Managerial Accounting: Creating Value in a Dynamic Business Environment

11th Edition

ISBN: 9781259569562

Author: Ronald W Hilton Proffesor Prof, David Platt

Publisher: McGraw-Hill Education

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Concept explainers

Process Costing

Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.

Job Costing

Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing …

ABC Costing

Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In compari…

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Textbook Question

Chapter 5, Problem 38E

Since you have always wanted to be an entrepreneur, invent your own product and describe at least five steps used in its production.

Required: Explain how you would go about identifying non-value-added costs in the production process.

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Chapter 5, Problem 37E

Chapter 5, Problem 39E

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Chapter 5 Solutions

Managerial Accounting: Creating Value in a Dynamic Business Environment

Ch. 5 - Briefly explain how a traditional, volume-based...Ch. 5 - Prob. 2RQ Ch. 5 - Explain how an activity-based costing system...Ch. 5 - What are cost drivers? What is their role in an...Ch. 5 - List and briefly describe the four broad...Ch. 5 - How can an activity-based costing system alleviate...Ch. 5 - Prob. 7RQ Ch. 5 - How is the distinction between direct and indirect...Ch. 5 - Explain the concept of a pool rate in...Ch. 5 - Briefly explain two factors that tend to result in...

Ch. 5 - List three factors that are important in selecting...Ch. 5 - Prob. 12RQ Ch. 5 - Explain why a new product-costing system may be...Ch. 5 - Prob. 14RQ Ch. 5 - Are activity-based costing systems appropriate for...Ch. 5 - Explain why maintaining their medical-services...Ch. 5 - How could the administration at Immunity Medical...Ch. 5 - Prob. 18RQ Ch. 5 - Prob. 19RQ Ch. 5 - What is meant by the term activity analysis? Give...Ch. 5 - Prob. 21RQ Ch. 5 - What is meant by customer-profitability analysis?...Ch. 5 - Explain the relationship between customer profit...Ch. 5 - What is a customer profitability profile?Ch. 5 - Describe the use of practical capacity in a TDABC...Ch. 5 - Tioga Company manufactures sophisticated lenses...Ch. 5 - Urban Elite Cosmetics has used a traditional cost...Ch. 5 - Kentaro Corporation manufactures Digital Video...Ch. 5 - Kentaro Corporation manufactures Digital Video...Ch. 5 - Prob. 31E Ch. 5 - Refer to the description given for Wheelco, Inc....Ch. 5 - Prob. 33E Ch. 5 - United Technologies Corporation implemented...Ch. 5 - Redwood Company sells craft kits and supplies to...Ch. 5 - Non-value-added costs occur in nonmanufacturing...Ch. 5 - Since you have always wanted to be an...Ch. 5 - Prob. 39E Ch. 5 - Prob. 42E Ch. 5 - Big Apple Design Company specializes in designing...Ch. 5 - Prob. 44E Ch. 5 - Borealis Manufacturing has just completed a major...Ch. 5 - Ontario, Inc. manufactures two products, Standard...Ch. 5 - Kitchen Kings Toledo plant manufactures three...Ch. 5 - Prob. 48P Ch. 5 - Maxey Sons manufactures two types of storage...Ch. 5 - Prob. 50P Ch. 5 - John Patrick has recently been hired as controller...Ch. 5 - The controller for Tulsa Medical Supply Company...Ch. 5 - Prob. 53P Ch. 5 - Prob. 54P Ch. 5 - Prob. 55P Ch. 5 - World Gourmet Coffee Company (WGCC) is a...Ch. 5 - Knickknack, Inc. manufactures two products: Odds...Ch. 5 - Prob. 58P Ch. 5 - Marconi Manufacturing produces two items in its...Ch. 5 - Gigabyte, Inc. manufactures three products for the...Ch. 5 - Refer to the new target prices for Gigabytes three...Ch. 5 - Prob. 62P Ch. 5 - Better Bagels, Inc. manufactures a variety of...Ch. 5 - Midwest Home Furnishings Corporation (MHFC)...Ch. 5 - Fresno Fiber Optics, Inc. manufactures fiber optic...Ch. 5 - Refer to the information given in the preceding...Ch. 5 - Whitestone Company produces two subassemblies,...Ch. 5 - Morelli Electric Motor Corporation manufactures...Ch. 5 - Refer to the product costs developed in...Ch. 5 - Morelli Electric Motor Corporations controller,...

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Since you have always wanted to be an entrepreneur, invent your own product and describe at least five steps used in its production. Required: Explain how you would go about identifying non-value-added costs in the production process.

Solution Summary: The author explains that non-value-added costs do not add to the desirability of a product and can be removed without declining the product’s quality, perceived value or performance.

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Chapter 5 Solutions