The manager of the manufacturing unit of a company is responsibie for the costs of the manufacturing unit. The president is in the process ofdeciring whether to evaluate the manager at the manufacturing unit by the average cost per unit or the vartable cast per unit Quality andumely delivery would be used in coruncion with the cust meesure lo rewerd the manegerRequired:a. What problems are associated with using the average cost per unit as a pertormance measureb. What problems are associated with using the variable cost per unt as a performance measure?

The manager of the manufacturing unit of a company is responsibie for the costs of the manufecturing unit. The president is in the process of declding whether to evaluate the manager at the manufacturing unit by the average cost per unit or the varlable cast per unit Quality and Urmiely delivery would be used in corsuncton with the cust meesure lo rewerd the maneger Required: a. What probiems are associated with using the average cost per unit as a pertormance measure b. What problems are associated with using the variable cost per unt as a performance measure?

The manager of the manufacturing unit of a company is responsibie for the costs of the manufecturing unit. The president is in the process of declding whether to evaluate the manager at the manufacturing unit by the average cost per unit or the varlable cast per unit Quality and Urmiely delivery would be used in corsuncton with the cust meesure lo rewerd the maneger Required: a. What probiems are associated with using the average cost per unit as a pertormance measure b. What problems are associated with using the variable cost per unt as a performance measure?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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1. If management wants the most accurate product cost, which of the following costing methods should be used? O Normal costing using a plantwide overhead rate. O Activity-based costing. O Volume-based costing using a plantwide overhead rate. O Volume-based costing using departmental overhead rates. 2. Which costing method tends to overstate the cost of high-volume products? O Differential costing. O Job order costing. O Activity-based costing. O Traditional volume-based costing. 3. Disadvantages of activity-based costing include O It is not acceptable under GAAP for external reporting. O It can be costly to implement. O It can be used in activity-based management. O It is not acceptable under GAAP for external reporting and it can be costly to implement.
For each of the following costs, identify whether it is a Fixed, Variable or Both: Cost Wages of assembly-line workers Depreciation-office equipment Glue and fasteners Delivery costs Raw materials handling costs Salary of marketing manager Production run setup costs Plant utilities Electricity cost of manufacturing plant Research and development expenses Type
1. Answer the following questions in your own words. a) Distinguish between Production management and Operations Management. b) Distinguish between manufacturing operations and service operations. c) Explain the scope of production and operations management in your own words. d) Define the term plant layout. Discuss the factors influencing the layout. e) Bring out the comparison between product layout and process layout. f) "An ideally laid out plant goes a long way in reducing manufacturing costs through reduced materials handling, reduced personnel and equipment requirements and reduced in-process inventory" – Elaborate.
using the FIFO method of process costing. Explain any difference between the cost per equivalent unit in the assembly department under the weighted-average method and the FIFO method. Q. Should Hoffman’s managers choose the weighted-average method or the FIFO method? Explain briefly.
what is the labor-related activity cost pool per DLH what is the machine-related activity cost pool per MH what is the machine setups activity cost pool per seteup what is the production orders activity cost per order what is the product testing activity cost per test what is the packaging activity cost per package what is the general factory activity cost per DLH
Q4. Referring to the concept of job costing in the manufacturing sector, identify how you will record the following journal entries: a)When raw materials are received. b)When raw materials are sent to the factory floor. c)When labor costs are incurred. d)When a job is completed. e)When a job is shipped to a customer. Note: You must assume significant values for each transaction of your own and prepare the journal entries for each case.
An example of a staff management function would be A. determining that new equipment is required. B. managing production. C. preparing operating cost estimates for proposed new equipment. D. ensuring that environmental standards are met. E. being responsible for attaining a set level of plant income.
Garrell Corporation is conducting a time-driven activity-based costing study in its Customer Support Department. The company has provided the following data to aid in that study: Time-driven activity rate (cost per unit of activity) Activity cost pool: Receiving Calls Resolving Issues Settling Disputes Cost Object Data: Number of calls received Number of issues resolved Number of disputes settled Customer P 31 17 1 $5.46 $8.58 $13.26 Customer Q 21 10 Required: Using time-driven activity-based costing, determine the total Customer Support Department cost assigned to cach customer.
Match each definition with its related term by selecting the appropriate term in the dropdown provided. Dropdown options: An accounting system that records all actual amounts after the expense has occurred. An accounting system that records all costs based on estimated amounts. An accounting system that records all direct materials and direct labor at actual amounts, while assigning manufacturing overhead costs using predetermined overhead rates. Difference between actual and planned results. Standards that are tight but are used to motivate individuals to work hard and achieve results. Standards that can be achieved only under perfect conditions. The difference between actual cost and the flexible budget for materials. The difference between actual labor hours and standard labor hours multiplied by the actual labor rate. The difference between actual labor hours and standard labor hours multiplied by the standard labor rate. The difference between actual price and standard price…
Need some help making a cheet sheet for an up coming test. please provide examples. The exam covers chapters 1 through 13. Here are some suggested study topics: Cost Classifications - variable, fixed and mixed, period and product, direct and indirect, opportunity, sunk, relevant, traceable, common, etc. Calculate the results of changes to cost assumptions (CVP) Calculate net income based on contribution margin values either dollars or % Application of Manufacturing Overhead - calculate predetermined overhead rate or activity rates applied to a product or job - job order using a predetermined overhead rate or rates and activity-based costing calculate over and underapplied overhead calculate adjusted cost of goods sold Job Costing What is the total cost of the job and average cost per unit. Cost of Goods Manufactured and cost of goods sold Calculate break even and target profit Create a contribution format income statement Gross margin calculations absorption or variable costing…
Which one of the following represents a period cost? 1) The VP of Sales' salary and benefits 2) Overhead allocated to the manufacturing operations 3) Labor costs associated with quality control 4) Fringe benefits associated with factory workers