Solutions for Managerial Accounting
Problem 2DQ:
What is a driver? Give an example of a cost and its corresponding output measure or driver.Problem 3DQ:
Suppose a company finds that shipping cost is 3,560 each month plus 6.70 per package shipped. What...Problem 4DQ:
Some firms assign mixed costs to either the fixed or variable cost categories without using any...Problem 5DQ:
Explain the difference between committed and discretionary fixed costs. Give examples of each.Problem 7DQ:
Why do mixed costs pose a problem when it comes to classifying costs into fixed and variable...Problem 8DQ:
Describe the cost formula for a strictly fixed cost such as depreciation of 15,000 per year.Problem 9DQ:
Describe the cost formula for a strictly variable cost such as electrical power cost of 1.15 per...Problem 10DQ:
What is the scattergraph method, and why is it used? Why is a scattergraph a good first step in...Problem 11DQ:
Describe how the scattergraph method breaks out the fixed and variable costs from a mixed cost. Now...Problem 12DQ:
What are the advantages of the scattergraph method over the high-low method? The high-low method...Problem 14DQ:
What is meant by the best-fitting line?Problem 15DQ:
What is the difference between the unit cost of a product under absorption costing and variable...Problem 1MCQ:
A factor that causes or leads to a change in a cost or activity is a(n) a. slope. b. intercept. c....Problem 2MCQ:
Which of the following would probably be a variable cost in a soda bottling plant? a. Direct labor...Problem 4MCQ:
In the cost formula, the term 128,000,000 a. is the total variable cost. b. is the dependent...Problem 5MCQ:
In the cost formula, the term 12,000 a. is the variable rate. b. is the dependent variable. c. is...Problem 8MCQ:
The following cost formula for total purchasing cost in a factory was developed using monthly data....Problem 9MCQ:
An advantage of the high-low method is that it a. is subjective. b. is objective. c. is the most...Problem 13MCQ:
The total cost for monthly supervisory cost in a factory is 4,500 regardless of how many hours the...Problem 14MCQ:
Yates Company shows the following unit costs for its product: Yates started the year with 8,000...Problem 15MCQ:
(Appendix 3A) In the method of least squares, the coefficient that tells the percentage of variation...Problem 16BEA:
Creating and Using a Cost Formula Big Thumbs Company manufactures portable flash drives for...Problem 17BEA:
Using High-Low to Calculate Fixed Cost, Calculate the Variable Rate, and Construct a Cost Function...Problem 18BEA:
Using High-Low to Calculate Predicted Total Variable Cost and Total Cost for Budgeted Output Refer...Problem 19BEA:
Using High-Low to Calculate Predicted Total Variable Cost and Total Cost for a Time Period That...Problem 20BEA:
Using Regression to Calculate Fixed Cost, Calculate the Variable Rate, Construct a Cost Formula, and...Problem 21BEA:
Inventory Valuation under Absorption Costing Refer to the data for Judson Company above. Required:...Problem 22BEA:
Inventory Valuation under Variable Costing Refer to the data for Judson Company above. Required: 1....Problem 23BEA:
Absorption-Costing Income Statement Refer to the data for Osterman Company above. Required: 1....Problem 24BEA:
Variable-Costing Income Statement Refer to the data for Osterman Company on the previous page....Problem 25BEB:
Creating and Using a Cost Formula Kleenaire Motors manufactures hybrid sports utility vehicles...Problem 26BEB:
Using High-Low to Calculate Fixed Cost, Calculate the Variable Rate, and Construct a Cost Function...Problem 27BEB:
Using High-Low to Calculate Predicted Total Variable Cost and Total Cost for Budgeted Output Refer...Problem 28BEB:
Brief Exercise 3-28 Using High-Low to Calculate Predicted Total Variable Cost and Total Cost for a...Problem 29BEB:
Using Regression to Calculate Fixed Cost, Calculate the Variable Rate, Construct a Cost Formula, and...Problem 30BEB:
Inventory Valuation under Absorption Costing Refer to the data for Pelham Company on the previous...Problem 31BEB:
Inventory Valuation under Variable Costing Refer to the data for Pelham Company on the previous...Problem 32BEB:
Brief Exercise 3-32 Absorption-Costing Income Statement Refer to the data for Beyta Company above....Problem 33BEB:
Brief Exercise 3-33 Variable-Costing Income Statement Refer to the data for Beyta Company above....Problem 34E:
Variable and Fixed Costs What follows are a number of resources that are used by a manufacturer of...Problem 35E:
Cost Behavior, Classification Smith Concrete Company owns enough ready-mix trucks to deliver up to...Problem 39E:
Step Costs, Relevant Range Bellati Inc. produces large industrial machinery. Bellati has a machining...Problem 40E:
Matching Cost Behavior Descriptions to Cost Behavior Graphs Select the graph (A through L) that best...Problem 41E:
Examine the graphs in Exercise 3-40. Required: As explained in the chapter, cost behavior patterns...Problem 44E:
High-Low Method Refer to the information for Luisa Crimini above. Required: 1. Which month...Problem 45E:
Scattergraph Method Refer to the information for Luisa Crimini above. Required: CONCEPTUAL...Problem 46E:
Method of Least Squares Refer to the information for Luisa Crimini on the previous page. Required:...Problem 47E:
Use the following information for Exercises 3-47 and 3-48: During the past year, the high and low...Problem 48E:
Use the following information for Exercises 3-47 and 3-48: During the past year, the high and low...Problem 49E:
Method of Least Squares, Developing and Using the Cost Formula The method of least squares was used...Problem 50E:
The method of least squares was used to develop a cost equation to predict the cost of receiving...Problem 51E:
Identifying the Parts of the Cost Formula; Calculating Monthly, Quarterly, and Yearly Costs Using a...Problem 52E:
Inventory Valuation under Absorption Costing Amiens Company produced 20,000 units during its first...Problem 53E:
Inventory Valuation under Variable Costing Lane Company produced 50,000 units during its first year...Problem 54E:
Income Statements under Absorption and Variable Costing In the coming year, Kalling Company expects...Problem 55E:
(Appendix 3A) Method of Least Squares Using Computer Spreadsheet Program The controller for Beckham...Problem 56E:
(Appendix 3A) Method of Least Squares Using Computer Spreadsheet Program Susan Lewis, owner of a...Problem 57P:
Identifying Fixed, Variable, Mixed, and Step Costs Consider each of the following independent...Problem 58P:
Identifying Use of the High-Low, Scattergraph, and Least Squares Methods Consider each of the...Problem 59P:
Identifying Variable Costs, Committed Fixed Costs, and Discretionary Fixed Costs Required: Classify...Problem 60P:
Scattergraph, High-Low Method, and Predicting Cost for a Different Time Period from the One Used to...Problem 61P:
Method of Least Squares, Predicting Cost for Different Time Periods from the One Used to Develop a...Problem 62P:
Cost Behavior, High-Low Method, Pricing Decision Fonseca, Ruiz, and Dunn is a large, local...Problem 64P:
Variable and Fixed Costs, Cost Formula, High-Low Method Li Ming Yuan and Tiffany Shaden are the...Problem 65P:
Cost Separation About 8 years ago, Kicker faced the problem of rapidly increasing costs associated...Problem 66P:
Variable-Costing and Absorption-Costing Income Borques Company produces and sells wooden pallets...Problem 67P:
Refer to the information for Farnsworth Company (p. 139) for the first 10 months of data on...Problem 68P:
(Appendix 3A) Scattergraph, High-Low Method, Method of Least Squares, Use of Judgment The management...Problem 69P:
(Appendix 3A) Separating Fixed and Variable Costs, Service Setting Louise McDermott, controller for...Browse All Chapters of This Textbook
Chapter 1 - Introduction To Managerial AccountingChapter 2 - Basic Managerial Accounting ConceptsChapter 3 - Cost Behavior And Cost ForecastingChapter 4 - Job-order Costing And Overhead ApplicationChapter 5 - Activity-based Costing And ManagementChapter 6 - Process CostingChapter 7 - Cost-volume-profit AnalysisChapter 8 - Tactical Decision-making And Relevant AnalysisChapter 9 - Profit Planning And Flexible BudgetsChapter 10 - Standard Costing And Variance Analysis
Book Details
MANAGERIAL ACCOUNTING, 7E makes teaching and learning managerial accounting meaningful, fun, and relatable for both you and your students. This edition has been revised with an emphasis on showing students "Here's How It's Used." This unique learning approach along with new brief video clips and relevant examples encourages and enables students to develop a deeper understanding of managerial accounting and its implications for business. Additionally, a new organization logically progresses from why managerial accounting is important, to what it is, to where the information comes from, and how it is best used to make business decisions. Students even explore emerging topics of interest to them, such as sustainability, quality cost, lean accounting, international issues, enterprise risk management, and forensic and fraud accounting.
Sample Solutions for this Textbook
We offer sample solutions for Managerial Accounting homework problems. See examples below:
Managerial Accounting: Managerial accounting refers to the internal accounting system that gives...Chapter 2, Problem 1DQChapter 2, Problem 49EChapter 2, Problem 52PChapter 2, Problem 60PCost Behavior: Cost behavior determines the effect of changes in organizational activities on the...Cost: Cost can be defined as the cash and cash equivalent which is incurred against the products or...Chapter 3, Problem 47EChapter 3, Problem 62P
Chapter 3, Problem 66PChapter 4, Problem 1DQChapter 4, Problem 35BEBChapter 4, Problem 47EChapter 4, Problem 50EChapter 4, Problem 52EChapter 4, Problem 56PChapter 4, Problem 57PChapter 4, Problem 64PChapter 4, Problem 65PChapter 5, Problem 1DQChapter 5, Problem 49EChapter 5, Problem 53PChapter 5, Problem 54PChapter 5, Problem 55PChapter 5, Problem 57PChapter 5, Problem 60PChapter 5, Problem 61PChapter 6, Problem 1DQChapter 6, Problem 57PChapter 6, Problem 61PChapter 6, Problem 65PChapter 6, Problem 66PChapter 6, Problem 67PChapter 6, Problem 68PChapter 6, Problem 70CCVP Analysis: CVP analysis establishes the relation between cost, volume and profit of the company....Chapter 7, Problem 44ESales Mix: Sales mix refers to the proportion of different products that is sold. It is expressed in...Chapter 7, Problem 50EChapter 7, Problem 53PChapter 7, Problem 54PChapter 7, Problem 58PContribution margin: Contribution margin can be defined as the amount obtained after deducting the...Chapter 7, Problem 1MTCChapter 8, Problem 1DQContribution Margin: Contribution margin can be defined as the amount of difference the sales...Segmented Income Statement: Variable costing is used in the preparation of a segmented income...Chapter 8, Problem 56PChapter 8, Problem 57PChapter 8, Problem 59PChapter 8, Problem 60PChapter 8, Problem 67PChapter 8, Problem 69CChapter 9, Problem 1DQChapter 9, Problem 57EChapter 9, Problem 66PChapter 9, Problem 70PChapter 9, Problem 73PChapter 9, Problem 74PCash Budget: Cash budget is a financial budget. It is prepared to assess inflows and outflows of...Chapter 10, Problem 1DQChapter 10, Problem 59EChapter 10, Problem 63PChapter 10, Problem 64PChapter 10, Problem 67PChapter 10, Problem 68PChapter 10, Problem 69PChapter 10, Problem 71PChapter 10, Problem 72PChapter 10, Problem 74PChapter 10, Problem 76PChapter 10, Problem 77CChapter 11, Problem 1DQChapter 11, Problem 40PChapter 11, Problem 41PChapter 11, Problem 42PChapter 11, Problem 43PContribution margin can be defined as the amount obtained after deducting the variable expense from...Transfer Price: The amount of price charged by the selling department for a component to the...Independent Projects and Mutually Exclusive Projects: When acceptance or rejection of a project does...Chapter 12, Problem 32EChapter 12, Problem 33EChapter 12, Problem 36EPayback Period: The time taken by an investment to recover its original value is known as payback...Chapter 12, Problem 39EChapter 12, Problem 44PIncome Statement: The statement that shows revenue and expenses incurred over a period of time...Enterprise Risk Management: Enterprise risk management is a process in which, business risks are...Inherent Risk: Inherent risk is a risk that prevails in a system before any control measure is...Chapter 13, Problem 25BEAInherent Risk: Inherent risk is a risk that prevails in a system before any control measure is...Chapter 13, Problem 32BEBChapter 13, Problem 43EBusiness Sustainability: Business sustainability is increasing the business worth for a long term,...Quality Cost: Organizations are required to bear costs due to non-conformity of goods or services...Chapter 13, Problem 63CCash Equivalents: Cash equivalents are treated as cash in a company. The investments which are...Chapter 14, Problem 24BEACash Flows from Operating Activities: This category of a cash flow statement shows the operational...Chapter 14, Problem 50PChapter 14, Problem 51PChapter 14, Problem 53PChapter 14, Problem 57PChapter 14, Problem 58CChapter 15, Problem 1DQChapter 15, Problem 56PChapter 15, Problem 58PChapter 15, Problem 61PChapter 15, Problem 63PChapter 15, Problem 64PProfitability Ratio: These ratios evaluate a firm’s ability to earn profits. They help the...Profitability Ratio: These ratios evaluate a firm’s ability to earn profits. They help the...
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