UNIVERISTY OF CALIFORNIA DAVIS
GROUP ASSIGNMENT PART II
Please form groups of 4 to 6 people for this assignment. Each group will need to submit a short report
and a 10-minute presentation in class.
The W Company Civil Engineers consists of
Homework 1 Problem 1-28
A. Pedro Phones is about to decide whether to launch production and sale of a cell phone with
1. Pedro Phones is following a cost leadership strategy by providing standard/low price
products to its custome
Group Project 1
Direct Labor Costs
W Company Civil Engineers
Direct Labor Cost
ARE 119: Intermediate Managerial (Cost) Accounting
26 September 2016
a) Cost LeadershipThe management accountant would have to provide information about
the phone market in comparison to rival companies so that management ca
Variance analysis, multiple products.
1. Budget for 2011
Price per Unit per Unit
(3040 min.) Cost of goods manufactured, income statement, manufacturing
Schedule of Cost of Goods Manufactured
Year Ended December 31, 2011
Direct materials costs
Beginning inventory, January 1, 2011
ARE 119 Midterm Questions Ch.1-10 (4 questions)
1. Ch. 1-3: Discuss the relationship between the manager and managerial
accounting, various important terms, and cost-volume-profit concepts. How
do these concepts impact the manager of a manufacturing facil
FLEXIBLE BUDGETS, DIRECT-COST VARIANCES,
AND MANAGEMENT CONTROL
Management by exception is the practice of concentrating on areas not operating as
expected and giving less attention to areas operating as expected. Variance analysis helps
Explain the difference between a static budget and a flexible budget. Explain what is meant by a
static budget variance and a flexible budget variance.
Answer: A static budget is one based on the level of output planned at the start of the budget period.
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
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
Explain how traditional cost systems, using a single unit-level cost rate, may distort product costs.
Answer: Unit-level measures can distort product costing because the demand for indirect activities may
be driven by batch-level, product-sustaining, cust
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
16-22 Joint-cost allocation, sales value, physical measure, NRV methods.
PANEL A: Allocation of Joint Costs using Sales Value at
Sales value of total production at splitoff point
(20,000 tons $5 per ton; 28,000 $20 per ton)
15-19 Support department cost allocation; direct and step-down methods.
of AS costs
of IS costs
14-24 Variance analysis, working backward
First, we need to calculate the budgeted sales-mixed percentage of Plain, suppose it is
a. Then the budgeted sales-mix percentage of Chic is (1-a).
Static budget total contribution margin
Budgeted units of
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1) Which of the following is a guideline used by management accountants to assist in strategic and operational decision
Total # of budgeted units to be sold for all glasses: 2300 units
Budgeted units of glasses sold = X
Budgeted units of glasses sold = (2300-X)
Contribution Margin = $12
Contribution Margin = $5
Total contribution margin = (X)($5
Chapter 7 Homework
1. Calculate the materials efficiency and price variance and the wage and labor efficiency
variances for the month of May.
ARE 119 - Notes
Consider each question independently:
1. What is the annual breakeven point in (a) units sold and (b) revenues?
a) Breakeven in units = fixed costs/ contribution margins
= 180,000 / (60-40)
= 9,000 units x $60
ARE 119 Midterm #1 Notes
Management accounting the process of measuring, analyzing, and reporting financial and
nonfinancial information that helps managers make decisions to fulfill the goals of an
Cost accounting the process of m
ARE 119 Final Notes
Customer-profitability analysis the reporting and assessment of revenues earned from
customers and the costs incurred to earn those revenues.
An analysis of customer differences and costs reveals why differences exist in t
ARE 119 Midterm #2 Notes
Product undercosting a product consumes a high level of resources per unit but is reported to
have a low cost per unit.
Product overcosting a product consumes a low level of resources per unit but is reported to
1. Manufacturing-sector companies buy parts, components and materials to create finished
goods. They convert their supplies into products that can be sold in the market. An
example would be Apple. Merchandising-sector co
EXERCISE 3-11 (2025 minutes)
ANDERSON COOPER CO.
For the Year Ended December 31, 2017
Salaries and wages expense.
1. Examples are:
(a) Payment of an accounts payable.
(b) Collection of an accounts receivable from a customer.
(c) Conversion of an accounts payable to a note payable.
2. Transactions (a), (b), (d) are considered business transactions and are recorded in