Provide short and correct answer. Tag. Account Data related to the inventories of Costco Medical Supply arepresented below:SurgicalSurgicalEquipmentSuppliesRehabEquipmentRehabSuppliesSelling$ 260$ 100$340$ 165priceCost17090250162Costs to30152510sellIn applying the lower of cost and net realizable value rule, theinventory of rehab equipment would be valued at:

Step 1: Understanding the LCNRV RuleThe LCNRV rule requires inventory to be reported at the lower…

Answered: Data related to the inventories of…

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 7MCQ

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Unk The costs of the Accounting Department at Central Hospital would be considered by the Surgery Department to be: A. a) direct costs. B. b) indirect costs. C. c) incremental costs. D. d) opportunity costs. E. e) sunk costs.
Please explain your answer to the question above, being as specific as possible.
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Bonita Company developed the following information about its inventories in applying the lower-of-cost-or-net realizable value (LCNRV) basis in valuing inventories: Net Product Cost Realizable Value A B C $111000 85000 160000 $126000 $351000. O $356000. O $376000. O $371000. 80000 165000 If Bonita applies the LCNRV basis, the value of the inventory reported on the balance sheet would be
how do you use a functional-based approach to figure out a cost per patient day in a hospital?
Identifying Direct and Indirect Costs Northwest Hospital is a full-service hospital that provides everything from major surgery and emergency room care to outpatient clinics. Required: For each cost incurred at Northwest Hospital, indicate whether it would most likely be a direct cost or an indirect cost of the specified cost object by placing an
Refer to Exhibit 3–12, which portrays the three types of allocation procedures used in two-stage allocation. Give an example of each of these allocation procedures in a hospital setting. The ultimate cost object is a patient-day of hospital care. This is one day of care for one patient. (Hint: First think about the various departments in a hospital. Which departments deal directly with patients; which ones are service departments and do not deal directly with patients? What kinds of costs does a hospital incur that should be distributed among all of the hospital’s departments? Correct hospital terminology is not important here. Focus on the concepts of cost allocation portrayed in Exhibit 3–12.)
Current Attempt in Progress Crane Company developed the following information about its inventories in applying the lower-of-cost-or-net realizable value (LCM) basis in valuing inventories. Product Cost Net realizable value A $119000 $127000 B 78000 C 151000 76000 O $346000 O $348000 O $369000 O $367000. 164000 D If Crane applies the LCNRV basis, the value of the inventory reported on the balance sheet would be
Activity-based costing for a service company Crosswinds Hospital plans to use activity-based costing to assign hospital indirect costs to the care of patients. The hospital has identified the following activities and activity rates for the hospital indirect costs: The activity usage information associated with the two patients is as follows: Determine the activity cost associated with each patient. Why is the total activity cost different for the two patients?
In the cost formula, the term 128,000,000 a. is the total variable cost. b. is the dependent variable. c. is the variable rate. d. is the total fixed cost. e. cannot be determined from the above formula. Use the following information for Multiple-Choice Questions 3-4 through 3-7: The following cost formula was developed by using monthly data for a hospital. Total Cost = 128,000,000 + (12,000 Number of Patient Days)
Standard costs are divided into which of the following components? A. price standard and quantity standard B. quality standard and quantity standard C. variance standard and quantity standard D. materials standard and labor standard Which of the following activity bases would be the most appropriate for food costs of a hospital? A. how many MRI's are taken B. number of patients who stay in the hospital C. quantity of prescriptions filled D. number of nurses scheduled to work To calculate income from operations, total service department charges are A. subtracted from operating expenses B. subtracted from income from operations before service department charges C. subtracted from gross profit margin D. added to income from operations before service department charges

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