100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Test Bank for Fundamentals of Cost Accounting, 7th Edition by William Lanen $19.49   Add to cart

Exam (elaborations)

Test Bank for Fundamentals of Cost Accounting, 7th Edition by William Lanen

 6 views  0 purchase
  • Course
  • Fundamentals of Cost Accounting, 7th
  • Institution
  • Fundamentals Of Cost Accounting, 7th

Test Bank for Fundamentals of Cost Accounting 7e 7th Edition by William Lanen and Shannon Anderson and Michael Maher. ISBN-13: 0842 ISBN-10: 1 Full Chapters test bank PDF INTRODUCTION AND OVERVIEW Chapter One: Cost Accounting: Information for Decision Making  Chapter Two: Cost Concepts and Behavi...

[Show more]

Preview 4 out of 1748  pages

  • October 3, 2024
  • 1748
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • 7th edition
  • william lanen
book image

Book Title:

Author(s):

  • Edition:
  • ISBN:
  • Edition:
  • Fundamentals of Cost Accounting, 7th
  • Fundamentals of Cost Accounting, 7th
avatar-seller
AGRADEPROMASTER
TestaBankaFundamentalsaofaCostaAccounting,a7thaEditionabyaLanen,aMaher


AnswersaIncluded ✅
Chaptera01a7e
1) CarleyaIncorporatedaincursamanyatypesaofacostsainaitsaoperations.aPlaceatheanumberaofathea
appropriateastageainatheavalueachainainaColumna2ainatheablankanextatoaeachacostainaColumna1.
Cost StageainatheaValueaChain

Transportationacostsatoashipavansatoacu 1. CustomeraService
stomers
Laboracostsaforafactoryaworkers 2.aDistribution

Overtimeacostsaforascientistsaworkingaonane 3. Researcha&a
waengineatechnology Development
Utilitiesacostaforatheadesignatestingace 4. Marketing
nter
Costsatoasurveyacustomersaaboutatheirasa 5. Production
tisfaction
Costsatoasponsoraaasportingaevent 6.aDesign




2) SuperMaxaisaanaintegratedaprovideraofageneticallyaengineeredacorn.aManyatypesaofacostsa
areaincurredainaitsaoperations.aPlaceatheanumberaofatheaappropriateastageainatheavalueachainainaCo
lumna2ainatheablankanextatoaeachacostainaColumna1.
Cost StageainatheaValue
Chain
Warehouseacostsatoastoreaseedaawaitingash 1. CustomeraService
ipmentatoacustomers
Utilityacostsaforaseedamill 2.aDistribution

Equipmentacostsainageneticsalaboratory 3.aResearcha&
Development
Laboracostsatoastaffahelp-lineacallacentera 4.aMarketing

Costsatoaprepareaadvertisingacampaignainana 5. Production
tionalaagricultureamagazine
Costsatoacontractawithagrowersatoaprovidease 6. Design
ed



Versiona1 1

,3) Travon'saLimoaServiceaprovidesatransportationaservicesainaandaaroundaBentonville.aItsapro
fitsahaveabeenadeclining,aandamanagementaisaplanningatoaaddaaapackageadeliveryaserviceathataisaex
pectedatoaincreasearevenueabya$275,000aperayear.aTheatotalacostatoaleaseaadditionaladeliveryavehic
lesafromathealocaladealeraisa$60,000aperayear.aTheapresentamanagerawillacontinueatoasuperviseaallas
ervices.aHowever,alaboraandautilitiesacostsawillaincreaseabya40%aandarentaandaotheracostsawillaincre
aseabya15%awhenatheapackageadeliveryaserviceaisaadded.

Travon’saLimoaServiceaAnnua
laIncomeaStatement
Before Expansion
SalesaRevenue $a960,000

Costs:

VehicleaLeases $a400,000

Labor 290,000

Utilities 50,000

Rent 100,000

OtheraCosts 60,000

Manager’saSalary 120,000

TotalaCosts 1,020,000

OperatingaProfita(Loss) $a(60,000)



a. Prepareaaareportaofatheadifferentialacostsaandarevenuesaifatheadeliveryaserviceaisaadded.
b. Shouldamanagementastartaupatheadeliveryaservice?aExplainayouraanswer.




Versiona1 2

,4) MorrisaIncorporatedaisaaamanagementaconsultingafirmathataspecializesainamanagementat
rainingaprograms.aTackleaManufacturingaIncorporatedahasaapproachedaMorrisatoacontractafora
managementatrainingaforaaaone-
yearaperiod.aLastayear'saincomeastatementaforaMorrisaisaasafollows:

SalesaRevenue $a360,000

Costs:

Labor $a120,000

EquipmentaLease 12,000

Rent 24,000

Utilities 8,400

Supplies 23,600

OtheraCosts 14,400

Manager’saSalary 80,000

TotalaCosts 282,400

OperatingaProfita(Loss) $a77,600



ToasatisfyatheaTackleacontract,aanotherapart-
timeatrainerawillaneedatoabeahiredaata$42,000.aSuppliesawillaincreaseabya12%aandaotheracostsawillai
ncreaseabya15%.aInaaddition,anewaequipmentawillaneedatoabealeasedaataaacostaofa$2,500.

a. WhataareatheadifferentialacostsathatawouldabeaincurredaifatheaTackleacontractaisasigned?
b. IfaTackleawillapaya$55,000aforaoneayear,ashouldaMorrisaacceptatheacontract?aExplainayouraa
nswer.



Versiona1 3

, 5) TheaArielleaCompanyareportedatheafollowingaresultsaforatheamanufactureaandasaleaofaonea
ofaitsaproductsaknownaasaControllersaduringatheamostarecentayear.

Salesa(6,500aControllersaata$130aeach) $a845,000
Costaofasales 390,000
Distributionacosts 65,000
Advertisingaexpense 275,000
Salaries 25,000
Buildingacosts 145,000
Operatingaloss $a(55,000)


TheaArielleaCompanyaisatryingatoadetermineawhetheraoranotatoadiscontinueatheamanufactureaandas
aleaofaControllers.aTheaoperatingaresultsareportedaaboveaforalastayearaareaexpectedatoacontinueainath
eaforeseeableafutureaifatheaproductaisanotadropped.aTheabuildingacostsarepresentatheacostsaofaprodu
ctionafacilitiesaandaequipmentathatatheaControllersaproductasharesawithaotheraproductsaproducedab
yaArielle.aIfatheaControllersaproductawereadropped,athereawouldabeanoachangeainatheabuildingacosts
aofatheacompany.aManagementahasadeterminedathatadiscontinuingatheamanufactureaandasaleaofaCo

ntrollersawillahaveanoaeffectaonatheacompany'saotheraproductalines.aDetermineatheachangeainaoperat
ingaprofitsathatawillahappenaifatheamanufactureaandasaleaofaControllersaisadiscontinued.




6) TheamanagementaofaParachuteaCorporationaisaconsideringadroppingaproductaABC123.a
Dataafromatheacompany'saaccountingasystemaappearabelow:

Sales $a260,000




Versiona1 4

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller AGRADEPROMASTER. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $19.49. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

72042 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$19.49
  • (0)
  Add to cart