26) Job costs in a service organization. Loomis. and Associates, a CPA firm, uses job
costing. During January, the firm provided audit services for two clients and billed
those clients for the services performed. Springsteen Productions was billed for
24) Just-in-time methods. McNeal Products uses a just-in-time system. To produce
2,000 units for an order, it purchased and used materials costing $50,000, and
incurred other manufacturing costs of $30,000, of which $10,000 was labor. All costs
were on ac
20) Opportunity cost analysis. Cliff Lawrence owns CL Skating, an ice-skating rink that
accommodates 200 people. Cliff charges $10 per hour to skate. The cost of
attendants to staff CL Skating is $100 per day. Utilities and other fixed costs ave
25) Just-in-time methods. Memory Bank uses just-in-time production methods. To
produce 1,200 units for an order, the company purchased and used materials
costing $26,000 and incurred other manufacturing costs of $22,000, of which $8,000
was labor. All cos
2) Who in the organization is generally in charge of managerial accounting?
The people who are usually in charge of managerial accounting are VP of finance,
controller, or CEO.
3) What are the two major uses of managerial accounting information?
Introduction to Accounting II: Managerial Accounting Accounting 220
Chapter 5 Cost Behavior: Analysis and Use Types of Cost Behavior Patterns Cost behavior refers to how a cost will react or respond to changes in the level of activity- go up? go down
9) People often use expenses and costs interchangeably, yet the terms do not always
mean the same thing. Distinguish between the two terms.
Expense is a cost that is matched with revenue. Cost is a sacrifice of resources.
10) What do managerial
2) In a job costing system costs are accumulated by job and in a process costing
system accumulated by department or production processes.
3) Service organization dont have inventories because they are not in the business of
selling tangible goo
19) Cost flow model. Mark Landman's accountant resigned and left the books a mess.
Mark is trying to compute unknown values in inventory accounts in three of his
stores. Knowing of your expertise in cost flows, he asks for your help and provides
21) Cost flow model. A flood has destroyed the inventory of the AquaMan Corporation.
Before paying for damages, the JRC Insurance Company wants to know the amount
of ending inventory that is missing. You have been hired to search through the wat
26) Value chain and strategic cost analysis. Wheelworks, Inc., produces bike parts (for
example, wheels, frames, tires, and sprockets) and uses these parts to assemble
bikes. Wheel works sells the bikes to a distributor that sells the bikes to retailers.
25 ) The value chain and strategic cost analysis. Sustainable Products raises trees, cuts
the trees into logs, and processes the logs into paper. Sustainable Products sells the
paper to a distributor, who then sells the paper to printers. Assume
15) Nonprofit organizations, such as agencies of the federal government and nonprofit
hospitals, do not need managerial accounting because they do not have to earn a
profit." Do you agree with this statement? Why or why not?
I disagree, manageri
After researching Aramark Dining Services website, and discussing our own experiences, we
discovered that Aramark uses cost leadership to operate. The cost leadership strategy is beneficial to
a company because it has the lowest cost in the industry. The