NOTATION USED IN CHAPTER 3 SOLUTIONS
Variable cost per unit
Contribution margin per unit
Target operating income
Cost-volume-profit (CVP) analysis examines the behavi
CHAPTER 20 INVENTORY MANAGEMENT, JUST-IN-TIME, AND SIMPLIFIED COSTING METHODS 20-1 Cost of goods sold (in retail organizations) or direct materials costs (in organizations with a manufacturing function) as a percentage of sales frequently exceeds net inco
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-improvement
CHAPTER 17 PROCESS COSTING 17-16 (25 min.) Equivalent units, zero beginning inventory. 1. Direct materials cost per unit ($750,000 10,000) Conversion cost per unit ($798,000 10,000) Assembly Department cost per unit $ 75.00 79.80 $154.80
2a. Solution Exhi
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 operating a
CHAPTER 18 SPOILAGE, REWORK, AND SCRAP 18-16 (510 min.) Normal and abnormal spoilage in units. 1. Total spoiled units Normal spoilage in units, 5% 132,000 Abnormal spoilage in units Abnormal spoilage, 5,400 $10 Normal spoilage, 6,600 $10 Potential savings
CHAPTER 13 STRATEGY, BALANCED SCORECARD, AND STRATEGIC PROFITABILITY ANALYSIS SOLUTION EXHIBIT 13-16A Customer Preference Map for Corrugated Boxes
Measures that we would expect to see on a La Quintas balanced scorecard for 2009 are
CHAPTER 15 ALLOCATION OF SUPPORT-DEPARTMENT COSTS, COMMON COSTS, AND REVENUES 15-16 (20 min.) Single-rate versus dual-rate methods, support department. Bases available (kilowatt hours): Rockford Practical capacity 10,000 Expected monthly usage 8,000 1a.
CHAPTER 9 INVENTORY COSTING AND CAPACITY ANALYSIS 9-16 1. (30 min.) Variable and absorption costing, explaining operating-income differences.
Key inputs for income statement computations are April Beginning inventory Production Goods available for sale Un
CHAPTER 12 PRICING DECISIONS AND COST MANAGEMENT 12-1 The three major influences on pricing decisions are 1. Customers 2. Competitors 3. Costs 12-2 Not necessarily. For a one-time-only special order, the relevant costs are only those costs that will chang
CHAPTER 21 CAPITAL BUDGETING AND COST ANALYSIS 21-1 No. Capital budgeting focuses on an individual investment project throughout its life, recognizing the time value of money. The life of a project is often longer than a year. Accrual accounting focuses o
AN INTRODUCTION TO COST TERMS AND PURPOSES
A cost object is anything for which a separate measurement of costs is desired. Examples
include a product, a service, a project, a customer, a brand category, an activity, and a
Cost poola grouping of individual indirect cost items.
Cost tracingthe assigning of direct costs to the chosen cost object.
Cost allocationthe assigning of indirect costs to the chosen cost object.
Cost-allocation basea factor th
ACTIVITY-BASED COSTING AND ACTIVITY-BASED MANAGEMENT
Broad averaging (or peanut-butter costing) describes a costing approach that uses broad
averages for assigning (or spreading, as in spreading peanut butter) the cost of resources
THE MANAGER AND MANAGEMENT ACCOUNTING
See the front matter of this Solutions Manual for suggestions regarding your choices of
assignment material for each chapter.
Management accounting measures, analyzes, and reports financial and nonfinanc
CAPITAL BUDGETING AND COST ANALYSIS
21-1 No. Capital budgeting focuses on an individual investment project throughout its life,
recognizing the time value of money. The life of a project is often longer than a year. Accrual
accounting focuses o
INVENTORY MANAGEMENT, JUST-IN-TIME,
AND SIMPLIFIED COSTING METHODS
20-1 Cost of goods sold (in retail organizations) or direct materials costs (in organizations with
a manufacturing function) as a percentage of sales frequently exceeds net inco
MANAGEMENT CONTROL SYSTEMS, TRANSFER PRICING,
AND MULTINATIONAL CONSIDERATIONS
22-1 A management control system is a means of gathering and using information to aid and
coordinate the planning and control decisions throughout an organization an
CHAPTER 11 DECISION MAKING AND RELEVANT INFORMATION 11-16 (20 min.) Disposal of assets. 1. This is an unfortunate situation, yet the $75,000 costs are irrelevant regarding the decision to remachine or scrap. The only relevant factors are the future revenu
CHAPTER 7 FLEXIBLE BUDGETS, DIRECT-COST VARIANCES, AND MANAGEMENT CONTROL 7-16 (2030 min.) Flexible budget. Variance Analysis for Brabham Enterprises for August 2009
Actual Results (1) 2,800g $313,600a 229,600d 84,000 50,000g $ 34,000 FlexibleBudget Varia