W9

Exercise 22.1 (Static) Accounting Terminology (LO22-1, LO22-4, LO22-6) The following are nine technical accounting terms: Responsibility margin Contribution margin Performance margin Transfer price Cost-plus transfer price Product costs Common fixed costs Traceable fixed costs Committed fixed costs Each of the following statements may (or may not) describe one of these technical terms. For each statement, indicate the accounting term described, or answer "None" if the statement does not correctly describe any of the terms. a. The costs deducted from contribution margin to determine responsibility margin. b. Cost to produce plus a predetermined markup. c. Fixed costs that are readily controllable by the manager. d. A subtotal in a responsibility income statement, equal to responsibility margin plus committed fixed costs. The subtotal in a responsibility income statement that is most useful in evaluating the short-run effect of e. various marketing strategies on the income of the…

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1 To decide on an appropriate selling price for a special-order product” is an example of which cost allocation. Select one: a.To motivate managers and other employees b. To provide information for economic decisions c. To justify costs or compute reimbursement amounts   d. To measure income and assets for reports to external parties

5-1 Companies that engage in long-term sales contracts such as construction projects often use the cost-to-cost method to recognize revenue. This means that revenue is recognized in proportion to the project's completion . Answer: True / False Topic: Sales on Consignment 5-2 A seller, acting as an agent for another company by selling the company's goods on consignment, recognizes the gross amount of the sale as revenue. Answer: True / False Topic: Revenue Recognition 5-3 Bed Bath and Beyond has a return policy which states that the customer "may return a purchase for a refund, merchandise credit, or exchange to any of our stores nationwide or to our returns processing center". The company can report revenue on the full amount as soon as the merchandise is sold. Answer: True / False

QUESTION 36 A company compensates its sales manager in such a way that the sales manager honestly provides a sales target (forecast). The company’s compensation method is:      C   =     j T   +  k (A – T),  (if  A ≥ T)                j T   –  m (T – A),  (if  A < T)    where, C  =  compensation;  A = actual sales by sales manager;  T = sales target provided by sales manager   . In the above compensation method  the coefficient "j"   represents:     A. the advantage of exceeding the target.     B. the benefit of honestly setting  the target.   C. the penalty of not meeting the target.   D. the penalty of not setting the target honestly.

Problem 6 Listed below are several costs incurred by the loan department of J P Morgan and Chase Bank. For each cost, indicate which of the following classification best describe the cost. More than one classification may apply to the same cost item. Cost classification Controllable by the loan department Uncontrollable by the loan department Direct cost of the loan department Indirect cost of the loan department а. b. C. d. е. Differential cost Marginal cost g. Opportunity cost f. h. Sunk cost i. Out-of-pocket cost Cost items Salary of the loan department manager Salary of a loan department clerk Cost of office supplies used in the loan department Cost of the department's personal computer purchased by the department manager last year. Cost of general advertising by the bank, which is allocated to the loan department. Revenue that the loan department would have generated for the bank if a branch loan office had been located downtown instead of in the next province. Difference in the…

e Preview 4) F3 $ R 01- Arctic Air Inc. manufactures cooling units for commercial buildings. The price and cost of goods sold for each unit are as follows: Category Price Cost of goods sold Gross profit F4 Customer service Project bidding Engineering support Total costs In addition, the company incurs selling and administrative expenses of $226,250. The company wishes to assign these costs to its three major customers, Gough Industries, Breen Inc., and The Martin Group. These expenses are related to three major nonmanufacturing activities: customer service, project bidding, and engineering support. The engineering support is in the form of engineering changes that are placed by the customer to change the design of a product. The budgeted activity costs and activity bases associated with these activities are: S⁰5 Activity Number of service requests Number of bids Number of customer design changes Unit volume % Activity 3:0 F5 T Activity-base usage and unit volume information for the…

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C-2 if your recommendation in part (c-1) is followed, what would be the company's overall profit ?

HW 8. Please complete all requirements :)

Multiple choice problem

Sh11

A1