Ch.2 solutions - BUSI0027 Management Accounting I Solutions...

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BUSI0027 Management Accounting I Solutions to Ch.2 Assignments E2-22 Cost Direct or Indirect cost? 1. Produce manager’s salary Direct 2. Cost of the produce Direct 3. Store utilities Indirect 4. Bags and twist ties provided to customers in the produce department for packaging fruits and vegetables. Direct 5. Depreciation expense on refrigerated produce display shelves Direct 6. Cost of shopping carts and baskets Indirect 7. Wages of check-out clerks Indirect 8. Cost of grocery store’s advertisement flyer placed in the weekly newspaper Indirect 9. Store manager’s salary Indirect 10. Cost of equipment used to peel and core pineapples at the store Direct 11. Free grocery delivery service provided to senior citizens Indirect 12. Depreciation on self-check-out machines Indirect E2-33 COST Variable or Fixed a. Thread used by a garment manufacturer Variable b. Property tax on manufacturing facility Fixed c. Yearly salaries paid to sales staff Fixed d. Gasoline used to operate delivery vans Variable e. Annual contract for pest (insect) control Fixed f. Boxes used to package breakfast cereal at Kellogg’s
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This note was uploaded on 04/15/2009 for the course ACCOUNTING BUSI0027 taught by Professor Guan during the Spring '09 term at HKU.

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Ch.2 solutions - BUSI0027 Management Accounting I Solutions...

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