(a) Mary Barett is not sure about the difference between cost accounting and a cost accounting system. Explain the difference to Mary. (b) What is an important feature of a cost accounting system?

Question

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Answer 1

Textbook Question

Chapter 2, Problem 1Q

(a) Mary Barett is not sure about the difference between cost accounting and a cost accounting system. Explain the difference to Mary.

(b) What is an important feature of a cost accounting system?

(a)

Expert Solution

To determine

Cost accounting:

Cost accounting is the process of collecting, summarizing and then evaluating each and every alternative course of action that can be undertaken in order to produce a product. The alternative with the most efficient results would be chosen.

To determine: The difference between cost accounting and a cost accounting system.

Explanation of Solution

The difference between cost accounting and a cost accounting system is explained as below.

Cost accounting is the process of collecting, summarizing and then evaluating each and every alternative course of action that can be undertaken in order to produce a product. The alternative with the most efficient results would be chosen.

Cost accounting system is a branch of managerial accounting that is concerned with the accumulation of all the costs that have been incurred in the production of a product and the using such information for decision making purposes.

Conclusion

Hence, the difference between cost accounting and a cost accounting system is explained as above.

(b)

Expert Solution

To determine

Cost accounting:

Cost accounting is the process of collecting, summarizing and then evaluating each and every alternative course of action that can be undertaken in order to produce a product. The alternative with the most efficient results would be chosen.

To determine: The important feature of a cost accounting system.

Explanation of Solution

The most important and the most crucial feature of the system is the use of perpetual inventory system. Perpetual inventory system is the system that records the sale as well as the purchase of inventory in the near real time. The system provides the highest details on the changes that are made in the inventory.

Conclusion

Hence, the most important feature of a cost accounting system is stated as above.

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03:37

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Rocky River Fast Lube does oil changes on vehicles in 15 minutes or less. The variable cost associated with each oil change is $12 (oil, filter, and 15 minutes of employee time). The fixed costs of running the shop are $8,000 each month (store manager salary, depreciation on shop and equipment, insurance, and property taxes). The shop has the capacity to perform 4,000 oil changes each month.

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Answer 2

Textbook Question

Chapter 2, Problem 1Q

(a) Mary Barett is not sure about the difference between cost accounting and a cost accounting system. Explain the difference to Mary.

(b) What is an important feature of a cost accounting system?

(a)

Expert Solution

To determine

Cost accounting:

Cost accounting is the process of collecting, summarizing and then evaluating each and every alternative course of action that can be undertaken in order to produce a product. The alternative with the most efficient results would be chosen.

To determine: The difference between cost accounting and a cost accounting system.

Explanation of Solution

The difference between cost accounting and a cost accounting system is explained as below.

Cost accounting is the process of collecting, summarizing and then evaluating each and every alternative course of action that can be undertaken in order to produce a product. The alternative with the most efficient results would be chosen.

Cost accounting system is a branch of managerial accounting that is concerned with the accumulation of all the costs that have been incurred in the production of a product and the using such information for decision making purposes.

Conclusion

Hence, the difference between cost accounting and a cost accounting system is explained as above.

(b)

Expert Solution

To determine

Cost accounting:

Cost accounting is the process of collecting, summarizing and then evaluating each and every alternative course of action that can be undertaken in order to produce a product. The alternative with the most efficient results would be chosen.

To determine: The important feature of a cost accounting system.

Explanation of Solution

The most important and the most crucial feature of the system is the use of perpetual inventory system. Perpetual inventory system is the system that records the sale as well as the purchase of inventory in the near real time. The system provides the highest details on the changes that are made in the inventory.

Conclusion

Hence, the most important feature of a cost accounting system is stated as above.

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03:37

Answer 3

Textbook Question

Chapter 2, Problem 1Q

(a) Mary Barett is not sure about the difference between cost accounting and a cost accounting system. Explain the difference to Mary.

(b) What is an important feature of a cost accounting system?

(a)

Expert Solution

To determine

Cost accounting:

Cost accounting is the process of collecting, summarizing and then evaluating each and every alternative course of action that can be undertaken in order to produce a product. The alternative with the most efficient results would be chosen.

To determine: The difference between cost accounting and a cost accounting system.

Explanation of Solution

The difference between cost accounting and a cost accounting system is explained as below.

Cost accounting is the process of collecting, summarizing and then evaluating each and every alternative course of action that can be undertaken in order to produce a product. The alternative with the most efficient results would be chosen.

Cost accounting system is a branch of managerial accounting that is concerned with the accumulation of all the costs that have been incurred in the production of a product and the using such information for decision making purposes.

Conclusion

Hence, the difference between cost accounting and a cost accounting system is explained as above.

(b)

Expert Solution

To determine

Cost accounting:

Cost accounting is the process of collecting, summarizing and then evaluating each and every alternative course of action that can be undertaken in order to produce a product. The alternative with the most efficient results would be chosen.

To determine: The important feature of a cost accounting system.

Explanation of Solution

The most important and the most crucial feature of the system is the use of perpetual inventory system. Perpetual inventory system is the system that records the sale as well as the purchase of inventory in the near real time. The system provides the highest details on the changes that are made in the inventory.

Conclusion

Hence, the most important feature of a cost accounting system is stated as above.

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03:37

Answer 4

Textbook Question

Chapter 2, Problem 1Q

(a) Mary Barett is not sure about the difference between cost accounting and a cost accounting system. Explain the difference to Mary.

(b) What is an important feature of a cost accounting system?

(a)

Expert Solution

To determine

Cost accounting:

Cost accounting is the process of collecting, summarizing and then evaluating each and every alternative course of action that can be undertaken in order to produce a product. The alternative with the most efficient results would be chosen.

To determine: The difference between cost accounting and a cost accounting system.

Explanation of Solution

The difference between cost accounting and a cost accounting system is explained as below.

Cost accounting is the process of collecting, summarizing and then evaluating each and every alternative course of action that can be undertaken in order to produce a product. The alternative with the most efficient results would be chosen.

Cost accounting system is a branch of managerial accounting that is concerned with the accumulation of all the costs that have been incurred in the production of a product and the using such information for decision making purposes.

Conclusion

Hence, the difference between cost accounting and a cost accounting system is explained as above.

(b)

Expert Solution

To determine

Cost accounting:

Cost accounting is the process of collecting, summarizing and then evaluating each and every alternative course of action that can be undertaken in order to produce a product. The alternative with the most efficient results would be chosen.

To determine: The important feature of a cost accounting system.

Explanation of Solution

The most important and the most crucial feature of the system is the use of perpetual inventory system. Perpetual inventory system is the system that records the sale as well as the purchase of inventory in the near real time. The system provides the highest details on the changes that are made in the inventory.

Conclusion

Hence, the most important feature of a cost accounting system is stated as above.

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03:37

Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

(a)

Expert Solution

To determine

Cost accounting:

Cost accounting is the process of collecting, summarizing and then evaluating each and every alternative course of action that can be undertaken in order to produce a product. The alternative with the most efficient results would be chosen.

To determine: The difference between cost accounting and a cost accounting system.

Explanation of Solution

The difference between cost accounting and a cost accounting system is explained as below.

Cost accounting is the process of collecting, summarizing and then evaluating each and every alternative course of action that can be undertaken in order to produce a product. The alternative with the most efficient results would be chosen.

Cost accounting system is a branch of managerial accounting that is concerned with the accumulation of all the costs that have been incurred in the production of a product and the using such information for decision making purposes.

Conclusion

Hence, the difference between cost accounting and a cost accounting system is explained as above.

(b)

Expert Solution

To determine

Cost accounting:

Cost accounting is the process of collecting, summarizing and then evaluating each and every alternative course of action that can be undertaken in order to produce a product. The alternative with the most efficient results would be chosen.

To determine: The important feature of a cost accounting system.

Explanation of Solution

The most important and the most crucial feature of the system is the use of perpetual inventory system. Perpetual inventory system is the system that records the sale as well as the purchase of inventory in the near real time. The system provides the highest details on the changes that are made in the inventory.

Conclusion

Hence, the most important feature of a cost accounting system is stated as above.

Answer 8

(a)

Expert Solution

To determine

Cost accounting:

Cost accounting is the process of collecting, summarizing and then evaluating each and every alternative course of action that can be undertaken in order to produce a product. The alternative with the most efficient results would be chosen.

To determine: The difference between cost accounting and a cost accounting system.

Explanation of Solution

The difference between cost accounting and a cost accounting system is explained as below.

Cost accounting is the process of collecting, summarizing and then evaluating each and every alternative course of action that can be undertaken in order to produce a product. The alternative with the most efficient results would be chosen.

Cost accounting system is a branch of managerial accounting that is concerned with the accumulation of all the costs that have been incurred in the production of a product and the using such information for decision making purposes.

Conclusion

Hence, the difference between cost accounting and a cost accounting system is explained as above.

Answer 9

(a)

Expert Solution

Answer 10

(a)

Expert Solution

Answer 11

Expert Solution

Answer 12

To determine

Cost accounting:

Cost accounting is the process of collecting, summarizing and then evaluating each and every alternative course of action that can be undertaken in order to produce a product. The alternative with the most efficient results would be chosen.

To determine: The difference between cost accounting and a cost accounting system.

Answer 13

Explanation of Solution

The difference between cost accounting and a cost accounting system is explained as below.

Cost accounting is the process of collecting, summarizing and then evaluating each and every alternative course of action that can be undertaken in order to produce a product. The alternative with the most efficient results would be chosen.

Cost accounting system is a branch of managerial accounting that is concerned with the accumulation of all the costs that have been incurred in the production of a product and the using such information for decision making purposes.

Answer 14

Conclusion

Hence, the difference between cost accounting and a cost accounting system is explained as above.

Answer 15

(b)

Expert Solution

To determine

Cost accounting:

Cost accounting is the process of collecting, summarizing and then evaluating each and every alternative course of action that can be undertaken in order to produce a product. The alternative with the most efficient results would be chosen.

To determine: The important feature of a cost accounting system.

Explanation of Solution

The most important and the most crucial feature of the system is the use of perpetual inventory system. Perpetual inventory system is the system that records the sale as well as the purchase of inventory in the near real time. The system provides the highest details on the changes that are made in the inventory.

Conclusion

Hence, the most important feature of a cost accounting system is stated as above.

Answer 16

(b)

Expert Solution

Answer 17

(b)

Expert Solution

Answer 18

Expert Solution

Answer 19

To determine

Cost accounting:

Cost accounting is the process of collecting, summarizing and then evaluating each and every alternative course of action that can be undertaken in order to produce a product. The alternative with the most efficient results would be chosen.

To determine: The important feature of a cost accounting system.

Answer 20

Explanation of Solution

The most important and the most crucial feature of the system is the use of perpetual inventory system. Perpetual inventory system is the system that records the sale as well as the purchase of inventory in the near real time. The system provides the highest details on the changes that are made in the inventory.

Answer 21

Conclusion

Hence, the most important feature of a cost accounting system is stated as above.

Answer 22

Ch. 2 - (a) Mary Barett is not sure about the difference...Ch. 2 - Prob. 2Q Ch. 2 - What type of industry is likely to use a job order...Ch. 2 - What type of industry is likely to use a process...Ch. 2 - Your roommate asks your help in understanding the...Ch. 2 - Prob. 6Q Ch. 2 - What source documents are used in accumulating...Ch. 2 - Entries to Manufacturing Overhead normally are...Ch. 2 - Stan Kaiser is confused about the source documents...Ch. 2 - What is the purpose of a job cost sheet?

(a) Mary Barett is not sure about the difference between cost accounting and a cost accounting system. Explain the difference to Mary. (b) What is an important feature of a cost accounting system?

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