.16 Kinney 9e SM_Final Part 2
Chapter 16 455 PROBLEMS 31. a. In one sense, the company did an excellent job of controlling costs since actual costs were $700,000 below budget. However, it appears that the company con- trolled costs well that should not have been […]
978-1111971724 Solution Manual Ch.16 Kinney 9e SM_Final Part 3
Chapter 16 461 accessible website, in whole or in part. The flexible budgets presented are based on three different activity measures, none of which coincides with the actual level of performance for November. The budget must be restated to a […]
978-1111971724 Solution Manual Ch.17 Kinney 9e SM_Final Part 1
466 accessible website, in whole or in part. CHAPTER 17 IMPLEMENTING QUALITY CONCEPTS QUESTIONS 1. Quality refers to the dimensions or characteristics of a product or service that make it able to meet the stated or implied needs of the […]
978-1111971724 Solution Manual Ch.17 Kinney 9e SM_Final Part 2
476 Chapter 17 Understanding and subscribing to this year-over-year productivity philosophy is required. This objective requires creative input from suppliers to our marketing, engineering and purchasing teams to help reduce costs on our current products, streamline manufacturing and supply chain […]
978-1111971724 Solution Manual Ch.17 Kinney 9e SM_Final Part 3
Chapter 17 485 42. a. Each student will have a different answer. No solution is provided. Selected ex- cerpts from the 2008 Genentech 10-K: p. 16: Additionally, we may be unable to maintain regulatory approval for Raptiva, or we may […]
978-1111971724 Solution Manual Ch.18 Kinney 9e SM_Final Part 1
493 accessible website, in whole or in part. CHAPTER 18 INVENTORY AND PRODUCTION MANAGEMENT QUESTIONS 1. The three costs are costs of ordering, purchasing, and carrying inventory. These costs are presented in Exhibit 18.1 with examples. 2. A push system […]
978-1111971724 Solution Manual Ch.18 Kinney 9e SM_Final Part 2
Chapter 18 503 36. EOQ (Face cream) = √ (2QO ÷ C) = √ [(2 2,000 12.00) ÷ 2.00] = √ (24,000) = 155 (rounded) EOQ (Lotion) = √ [2 1,000 40) ÷ 1.45] = √ […]
978-1111971724 Solution Manual Ch.19 Kinney 9e SM_Final Part 1
512 accessible website, in whole or in part. CHAPTER 19 EMERGING MANAGEMENT PRACTICES QUESTIONS 1. Business process reengineering, BPR, is a method of examining processes to iden- tify and then eliminate, reduce, or replace functions and processes that add little […]
978-1111971724 Solution Manual Ch.19 Kinney 9e SM_Final Part 2
Chapter 19 519 Because accountants have managed the information flow that has facilitated de- centralization, they have extensive data on the performance of many internal man- agers. By comparing the performance of individual managers to reasonable benchmarks such as historical […]
AC 170 Quiz 3
Variable costs per unit vary directly with levels of production. Unfavorable variances are represented by credit balances in the overhead account. Answer: FALSE The manager of an investment center is responsible for generating revenue as well as controlling expenses. Answer: […]
AC 173
Ultimate Vision Corporation Ultimate Vision Corporation has two product lines: LCD televisions and projection televisions. The company has budgeted the following production and overhead costs for the upcoming year: Refer to Ultimate Vision Corporation. If the company uses number of […]
AC 207 Midterm 1
Hunnicutt Company is a construction company that builds greenhouses on special request. What is the proper classification of the carpenters’ wages? A. yes yes no B. yes no yes C. no no no D. no yes yes Ultimate Vision Corporation […]
AC 257
Strategic planning is focused on short-term goals of less than five years. A cost management system should use cost driver information to trace costs to products and services. Answer: TRUE As production becomes more automated, direct labor may be viewed […]
AC 288 Test 2
The three primary inventory accounts in a manufacturing company are A. Merchandise Inventory, Supplies Inventory, and Finished Goods Inventory. B. Merchandise Inventory, Work in Process Inventory, and Finished Goods Inventory. C. Supplies Inventory, Work in Process Inventory, and Finished Goods […]
AC 327 Test
Reworking a product is an internal failure cost. An operations flow document shows all processes necessary to manufacture one unit of a product. Answer: TRUE In an ‘œend-of-pipe’ strategy, managers produce the pollutant, and then clean it up. Answer: TRUE […]
AC 337 Test 1
The net realizable value approach is used to account for scrap and by-products when the net realizable value is significant. The amount of raw materials that must be purchased can be computed by the following formula: Beginning inventory + Materials […]
AC 340 Homework
Applied overhead consists of which of the following? A. actual activity times predetermined overhead rate B. estimated activity times predetermined overhead rate C. actual activity times actual overhead rate D. estimated activity times actual overhead rate A company has a […]
AC 427 Process costing techniques
Process costing techniques should be used in assigning costs to products A. if a product is manufactured on the basis of each order received. B. when production is only partially completed during the accounting period. C. if a product is […]
AC 484
Activity-based costing systems generally use volume-based cost drivers. In a normal cost system, actual production overhead costs are typically accumulated in an Overhead Control account and assigned to Work in Process at the end of the period. Answer: FALSE When […]
AC 501
Savannah Motors Savannah Motors is trying to decide whether it should keep its existing car washing machine or purchase a new one that has technological advantages (which translate into cost savings) over the existing machine. Information on each machine follows: […]
AC 537 Homework
Which of the following statements is true about the values statement of an organization? A. It is used to formulate the mission statement. B. It reflects the organization’s culture by identifying beliefs about what is important to the organization. C. […]
AC 555 Test
Downsizing has no effect on materials and labor inputs used to produce outputs. Practical standards are the most effective standards for controlling and motivating workers. Answer: TRUE The total variance does not provide useful information about the source of cost […]
AC 581
A firm has fixed costs of $200,000 and variable costs per unit of $6. It plans on selling 40,000 units in the coming year. To realize a profit of $20,000, the firm must have a sales price per unit of […]
AC 674 Midterm 2
Implementing activity based costing (ABC) has a direct impact on reducing overhead in an organization. Activity-based costing conforms to GAAP with regard to which costs should be expensed. Answer: FALSE Effective cost control begins in the planning stage of the […]
AC 752 Quiz 3
Recalls are fairly common events for automobile manufacturers. The costs of recalling and repairing a car create A. yes yes no B. yes yes yes C. no yes no D. yes no yes Moore Company. Moore Company uses a job-order […]
AC 867 Quiz 1
The net realizable value approach requires that the net realizable value of by-products and scrap be treated as a reduction in joint costs allocated to primary products. The EOQ formula can be modified to calculate the number of units that […]
Acc 152 Quiz 3
A company that manufactures large quantities of homogenous goods will use a job-order costing system. When computing profit on an after-tax basis, it is necessary to multiply the pretax profit by (1 – effective tax rate). Answer: TRUE An organization’s […]
Acc 158 Test 2
The journal entry to record normal spoilage specifically identified with a particular job includes a debit to Work in Process. When using the high-low method, fixed costs are computed before the variable component is computed. Answer: FALSE Financial measures are […]
ACC 180
It is not necessary to prepare the Cost of Goods Manufactured statement prior to preparing the Cost of Goods Sold statement. Process costing is most appropriate when manufacturing large batches of homogenous products. Answer: TRUE Most smaller businesses are organized […]
ACC 412 Homework
An organization’s hurdle rate should be at least equal to the organization’s cost of capital. The difference between actual and budgeted fixed factory overhead is referred to as a fixed overhead spending variance. Answer: TRUE When using a negotiated transfer […]
Acc 443 Final
A product may be processed beyond the split-off point if management believes that A. its marketability will be enhanced. B. the incremental cost of further processing will be less than the incremental revenue of further processing. C. the joint cost […]
ACC 611 Homework
Victoria Company Victoria Company manufactures three products in a joint process which costs $25,000. Each product can be sold at split-off or processed further and then sold. 10,000 units of each product are manufactured. The following information is available for […]
ACC 628 Final
In a push system of production control, inventory is produced in anticipation of customer or work center demand. Feedback is another name for an effector. Answer: TRUE Ideal standards generally yield favorable variances. Answer: FALSE Management should strive to reduce […]
Acc 737 Quiz
If performance measures are perfect proxies for organizational goals, A. sub-optimization will be enhanced. B. sub-unit managers will strive to achieve organizational goals. C. sub-units can all be decentralized. D. residual income will rise. Which of the following is false […]
ACC 738 Midterm 1
A variable cost remains constant on a per-unit basis as production increases. Unfavorable variances are represented by debit balances in the overhead account. Answer: TRUE When using the risk-adjusted discount rate method, a manager increases the rate used for discounting […]
ACC 802
Deluxe Jewelry Corporation produces quality jewelry items for various retailers. For the coming year, it has estimated it will consume 500 ounces of gold. Its carrying costs for a year are $2 per ounce. No safety stock is maintained. If […]
Acc 802 Homework
Profit maximization is the major focus of value engineering. Unexpired costs are reflected on the balance sheet. Answer: TRUE The margin of safety is an effective measure of risk for a company. Answer: TRUE In setting compensation structures, fixed salary […]
ACC 831 Final
In a mutually inclusive project situation, if one project is chosen, all related projects are also chosen. A company that manufactures custom bridal gowns will use a process costing system to track costs. Answer: FALSE The total variance can provide […]
Acc 880 Midterm 2
The effect of capital expenditures on the master budget is reflected through cash payments made for acquisition of capital assets. The financial budget is prepared before the operating budget. Answer: FALSE Motivational elements may be quantitative or non-quantitative in nature. […]
Accounting 117 Quiz 2
Testing and adjusting manufacturing equipment is an appraisal cost. Productivity is measured by the quantity of good output generated from a specific amount of input during a time period. Answer: TRUE A company that manufactures small quantities of identifiable products […]
Accounting 119 Final
Capital budgeting uses financial criteria exclusively when evaluating projects. In accounting for JIT operations, the Raw Material Inventory account A. is used to record price variances for raw materials purchased. B. can be expected to have a larger balance than […]
Accounting 127 Midterm
Grant Corporation The following information is available for Grant Corporation for the current month: All materials are added at the start of production and the inspection point is at the end of the process. Refer to Grant Corporation. What is […]
Accounting 142
A process costing system is used by a company that A. produces heterogeneous products. B. produces items by special request of customers. C. produces homogeneous products. D. accumulates costs by job. Stewart Company The following information relates to financial projections […]
Accounting 147 Midterm 2
Chapman Company Chapman Company uses a job-order costing system. At the beginning of March, the company had two jobs in process with the following costs: Chapman pays its workers $8.50 per hour and applies overhead on a direct labor hour […]
Accounting 261
Internal performance measures focus on the efficiency and effectiveness of an organization’s production process. Expected capacity is a long-run measure of activity. Answer: FALSE A specific product cannot be a cost object. Answer: FALSE In an actual cost system, factory […]
Accounting 314 Quiz 2
Stillwater Corporation The following information is available for Stillwater Corporation for the current year: All materials are added at the start of production. Refer to Stillwater Corporation. What is the cost per equivalent unit for conversion costs using weighted average? […]
Accounting 332 Midterm 1
When a scarce resource, such as space, exists in an organization, the criterion that should be used to determine production is A. contribution margin per unit. B. selling price per unit. C. contribution margin per unit of scarce resource. D. […]
Accounting 349 The relative sales
The relative sales value method requires a common physical unit for measuring the output of each product. Lean manufacturing and just-in-time (JIT) systems are both concerned with reduction of inventory levels. Answer: TRUE Non-financial measures are generally more appropriate for […]
Accounting 452
In a normal job-order costing system, factory overhead is applied using predetermined rates times actual input. Activity-based costing is appropriate for a company that manufactures a single product. Answer: FALSE In a service industry, direct materials are usually insignificant in […]
Accounting 478 Midterm 2
A firm estimates that it will sell 100,000 units of its sole product in the coming period. It projects the sales price at $40 per unit, the CM ratio at 60 percent, and profit at $500,000. What is the firm […]
Accounting 634 Quiz 3
Calculations for standard process costing are identical to those for FIFO process costing. A company that produces sugar will use a job-order costing system to track production costs. Answer: FALSE It is not necessary to be familiar with an organization’s […]
Accounting 676
In a job-order costing system, the use of indirect material would usually be reflected in the general ledger as an increase in A. stores control. B. work in process control. C. manufacturing overhead applied. D. manufacturing overhead control. Under the […]
Accounting 679 Test
Stillwater Corporation The following information is available for Stillwater Corporation for the current year: All materials are added at the start of production. Refer to Stillwater Corporation. Using weighted average, what are equivalent units for material? A. 82,000 B. 89,500 […]
Accounting 682 Test 1
Decentralization is a transfer of authority from the top to the lower level of an organization. On a CVP graph, the total variable cost line intersects the y-axis at zero. Answer: TRUE A debit to the Factory Overhead account represents […]
Accounting 705 Test 2
Under variable costing, which of the following are costs that can be inventoried? A. variable selling and administrative expense B. variable manufacturing overhead C. fixed manufacturing overhead D. fixed selling and administrative expense A master budget contains which of the […]
Accounting 726 Midterm 2
Service departments provide functional tasks for which of the following? A. no no B. yes no C. no yes D. yes yes Budgeted sales for the first six months for Pratt Company are listed below: Pratt Company has a policy […]
Accounting 756 Ultimate Vision
Ultimate Vision Corporation Ultimate Vision Corporation has two product lines: LCD televisions and projection televisions. The company has budgeted the following production and overhead costs for the upcoming year: Refer to Ultimate Vision Corporation. If the company uses total direct […]
Accounting 758 Midterm 1
Michigan Company Ann Arbor Division of the Michigan Company has the following statistics for its most recent operations: Refer to Michigan Company. Compute EVA assuming the cost of capital is 10% and the tax rate is 40%. A. $ 90,000 […]
Accounting 769 Final
When a standard costing system is used with process costing, Work in Process inventory is recorded using actual costs. Allocating joint costs based upon a physical measure ignores the revenue-generating ability of individual products. Answer: TRUE In a mutually inclusive […]
Accounting 800
Standards can be used in a job-order costing system if the products manufactured are similar in nature. It is necessary for an organization to define its processes before attempting to establish relationships among company activities. Answer: TRUE Both accountants and […]
Accounting 815 Quiz
Annual after-tax corporate net income can be converted to annual after-tax cash flow by A. adding back the depreciation amount. B. deducting the depreciation amount. C. adding back the quantity (t x depreciation deduction), where t is the corporate tax […]
Accounting 833 Final
The most useful information derived from a cost-volume-profit chart is the A. amount of sales revenue needed to cover enterprise variable costs. B. amount of sales revenue needed to cover enterprise fixed costs. C. relationship among revenues, variable costs, and […]
Accounting 848 Midterm 2
The formula for usage variance is (AQ – SQ) * SP. The first stage in the budgeting process is the preparation of a sales budget. Answer: TRUE A hybrid costing system would be appropriate for a company that manufactures automobiles. […]
Accounting 883
The most theoretically correct method of allocating service department costs is the algebraic method. A decision in which projects are ranked according to their impact on achieving company objectives is a preference decision. Answer: TRUE Decentralization reduces the need for […]
Accounting 891 Test 2
The numerator in the formula for equivalent units includes all beginning inventory costs when using the FIFO costing assumption. The balanced scorecard approach complements measures of past performance with measures of the drivers of future performance. Answer: TRUE Economic order […]
Acct 160 Test 2
Diversity among employees leads to increased employee turnover. An organization’s profitability is an example of a lag indicator. Answer: TRUE Grade refers to a product meeting the highest number of a customer’s needs at the lowest possible cost. Answer: FALSE […]
Acct 239 Quiz
When management by exception is employed, both favorable and unfavorable variances should be investigated. When using the risk-adjusted discount rate method, a manager increases the rate used for discounting future cash outflows. Answer: FALSE A responsibility accounting system should include […]
Acct 271 Test 2
Strategic alliances can result in improved operating efficiencies for multiple organizations. Reinvestment assumptions are different under each method of ranking capital projects. Answer: TRUE Abnormal continuous losses are absorbed by all units in ending inventory and transferred out on a […]
Acct 278 Quiz 3
Expected standards tend to yield unfavorable variances. Value refers to a product meeting the highest number of a customer’s needs at the lowest possible cost. Answer: TRUE Segment margin measures a segment’s contribution to the coverage of indirect expenses. Answer: […]
Acct 284
Commodore Company Commodore Company uses a standard cost system for its production process and applies overhead based on direct labor hours. The following information is available for September when Commodore produced 5,000 units: Refer to Commodore Company. Using the four-variance […]
Acct 331 Test 2
In an outsourcing decision, unavoidable fixed costs are irrelevant. Management talent is increased in a diverse group of employees. Answer: TRUE Open-book management systems are usually easy to implement. Answer: FALSE Adopting a just-in-time (JIT) manufacturing process may enable a […]
ACCT 332 Quiz 1
The net realizable value approach mandates that the NRV of the by-products/scrap be treated as A. an increase in joint costs. B. a sunk cost. C. a reduction of joint costs. D. a cost that can be ignored totally. If […]
ACCT 391 Quiz 2
Preparation of a value chart is the first step in activity analysis A total quality system should place an emphasis on prevention and continuous improvement. Answer: TRUE In a normal job-order costing system, factory overhead is applied using predetermined rates […]
ACCT 400 Midterm 2
Clooney Company has the following expected pattern of collections on credit sales: 70 percent collected in the month of sale, 15 percent in the month after the month of sale, and 14 percent in the second month after the month […]
ACCT 423 Quiz 2
Which of the following would not be an appropriate cost driver to measure internal failure? A. design error B. product failure C. machine reliability D. operator error An important focus in product life cycle costing is A. the activity base. […]
ACCT 528
The weighted average costing method assumes that units in beginning inventory are the first units transferred. Operational management should be directly involved with the strategic planning of an organization. Answer: FALSE The regression equation y = a+ bX assumes that […]
ACCT 564 Midterm 2
A long-run challenge for a business is achieving profitability. The higher an organization’s capital costs, the greater the opportunity cost of holding idle cash. Answer: TRUE A company that manufactures custom bridal gowns will use a job-order costing system to […]
ACCT 564 Test 1
Nelson Corporation Nelson Corporation has the following information available for May of the current year: All material is added at the start of production and all products completed are transferred out. Refer to Nelson Corporation. Prepare an equivalent units schedule […]
Acct 604 Midterm 1
In a standard job-order costing system, factory overhead is applied using predetermined rates times actual input. In a multi-product environment, CVP analysis makes the assumption that a company’s sales mix is constant. Answer: TRUE Activity-based costing is appropriate for a […]
ACCT 630 Quiz
Budgetary slack is an effective motivator for employees, because it reduces employee frustration when goals cannot be achieved. The segment margin of a profit or investment center does not include allocated common costs. Answer: TRUE A company should strive to […]
ACCT 678 Test 1
Absorption costing is more useful than variable costing in determining a company’s break-even point. Cost based transfer prices are most appropriate for low cost and low volume services. Answer: TRUE Present value and future value computations assume the use of […]
ACCT 711 Homework
The payback period is the A. length of time over which the investment will provide cash inflows. B. length of time over which the initial investment is recovered. C. shortest length of time over which an investment may be depreciated. […]
Acct 738
The weighted average method combines beginning inventory and current production to compute cost per unit of production. An important function of a cost management system is to relate resource consumption and cost to alternative product and process design. Answer: TRUE […]
ACCT 746 Quiz
Saturn Corporation Material A is added at the start of production, while Material B is added uniformly throughout the process. Refer to Saturn Corporation Assuming a weighted average method of process costing, compute the average cost per unit for Material […]
ACCT 766 The master budget is a
The master budget is a static budget because it A. is geared to only one level of production and sales. B. never changes from one year to the next. C. covers a preset period of time. D. always contains the […]
ACCT 789 Quiz 2
Production overhead does not include the costs of A. factory depreciation and supplies. B. factory employees’ cafeteria departments. C. production line labor. D. the maintenance department for the factory. The variable costing format is often more useful to managers than […]
ACCT 821 Test
Costs of decentralization include all of the following except A. more elaborate accounting control systems. B. potential costs of poor decisions. C. additional training costs. D. slow response time to changes in local conditions. Willborn Builders in the building construction […]
ACCT 846 Quiz 1
The Statement of Cash Flows indicates the cash inflows and outflows from A. investing, financing, and borrowing activities. B. operating, investing, and sending activities. C. merchandising, financing, and investing activities. D. operating, investing, and financing activities. At the end of […]
ACCT 868 Midterm
A cost accumulation system should most likely be reevaluated when a company has A. automated one or more production processes. B. introduced new products to its customers. C. had its industry deregulated. D. all of the above. Terrell and Associates, […]
Acct 893 Midterm 1
The numerator in the formula for equivalent units includes all beginning inventory costs when using the weighted average costing assumption. Overapplied factory overhead that is material in amount is closed to cost of goods sold at year end. Answer: FALSE […]
ACT 169 Test
A decrease in the lead time would reduce the A. order point. B. safety stock. C. economic order quantity. D. ordering costs. Another name for variable costing is A. full costing. B. direct costing. C. standard costing. D. adjustable costing. […]
ACT 194 Quiz 3
The weighted average method is thought by some accountants to be inferior to the FIFO method because it A. is more difficult to apply. B. only considers the last units worked on. C. ignores work performed in subsequent periods. D. […]
ACT 195 Midterm
On a CVP graph, the total cost line intersects the y-axis at zero. When multiple labor categories are used, the financial effect of using a different mix of workers in a production process is referred to as a labor yield […]
ACT 214
Budget slack is a condition in which A. demand is low at various times of the year. B. excess machine capacity exists in some areas of the plant. C. there is an intentional overestimate of expenses or an underestimate of […]
ACT 290 Quiz 2
Specifications for materials are compiled on a purchase requisition. The amount of raw materials that must be purchased can be computed by the following formula: Ending inventory + Materials required – Beginning inventory. Answer: TRUE When considering risk, a manager […]
ACT 315
Expatriate workers should receive a compensation package that reflects cost of living factors and currency fluctuations. When multiple labor categories are used, the monetary impact of using a higher or lower number of hours than a standard allows is referred […]
ACT 451 Quiz 1
A large labor efficiency variance is prorated to which of the following at year-end? A. no no no B. no yes yes C. yes no no D. yes yes yes Material is added at the beginning of a process in […]
ACT 532 The difference between
The difference between actual variable overhead and budgeted variable overhead based upon actual hours is referred to as the variable overhead efficiency variance. Negotiated transfer prices are most appropriate for customized high-volume and high-cost services. Answer: TRUE A company that […]
ACT 559 Test 1
The amount of time between the development and the production of a product is A. the product life cycle. B. lead time. C. production time. D. value-added time. The weighted average cost of capital approach to decision making is not […]
ACT 618 Test
Wright Company Wright Company adds material at the start of production. The following production information is available for September: Refer to Wright Company. What is the cost of all units transferred out using the FIFO method? A. $204,624 B. $191,289 […]
ACT 685 A variable cost will be an
A variable cost will be an effective cost driver. The payback period typically ignores the time value of money. Answer: TRUE Information that has a bearing on future events is relevant in the decision-making process. Answer: TRUE In a standard […]
MET MG 168 Quiz 2
Distribution costs are an example of period costs. An organization’s value chain can aid in the reduction of non-value added activities. Answer: TRUE The operation of a management control system is readily observable. Answer: FALSE The Internal Revenue Service allows […]
MET MG 200 Homework
Expired costs are reflected on the balance sheet. An organization’s strategy is the guiding force for its mission. Answer: FALSE The first stage in the budgeting process is the preparation of a cash collections budget. Answer: FALSE An organization’s strategy […]
MET MG 206 Test 2
Period costs include A. yes no yes B. no yes yes C. no no no D. yes yes yes An effective control system functions before, during, and after an event. However, little control is possible during the event for most […]
MET MG 230 Test 1
When multiple labor categories are used, the financial effect of using a different mix of workers in a production process is referred to as a labor mix variance. Favorable variances are represented by credit balances in the overhead account. Answer: […]
MET MG 294 Final
An organization’s values statement identifies fundamental beliefs about what is important to the organization. Machine setup is normally considered a batch-level cost Answer: TRUE The manager of a revenue center has the authority to establish selling prices of product. Answer: […]
MET MG 306 Final
If a strategic alliance is to function effectively, all parties involved must feel that they are being fairly treated. The segment margin of a profit or investment center includes allocated common costs. Answer: FALSE Two methods of allocating joint costs […]
MET MG 424
The difference between budgeted variable overhead for actual hours and standard overhead is the variable overhead efficiency variance. Postinvestment audits can provide feedback of the accuracy of original cash flow estimates. Answer: TRUE In a just-in-time (JIT) environment, quality is […]
MET MG 487 Homework
Athmer Corporation Athmer Corporation sells a product for $18 per unit, and the standard cost card for the product shows the following costs: Refer to Athmer Corporation. Athmer received a special order for 1,000 units of the product. The only […]
MET MG 495 Midterm
Which of the following would typically be viewed as non-value-added activities? A. yes yes yes no B. no no no yes C. no yes no yes D. yes yes no yes Epplin Company The following information is provided for Epplin […]
MET MG 503
Real Products Company Real Products Company produces and sells a single product. Information on its costs follow: Refer to Real Products Company. Assume Real Products Company produced and sold 5,000 units. At this level of activity, it produced a profit […]
MET MG 528 Quiz 2
Hahn Corporation Hahn Corporation produces a single product that sells for $7.00 per unit. Standard capacity is 100,000 units per year; 100,000 units were produced and 80,000 units were sold during the year. Manufacturing costs and selling and administrative expenses […]
MET MG 733 Quiz 2
Which of the following statements is true for a firm that uses variable costing? A. The cost of a unit of product changes because of changes in the number of units manufactured. B. Profits fluctuate with sales. C. An idle […]
MET MG 795 Quiz
The learning and growth perspective of the balanced scorecard focuses on using an organization’s intellectual capital to adapt to or influence customer needs and expectations. An investment in inventory yields a return when it is sold to a third party. […]
SMG AC 117 Homework
Information that is related to past events is relevant in the decision-making process. In a normal cost system, factory overhead is applied to Work in Process using a predetermined overhead rate. Answer: TRUE On a CVP graph, the total fixed […]
SMG AC 129 Midterm 2
Profit margin indicates management’s efficiency with regard to sales and expenses. Manipulation of segment expenses may result in the segment margin not being an accurate performance measure. Answer: TRUE In estimating factory overhead, it is necessary to separate costs into […]
SMG AC 263 Quiz 2
Holt Medical Corporation manufactures two models of a medical device: Model 101 and Model 102. Below is the current year production data for the company: The 210,000 units of material had a total cost of $1,365,000. Direct labor is $17 […]
SMG AC 376 Midterm 1
Incremental revenues and costs need to be considered when using which allocation method? A. yes yes B. yes no C. no no D. no yes The combined weighted average interest rate that a firm incurs on its long-term debt, preferred […]
SMG AC 575
In a production environment that manufactures goods to customer specifications, a job-order costing system A. can be used only if standard costs are used for materials and labor. B. will provide reasonable product cost information only when all jobs utilize […]
SMG AC 620 Test
Cost flows and physical flows of units are identical. When a flexible manufacturing system (FMS) is used, worker tasks are more diverse than under a traditional manufacturing system. Answer: TRUE An effective reporting system is increasingly important in a decentralized […]
SMG AC 627 Test 1
An overhead efficiency variance is related entirely to variable overhead. Transfer prices can be used to promote goal congruence among operating segments of an organization. Answer: TRUE The value of discretionary costs is often measured using non-monetary measures. Answer: TRUE […]
SMG AC 662 Homework
Grant Corporation The following information is available for Grant Corporation for the current month: All materials are added at the start of production and the inspection point is at the end of the process. Refer to Grant Corporation. What is […]
SMG AC 683 Test 2
When non-value added time is greater, manufacturing cycle efficiency is lower. The financial perspective of the balanced scorecard addresses the things that an organization needs to do well to meet customer needs and expectations. Answer: FALSE Purchases of inventory create […]