chapter15solutions

Chapter15solutions - Chapter 15 Introduction to Management Accounting Short Exercises(5-10 min FA 1 Helps investors make investment decisions S

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Chapter 15 Introduction to Management Accounting Short Exercises (5-10 min.) S 15-1 FA 1. Helps investors make investment decisions MA 2. Provides detailed reports on parts of the company MA 3. Helps in planning and controlling operations MA 4. Reports can influence employee behavior FA 5. Reports must follow Generally Accepted Accounting Principles (GAAP) FA 6. Reports audited annually by independent certified public accountants Financial and Managerial Accounting 2/e Solutions Manual 208
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(10 min.) S 15-2 e 1.Providing high-quality, reliable products/services for a reasonable price in a timely manner f 2. Paying taxes in a timely manner d 3. Providing a safe, productive work environment a 4. Generating a profit b 5. Repaying principal plus interest in a timely manner Financial and Managerial Accounting 2/e Solutions Manual 209
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(10 min.) S 15-3 d 1. A philosophy of delighting customers by providing them with superior products and services. Requires improving quality and eliminating defects and waste. c 2. Use of the Internet for such business functions as sales and customer service. Enables companies to reach thousands of customers around the world. a 3. Software systems that integrate all of a company’s worldwide functions, departments, and data into a single system. b 4. A system in which a company produces just in time to satisfy needs. Suppliers deliver materials just in time to begin production, and finished units are completed just in time for delivery to customers. Chapter 15 Introduction to Management Accounting 210
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(5-10 min.) S 15-4 Revenue from haircuts $4,900 Hair supplies expense 700 Building rent expense 1,400 Utilities 100 Depreciation on equipment 60 Total operating expenses $2,260 Net Operating Income $2,640 Unit cost of one haircut = total operating costs ÷ total number of haircuts $2,260 ÷ 220 haircuts = $10.27 per haircut Financial and Managerial Accounting 2/e Solutions Manual 211
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(5 min.) S 15-5 The Glass Pro Cost of Goods Sold Computation Cost of goods sold: Beginning inventory $ 8,200 Purchases $41,000 Freight in 2,800 43,800 Cost of goods available for sale 52,000 Ending inventory (5,000 ) Cost of goods sold $47,000 Chapter 15 Introduction to Management Accounting 212
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(5-10 min.) S 15-6 Rustic Gear Fit Apparel Sales $102,000 (d) $203,200 Cost of goods sold Beginning inventory (a) 11,800 31,000 Purchases and freight in 51,000 (e) 60,000 Cost of goods available for sale (b) 62,800 91,000 Ending inventory 1,800 1,800 Cost of goods sold 61,000 (f) 89,200 Gross margin $ 41,000 $114,000 Selling and administrative expenses (c) 30,000 83,000 Operating income $ 11,000 (g) $ 31,000 a. $11,800 (Cost of goods available for sale, $62,800 [see b. below] minus purchases, $51,000)
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This note was uploaded on 02/14/2011 for the course ECONOMICS 131 taught by Professor Larkin,m during the Spring '11 term at CUNY City.

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Chapter15solutions - Chapter 15 Introduction to Management Accounting Short Exercises(5-10 min FA 1 Helps investors make investment decisions S

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