Accounting Information Systems
11th Edition
ISBN: 9781337676557
Author: Ulric J. Gelinas; Richard B. Dull; Patrick Wheeler
Publisher: Cengage Learning US
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Chapter 15, Problem 11DQ
Summary Introduction
To determine: The changes in the diagram if the firm used an actual costing process instead of a
Introduction:
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Answer the question ASAP.
29) Companies need to engage in target costing....
only if costs are primarily variable.
at the beginning of an accounting period.
before introducing a new product.
at the end of a product’s lifecycle.
Which of the following statements is true?
a. Activity based costing can be used in service companies
b. None of the given answers is correct.
O c. Activity based costing (ABC) can be used for external reporting.
d. Traditional costing cannot be used for internal reporting.
O e. A company can either choose Activity-based costing (ABC) or the traditional costing system to allocate its
costs for external reporting.
е.
Chapter 15 Solutions
Accounting Information Systems
Ch. 15 - Prob. 1RQCh. 15 - Explain the three key drivers of complexity in...Ch. 15 - Describe the three key characteristics of...Ch. 15 - Prob. 4RQCh. 15 - Prob. 5RQCh. 15 - Prob. 6RQCh. 15 - Prob. 7RQCh. 15 - Prob. 8RQCh. 15 - Prob. 9RQCh. 15 - Prob. 10RQ
Ch. 15 - Prob. 11RQCh. 15 - Prob. 12RQCh. 15 - a. How are a bill of materials (BOM) and a routing...Ch. 15 - Prob. 14RQCh. 15 - Prob. 15RQCh. 15 - Prob. 16RQCh. 15 - Prob. 17RQCh. 15 - Prob. 18RQCh. 15 - Why is inventory management and control important...Ch. 15 - Prob. 21RQCh. 15 - Prob. 1DQCh. 15 - Prob. 3DQCh. 15 - What industry do you believe is a leader in...Ch. 15 - Prob. 5DQCh. 15 - Prob. 6DQCh. 15 - Prob. 7DQCh. 15 - Prob. 8DQCh. 15 - In addition to the industries mentioned in...Ch. 15 - A main goal of JIT is zero inventories. a. Assume...Ch. 15 - Prob. 11DQCh. 15 - Discuss how the inventory process supports the...Ch. 15 - Prob. 13DQCh. 15 - Prob. 14DQCh. 15 - Prob. 1SPCh. 15 - Prob. 2SPCh. 15 - Prob. 3SPCh. 15 - Prob. 4SPCh. 15 - Prob. 5SPCh. 15 - Study Figure 15.8, showing the level 0 DFD of the...Ch. 15 - Prob. 3PCh. 15 - Prob. 4PCh. 15 - Prob. 5PCh. 15 - Prob. 6PCh. 15 - Prob. 7P
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- The following statements refer to organisations that use service costing:(i) The service provided will be a homogenous product.(ii) The cost of materials is relatively small compared to labour, expenses and overheads.(iii) A problem with service costing is the difficulty in defining a realistic cost unit.(iv) Inventory levels are generally high in-service costing industries.Which of the above statements are correct?a) (i) and (ii)b) (ii) and (iii)c) (ii) and (iv)d) (i) and (iv)arrow_forwardThe following statements refer to organisations that use service costing: (i) The service provided will be a homogenous product. (ii) The cost of materials is relatively small compared to labour, expenses and overheads. (iii) A problem with service costing is the difficulty in defining a realistic cost unit. (iv) Inventory levels are generally high in-service costing industries. Which of the above statements are correct? a) (i) and (ii) b) (ii) and (iii) c) (ii) and (iv) d) (i) and (iv)arrow_forwardPlease explain the statement below (T/F) thoroughly with examples illustrating the answer. "In activity-based costing, a product margin may exclude costs from some of the company’s activity cost pools."arrow_forward
- Hi-Tek Manufacturing, Incorporated, makes two industrial component parts-B300 and T500. An absorption costing income statement for the most recent period is shown below: Hi-Tek Manufacturing, Incorporated Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating loss Hi-Tek produced and sold 60,400 units of B300 at a price of $21 per unit and 12,800 units of T500 at a price of $39 per unit. The company's traditional cost system allocates manufacturing overhead to products using a plantwide overhead rate and direct labor dollars as the allocation base. Additional information relating to the company's two product lines is shown below: Direct materials Direct labor Manufacturing overhead Cost of goods sold $ 1,767,600 1,212,922 554,678 610,000 $ (55,322) 8300 T500 $ 400,300 $ 162,400 $ 120,100. $ 42,400 Activity Cost Pool (and Activity Measure) Machining (machine-hours) Setups (setup hours) Product-sustaining (number of products) Other…arrow_forwardAs we have discussed in previous chapters, product costs are made up of Direct Materials, Direct Labor and Manufacturing Overhead. In making a decision as to whether we should outsource the production of a product, do we take all of the product costs into consideration or do we make adjustment based on the type of cost behaviors? Please give examples.arrow_forwardI would like to get answers for a) 1 and 2 the question is attached below...arrow_forward
- Please explain the statement below (T/F) thoroughly with examples illustrating the answer. "To compute a product’s profit or product margin, the product’s sales and direct costs are needed in addition to the overhead costs computed in an activity-based costing system."arrow_forwardPlease do not give solution in image format thankuarrow_forwardWhich of the following statements is false? Multiple Choice Examples of selling costs include shipping, sales commissions, and costs of finished goods warehouses. Discretionary fixed costs may be altered in the short term by current managerial decisions. A particular cost may be direct or indirect depending on the cost object. All sunk costs should be ignored in making a decision. Some of the conversion costs are period costs.arrow_forward
- I need the answer as soon as possiblearrow_forwardWhich of the following is/ are considered as the uses of standard costing? Statement 1: Establishing standards that reflect efficient operating conditions Statement 2: Helping managers understand what needs to be done to improve current and future performance. Statement 3: Achieving significant revenue reductions. Group of choices: Statements 1 and 2 Statements 1 and 3 Statements 1, 2 and 3 Statements 2 and 3arrow_forwardThe EUP will be the same under FIFO method and weighted average methos if there is no beginning work in process inventory. In process costing the cost per unit in a department is found by spreading the period’s production costs over the production activity. Group of answer choices Both statements are false. Only statement I is true. Only statement II is true. Both statements are true.arrow_forward
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