Chapter 2-Basic Cost Management Concepts
1. The cost management information system is primarily concerned with producing outputs for internal users
using inputs and processes needed to satisfy management objectives.
True False
2. The Financial accounting
Chapter 2-Basic Cost Management Concepts
Student: _
1. A(n) _ is a set of interrelated parts that performs one or more processes to accomplish
specific objectives.
A. cost objective
B. system
C. activity
D. cost driver
2. In a company that supplies garlic
Chapter 5Product and Service Costing: Job-Order System
MULTIPLE CHOICE
1. A pure service organization involves:
a. no raw materials, no inventories, and a definite separation between a plant and the customer.
b. raw materials, tangible items, and no separ
Class Activity #4
Instructions: For each item # 1 - 7, create the financial report described on its own tab. Label each tab
with the number corresponding to the instruction. For example, the first report should be on the tab
labeled "#1". Correct completi
Class Activity #10
This assignment is intended to help you practice computing cost/unit and total cost under different product costing systems, and
then using your total cost to perform variance analysis. Only your responses in the orange cells will be gr
Class Activity #8
This assignment is intended to help you practice allocating joint costs to joint products. Only your responses in the yellow cells
already contain formulas that pull your responses from the green cells. Each yellow cell in questions 1 -
Class Activity #5
In this activity, you are asked to work on your product costing skills. Remember, only your responses in the yellow
cells will be graded. For part 1, each answer is worth 0.1 points. For part 2, each answer is worth 0.2 points. For
part
Class 11 Notes
Similarities, Differences, and Relationships Between Costing Methods
This part of the lecture is based on Rochelle Kaplan Greenbergs Using Concept Maps to Provide an
Integrative Framework for Teaching the Cost or Managerial Accounting Cours
Class Activity #10
This assignment is intended to help you practice computing cost/unit and total cost under different product costing systems, and then
total cost to perform variance analysis. Only your responses in the orange cells will be graded for ac
Class Activity #4
Instructions: For each item # 1 - 7, create the financial report described on its own tab. Label each tab
with the number corresponding to the instruction. For example, the first report should be on the tab
labeled "#1". Correct completi
Your company has 2 support departments, S1 and S2. They help the productions
departments, P1 and P2. Driver 1 is the cost driver for S1. Driver 2 is the cost driver for S2.
$
Support Departments
S1
S2
515,970 $
403,544 $
7,283
5,462
1,145
6,431
Producing
Process Costing Example (Weighted-Average Method)
A company with multiple processing departments wants you to prepare a Cost of Production Report for Department A.
The company provides you with the following information about Department A.
Materials
Units
Support Departments Example Generator
Your company has 2 support departments, S1 and S2. They help the productions departments, P1 and P2. Driver 1 is
the cost driver for S1. Driver 2 is the cost driver for S2.
Direct overhead
Driver 1
Driver 2
Support De
Process Costing Example
A company with multiple processing departments wants you to prepare a Cost of Production Report for Department A.
The company provides you with the following information about Department A.
Units in process January 1:
190 units
Cos
Class Activity #3
Instructions: Part A of this assignment asks you to answer 11 questions. Part B contains 2 questions. Each Part A
question is worth 0.2 points. Each Part B question is worth 0.4 points. You can earn at most a total of 3.0 points
on this
Class 9 Notes
Ch. 12: Product Costing Methods Joint Products
1. Joint Products: When two or more types of products with relatively significant sales value result from a single
production process (e.g., bagged apples, apple sauce, apple pie filling)
2. By-
SUMMARY OUTPUT
Regression Statistics
Multiple R
0.999922248
R Square
0.999844501
Adjusted R Square
0.999809946
Standard Error
749.6525865
Observations
12
ANOVA
df
Regression
Residual
Total
SS
MS
F
Significance F
2 32521291082 16260645541 28934.61416 7.290
Ch. 18 Profitability Analysis
Absorption Costing and Variable Costing
Variable costing and absorption costing are methods for charging manufacturing costs to
inventory.
The two methods differ in one respect: the treatment of fixed manufacturing costs.
Abs
Ch. 18 Check figures
18.27
1. 49,200
2. 33,600
18.29
1.
Year 1 net income = 57,650; Year 2 net income = 53,650
2.
Year 1 net income = 37,650; Year 2 net income = 73,650
18.31
1.
4,670 F
2.
536.639 U
3.
406.639 F
Note: there is a unit CM variance on the co
Chapter 4: Activity Based Costing (ABC)
Product Costing
Product Costing System - method of assigning manufacturing costs to units produced
Product Costs
1.
Direct material
2.
Direct labor
3.
Overhead
Assigning overhead costs to units produced
Unit level p
Chapter 4: Job-Order costing
Product costing - a method of assigning costs to units manufactured or customers serviced.
Distinguish between two different types of costing systems:
1. Job Costing system - used when units or batches of units or customers ar
SS2 - Service Department Allocations
Dept A
Department costs:
Support by:
Dept A
Dept B
Dept C
Dept D
Dept E
Dept B
Dept C
Dept D
Dept E
Dept X
Dept Y
Total
700,000
500,000
400,000
300,000
100,000
2,000,000
1,000,000
5,000,000
-1
0.09
0.08
0.1
0.14
0.1
-1
Job Order Costing Example
$ 63,068
191
1. Your company bought $63,068 of raw materials last month. What is the journal entry for this transaction if your company paid in c
Raw Materials Inventory
Cash
$
63,068
$
63,068
2. Your company has the following da
Your company purchases a material (e.g., cocao beans) that is then processed to yield three products: P1 (e.g., baking chocolate
(e.g., milk chocolate), and P3 (e.g., dark chocolate). In January, your company purchased 300,000 pounds of the material at a
Class Activity #9
This assignment is intended to help you practice allocating overhead costs to products using traditional costing and activitybased costing. Only your responses in the yellow cells will be graded. Each yellow cell in questions 1 - 3 is wo
Your company previously used a cost system that allocated all factory overhead costs to products
based on 350 percent of direct labor cost. The company has just implemented an ABC system that
traces indirect costs to products based on consumption of major
Class Activity #3
Instructions: Part A of this assignment asks you to answer 11 questions. Part B contains 2 questions. Each Part A
question is worth 0.2 points. Each Part B question is worth 0.4 points. You can earn at most a total of 3.0 points on
this