Questions and Answers of Managerial Accounting Creating

Refer to the original data given in the preceding problem for Rapid City Radiology, Inc.Required: Calculate the unit cost of a production order for 100 specially coated plates used in radiological
Gigabyte, Inc. manufactures three products for the computer industry:The company uses a traditional, volume-based product-costing system with manufacturing overhead applied on the basis of
Refer to the product costs developed in requirement (5) of Problem 5-46. Prepare a table showing how Gigabyte's traditional, volume-based product-costing system distorts the product costs of gismos,
What are transferred-in costs'?
Referring to Exhibit 4-12. explain why the cost of direct material in the March 1 work in process is zero.Data From Exhibit 4-12:- Work in process, March 1-10,000 units Transferred-in: 100% complete,
In each ease below, fill in the missing amount. 1. Work in Process, June 1 ... Units started during June ... Units completed during June Work in process, June 30 ... 2. Work in process, April 1...
PetroTech Company refines a variety of petrochemical products. The following data are from the firm's Amarillo plant.Required: Compute the equivalent units of direct material and conversion for the
Montana Lumber Company grows, harvests, and processes timber for use in construction. The following data pertain to the firm's sawmill during June.The equivalent units of activity for June were as
Raleigh Textiles Company manufactures a variety of natural fabrics for the clothing industry. The following data pertain to the Weaving Department for the month of November.The cost data for November
Toledo Tile Company produces ceramic tile used in the housing industry. The process takes place in two sequential departments. The following cost data pertain to the month of
The following data pertain to the Fantasia Flour Milling Company for the month of October.Additional Information:a. Direct material is added at the beginning of the production process, and conversion
The following data pertain to the Canandaigua Carpet Company for January.Additional Information:a. Direct material is added at the beginning of the production process, and conversion activity occurs
Toronto AutoFab, Inc. manufactures a variety of aluminum parts for the automotive industry. The company uses a weighted-average process-costing system. A unit of product passes through three
AgriTech. Inc. manufactures a canine nutrient known as Healthy Pet, which is then sold to dog food manufacturers. The manufacturing process begins in the Mixing Department when raw materials are
Question:-Would a chemical giant like DuPont be likely to use process costing? Why? How would you account tor DuPont's R&D expenditures in a process-costing system? "DuPont Tries to Unclog a
Question:-What type of product-costing system would be most appropriate for International Paper: job-order or process costing? Why? How would the plant closing described in the article be likely to
Question:-Would process costing be an appropriate product-costing system for Heinz? Describe some of the new innovations to old products Heinz is preparing to launch. "Bottled Up: Profits Aren't
Question:-How would the trend described in the article affect the role of managerial accounting information in businesses in general ? Would this information be more important? Less important? How
Give an example of how a hospital might use job-order costing concepts.
Rexford Company manufactures finger splints for kids who get tendonitis from playing video games.The firm had the following inventories at the beginning and end of the month of January.Rexford
Jay Sports Equipment Company, Inc. incurred the following costs during 20x2.During 20x2. products costing $$156,000$ were finished, and products costing $$171,600$ were sold on account for
Crunchem Cereal Company incurred the following actual costs during 20x4.Required: 1. Prepare a schedule of cost of goods manufactured for 20x4.2. What was the cost of goods sold for the year? Direct
The following data pertain to the Aquarius Hotel Supply Company for the year just ended.Required:1. Compute the firm's predetermined overhead rate for the year using each of the following common cost
Refer to the data for the preceding exercise for Aquarius Hotel Supply Company. Prepare a journal entry to add to work-in-process inventory the total manufacturing overhead cost for the year,
The following information pertains to Paramus Metal Works for the year just ended.Required:1. Compute the firm's predetermined overhead rate, which is based on direct-labor hours.2. Calculate the
Service industry firms can make effective use ofABC systems as well as manufacturers. For each of the following businesses, list five key activities that are important in the provision of the firm's
Birmingham Bowling Ball Company (BBBC) uses a job-order costing system to accumulate manufacturing costs. The company's work-in-process on December 31, 20x3. consisted of one job (no. 3088), which
The following data refers to Superior Metals Corporation for the year 20x4.Required:1. Prepare Superior Metals' schedule of cost of goods manufactured for 20x4.2. Prepare the company's schedule of
Refer to the schedule of cost of goods manufactured prepared for Superior Metals Corporation in the preceding problem.Required:1. How much of the manufacturing costs incurred during 20x4 remained
KidCo. Inc. is a manufacturer of furnishings for children. The company uses a job-order costing system.KidCo's work-in-process inventory on November 30 consisted of the following jobs.The company's
Opticom, Inc. a manufacturer of fiber optic communications equipment, uses a job-order costing system.Since the production process is heavily automated, manufacturing overhead is applied on the basis
Question:-How is General Mills using supply chain management to achieve this goal? In particular, how is the company saving SI.5 million annually on its cake mix line? "General Mills Inc. Boosts
Question:-As a group, discuss why supply chain management is so important in cost management. "Tidying Up at Home Depot," Business Week, November 26, 2001. p. 102, Aixa M. Pascual: "Nike Net Rises
Question:-Could a manufacturing company use upselling? How would product costing be important to a company engaged in upselling? What kind of software system would be useful in tying a company's
Why are product costs also called inventorially costs?
An employee of Scioto Foundry, Inc. worked a normal 40-hour shift, but four hours were idle due to a ?small fire in the plant. The employee earns $$16$ per hour.Required:1. Calculate the employee's
Alhambra Aluminum Company, a manufacturer of recyclable soda cans, had the following inventory balances at the beginning and end of 20x1.During 20x1, the company purchased $$240,000$ of raw
Find Dell Computer's website on the Internet, www.dell.com.Required:Read on the company's website about how Dell operates and serves its customers. Then briefly explain whether you believe mass
Thomas Cleverly purchased a vacant lot outside of London for £17,200. because he heard that a shopping mall was going to be built on the other side of the road. He figured that he could make a
The state Department of Education owns a computer system, which its employees use for word processing and keeping track of education statistics. The governor's office recently began using this
List the costs that would likely be included in each of the following marginal-cost calculations.1. The marginal cost of adding a flight from Syracuse to Miami.2. The marginal cost of keeping a
The following cost data for the year just ended pertain to Heart Strings, Inc., a greeting card manufacturer:Required:1. Compute each of the following costs for the year just ended: (a) total prime
Indicate for each of the following costs whether it is a product cost or a period cost.1. Cost of grapes purchased by a winery.2. Depreciation on pizza ovens in a pizza restaurant.3. Cost of plant
The following data refer to Laredo Luggage Company for the year 20x2:Required:1. Prepare Laredo Luggage's schedule of cost of goods manufactured for the year.2. Prepare Laredo Luggage's schedule of
Pensacola Printer Company manufactures printers for use with home computing systems. The firm currently manufactures both the electronic components for its printers and the plastic cases in which the
Question:-Why is outsourcing such a popular business strategy these days? What are its costs and benefits? **IBM Gets $2 Billion Outsourcing Job." The Wall Street Journal, February 12, 2003, p. B3,
Question:-Will the Hewlett-Packard and Compaq merger be successful in emulating Dell's approach? Do you think the merger will enable HP to cut costs by $3 billion annually, as HP's CEO predicted? "HP
Question:-What will be the likely impact, according to the article, of outsourcing in the tech industry? What will be the likely impact on electronics-sector companies like Solectron, Flextronics and
Question:-Explain the concept of a choice board. Name some industries currently developing choice board systems. "Getting Rid of Guesswork," Business Week, August 28, 2000, Adrian J. Slywotzky.
Question:-Assume you have been charged by Les MacLeod to develop some viable methods for reducing fixed costs for New Hampshire's rural hospitals. Work as a group to prepare a written response.
Give examples of each of the four primary management activities in the context of a national fast-food chain.
Give examples of how each of the objectives of managerial accounting activity would be important in an airline company.
Define the following terms: just-in-time, computer integrated manufacturing, cost management system, empowerment, and total quality management.
Explain the difference between e-business and e-commerce.
Briefly explain what is meant by each of the following ethical standards for managerial accountants: competence, confidentiality, integrity, and objectivity.
Give an example of managerial accounting information that could help a manager make each of the following decisions.1. The production manager in an automobile plant is deciding whether to have
Use the Internet to access the website for one of the following companies, or any other company of your choosing.Required: Find the management discussion and analysis portion of the firm's most
Jay Maxey retired a few years ago at age 48, courtesy of the numerous stock options he had been granted while president ofe-shops.com, an Internet start-up company. He soon moved to Montana to follow
Choose one of the companies mentioned in the discussion of ethical lapses. Research what happened by using library resources or the Internet.Required: As a group, make a presentation to the class,
Question:-As a group, discuss whether you think real, positive changes will be made. Or, as some argue, will things just go back to the old ways of doing business? "How to Fix a Broken System," The
Question:-What do you think the future holds for on-line shopping ? Will there be another attempt at expansion into retail areas that were previously unsuccessful on-line? "The Masses Have Arrived...
“If the interest rate is 10 percent, a present value of $100 and a future value of $133.10 at the end of three years are economically equivalent.” Explain.
What is meant by the term compound interest?
Go online and use Google or another search engine to find several current news articles about SOX. Read three of these articles, and then summarize them for your classmates.
Can the CEO of a large company really be expected to know what is going on at all levels in the organization? In various court cases, CEOs have argued that they could not be held accountable for the
List seven common categories of nonfinancial, operational performance measures.
Why is strategy at the center of the balanced scorecard model?
What does SOX section 404 require of management?
Why does dual cost allocation improve the resulting allocation of service department costs?
What are the two main drawbacks of the payback method?
What is meant by the term payback period? How is this criterion sometimes used in capital budgeting?
What is a depreciation tax shield? Explain the effect of a depreciation tax shield in a capital-budgeting analysis.
Briefly describe the time-and-material pricing approach.
Briefly define total cost and marginal cost.
1. Should the Air Comfort Division institute the 5 percent price reduction on its air-conditioner units even if it cannot acquire the compressors internally for $50 each? Support your conclusion with
Using the measures selected in the prior question, explain the difference between lead and lag measures.
Using the Internet, identify the organizational strategy for a company of your choosing and suggest two performance measures in each of the four balanced scorecard perspectives.
Identify four measures that an airline might use in the internal business processes perspective of a balanced scorecard.
List and describe the four perspectives included in the balanced scorecard.
Explain what is meant by a segmented income statement.
Aloha Hotels and Resorts uses number of employees as the allocation base for its administration cost pool. Briefly explain why this probably makes sense for Aloha, and describe the characteristics of
What is the interpretation of the variable-overhead efficiency variance?
What is the interpretation of the direct-material price variance and the direct-material purchase price variance?
What are ESG outcomes and costs, and why does reporting this information matter?
Briefly explain the purpose of a cause-and-effect (or fishbone) diagram.
Refer to the data given in the preceding exercise for Bianca Bicycle Company. Required: 1. Prepare a cost-volume-profit graph for the company. (Scale the vertical axis in millions of
How does cloud-based budgeting make use of the Internet? What are its risks and benefits?
What is meant by the term operational budgets? List three operational budgets that would be prepared by Memorial Sloan Kettering Cancer Center in New York.
Lehighton Chalk Company had no beginning or ending work-in-process inventories for either year. 1. Prepare operating income statements for both years based on absorption costing. 2. Prepare
Skinny Dippers Inc. produces nonfat frozen yogurt. The product is sold in five-gallon containers, which have the following price and variable costs. Sales price
Briefly explain the difference between absorption costing and variable costing.
Explain the impact of an increase in the level of activity (or cost driver) on (a) total variable cost and (b) variable cost per unit.
Since you have always wanted to be an entrepreneur, invent your own product and describe at least five steps used in its production. Required:Explain how you would go about identifying
Which of the following university cost drivers is likely to be associated with the behavior of variable costs? (a) Number of students, (b) Number of disciplines offered for study,(c) Urban
What are transferred-in costs?
Martin Chuzzlewit purchased a vacant lot outside of London for £1,350,000, because he heard that a shopping mall was going to be built on the other side of the road. He figured that he could make a
Based on the discussions in this chapter, what would you expect is meant by the term non–value-added costs? (We will define the term formally in the next chapter.)
Give examples of each of the four primary management activities in the context of a national fast-food chain such as Chipotle.
The volume of business-to-consumer (B2C) electronic retail transactions is estimated to exceed $2 trillion, and business-to-business (B2B) e-commerce transactions are estimated at over an additional
Give an example of managerial accounting information that could help a manager make each of the following decisions. 1. The president of Budget Rent a Car is deciding whether to add luxury cars

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