CHAPTER 16 QUIZ
The following data apply to questions 1 through 5. Brant Corporation manufactures two products out of a joint process-Scout and Andro. The joint (common) costs incurred are $400,000 for a standard production run that generates 70,000 pound
CHAPTER 15 ALLOCATION OF SUPPORT-DEPARTMENT COSTS, COMMON COSTS, AND REVENUES 15-1 The single-rate (cost-allocation) method makes no distinction between fixed costs and variable costs in the cost pool. It allocates costs in each cost pool to cost obj
Triboro Computer Systems, Inc., manufactures printer circuit cards. All direct materials are added at the inception of the production process. During January, the accounting department noted that there was no beginning inventory. Direct materials purchase
Department of Accounting and Information Systems Rutgers University Cost Accounting-33:010:451 Section 02 Fall 2012 Tuesday & Thursday 5.00- 6.20 pm Lucy Stone Hall B 269, Livingston Campus
firstname.lastname@example.org ( Pleas
Answer the following questions using the information below: Monticello Furniture manufactures expensive tables. Its varnishing department is fully automated and requires substantial inspection to keep the machines operating properly. An improperly varnish
1) Crush Company makes internal transfers at 160% of full cost. The Soda Refining Division purchases 40,000 containers of carbonated water per day, on average, from a local supplier, who delivers the water for $40 per container via an external shipper. To
CHAPTER 14 COST ALLOCATION, CUSTOMER-PROFITABILITY ANALYSIS, AND SALES-VARIANCE ANALYSIS 14-1 Disagree. Cost accounting data plays a key role in many management planning and control decisions. The division president will be able to make better operat
ADJUSTING THE ACCOUNTS
TIME PERIOD ASSUMPTION
The time period (or periodicity) assumption assumes
that the economic life of a business can be divided into
artificial time periods generally a month, a quarter,
or a year.
Periods of less than one
Long-term liabilities are obligations that
are expected to be paid after one year.
Long-term liabilities include bonds,
long-term notes, and lease obligations.
Bonds are a form of inter
Completed and transferred out during current period
Equivalent unit of work done to date
Direct Material Conversion Costs
Strategy: defines how an organization matches its own capabilities with the opportunities in the
marketplace to accomplish its objectives
Factors of Industry analysis
Number and strength of competitors
Potential entrants into the ma
Gold Fish Corporation manufactures fishing poles that have a price of $42.00. It has costs of $32.64 A competitor is introducing a new fishing pole
that will sell for $36.00. Manage
Cost Allocation, CustomerProfitability Analysis, and Sales-Variance Analysis Chapter 14
14 - 1
Four purposes for allocating costs to cost objects.
14 - 2
Purposes of Cost Allocation
1. To provide information for economic decisions
2. To motivate
CHAPTER 9 INVENTORY COSTING AND CAPACITY ANALYSIS 9-1 No. Differences in operating income between variable costing and absorption costing are due to accounting for fixed manufacturing costs. Under variable costing only variable manufacturing costs ar
Allocation of Support Department Costs, Common Costs and Revenues
15 - 1
The single-rate vs. the dual-rate cost-allocation method.
15 - 2
Single-Rate and Dual-Rate Methods
The single-rate cost allocation method pools together all costs
Cost Allocation: Joint Products and Byproducts Chapter 16
16 - 1
Joint Cost Basics
Costs of a production process that yields multiple products simultaneously.
The juncture in the production process where the two (or
CHAPTER 16 COST ALLOCATION: JOINT PRODUCTS AND BYPRODUCTS 16-1 Exhibit 16-1 presents nine examples of joint products from four different general industries. These include: Industry Separable Products at the Splitoff Point Food Processing: Lamb Lamb
17 - 1
Process costing systems are used where masses of identical or similar products are produced, and costs assigned. Where each individual process forms the basis of the cost system. Chemicals, pha
CHAPTER 17 PROCESS COSTING 17-1 Industries using process costing in their manufacturing area include chemical processing, oil refining, pharmaceuticals, plastics, brick and tile manufacturing, semiconductor chips, beverages, and breakfast cereals. 17
Spoilage, Rework, and Scrap
Distinguishing among spoilage, rework, and scrap.
Spoilage refers to unacceptable units discarded or sold for reduced prices.
Rework is units that are repaired. Scrap (Waste) is material left
CHAPTER 18 SPOILAGE, REWORK, AND SCRAP 18-1 Managers have found that improved quality and intolerance for high spoilage have lowered overall costs and increased sales. 18-2 Spoilage-units of production that do not meet the standards required by custo
Strategy, Balanced Scorecard, and Strategic Profitability Analysis Chapter 13
13 - 1
What is Strategy?
Strategy describes how an organization matches its own capabilities with the opportunities in the marketplace to accomplish its overall objective
CHAPTER 13 STRATEGY, BALANCED SCORECARD, AND STRATEGIC PROFITABILITY ANALYSIS 13-1 Strategy specifies how an organization matches its own capabilities with the opportunities in the marketplace to accomplish its objectives. 13-2 The five key forces to
Quality, Time, and the Theory of Constraints
The total features and characteristics of a product or service, made or performed according to specifications, to satisfy customers at the time of purchase and during use
CHAPTER 19 BALANCED SCORECARD: QUALITY, TIME, AND THE THEORY OF CONSTRAINTS 19-1 Quality costs (including the opportunity cost of lost sales because of poor quality) can be as much as 10% to 20% of sales revenues of many organizations. Quality-improv