1 For which service business is job ordercosting the appropriate costing method touse?An oil fracking company extracting oilfrom a variety of oil fields leased to thecompany by a state.○ A farm feeding, raising, and sendingmany rabbits to a wholesaler for domesticresale purposes.○ A law practice that serves a variety ofcustomers having differing levels of legalneeds and requirements.○ An income tax preparation accountingpractice preparing individual income taxreturns for clients having income less than$50,000.

Detailed explanation: Why other choices are incorrect?1. An oil fracking company:Extraction of oil…

Answered: 1 For which service business is job…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter12: Balanced Scorecard And Other Performance Measures

Section: Chapter Questions

Problem 2EB: For the following descriptions, state whether the cost is controllable or uncontrollable by...

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Please answer if it is TRUE or FALSE.
For case B What’s the standby charge What’s the operating cost benefit What’s the total benefit Show step by step
Classifying Firms as Either Manufacturing or Service Classify the following types of firms as either manufacturing or service. a. Bicycle production b. Pharmaceuticals c. Income tax preparation d. Application of artificial nails e. Glue production f. Child care
For the following descriptions, state whether the cost is controllable or uncontrollable by responsibility center managers. A. advertising for a merchandiser B. corporate income taxes C. office supplies for a merchandiser D. donations to the Salvation Army E. insurance for delivery vehicles
None
For the following descriptions state whether the cost is controllable or uncontrollable by responsibility center managers. A. property tax of an existing manufacturing facility B. research and development of a product C. advertising of a product D. insurance cost of the existing manufacturing facility E. design of a product
You are trying to decide whether to take a job after you graduate or go onto graduate school. Consider the following questions as you make your decision. A. Which of these costs, for the most part, would be relevant (R), and which would be irrelevant (IR)? Cost of your Undergraduate education Salary with an undergraduate degree Salary with both an undergraduate degree and a graduate degree Rent Car Insurance Graduate school tuition and fees Food costs Moving expenses B. Which of these costs could have a differential amount that is relevant/irrelevant, depending upon the location and or policies of your new job?
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
Which of the following is NOT a period cost? Select one: O a. manufacturing costs. Ob general and administrative costs. Oc marketing costs. Od. research and development costs. Which of the following is NOT one of the questions management accountants might attempt to help answer in the formulation of strategy? Select one: a. What substitute products exist in the marketplace? Ob. Who are our most important customers? Does the strategy comply with GAAP (Generally Accepted Accounting Principles)? Od. Will adequate cash be available to implement the strategy?
Which of the following fringe benefits provided by an employer would result in taxable income to an employee? Group of answer choices A cell phone used by a salesperson to talk to clients while traveling. Reimbursements paid by the employer for qualified business travel expenses Occasional personal use of an office copy machine Use of a company car for daily commuting
Exercise 3.18 Frida's Tax Practice has two departments, tax and audit. The tax department has two product lines, business returns and individual returns. A list of costs and three cost objects from Frida's Tax Practice follow. Required For each cost, identify whether it is direct (D) or indirect (I) for each cost object. Cost object Mr Gruper's Tax Personal personal tax Cost department returns return (a) Subscription to personal tax law updates publication (b) Ink supplies for tax department photocopy machine (c) Portion of total rent for tax department office space (d) Wages for tax department administrative assistant (e) Tax partner's salary (f) Charges for long distance call to Mr Gruper about personal tax return questions (g) Tax partner lunch with Mr Gruper (the tax partner has lunch with each client at least once per year)
Your company has a travel policy that reimburses employees for the "ordinary and necessary" costs of business travel. Employees often mix a business trip with pleasure by either extending the time at the destination or traveling from the business destination to a nearby resort or other personal destination. When this happens, an allocation must be made between the business and personal portions of the trip. However, the travel policy is unclear on the allocation method to follow. Consider this example. An employee obtained a business-class ticket for $9,552 and traveled the following itinerary. From Chicago Paris Rio de Janeiro. To Paris Rio de Janeiro. Chicago Miles. 4,220 5,630 1. Business portion of the airfare 2. Business portion of the airfare One-Way Regular Fare $3,650 4,140 5, 250 3,450 Purpose Business Personal Return On the date of the flights between Chicago and Paris (and return), a restricted round-trip fare of $4,820 was available. Required: a. Compute the business…

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