Principles of Cost Accounting
17th Edition
ISBN: 9781305087408
Author: Edward J. Vanderbeck, Maria R. Mitchell
Publisher: Cengage Learning
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Textbook Question
Chapter 1, Problem 26Q
Why have companies such as Harley-Davidson stopped tracking direct labor cost as a separate cost category?
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Which of the following is NOT a reason for companies to assign costs to products or services?
O to help determine pricing
O to determine the best supplier of raw materials
O to help understand profitability
In recent years, why has labor become such a small part of product costs and how can its use in overhead allocation perpetrate errors in decision-making?
Explain why service companies use different activity bases than manufacturing companies to classify costs as fixed or variable?
Chapter 1 Solutions
Principles of Cost Accounting
Ch. 1 - How does the cost accounting function assist in...Ch. 1 - Prob. 2QCh. 1 - Prob. 3QCh. 1 - Prob. 4QCh. 1 - Prob. 5QCh. 1 - Prob. 6QCh. 1 - How is cost accounting information used by...Ch. 1 - Why is unit cost information important to...Ch. 1 - For a manufacturer, what does the planning process...Ch. 1 - How is effective control achieved in a...
Ch. 1 - Define responsibility accounting.Ch. 1 - What criteria must be met for a unit of activity...Ch. 1 - Prob. 13QCh. 1 - Prob. 14QCh. 1 - What actions should a CMA take when the...Ch. 1 - Prob. 16QCh. 1 - Prob. 17QCh. 1 - Prob. 18QCh. 1 - How is cost accounting related to: financial...Ch. 1 - How does the computation of cost of goods sold for...Ch. 1 - How would you describe the following accounts:...Ch. 1 - Prob. 22QCh. 1 - What is the difference between a perpetual...Ch. 1 - What are the basic elements of production cost?Ch. 1 - How would you define the following costs: direct...Ch. 1 - Why have companies such as Harley-Davidson stopped...Ch. 1 - Distinguish prime cost from conversion cost. Does...Ch. 1 - In what way does the accounting treatment of...Ch. 1 - How do cost of goods sold and cost of goods...Ch. 1 - How are nonfactory costs and costs that benefit...Ch. 1 - What is a mark-on percentage?Ch. 1 - Prob. 32QCh. 1 - When is process costing appropriate, and what...Ch. 1 - What are the advantages of accumulating costs by...Ch. 1 - What is a job cost sheet, and why is it useful?Ch. 1 - What are standard costs, and what is the purpose...Ch. 1 - If the factory operations and selling and...Ch. 1 - Study the performance report for Barbaras Bistro...Ch. 1 - Note that Barbaras Bistro in Figure 1-2 prepares...Ch. 1 - Cost of goods soldmerchandiser The following data...Ch. 1 - The following data were taken from the general...Ch. 1 - Prob. 5ECh. 1 - Explain in narrative form the flow of direct...Ch. 1 - The following data are taken from the general...Ch. 1 - The following data are taken from the general...Ch. 1 - The following inventory data relate to Edwards,...Ch. 1 - The following is a list of manufacturing costs...Ch. 1 - Leen Production Co. uses the job order cost system...Ch. 1 - Gerken Fabrication Inc. uses the job order cost...Ch. 1 - Cycle Specialists manufactures goods on a job...Ch. 1 - Prepare a performance report for the dining room...Ch. 1 - The following data were taken from the general...Ch. 1 - The following data were taken from the general...Ch. 1 - Statement of cost of goods manufactured; income...Ch. 1 - The adjusted trial balance for Appleton...Ch. 1 - The post-closing trial balance of Custer Products,...Ch. 1 - Selected account balances and transactions of...Ch. 1 - OReilly Manufacturing Co.s cost of goods sold for...Ch. 1 - Glasson Manufacturing Co. produces only one...Ch. 1 - Sultan, Inc. manufactures goods to special order...Ch. 1 - Spokane Production Co. obtained the following...Ch. 1 - Bangor Products Co. obtained the following...Ch. 1 - Potomac Automotive Co. manufactures engines that...Ch. 1 - Required Ethics Mary Branson is the Division...
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- Which among the following is not a direct cost? a. Labour b. Raw material c. Factory wages d. Selling overheads fastarrow_forwardWhich of the following is NOT a reason for companies to assign costs to products or services? O to help determine pricing to determine the best supplier of raw materials to help understand proftabilityarrow_forwardWhich of the following is NOT an objective of determining product costs for manufacturing firms? A) To determine selling prices B) to reduce operating leverage C) to make decisions D) to do financial reportingarrow_forward
- Which of the following is NOT true ? a. The salary of the factory manager is considered to be an indirect cost of producing one unit of product. b. An indirect cost cannot be easily traced to a particular cost object. c. The classification of a cost as direct or indirect does not depend on the cost object. d. A direct cost can be easily traced to a particular cost object.arrow_forwardHow do I find the "actual variable costs" in a list of transactions? It would be direct labor, direct material, variable manufacturing overhead, variable selling expense, and variable administrative expense, but what does that look like in a list of transactions for a business. How do I identify those costs?arrow_forwardWhy might two different companies in the same industry have different cost systems?arrow_forward
- Which of the following is not a revenue driver factor which affects sales volume for a manufacturing firm? Multiple Choice Price changes. Customer service. Delivery dates. Productivity. Discounts.arrow_forwardWhat role do standard costs play in controlling the operations of a business? How are standard costs developed for direct materials, direct labor, and manufacturing overhead? Are there ever costs that we can't develop standards for related to manufacturing the goods?arrow_forwardHow does a manufacturing company calculate the cost of goods sold? How is this different from a merchandising company?arrow_forward
- What are the differences between a company using absorption costing and variable costing when they give managers a bonus for meeting an annual income target?arrow_forwardWhich of the following is not one of the indicators of adoption of Activity Based Costing for a business? A. product diversity increases • B. the proportion of manufacturing overhead costs not related directly to production volume increases • C. the proportion of manufacturing overhead costs decreases • D. the proportion of direct labour costs decreasesarrow_forwardDiscuss how and why marginal costing calculates contribution to pay overheads and why this is useful in evaluating product value to a firm?arrow_forward
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