FINANCIAL ACCOUNTING: TOOL
FINANCIAL ACCOUNTING: TOOL
9th Edition
ISBN: 9781119598305
Author: Kimmel
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 9, Problem 9.3IE
To determine

Research and development costs: It refers to the expenditures spent on research, development, improvement or introduction of new products, processes, a new patent or even a copyright, that a company expects to get benefits.

To explain: the difference between development costs and development expenses and the appropriate classification of development expenditures.

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Cariman contracts delivery drivers to service customers. Cariman owns the vans and pays for the gas. With reference to the following independent situations for Cariman, determine where (a) responsibility and (b) controllability lie. Suggest what might be done to solve the problem or to improve the situation: 1. Gasoline costs for each van are budgeted based on the service area of the van and the amount of driving expected for the month. The driver of van 3 routinely has monthly gasoline costs exceeding the budget for van 3. After investigating, the service manager finds that the driver has been driving the van for personal use.2) Cariman’s delivery drivers are paid an hourly wage, with overtime pay if they exceed 40 hours per week, excluding driving time. Speedy Gonzales, one of the delivery drivers, frequently exceeds 40 hours per week. Customers are happy with Speedy’s work, but the delivery manager talks to him constantly about working more quickly. Speedy’s overtime causes the…
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