Warner processes king salmon for various distributors. Two departments are involved - processing and
packaging. Data relating to tons of king salmon processed in the processing department during June
2010 are provided below:
Burroughs Corporation has established the following overhead cost pools and cost drivers for the
month of May:
Cost Driver Levels
What is Process Costing?
Process costing is a costing system used within the
manufacturing industry to determine the total production
cost of a unit of merchandise.
PC is appropriate for companies that produce a
Chapter 18, Quiz
Performance evaluation in most firms is applied at:
a) Many different levels from top management down to individual production and sales employees.
b) All levels of production, but only top levels of sales.
c) Top and mid-management le
Chapter 17, Exercises
1. The Taguchi Quality Loss Function (QLF) demonstrates that as the quality measure of a product
declines, the loss due to quality defects:
a) Increases as a quadratic function.
b) Increases as a linear function.
c) Increases as an e
Activity-Based Costing and
Customer Profitability Analysis
Overview of cost accounting
Cost accounting versus financial accounting
(internal versus external)
Volume-based vs. ABC costing
- Volume-based costing is a good strategic choice for fi
SOLUTIONS TO CODIFICATION EXERCISES
According to the Glossary:
(a) A change in accounting estimate is a change that has the effect of adjusting the carrying amount of an
existing asset or liability or altering the subsequent accounting for existing
On April 30, 2011, the Pattison Corporation
purchased machinery for $240,000. The
estimated useful life of the machinery is
eight years and the estimated residual value
is $20,000. The mach
Choices about Responsibility
To measure the performance of subunits
(SBUs) in centralized or decentralized
companies, the management control
system uses one or a mix of the four type
The Management and Control
What is quality?
Part of organizational strategy is the choice of
product quality levels.
Quality customer satisfaction with the total
experience of a product or service,
consisting of two components:
What is Strategic Performance
Just as with setting short-term goals for a company
with a master budget, management has the
responsibility for setting longer term strategic
goals for the company.
Chapter 19&20, Exercises
Bases for management bonus compensation often include:
a) Stock price performance.
b) Prior period salary.
c) Inflation rates.
d) Interest rates.
e) Educational degree.
The stock option form of bonus payments to managers usu
Chapters 19 & 20
Consider the following data for three companies in the same industry:
Investment in assets $789,000
The ROI for company Z is calculated to be:
Measurement: Further Analysis
of Productivity and Sales
Managing Marketing Effectiveness:
Marketing effectiveness includes:
achieving budgeted operating income
attaining budgeted market share
adapting to changes in the m
Variable and Fixed O/H Costs
There are VARIABLE overhead costs and FIXED
- Variable overhead costs will go up or down
depending upon production. They are directly
tied to production.
- Fixed overhead co
Chapter 14: The Flexible Budget
& Standard Costing: Direct
Materials & Direct Labor
Costing system isanaccounting
The Strategic Roles of Cost
To determined accurate
department/product costs to evaluate the
efficiency and profitability of that
To motivate managers by rewarding them
for reducing costs they can con
Dropbox Quick Start
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Dropbox is a free service that lets you bring all your photos, docs, and videos anywhere. Any file
you save to your Dropbox will also automatically save to all your computers, phones, and even
the Dropbox website. This