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 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 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 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 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 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 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 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 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
CHAPTER 5 ACTIVITY-BASED COSTING AND ACTIVITY-BASED MANAGEMENT 5-16 1. (20 min.) Cost hierarchy. a. Indirect manufacturing labor costs of $1,200,000 support direct manufacturing labor and are output unit-level costs. Direct manufacturing labor generally i
Job order costing, process costing.
Job costing (but some process costing)
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