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

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  • October 3, 2024
  • 1748
  • 2024/2025
  • Exam (elaborations)
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  • 7th edition
  • william lanen
  • test bank for fundamentals of cost accounting 7th
  • test bank for fundamentals of cost accounting 7e 7
  • fundamentals of cost accounting

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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

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