Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
Double market share limitations for all three products plus the following constraint: sauce case sales cannot exceed
50% of the sum of soup and casserole case sales
14.9 EXCEL PROBLEM
Download the spreadsheet for problem 14.9 from the website for this textbook. Write formulas to calculate the total
depreciation expense and to display the correct values in the following three columns: Age, Depreciation Rate, and
Depreciation Expense. (Hint: You will need to use the VLOOKUP and MATCH functions to do this. You may also want
to read the article “Double-Teaming In Excel,” by Judith K. Welch, Lois S. Mahoney, and Daniel R. Brickner, in the
November 2005 issue of the Journal of Accountancy, from which this problem was adapted).
Solution is on next page:
Depreciation expense formula: =VLOOKUP(J5,$A$4:$D$14,MATCH(H5,$A$4:$D$4,0))
- explanation of formula:
The age column subtracts the year the asset was purchased from the reference year in cell H3.
The VLOOKUP function extracts tax rate from the tax table. The first argument to the
The first argument of the MATCH function is the cell which contains the asset class (column
14.10 Answer all of the following multiple-choice problems:
1. In terms of quality control measures, scrap and rework costs are
part of
a. Prevention costs
b. Inspection costs
c. Internal failure costs
d. External failure costs
2. Which part of the throughput formula provides information about
the impact of equipment downtime on overall productivity?
a. Productive capacity
b. Productive processing time
c. Yield
d. None of the above
3. Which of the following is most likely the cost driver for accounts
payable expenses associated with processing supplier invoices?
a. Number of di&erent parts purchased
b. Total price of purchases
c. Number of suppliers used
d. Number of purchases made
e. All of the metrics listed above
Correct answer: d. Each purchase results in a supplier invoice that must be processed and paid.
4. Move tickets are a control procedure designed to reduce the risk of
a. Loss or destruction of production data
b. Theft of inventory
c. Disruption of operations
d. Inappropriate allocation of overhead costs
5. At which stage of the production process can accountants
contribute to signi.cantly reducing the cost of goods sold?
a. Product design
b. Planning and scheduling
c. Production operations
d. None of the above
6. MRP-II would most likely be used by a company that produces
a. Di&erent grades of milk (e.g., whole, 2% and skim)
b. Toner cartridges for laser printers
c. Toys based on a new movie
d. All of the above are equally amenable to MRP-II systems
e. None of the above
Correct answer: a. Future demand for consumer staples, such as milk, is much more
7. In terms of quality control measures, the costs associated with
issuing credit memos to customers who return defective products
is part of
a. Prevention costs
b. Inspection costs
c. Internal failure costs
d. External failure costs
e. None of the above
Correct answer: d.
8. Which control procedure would be most e&ective in reducing the
risk of over- or under-production?
a. Reviewing all changes to master data
b. Activity-based costing
c. Production planning systems
d. Computer-integrated manufacturing
e. Reports that highlight the components of throughput
SUGGESTED ANSWERS TO THE CASES
CASE 14-1 The Accountant and CIM
Examine issues of the Journal of Accountancy, Strategic Finance, and other
business magazines for the past three years to find stories about current developments in
factory automation. Write a brief report that discusses the accounting implications of
one development: how it affects the efficiency and accuracy of data collection and any
new opportunities for improving the quality of performance reports. Also discuss how
the development affects the risks of various production cycle threats and the control
procedures used to mitigate those risks.
There is no one correct answer. In addition to grading on writing quality, be sure that
students fulfill task requirements (i.e., describe the development, the controller’s role, and the
effect on production cycle threats). The logical reasoning used to support any analysis should
also be evaluated.
