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 13, Problem 4CMA
To determine
Identify the cost not being included in the external failure costs.
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Students have asked these similar questions
External failure costs include all of the following costs except those related to:
a. Lost sales and lost customer.
b.Warranty obligations
c. Product liability suits
d. Product field testing.
Which of the following is not an example of a typical external failure cost?
Multiple choice question.
Product recalls
Warranty repairs
Debugging system errors
Defective product liability
2.Costs that are incurred in bringing the inventories to their present location and condition are capitalized as cost of inventories and these include
a.costs of designing products for specific customers.
b.abnormal amount of wasted materials, labor and production costs.
c. storage cost not necessary in the production process before a further production stage.
d. selling costs.
Chapter 13 Solutions
Managerial Accounting
Ch. 13 - What is the benefit of the lean philosophy?Ch. 13 - Prob. 2DQCh. 13 - Prob. 3DQCh. 13 - Prob. 4DQCh. 13 - Prob. 5DQCh. 13 - Why would a lean manufacturer strive to produce...Ch. 13 - Prob. 7DQCh. 13 - Prob. 8DQCh. 13 - Prob. 9DQCh. 13 - Prob. 10DQ
Ch. 13 - Prob. 11DQCh. 13 - Prob. 12DQCh. 13 - Prob. 13DQCh. 13 - Prob. 1BECh. 13 - Prob. 2BECh. 13 - Prob. 3BECh. 13 - Prob. 4BECh. 13 - Prob. 5BECh. 13 - Prob. 1ECh. 13 - Prob. 2ECh. 13 - Lean principles Rag Swag Inc. manufactures various...Ch. 13 - Prob. 4ECh. 13 - Reduce setup time Vernon Inc. has analyzed the...Ch. 13 - Compute lead time Jackson Fabricators Inc....Ch. 13 - Calculate lead time Williams Optical Inc. is...Ch. 13 - Prob. 8ECh. 13 - Prob. 9ECh. 13 - Prob. 10ECh. 13 - Prob. 11ECh. 13 - Prob. 12ECh. 13 - Lean accounting Modern Lighting Inc. manufactures...Ch. 13 - Prob. 14ECh. 13 - Prob. 15ECh. 13 - Prob. 16ECh. 13 - Prob. 17ECh. 13 - Prob. 18ECh. 13 - Process activity analysis The Brite Beverage...Ch. 13 - Prob. 20ECh. 13 - Prob. 21ECh. 13 - Lean principles Bright Night, Inc., manufactures...Ch. 13 - Prob. 2PACh. 13 - Lean accounting Dashboard Inc. manufactures and...Ch. 13 - Pareto chart and cost of quality report for a...Ch. 13 - Prob. 1PBCh. 13 - Lead time Master Chef Appliance Company...Ch. 13 - Lean accounting Com-Tel Inc. manufactures and...Ch. 13 - Pareto chart and cost of quality report for a...Ch. 13 - Prob. 1MADCh. 13 - Prob. 2MADCh. 13 - Prob. 3MADCh. 13 - Prob. 4MADCh. 13 - Ethics in Action In August, Lannister Company...Ch. 13 - Prob. 3TIFCh. 13 - Prob. 1CMACh. 13 - Prob. 2CMACh. 13 - In measuring the cost of quality, which one of the...Ch. 13 - Prob. 4CMA
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- Suppose that clerical erroreither Thaynes or the suppliersis the common root cause of the non-value-added activities. For each non-value-added activity, ask a series of why questions that identify clerical error as the activitys root cause.arrow_forwardThe cost of maintaining records of Information is an example of cost. Internal failure costa Extemal failure costs Appraisal costs None of themarrow_forwardWhether any of the following sentences about abnormal spoiling is true? a. It is considered to be part of production.b. It is normally treated as a period costc. It is normally treated as a product cost.d. It is prorated between cost of goods sold and inventory.arrow_forward
- The cost of is not included in the cost of production a. Abnormal loss b. Direct costs c. Normal loss d. Scraparrow_forwardWhich of the following is not an external failure cost? a. correcting invoice errors b. rework c. warranty work d. processing returned merchandisearrow_forwardWhich of the following is true of abnormal spoilage? a. It is considered to be part of production. b. It is normally treated as a period cost c. It is normally treated as a product cost. d. It is prorated between cost of goods sold and inventory.arrow_forward
- Abnormal spoilage is properly classified as a. deferred charge b. extraordinary item c. period cost d. product costarrow_forwardIn using the high-low method, the data which relate to company’s operation during abnormal situation is: a. May or may not be used.b. Useful in the computations because all sets of data are important.c. Disregarded in the computations because they are not representative of the behavior of costs during a normal operation.d. Cannot be determined if the data is useful.arrow_forwardWrong allocation of common costs lead to A. Inaccurate estimation of cost of products or services B. Under utilization of capacity C. Lower profit margin D. All of the above are correctarrow_forward
- one of Common Reactions to Negative Information Select one: a. Goods cannot be delivered as promised. Ob. Product failure c. Billing error d. Disappointmentarrow_forwardMACRS stands for a. Modified Annual Cost Recovery System b. Modified Audited Cost Recovery System c. Modified Accounting Cost Recovery System d. Modified Accelerated Cost Recovery Systemarrow_forwardAs a result of cost distortion, some products will be overcosted while other products will be undercosted. True Falsearrow_forward
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