1) Introduction: Business Activities and Nature of Costs in Fast Food Business • There are several business activities that take place right from when a customer enters the organization up until when he leaves after successfully placing and receiving an order. • Some of the activities are contributory to costs and profits and some are non-monetary items. However the non-monetary items also have a contribution to the bottom line as they indirectly influence the revenues and profits. • Examples of Value Added activities are: Process of Preparation of Order, Packaging and Delivery of goods etc. • Examples of Non Value Added activities are: Waiting time to process customers’ orders To Determine: Business activities from the time a customer arrives to the time the customer departs.

Question

Want to see the full answer?

Answer 1

Question

Chapter 18, Problem 8BTN

To determine

1)

Introduction:

Business Activities and Nature of Costs in Fast Food Business

• There are several business activities that take place right from when a customer enters the organization up until when he leaves after successfully placing and receiving an order.

• Some of the activities are contributory to costs and profits and some are non-monetary items. However the non-monetary items also have a contribution to the bottom line as they indirectly influence the revenues and profits.

• Examples of Value Added activities are: Process of Preparation of Order, Packaging and Delivery of goods etc.

• Examples of Non Value Added activities are: Waiting time to process customers’ orders

To Determine:

Business activities from the time a customer arrives to the time the customer departs.

To determine

2)

Introduction:

Cost Classification

• The time taken from the start of the sale process, i.e. the receipt of a confirmed sales order, to the completion of the transfer of goods or services, i.e. dispatch of goods consists of several activities and costs. Components of costs are Costs of Value added activities comprising of Variable costs and manufacturing costs and Costs of Value added activities such as fixed costs.

• Variable costs refer to the costs of manufacture that have a direct co-relation with the volume of the goods manufactured, i.e. the costs increase with an increase in the goods produced. Examples are costs of direct material and direct labor.

• Manufacturing costs are costs that are directly incurred in connection with manufacture of goods. Examples are Direct materials and Manufacturing Overhead

• Fixed costs refer to the costs of manufacture that have an inverse co-relation with the volume of the goods manufactured, i.e. the costs decrease with an increase in the goods produced. Examples are costs of factory rent, depreciation on plant and equipment

To Determine:

Costs from Business activities from the time a customer arrives to the time the customer departs.

To determine

3)

Introduction:

Cost Classification

• The time taken from the start of the sale process, i.e. the receipt of a confirmed sales order, to the completion of the transfer of goods or services, i.e. dispatch of goods consists of several activities and costs. Components of costs are Costs of Value added activities comprising of Variable costs and manufacturing costs and Costs of Value added activities such as fixed costs.

• Variable costs refer to the costs of manufacture that have a direct co-relation with the volume of the goods manufactured, i.e. the costs increase with an increase in the goods produced. Examples are costs of direct material and direct labor.

• Manufacturing costs are costs that are directly incurred in connection with manufacture of goods. Examples are Direct materials and Manufacturing Overhead

• Fixed costs refer to the costs of manufacture that have an inverse co-relation with the volume of the goods manufactured, i.e. the costs decrease with an increase in the goods produced. Examples are costs of factory rent, depreciation on plant and equipment

To Determine:

Costs from Business activities from the time a customer arrives to the time the customer departs as Variable or Fixed

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Question 2 U. Richards does not keep his books on the double entry system. His bank summary amount for 2010 is as follows: Balance 1.1.2010 1890 Receipts from $44656 debtors Creditors Loan from U. Miller $2.000 Rates Rent Drawings Cash withdrawn from bank $540 0 Payment to Trade $316 95 2750 1316 3095 1642 Sundry Expense Records of cash paid were sundry $122, trade creditors $642. Cash sales amounted to cash drawings were $5289. The following information is also available: 31.12.201 31.12.2 0 011 Cash in hand $48 $93 Trade creditors $4896 $5091 Accounts Receivables 60 $71 13 32 Rent Owing $250 Rates in Advance $282 $312 Motor van (at valuation) 2800 2400 Stock 11163 13021 Required: A. Statement of Affairs. (to find opening capital as at 31.12.2010) B. Cash Account & Bank Account. C. Accounts Receivables & Accounts Payables Control A/Cs. D. Income Statement for the year ended 31 December 2011.

2: Martin Hughes earns net self-employment income of $157,100. He works a second job from which he receives FICA taxable earnings of $127,600. Self-Employment tax = $ 6,440.70 3: Elisa Grant earns net self-employment income of $198,000. She works a second job from which she receives FICA taxable earnings of $100,400. Self-Employment tax = $ 30,294.00

Cash Accounts Receivable Supplies Prepaid Insurance Equipment Notes Payable Accounts Payable The Lexington Group Unadjusted Trial Balance May 31, 2016 Debit Balances Credit Balances 20,350 37,000 1,100 200 171,175 36,000 26,000 Common Stock 50,000 Retained Earnings 94,150 Dividends 15,000 Fees Earned 429,850 Wages Expense 270,000 Rent Expense 63,000 Advertising Expense 25,200 Miscellaneous Expense 5,100 608,125 636,000

Answer 2

Question

Chapter 18, Problem 8BTN

To determine

1)

Introduction:

Business Activities and Nature of Costs in Fast Food Business

• There are several business activities that take place right from when a customer enters the organization up until when he leaves after successfully placing and receiving an order.

• Some of the activities are contributory to costs and profits and some are non-monetary items. However the non-monetary items also have a contribution to the bottom line as they indirectly influence the revenues and profits.

• Examples of Value Added activities are: Process of Preparation of Order, Packaging and Delivery of goods etc.

• Examples of Non Value Added activities are: Waiting time to process customers’ orders

To Determine:

Business activities from the time a customer arrives to the time the customer departs.

To determine

2)

Introduction:

Cost Classification

• The time taken from the start of the sale process, i.e. the receipt of a confirmed sales order, to the completion of the transfer of goods or services, i.e. dispatch of goods consists of several activities and costs. Components of costs are Costs of Value added activities comprising of Variable costs and manufacturing costs and Costs of Value added activities such as fixed costs.

• Variable costs refer to the costs of manufacture that have a direct co-relation with the volume of the goods manufactured, i.e. the costs increase with an increase in the goods produced. Examples are costs of direct material and direct labor.

• Manufacturing costs are costs that are directly incurred in connection with manufacture of goods. Examples are Direct materials and Manufacturing Overhead

• Fixed costs refer to the costs of manufacture that have an inverse co-relation with the volume of the goods manufactured, i.e. the costs decrease with an increase in the goods produced. Examples are costs of factory rent, depreciation on plant and equipment

To Determine:

Costs from Business activities from the time a customer arrives to the time the customer departs.

To determine

3)

Introduction:

Cost Classification

• The time taken from the start of the sale process, i.e. the receipt of a confirmed sales order, to the completion of the transfer of goods or services, i.e. dispatch of goods consists of several activities and costs. Components of costs are Costs of Value added activities comprising of Variable costs and manufacturing costs and Costs of Value added activities such as fixed costs.

• Variable costs refer to the costs of manufacture that have a direct co-relation with the volume of the goods manufactured, i.e. the costs increase with an increase in the goods produced. Examples are costs of direct material and direct labor.

• Manufacturing costs are costs that are directly incurred in connection with manufacture of goods. Examples are Direct materials and Manufacturing Overhead

• Fixed costs refer to the costs of manufacture that have an inverse co-relation with the volume of the goods manufactured, i.e. the costs decrease with an increase in the goods produced. Examples are costs of factory rent, depreciation on plant and equipment

To Determine:

Costs from Business activities from the time a customer arrives to the time the customer departs as Variable or Fixed

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 18, Problem 8BTN

To determine

1)

Introduction:

Business Activities and Nature of Costs in Fast Food Business

• There are several business activities that take place right from when a customer enters the organization up until when he leaves after successfully placing and receiving an order.

• Some of the activities are contributory to costs and profits and some are non-monetary items. However the non-monetary items also have a contribution to the bottom line as they indirectly influence the revenues and profits.

• Examples of Value Added activities are: Process of Preparation of Order, Packaging and Delivery of goods etc.

• Examples of Non Value Added activities are: Waiting time to process customers’ orders

To Determine:

Business activities from the time a customer arrives to the time the customer departs.

To determine

2)

Introduction:

Cost Classification

• The time taken from the start of the sale process, i.e. the receipt of a confirmed sales order, to the completion of the transfer of goods or services, i.e. dispatch of goods consists of several activities and costs. Components of costs are Costs of Value added activities comprising of Variable costs and manufacturing costs and Costs of Value added activities such as fixed costs.

• Variable costs refer to the costs of manufacture that have a direct co-relation with the volume of the goods manufactured, i.e. the costs increase with an increase in the goods produced. Examples are costs of direct material and direct labor.

• Manufacturing costs are costs that are directly incurred in connection with manufacture of goods. Examples are Direct materials and Manufacturing Overhead

• Fixed costs refer to the costs of manufacture that have an inverse co-relation with the volume of the goods manufactured, i.e. the costs decrease with an increase in the goods produced. Examples are costs of factory rent, depreciation on plant and equipment

To Determine:

Costs from Business activities from the time a customer arrives to the time the customer departs.

To determine

3)

Introduction:

Cost Classification

• The time taken from the start of the sale process, i.e. the receipt of a confirmed sales order, to the completion of the transfer of goods or services, i.e. dispatch of goods consists of several activities and costs. Components of costs are Costs of Value added activities comprising of Variable costs and manufacturing costs and Costs of Value added activities such as fixed costs.

• Variable costs refer to the costs of manufacture that have a direct co-relation with the volume of the goods manufactured, i.e. the costs increase with an increase in the goods produced. Examples are costs of direct material and direct labor.

• Manufacturing costs are costs that are directly incurred in connection with manufacture of goods. Examples are Direct materials and Manufacturing Overhead

• Fixed costs refer to the costs of manufacture that have an inverse co-relation with the volume of the goods manufactured, i.e. the costs decrease with an increase in the goods produced. Examples are costs of factory rent, depreciation on plant and equipment

To Determine:

Costs from Business activities from the time a customer arrives to the time the customer departs as Variable or Fixed

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 18, Problem 8BTN

To determine

1)

Introduction:

Business Activities and Nature of Costs in Fast Food Business

• There are several business activities that take place right from when a customer enters the organization up until when he leaves after successfully placing and receiving an order.

• Some of the activities are contributory to costs and profits and some are non-monetary items. However the non-monetary items also have a contribution to the bottom line as they indirectly influence the revenues and profits.

• Examples of Value Added activities are: Process of Preparation of Order, Packaging and Delivery of goods etc.

• Examples of Non Value Added activities are: Waiting time to process customers’ orders

To Determine:

Business activities from the time a customer arrives to the time the customer departs.

To determine

2)

Introduction:

Cost Classification

• The time taken from the start of the sale process, i.e. the receipt of a confirmed sales order, to the completion of the transfer of goods or services, i.e. dispatch of goods consists of several activities and costs. Components of costs are Costs of Value added activities comprising of Variable costs and manufacturing costs and Costs of Value added activities such as fixed costs.

• Variable costs refer to the costs of manufacture that have a direct co-relation with the volume of the goods manufactured, i.e. the costs increase with an increase in the goods produced. Examples are costs of direct material and direct labor.

• Manufacturing costs are costs that are directly incurred in connection with manufacture of goods. Examples are Direct materials and Manufacturing Overhead

• Fixed costs refer to the costs of manufacture that have an inverse co-relation with the volume of the goods manufactured, i.e. the costs decrease with an increase in the goods produced. Examples are costs of factory rent, depreciation on plant and equipment

To Determine:

Costs from Business activities from the time a customer arrives to the time the customer departs.

To determine

3)

Introduction:

Cost Classification

• The time taken from the start of the sale process, i.e. the receipt of a confirmed sales order, to the completion of the transfer of goods or services, i.e. dispatch of goods consists of several activities and costs. Components of costs are Costs of Value added activities comprising of Variable costs and manufacturing costs and Costs of Value added activities such as fixed costs.

• Variable costs refer to the costs of manufacture that have a direct co-relation with the volume of the goods manufactured, i.e. the costs increase with an increase in the goods produced. Examples are costs of direct material and direct labor.

• Manufacturing costs are costs that are directly incurred in connection with manufacture of goods. Examples are Direct materials and Manufacturing Overhead

• Fixed costs refer to the costs of manufacture that have an inverse co-relation with the volume of the goods manufactured, i.e. the costs decrease with an increase in the goods produced. Examples are costs of factory rent, depreciation on plant and equipment

To Determine:

Costs from Business activities from the time a customer arrives to the time the customer departs as Variable or Fixed

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 18, Problem 8BTN

To determine

1)

Introduction:

Business Activities and Nature of Costs in Fast Food Business

• There are several business activities that take place right from when a customer enters the organization up until when he leaves after successfully placing and receiving an order.

• Some of the activities are contributory to costs and profits and some are non-monetary items. However the non-monetary items also have a contribution to the bottom line as they indirectly influence the revenues and profits.

• Examples of Value Added activities are: Process of Preparation of Order, Packaging and Delivery of goods etc.

• Examples of Non Value Added activities are: Waiting time to process customers’ orders

To Determine:

Business activities from the time a customer arrives to the time the customer departs.

To determine

2)

Introduction:

Cost Classification

• The time taken from the start of the sale process, i.e. the receipt of a confirmed sales order, to the completion of the transfer of goods or services, i.e. dispatch of goods consists of several activities and costs. Components of costs are Costs of Value added activities comprising of Variable costs and manufacturing costs and Costs of Value added activities such as fixed costs.

• Variable costs refer to the costs of manufacture that have a direct co-relation with the volume of the goods manufactured, i.e. the costs increase with an increase in the goods produced. Examples are costs of direct material and direct labor.

• Manufacturing costs are costs that are directly incurred in connection with manufacture of goods. Examples are Direct materials and Manufacturing Overhead

• Fixed costs refer to the costs of manufacture that have an inverse co-relation with the volume of the goods manufactured, i.e. the costs decrease with an increase in the goods produced. Examples are costs of factory rent, depreciation on plant and equipment

To Determine:

Costs from Business activities from the time a customer arrives to the time the customer departs.

To determine

3)

Introduction:

Cost Classification

• The time taken from the start of the sale process, i.e. the receipt of a confirmed sales order, to the completion of the transfer of goods or services, i.e. dispatch of goods consists of several activities and costs. Components of costs are Costs of Value added activities comprising of Variable costs and manufacturing costs and Costs of Value added activities such as fixed costs.

• Variable costs refer to the costs of manufacture that have a direct co-relation with the volume of the goods manufactured, i.e. the costs increase with an increase in the goods produced. Examples are costs of direct material and direct labor.

• Manufacturing costs are costs that are directly incurred in connection with manufacture of goods. Examples are Direct materials and Manufacturing Overhead

• Fixed costs refer to the costs of manufacture that have an inverse co-relation with the volume of the goods manufactured, i.e. the costs decrease with an increase in the goods produced. Examples are costs of factory rent, depreciation on plant and equipment

To Determine:

Costs from Business activities from the time a customer arrives to the time the customer departs as Variable or Fixed

Answer 6

Chapter 18, Problem 8BTN

To determine

1)

Introduction:

Business Activities and Nature of Costs in Fast Food Business

• There are several business activities that take place right from when a customer enters the organization up until when he leaves after successfully placing and receiving an order.

• Some of the activities are contributory to costs and profits and some are non-monetary items. However the non-monetary items also have a contribution to the bottom line as they indirectly influence the revenues and profits.

• Examples of Value Added activities are: Process of Preparation of Order, Packaging and Delivery of goods etc.

• Examples of Non Value Added activities are: Waiting time to process customers’ orders

To Determine:

Business activities from the time a customer arrives to the time the customer departs.

Answer 7

Chapter 18, Problem 8BTN

To determine

1)

Introduction:

Business Activities and Nature of Costs in Fast Food Business

• There are several business activities that take place right from when a customer enters the organization up until when he leaves after successfully placing and receiving an order.

• Some of the activities are contributory to costs and profits and some are non-monetary items. However the non-monetary items also have a contribution to the bottom line as they indirectly influence the revenues and profits.

• Examples of Value Added activities are: Process of Preparation of Order, Packaging and Delivery of goods etc.

• Examples of Non Value Added activities are: Waiting time to process customers’ orders

To Determine:

Business activities from the time a customer arrives to the time the customer departs.

Answer 8

To determine

2)

Introduction:

Cost Classification

• The time taken from the start of the sale process, i.e. the receipt of a confirmed sales order, to the completion of the transfer of goods or services, i.e. dispatch of goods consists of several activities and costs. Components of costs are Costs of Value added activities comprising of Variable costs and manufacturing costs and Costs of Value added activities such as fixed costs.

• Variable costs refer to the costs of manufacture that have a direct co-relation with the volume of the goods manufactured, i.e. the costs increase with an increase in the goods produced. Examples are costs of direct material and direct labor.

• Manufacturing costs are costs that are directly incurred in connection with manufacture of goods. Examples are Direct materials and Manufacturing Overhead

• Fixed costs refer to the costs of manufacture that have an inverse co-relation with the volume of the goods manufactured, i.e. the costs decrease with an increase in the goods produced. Examples are costs of factory rent, depreciation on plant and equipment

To Determine:

Costs from Business activities from the time a customer arrives to the time the customer departs.

Answer 9

To determine

2)

Introduction:

Cost Classification

• The time taken from the start of the sale process, i.e. the receipt of a confirmed sales order, to the completion of the transfer of goods or services, i.e. dispatch of goods consists of several activities and costs. Components of costs are Costs of Value added activities comprising of Variable costs and manufacturing costs and Costs of Value added activities such as fixed costs.

• Variable costs refer to the costs of manufacture that have a direct co-relation with the volume of the goods manufactured, i.e. the costs increase with an increase in the goods produced. Examples are costs of direct material and direct labor.

• Manufacturing costs are costs that are directly incurred in connection with manufacture of goods. Examples are Direct materials and Manufacturing Overhead

• Fixed costs refer to the costs of manufacture that have an inverse co-relation with the volume of the goods manufactured, i.e. the costs decrease with an increase in the goods produced. Examples are costs of factory rent, depreciation on plant and equipment

To Determine:

Costs from Business activities from the time a customer arrives to the time the customer departs.

Answer 10

To determine

3)

Introduction:

Cost Classification

• The time taken from the start of the sale process, i.e. the receipt of a confirmed sales order, to the completion of the transfer of goods or services, i.e. dispatch of goods consists of several activities and costs. Components of costs are Costs of Value added activities comprising of Variable costs and manufacturing costs and Costs of Value added activities such as fixed costs.

• Variable costs refer to the costs of manufacture that have a direct co-relation with the volume of the goods manufactured, i.e. the costs increase with an increase in the goods produced. Examples are costs of direct material and direct labor.

• Manufacturing costs are costs that are directly incurred in connection with manufacture of goods. Examples are Direct materials and Manufacturing Overhead

• Fixed costs refer to the costs of manufacture that have an inverse co-relation with the volume of the goods manufactured, i.e. the costs decrease with an increase in the goods produced. Examples are costs of factory rent, depreciation on plant and equipment

To Determine:

Costs from Business activities from the time a customer arrives to the time the customer departs as Variable or Fixed

Answer 11

To determine

3)

Introduction:

Cost Classification

• The time taken from the start of the sale process, i.e. the receipt of a confirmed sales order, to the completion of the transfer of goods or services, i.e. dispatch of goods consists of several activities and costs. Components of costs are Costs of Value added activities comprising of Variable costs and manufacturing costs and Costs of Value added activities such as fixed costs.

• Variable costs refer to the costs of manufacture that have a direct co-relation with the volume of the goods manufactured, i.e. the costs increase with an increase in the goods produced. Examples are costs of direct material and direct labor.

• Manufacturing costs are costs that are directly incurred in connection with manufacture of goods. Examples are Direct materials and Manufacturing Overhead

• Fixed costs refer to the costs of manufacture that have an inverse co-relation with the volume of the goods manufactured, i.e. the costs decrease with an increase in the goods produced. Examples are costs of factory rent, depreciation on plant and equipment

To Determine:

Costs from Business activities from the time a customer arrives to the time the customer departs as Variable or Fixed

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 15

Ch. 18 - Prob. 1DQ Ch. 18 - Prob. 2DQ Ch. 18 - Prob. 3DQ Ch. 18 - Prob. 4DQ Ch. 18 - Prob. 5DQ Ch. 18 - Prob. 6DQ Ch. 18 - Prob. 7DQ Ch. 18 - Prob. 8DQ Ch. 18 - Prob. 9DQ Ch. 18 - Prob. 10DQ

Concept explainers

Videos

Want to see the full answer?

Chapter 18 Solutions