A manager in your organization just received a special order at a price that is below cost. The
manager points to the document and says, These are the kinds of orders that will get you in
trouble. Every sale must bear its share of the full c
One of your acquaintances notes, This whole subject of differential costing is easy; variable
costs are the only costs that are relevant. How would you respond?
That is incorrect, because, variable costs are usually only relevant when we are
1. Question :
The use of dual rates in a cost allocation system assumes that
common costs can be
separated into their fixed and variable components.
traced directly to a specific division or manager.
allocated based on a physical quantitie
Week 5 - Ethics and Standard Costs 1
Week 5 - Ethics and Standard Costs
ACC310: Cost Accounting I
Week 5 - Ethics and Standard Costs 2
16-56. Ethics and Standard Costs: Farmer Franks
Margaret's behavior is extremely unethical. As a cos
Cost allocation is arbitrary, so there is nothing gained by it. We should report only the costs that
we know are direct. Do you agree? Why?
I completely disagree. Although there may be no one correct way to allocate cost, cost allocation
Week 2 - Special Orders 1
Week 2 - Special Orders
ACC310: Cost Accounting I
Week 2 - Special Orders 2
4-48. Special Orders: Sherene Nili
Required a Should Ms Nili take the order? Explain your answer.
Yes, Ms Nili should take the order
Running Head: OPERATING BUDGET
Professor Brandy Havens
June 23, 2014
An operating budget is a yearly budget of activity in the organization. The budget is
defined in terms of budget classification code,
The following data reflect the current months activity for Sills, Inc.:
Variable overhead is applied based on standard direct labor-hours allowed.
Compute the labor and variable overhead price and efficiency variances.
Part 1 - Cal
Is Margarets behavior regarding the cost information she provided to Susan unethical? Explain
Yes, the information that Margaret provided to Susan is unethical. She is costing the company
more money than what the curr
Running Head: OPERATING BUDGETS
OPERATING BUDGETS: Why are they important to a firm's management?
ACC 310 - Cost Accounting
Professor Jess Stern
September 21st, 2014
OPERATING BUDGETS: Why are they important to a firm's ma
Question 7-8. Why do most companies use normal or standard costing? After all, actual
costing gives the actual cost, so the firm could just wait until it knows what the cost will be.
Actual costing requires knowing the actual costs of your overhead as wel
What criteria are important in determining the choice of an allocation base?
The two most important criteria in determining an allocation base are (1) causality and (2)
measurability. We would like an allocation base that causes costs. By hi
In order to compute the price and efficiency variances for direct labor you will take actual costs and
subtract from actual inputs at the standard price. For the Efficiency variance you would take the actual
inputs at the standard price from the flex