Managerial Accounting
Managerial Accounting
15th Edition
ISBN: 9781337912020
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: South-Western College Pub
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Chapter 1, Problem 3PB

A partial list of The Grand Hotel’s costs follows:

  1. a. Advertising in local newspaper
  2. b. Bedding (sheets, blankets, pillows)
  3. c. Bellhop wages
  4. d. Champagne for special guest packages
  5. e. Coffee and tea for rooms
  6. f. Cost of customer surveys
  7. g. Depreciation of the hotel
  8. h. Desk clerk wages
  9. i. Guest long-distance telephone costs
  10. j. Kitchen employee wages
  11. k. Laundering towels and sheets
  12. l. Lobby furniture
  13. m. Maid wages
  14. n. Mini-bar supplies
  15. o. New carpeting
  16. p. Painting lobby
  17. q. Pay-per-view movie rental costs (in rooms)
  18. r. Salary of the hotel manager
  19. s. Soaps and shampoos for rooms
  20. t. Training for hotel restaurant servers
  21. u. Utility costs for hotel
  22. v. Valet parking services
  23. w. Wages of convention setup employees

Instructions

  1. 1. What would be The Grand Hotel’s most logical definition for the final cost object?
  2. 2. Identify whether each of the costs is to be classified as direct or indirect. For purposes of classifying each cost as direct or indirect, use the hotel guest as the cost object.
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A partial list of The Grand Hotel’s costs follows:a. Cost to mail a customer surveyb. Wages of convention setup employeesc. Pay-per-view movie rental costs (in rooms)d. Cost of foode. Cost of room mini-bar suppliesf. Training for hotel restaurant serversg. Cost to paint lobbyh. Cost of laundering towels and beddingi. Champagne for guestsj. Salary of the hotel managerk. Depreciation of the hotell. Cost of valet parkingm. Wages of bellhopsn. Cost to replace lobby furnitureo. Cost of advertising in local newspaperp. Wages of desk clerksq. Wages of maidsr. Cost of new carpetings. Guest room telephone costs for longdistance callst. Cost of soaps and shampoos for roomsu. Utility costv. Wages of kitchen employeesw. General maintenance suppliesInstructions1. What would be The Grand Hotel’s most logical definition for the final cost object?Explain.2. Identify whether each of the costs is to be classified as direct or indirect. For purposes of classifying each cost as direct or indirect, use the…
Question 1:Assume a local hotel is a service entity. Give some examples of the hotel’s direct and indirect costs, specifying the cost object of each. How might the hotel’s management use this information? Question 2:Discuss what may be the issues in using process costing to estimate the cost of the services produced in mass service entities. Question 3:The following costs relate to Telecommunications Fiji Inc.1. The salaries of the technicians who install new phone and data lines.2. The salaries of the scientists and engineers who develop new services.3. The cost of cables used to connect new services.4. The salaries paid to sales staff.5. The salaries of staff who deal with customer complaints.6. The cost of fuel for vans used by technicians who install new services.7. The cost of advertising in the newspapers.8. The salaries of technicians who resolve service problems.9. The cost of fuels for vans used by technicians who resolve service problems.Required:Classify the costs listed…
Question 1: Assume a local hotel is a service entity. Give some examples of the hotel’s direct and indirect costs, specifying the cost object of each. How might the hotel’s management use this information? Question 2: Discuss what may be the issues in using process costing to estimate the cost of the services produced in mass service entities. Question 3: The following costs relate to Telecommunications Fiji Inc. 1. The salaries of the technicians who install new phone and data lines. 2. The salaries of the scientists and engineers who develop new services. 3. The cost of cables used to connect new services. 4. The salaries paid to sales staff. 5. The salaries of staff who deal with customer complaints. 6. The cost of fuel for vans used by technicians who install new services. 7. The cost of advertising in the newspapers. 8. The salaries of technicians who resolve service problems. 9. The cost of fuels for vans used by technicians who resolve service problems. Required: Classify the…

Chapter 1 Solutions

Managerial Accounting

Ch. 1 - Management process Three phases of the management...Ch. 1 - Prob. 2BECh. 1 - Prime and conversion costs Identify the following...Ch. 1 - Product and period costs Identify the following...Ch. 1 - Cost of goods sold, cost of goods manufactured...Ch. 1 - Jakes Cabins is a small motel chain with locations...Ch. 1 - Indicate whether each of the following costs of an...Ch. 1 - Indicate whether the following costs of Procter ...Ch. 1 - Prob. 3ECh. 1 - For apparel manufacturer Abercrombie Fitch, Inc....Ch. 1 - From the choices presented in parentheses, choose...Ch. 1 - Prob. 6ECh. 1 - Classifying costs In a service company A partial...Ch. 1 - Classifying costs The following is a manufacturing...Ch. 1 - Financial statements of a manufacturing firm The...Ch. 1 - Manufacturing company balance sheet Partial...Ch. 1 - Cost of direct materials used in production for a...Ch. 1 - Prob. 12ECh. 1 - Cost of goods manufactured for a manufacturing...Ch. 1 - Income statement for a manufacturing company Two...Ch. 1 - Statement of cost of goods manufactured for a...Ch. 1 - Cost of goods sold, profit margin, and net income...Ch. 1 - Cost flow relationships The following information...Ch. 1 - The following is a list of costs that were...Ch. 1 - The following is a list of costs incurred by...Ch. 1 - A partial list of Foothills Medical Centers costs...Ch. 1 - Manufacturing income statement, statement of cost...Ch. 1 - Statement of cost of goods manufactured and income...Ch. 1 - Prob. 1PBCh. 1 - The following is a list of costs incurred by...Ch. 1 - A partial list of The Grand Hotels costs follows:...Ch. 1 - Several items are omitted from the income...Ch. 1 - Statement of cost of goods manufactured and income...Ch. 1 - Comfort Plus, Inc., has a hotel with 300 rooms in...Ch. 1 - Prob. 2MADCh. 1 - Comparing occupancy for two hotels Sunrise Suites...Ch. 1 - Prob. 4MADCh. 1 - Prob. 5MADCh. 1 - Prob. 1TIFCh. 1 - Communication Todd Johnson is the Vice President...Ch. 1 - For each of the following managers, describe how...Ch. 1 - The following situations describe scenarios that...Ch. 1 - Geek Chic Company provides computer repair...Ch. 1 - Which of the following items would not be...Ch. 1 - Prob. 2CMACh. 1 - A firm has 100,000 in direct materials costs,...Ch. 1 - In practice, items such as wood screws and glue...
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