978-0134474021 Chapter 14 Solutions Manual Part 4

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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

