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第二章练习题及答案一、单项选择题：1、在财务会计中，应当将销售费用归属于下列各项中的（）。
A.制造费用B.主要成本C.加工成本D.非生产成本2、按照管理会计的解释，成本的相关性是指（）A.与决策方案有关的成本特性B.与控制标准有关的成本特性C.与资产价值有关的成本特性D.与归集对象有关的成本特性3、阶梯式混合成本又可称为（）A.半固定成本B.半变动成本C.延期变动成本D.曲线式成本4.将全部成本分为固定成本、变动成本和混合成本所采用的分类标志是( )A.成本的目标B.成本的可辨认性C.成本的经济用途D.成本的性态5、在历史资料分析法的具体应用方法中，计算结果最为精确的方法是（）。
A.高低点法B.散布图法C.回归直线法D.直接分析法7、在不改变企业生产经营能力的前提下，采取降低固定成本总额的措施通常是指降低（）。
A.约束性固定成本B.酌量性固定成本C.半固定成本D.单位固定成本8、单耗相对稳定的外购零部件成本属于（）。
A.约束性固定成本B.酌量性固定成本C.技术性变动成本D.约束性变动成本9、下列项目中，只能在发生当期予以补偿，不可能递延到下期的成本是（）。
A.直接成本B.间接成本C.产品成本D.期间成本10、为排除业务量因素的影响，在管理会计中，反映变动成本水平的指标一般是指（）。
A.变动成本总额B.单位变动成本C.变动成本的总额与单位额D.变动成本率11、在管理会计中，狭义相关范围是指（）A.成本的变动范围B.业务量的变动范围C.时间的变动范围D.市场容量的变动范围1、D2、A3、A4、D5、C6、B7、B8、C9、D 10、B 11、B 12、C 13、C 14、A二、多项选择题1.成本按其核算的目标分类为( )。
A.质量成本B.未来成本C.责任成本D.业务成本E.历史成本2.固定成本具有的特征是( )。
A.固定成本总额的不变性B.单位固定成本的反比例变动性C.固定成本总额的正比例变动性D.单位固定成本的不变性E.固定成本总额变动性3.变动成本具有的特征是( )。
第二章练习题及答案一、单项选择题：1、在财务会计中，应当将销售费用归属于下列各项中的（）。
A.制造费用B.主要成本C.加工成本D.非生产成本2、按照管理会计的解释，成本的相关性是指（）A.与决策方案有关的成本特性B.与控制标准有关的成本特性C.与资产价值有关的成本特性D.与归集对象有关的成本特性3、阶梯式混合成本又可称为（）A.半固定成本B.半变动成本C.延期变动成本D.曲线式成本4.将全部成本分为固定成本、变动成本和混合成本所采用的分类标志是( )A.成本的目标B.成本的可辨认性C.成本的经济用途D.成本的性态5、在历史资料分析法的具体应用方法中，计算结果最为精确的方法是（）。
A.高低点法B.散布图法C.回归直线法D.直接分析法7、在不改变企业生产经营能力的前提下，采取降低固定成本总额的措施通常是指降低（）。
A.约束性固定成本B.酌量性固定成本C.半固定成本D.单位固定成本8、单耗相对稳定的外购零部件成本属于（）。
A.约束性固定成本B.酌量性固定成本C.技术性变动成本D.约束性变动成本9、下列项目中，只能在发生当期予以补偿，不可能递延到下期的成本是（）。
A.直接成本B.间接成本C.产品成本D.期间成本10、为排除业务量因素的影响，在管理会计中，反映变动成本水平的指标一般是指（）。
A.变动成本总额B.单位变动成本C.变动成本的总额与单位额D.变动成本率11、在管理会计中，狭义相关范围是指（）A.成本的变动范围B.业务量的变动范围C.时间的变动范围D.市场容量的变动范围1、D2、A3、A4、D5、C6、B7、B8、C9、D 10、B 11、B 12、C 13、C 14、A二、多项选择题1.成本按其核算的目标分类为( )。
A.质量成本B.未来成本C.责任成本D.业务成本E.历史成本2.固定成本具有的特征是( )。
A.固定成本总额的不变性B.单位固定成本的反比例变动性C.固定成本总额的正比例变动性D.单位固定成本的不变性E.固定成本总额变动性3.变动成本具有的特征是( )。
Exercise 2-3 (15 minutes)1. Cups of Coffee Servedin a Week1,800 1,900 2,000 Fixed cost ........................................$1,100 $1,100 $1,100Variable cost .................................... 468 494 520Total cost ........................................$1,568 $1,594 $1,620Average cost per cup served* ...........$0.871 $0.839 $0.810* Total cost ÷ cups of coffee served in a week2. The average cost of a cup of coffee declines as the number of cups ofcoffee served increases because the fixed cost is spread over more cups of coffee.Exercise 2-8 (20 minutes)1. The company’s variable cost per unit would be:$150,000=$2.50 per unit.60,000 unitsIn accordance with the behavior of variable and fixed costs, thecompleted schedule is:Units produced and sold60,000 80,000 100,000 Total costs:Variable costs ....................... $150,000 $200,000 $250,000 Fixed costs ........................... 360,000 360,000 360,000 Total costs .............................. $510,000 $560,000 $610,000 Cost per unit:Variable cost ......................... $2.50 $2.50 $2.50 Fixed cost ............................. 6.00 4.50 3.60 Total cost per unit ................... $8.50 $7.00 $6.102. The company’s income statement in the contribution format is:Sales (90,000 units × $7.50 per unit) ............................ $675,000Variable expenses (90,000 units × $2.50 per unit) ......... 225,000Contribution margin...................................................... 450,000Fixed expenses ............................................................ 360,000$ 90,000Problem 2-20 (30 minutes)1. Mr. Richart’s first action was to direct that discretionary expenditures bedelayed until the first of the new year. Providing that these “discretionary expenditures” can be delayed without hampering operations, this is a good business decision. By delaying expenditures, the company can keep its cash a bit longer and thereby earn a bit more interest. There is nothing unethical about such an action. The second action was to ask that the order for the parts be cancelled. Since the clerk’s order was a mistake, there is nothing unethical about this action either.The third action was to ask the accounting department to delayrecognition of the delivery until the bill is paid in January. This action is dubious. Asking the accounting department to ignore transactions strikes at the heart of the integrity of the accounting system. If the accounting system cannot be trusted, it is very difficult to run a business or obtain funds from outsiders. However, in Mr. Richart’s defense, the purchase of the raw materials really shouldn’t be recorded as an expense. He has been placed in an extremely awkward position because the company’s accounting policy is flawed.2. Th e company’s accounting policy with respect to raw materials isincorrect. Raw materials should be recorded as an asset when delivered rather than as an expense. If the correct accounting policy were followed, there would be no reason for Mr. Richart to ask the accountingdepartment to delay recognition of the delivery of the raw materials. This flawed accounting policy creates incentives for managers to delaydeliveries of raw materials until after the end of the fiscal year. This could lead to raw materials shortages and poor relations with suppliers who would like to record their sales before the end of the year.The company’s “manage-by-the-numbers” approach does not fosterethical behavior—particularly when managers are told to “do anything so long as you hit the target profits for the year.” Such “no excuses”pressure from the top too often leads to unethical behavior whenmanagers have difficulty meeting target profits.Problem 2-24 (45 minutes)1.Selling orCost Behavior Administrative Product Cost Cost Item Variable Fixed Cost Direct Indirect rect materials used (wood, glass) ..... $430,000 $430,000 dministrative office salaries ............... $110,000 $110,000actory supervision ............................ 70,000 $ 70,00 ales commissions ............................. 60,000 60,000epreciation, factory building .............. 105,000 105,00 epreciation, admin. office equipment .2,000 2,000direct materials, factory ................... 18,000 18,00 actory labor (cutting and assembly) ... 90,000 90,000 dvertising ........................................ 100,000 100,000surance, factory .............................. 6,000 6,00 dministrative office supplies .............. 4,000 4,000operty taxes, factory ....................... 20,000 20,00 tilities, factory .................................. 45,000 45,00 otal costs ......................................... $647,000 $413,000 $276,000 $520,000 $264,00Problem 2-24 (continued)2. The average product cost per bookcase will be:Direct.................................. $520,000Indirect ............................... 264,000Total ................................... $784,000$784,000 ÷ 4,000 bookcases = $196 per bookcase3. The average product cost per bookcase would increase if the productiondrops. This is because the fixed costs would be spread over fewer units,causing the average cost per unit to rise.4. a. Yes, there probably would be a disagreement. The president is likely towant a price of at least $196, which is the average cost per unit tomanufacture 4,000 bookcases. He may expect an even higher price than this to cover a portion of the administrative costs as well. The neighbor will probably be thinking of cost as including only materials used, or perhaps materials and direct labor.b. The term is opportunity cost. Since the company is operating at full capacity, the president must give up the full, regular price to sell a bookcase to the neighbor. Therefore, the president’s cost is really the full, regular price.。
CHAPTER 1Managerial Accounting, the Business Organization, andProfessional Ethics1-A1 Solution:Information is often useful for more than one function, so the following classifications for each activity are not definitive but serve as a starting point for discussion:1. Scorekeeping. A depreciation schedule is used in preparing financialstatements to report the results of activities.2. Problem solving. Helps a manager assess the impact of a purchase decision.3. Scorekeeping. Reports on the results of an operation. Could also beattention directing if scrap is an area that might require management attention.4. Attention directing. Focuses attention on areas that need attention.5. Attention directing. Helps managers learn about the information contained ina performance report.6. Scorekeeping. The statement reports what has happened. Could also beattention directing if the report highlights a problem or issue.7. Problem solving. Assuming the cost comparison is to help the managerdecide between two alternatives, this is problem solving.8. Attention directing. Variances point out areas where results differ fromexpectations. Interpreting them directs attention to possible causes of thedifferences.9. Problem solving. Aids a decision about where to make parts.10. Attention directing and problem solving. Budgeting involves makingdecisions about planned activities -- hence, aiding problem solving. Budgets also direct attention to areas of opportunity or concern --hence, directingattention. Reporting against the budget also has a scorekeeping dimension.1-A2 Solution:1. Budgeted Actual DeviationsAmounts Amounts or Variances Room rental $ 140 $ 140 $ 0Food 700 865 165UEntertainment 600 600 0Decorations 220 260 40UTotal $1,660 $1,865 $205U 2. Because of the management by exception rule, room rental and entertainmentrequire no explanation. The actual expenditure for food exceeded the budget by $165. Of this $165, $150 is explained by attendance of 15 persons morethan budgeted (at a budget of $10 per person for food) and $15 is explained by expenditures above $10 per person.Actual expenditures for decorations were $40 more than the budget. Thedecorations committee should be asked for an explanation of the excessexpenditures.1-29 Solution:1. Controller. Financial statements are generally produced by the controller'sdepartment.2. Controller. Advising managers aids operating decisions.3. Controller. Advice on cost analysis aids managers' operating decisions.4. Treasurer. Analysts affect the company's ability to raise capital, which is theresponsibility of the treasurer.5. Treasurer. Financing the business is the responsibility of the treasurer.6. Controller. Tax returns are part of the accounting process overseen by thecontroller.7. Treasurer. Insurance, as with other risk management activities, is usually theresponsibility of the treasurer.8. Treasurer. Allowing credit is a financial decision.CHAPTER 2INTRODUCTION TO COST BEHAVIOR AND COST-VOLUME RELATIONSHIPS2-A3 Solution:The following format is only one of many ways to present a solution. This situation is reallya demonstration of "sensitivity analysis," whereby a basic solution is tested to see how much it is affected by changes in critical factors. Much discussion can ensue, particularly about the finalthree changes.The basic contribution margin per revenue mile is $1.50 - $1.30 = $.20(1) (2) (3) (4) (5)(1)×(2) (3)-(4)Revenue Cont ri buti on To talMi l es Margi n Pe r Cont ri buti on Fi xed NetSol d Revenue Mi l e Margi n Expen se s In co me 1. 800,000$.20$160,000$120,000$ 40,0002. (a) 800,000.35280,000120,000160,000(b) 880,000.20176,000120,00056,000(c) 800,000.0756,000120,000(64,000)(d) 800,000.20160,000132,00028,000(e) 840,000.17142,800120,00022,800(f) 720,000.25180,000120,00060,000(g) 840,000.20168,000132,00036,0002-B2 Solution:1. $2,300 ÷ ($30 - $10) = 115 child-days or 115 × $30 = $3,450 revenue dollars.2. 176 × ($30 - $10) - $2,300 = $3,520 - $2,300 = $1,2203. a. 198 × ($30 - $10) - $2,300 = $3,960 - $2,300 = $1,660 or (22 × $20) + $1,220 = $440 + $1,220 = $1,660 b. 176 × ($30 - $12) - $2,300 = $3,168 - $2,300 = $868 or $1,220 - ($2 × 176) = $868 c. $1,220 - $220 = $1,000d. [(9.5 × 22) × ($30 - $10)] - ($2,300 + $300) = $4,180 - $2,600 = $1,580e.[(7 × 22) × ($33 - $10)] - $2,300 = $3,542 - $2,300 = $1,2422-B 3 So lu tio n :1.$16)($20$5,000- = $4$5,000= 1,250 units2. Contribution margin ratio:($40,000)$30,000)($40,000- = 25%$8,000 ÷ 25% = $32,0003.$14)($30$7,000)($33,000-+ = $16$40,000 = 2,500 units4. ($50,000 - $20,000)(110%) = $33,000 contribution margin;$33,000 - $20,000 = $13,0005. New contribution margin:$40 - ($30 - 20% of $30)= $40 - ($30 - $6) = $16;New fixed expenses: $80,000 × 110% = $88,000;$16$20,000)($88,000+ = $16$108,000 = 6,750 units2-27 Soluti on:2-38Sol uti on:1. 100% Full 50% FullRoom revenue @ $50 $1,825,000 a$ 912,500 bVariable costs @ $10 365,000 182,500Contribution margin 1,460,000 730,000Fixed costs 1,200,000 1,200,000Net income (loss) $ 260,000 $ (470,000)a 100 × 365 = 36,500 rooms per year36,500 × $50 = $1,825,000b50% of $1,825,000 = $912,5002. Let N = number of rooms$50N -$10N - $1,200,000 = 0N = $1,200,000 ÷ $40 = 30,000 rooms Percentage occupancy = 30,000 ÷ 36,500 = 82.2%2-40 Solution:1. Let R = pints of raspberries and 2R = pints of strawberriessales - variable expenses - fixed expenses = zero net income$1.10(2R) + $1.45(R) - $.75(2R) - $.95(R) - $15,600 = 0$2.20R + $1.45R - $1.50R - $.95R -$15,600 = 0$1.2R - $15,600 = 0 R = 13,000 pints of raspberries2R = 26,000 pints of strawberries2. Let S = pints of strawberries($1.10 - $.75) × S - $15,600 = 0.35S - $15,600 = 0S = 44,571 pints of strawberries3. Let R = pints of raspberries($1.45 - $.95) × R - $15,600 = 0$.50R - $15,600 = 0R = 31,200 pints of raspberries2-42 Solution:Several variations of the following general approach are possible:Sales - Variable expenses - Fixed expenses = Target after-tax net income 1 - tax rateS - .75S - $440,000 =.3)-(1$84,000.25S = $440,000 + $120,000 3-A1 Solution:Some of these answers are controversial, and reasonable cases can be built for alternative classifications. Class discussion of these answers should lead to worthwhile disagreements about anticipated cost behavior with regard to alternative cost drivers.1. (b) Discretionary fixed cost.2. (e) Step cost.3. (a) Purely variable cost with respect to revenue.4. (a) Purely variable cost with respect to miles flown.5. (d) Mixed cost with respect to miles driven.6. (c) Committed fixed cost.7. (b) Discretionary fixed cost.8. (c) Committed fixed cost.9. (a) Purely variable cost with respect to cases of Coca-Cola.10. (b) Discretionary fixed cost.11. (b) Discretionary fixed cost.3-A2 Solution:1. Support costs based on 60% of the cost of materials:Sign A Sign B Direct materials cost $400 $200 Support cost (60% of m ater ial s c o st) $240 $120 Support costs based on $50 per power tool operation:Sign A Sign B Power tool operations 3 6 Support cost $150 $300 2. If the activity analysis is reliable, by using the current method, Evergreen Signs is predicting too much cost for signs that use few power tool operations and is predicting too little cost for signs that use many power tool operations. As a result the company could be losing jobs that require few power tool operations because its bids are too high -- it could afford to bid less on these jobs. Conversely, the company could be getting too many jobs that require many power tool operations, because its bids are too low -- given what the "true" costs will be, the company cannot afford these jobs at those prices. Either way, the sign business could be more profitable if the owner better understood and used activity analysis. Evergreen Signs would be advised to adopt the activity-analysis recommendation, but also to closely monitor costs to see if the activity-analysis predictions of support costs are accurate.3-B2 Solution:Board Z15 Board Q52Mark-up method:Material cost $40 $60Support costs (100%) $40 $60Activity analysis method:Manual operations 15 7Support costs (@$4) $60 $28The support costs are different because different cost behavior is assumed by the two methods. If the activity analyses are reliable, then boards with few manual operations are overcosted with the markup method, and boards with many manual operatio ns are undercosted with the markup method.3-B3 Solution:Variable cost per machine hour =Change in Repair Cost Change in Machine Hours= (P260,000,000 - P200,000,000) (12,000 - 8,000)= P15,000 per machine hourFixed cost per month = total cost - variable cost= P260,000,000 - P15,000 x 12,000= P260,000,000 - P180,000,000= P 80,000,000 per monthor = P200,000,000 - P15,000 x 8,000= P200,000,000 - P120,000,000= P 80,000,000 per month3-32 Solution:1. Machining labor: G, number of units completed or labor hours2. Raw material: B, units produced; could also be D if the company’s purchases do not affect the price of the raw material.3. Annual wage: C or E (depending on work levels), labor hours4. Water bill: H, gallons used5. Quantity discounts: A, amount purchased6. Depreciation: E, capacity7. Sheet steel: D, number of implements of various types8. Salaries: F, number of solicitors9. Natural gas bill: C, energy usage3-34 Solution:1. 2001 2002Sales revenues $57 $116Less: Operating income (loss) (19) 18Operating expenses $76 $ 982. Change in operating expenses ÷ Change in revenues = Variable cost percentage($98 - $76) ÷ ($116 - $57) = $22 ÷ $59 = .37 or 37%Fixed cost = Total cost – Variable cost= $76 - .37 × $57= $55or= $98 - .37 × $116= $55Cost function = $55 + .37 × Sales revenue3. Because fixed costs to not change, the entire additional total contributionmargin is added to operating income. The $57 sales revenue in 2001generated a total contribution margin of $57 × (1 - .37) = $36, which was $19 short of covering the $55 of fixed cost. But the additional $59 of salesrevenue in 2002 generated a total contribution margin of $59 × (1 - .37) = $37 that could go directly to operating income because there was no increase infixed costs. It wiped out the $19 operating loss and left $18 of operatingincome.3-35 Solution:1. Fuel costs: $.40 × 16,000 miles per month = $6,400 per month.2. Equipment rental: $5,000 × 7 × 3 = $105,000 for seven pieces of equipment for three months3. Ambulance and EMT cost: $1,200 × (2,400/200) = $1,200 × 12 = $14,4004. Purchasing: $7,500 + $5 × 4,000 = $27,500 for the month.3-36 Solution:There may be some disagreement about these classifications, but reasons for alternative classifications should be explored.Cost Discretionary Committed Advertising $22,000Depreciation $ 47,000 Company health insurance 21,000 Management salaries 85,000 Payment of long-term debt 50,000 Property tax 32,000 Grounds maintenance 9,000Office remodeling 21,000Research and development 46,000Totals $98,000 $235,000。
《管理会计》习题2一、单项选择题1．下列各项中，能构成变动成本法产品成本内容的是（ D ）。
A.变动成本B.固定成本C.生产成本D.变动生产成本2．在Y=a+( )X中，Y表示总成本，a表示固定成本，X表示销售额，则X的系数应是（ C ）。
A.单位变动成本B.单位边际贡献C.变动成本率D.边际贡献率3．在变动成本法下，其利润表所提供的中间指标是（ B ）。
A.营业毛利B.贡献边际C.营业利润D.期间成本4．下列项目中，不能列入变动成本法下的产品成本的是（ C ）。
A.直接材料B.直接人工C.固定性制造费用D.变动制造费用；5．若某企业连续三年按变动成本法计算的营业利润分别为10 000元，12 000元和11 000元，则下列表述中正确的是（ B ）。
A.第三年的销量最小B.第二年的销量最大C.第一年的产量比第二年少D.第二年的产量比第三年多6．单位产品售价减去单位变动成本的差额称为（ C ）。
A.单位收入B.单位利润C.单位边际贡献D.单位边际贡献率7．已知20×3年某企业按变动成本法计算的营业利润为13 500元，假定20×4年销量与20×3年相同，产品单价及成本水平都不变，但产量有所提高，则该年按变动成本法计算的营业利润（ B ）。
A.必然大于13 500元B.必然等于13 500元C.必然小于13 500元D.可能等于13 500元8．如果完全成本法期末存货吸收的固定性制造费用大于期初存货释放的固定性制造费用，则两种方法计算的营业利润的差额（ C ）。
A.一定等于零B.可能等于零C.一定大于零D.一定小于零9．如果某期按变动成本法计算的营业利润为5 000元，该期产量为2 000件，销售量为1 000件，期初存货为零，固定性制造费用总额为2 000元，则按完全成本法计算的营业利润为（D ）。
A. 0元B. 1 000元C. 5 000元D. 6 000元10．如果完全成本法的期末存货成本比期初存货成本多20 000元，而变动成本法的期末存货成本比期初存货成本多8 000元，则可断定两种成本法的广义营业利润之差为（B ）。
CHAPTER 2Management Accounting: Cost Termsand ConceptsANSWERS TO REVIEW QUESTIONS2.1See Exhibit 2.1'Traditional versus modern management accounting systems', whichidentifies the four key components of management accounting systems: costing, budgeting, performance measurement and cost management. Traditional costing systems focus on costing responsibility centres, such as departments and products.Modern costing systems focus on activities, together with goods and services, and both customers and suppliers. The focus of traditional budgeting systems is on departments rather than activities and processes. The focus of t raditional performance measurement systems is on financial outcomes, especially cost, whereas modern systems focus on all the critical success factors, including financial factors. Further, modern costing systems take a broader perspective in that they support the management of both customer value and shareholder wealth. Apart from financial performance measures, there is little emphasis on cost management in traditional systems. In contrast, while cost management is an important aspect of modern management accounting, it takes the form of a proactive approach to managing resources by analysing the real causes of costs and eliminating wasteful activities.2.2 The reasons why management accounting systems pay so much attention to costs andwhy a focus on costs will probably always be paramount in management accounting are:∙Ready availability of cost data and information internally provided through the accounting system.∙Cost information is important in helping managers allocate and manage resources effectively to create customer value and shareholder value. Managementaccountants historically have focused on manufacturing production costs,not onlybecause of the need to value inventory and cost of goods sold for external reporting,but because costs incurred outside the production area of the value chain wererelatively insignificant and because internal costs were seen as controllable whereasexternal factors were seen as largely uncontrollable. Today,with the growth of theservice sector, globalisation, competition and sophisticated ITcapability,management accountants tend to focus on many different types of costs(not just manufacturing product costs) and the causes of those costs along the value chain.The monitoring of external factors relating to customer satisfaction and product differentiation and so on is now seen as an important aspect of management accounting.The ‘Real life’ examples in the chapter illustrate how viability can depend on managing, controlling and reducing costs and why management accounting systems pay so much attention to costs.IAG, to keep insurance premiums as low as possible for its customers and to meet its obligations to shareholders, needs to manage costs in every part of its business. It needs to minimise administration costs, look for savings in its supply chain, use technology to increase efficiency and find synergies within its operations, including achieving cost savings through reducing carbon emissions and managing the environment.The Australian hotel industry,to determine the trade-off between room rates and occupancy (as the room rate goes down, the occupancy level goes up),uses cost classification to help set room prices and manage the yield on providing accommodation.In setting room rates the hotel manager must consider cost behaviour: which costsare variable costs of providing accommodation, such as roomcleaning costs, and which are committedcosts, such as council rates, premises costs and insurance costs. Room rates must be set so that theycover at least the variable cost per room per day. The system identifies the variable costs of the two major products of the hotel: rooms and food and beverages. The variable costs per room tend to be low, whereas the variable costs forfood and beverage service tend to be high. This means that the extra profit that can be earned from each extra night of accommodation sold is high. The key to improving profitability is, therefore, maximising room sales. The appropriate classification of costs helps the hotel industry to understand and manage its costs and profitability.The Japanese experience, where it wantedto retain its competitive advantage in high technology manufacturing but was faced with competing against low labour costs in other Asian countries, has been that some companies have found it cost effective to return their manufacturing operations to Japan.Kenwood returnedto Japan because of a lower foreign exchangerate, higher skills and productivity of Japanese labour, and a reduced need for re-exporting. These factors resulted in costsavings across the value chain of 10 per cent,reduced lead times from two weeks to one or two days and reducedinventory levels from 18 to three days. In Japan a cell production method of small production teams working on a range of tasks is used rather than an assembly line approach.This resultsin labour savings and the flexibility of small production lots to meet customer demand more effectively and quickly. Canon returned to Japan because it identified that costs across the value chain from development through to production and distribution can be managed more efficiently and effectively in Japan by using automation to offset Japan’s relatively higher labour costs.Film makers also need to analyse and manage their costs effectively. In seeking finance, film producers provide detailed budgets of estimated production costs. They need to manage actual costs carefully once production begins. Careful costing becomes even more important in an environment of rising costs and, according tothe Australian Film Commission, the costs of making Australian feature films have increased significantly over time. The Film Finance Corporation Australia (FFC) compared the costs in 1993 and 2001 of shooting the same feature film. Location costs, including council fees, security fees, facilities and cleaning up,rose by more than 380 per cent; equipment, including cameras, grips, lighting and sound, increased by an average of 177 per cent;rentals and storage, including for the art department and office, construction, toilets, cleaning, and editing facilities, increased by 81 per cent; and fringe costs, including cast and crew overtime, night and other loadings, rose by more than 150 per cent.The cost of gold production in Australia has continued to rise and the price of gold is subject to world market supply and demand. Assigning costs to cost objects is important in assessing the future of the gold industry.A key figure for gold miners and their investors is the estimated production cost per ounce for gold. When the gold price in June 1997 fell to $450 per ounce, only nine of the top 25 mines were comfortably covering costs. Recent record prices have more than offset the increase in gold production costs; but gold mining is capital intensive, involving large scale power generation and mining equipment. By the end of 2006 average global mine cash costs had risen to approximately $400 per ounce, and the total production costs including depreciation and other capital expenses had risen to $508 per ounce. There are high energy costs in extracting the ore from the ground and refining it; these processes may need particular attention to reduce environmental costs in a carbon-constrained future.2.3 We often classify information as qualitative or quantitative. We can then furthercategorise quantitative information as financial or non-financial (i.e. representing monetary amounts or numerically representing other measures). However, this question asks the student to first distinguish between financial and non-financial information. The non-financial information can therefore bepresented in the subcategories of qualitative and quantitative information.Many answers are possible.A quick check on the internet will reveal to students that the Australian Open run by Tennis Australia encourages applications for a wide range of jobs, both paid and voluntary. Data is therefore required about the staffing requirements of the Open. Weather information assists with decisions relating to having the roof of centre court open or closed at the start of a match, as only extreme weather eventswill lead to it being closed after the start of the match. The timing of an Australia Day fireworks display in the areaalso affects matches, as they pause matches while the display is on. Weather forecasts can also affect the amount and nature of drinks that are ordered; more cold drinks and ice creams are probably sold during hot spells, whereas colder sessions can create higher demand for hot food and drink. Hotter weather puts a strain on medical services, whereas wet and cold weather can change demand at the tournament clothing outlets. The timing of cricket matches at the neighbouring MCG has an impact on parking and should be known in advance. The number of presold tickets can affect both the number of tickets sold on the day and the number of quick entry lanes for presold tickets (when they have them) needed.Instructor: a useful discussion can focus on which information is quantitative and which is qualitative.2.4Managers in the head office of Qantas could use cost information in planning when theydevelop a budget for their operations during the following year. Included in that budget would be projected costs associated with:existing planes, buildings and equipment (rent, depreciation, maintenance etc.);staff salaries, recruitment and training;food for on-board meals in the different classes of seat (a few years ago there was publicity about how much Qantas saved by cutting one olive from each First Class meal);advertising contracts; and so on. At the end of the year, or each month, this budget would be used for cost control, by comparing the actual costs incurred with projected costs in the budget and analysing variances.2.5Costs can be classified and reported in many different ways, depending on the purposefor which managers will use the information. Students should be careful how they interpret this phrase. It is not really different costs but the same bundle of costs with different cost classifications for different purposes. Cost data that are classified and reported in a particular way for one purpose may be inappropriate for another use.2.6Fixed costs remain constant in total across changes in activity levels, whereas variablecosts change inproportion to the level of activity. Examples are:Fixed costs Variable costsSalaries of permanent staff Casual staff salaries will vary with forecastdemand and the need to cover permanent staffleave arrangementsDepreciation of buildings and equipment Paper and postage costs, while declining, varywith the number of customers who have notadopted the online communication methodsSecurity services:if they are outsourced they are often subject to long-term contracts which would also make them fixed Telephone banking costs and across the counter retail banking may decline as internet banking increasesOther long-term contracts may includethose for cleaningStudents should note that it is important to recognise what a variable cost ‘varies with’.The answer to Question 2.7 is directly relevant here. In the context of a bank it is interesting to discuss the measures of output, the activities and the measures of input;cost is one measure of the inputs (resources consumed) that support the activities that produce the outputs. Costs in the table above can be extended to include those relating to investment activity and community engagement.2.7 When analysing cost behaviour the ‘level of activity’refers to the level of workperformed in the organisation. The activity causes the cost and, for this reason, the level of activity is often referred to as the level of cost driver. Activity can be expressed in many different ways, including units produced, number of machine hours, number of direct labour hours, number of transactions, kilometres driven, kilowatts used, pages printed, number of set-ups, number of engineering hours and so on. In a university, academic teaching activity is variously related to the number of courses/units/subjects prepared and taught, the number of hours of class contact, the number of students taught, marking load and various online teaching tasks.2.8 Cost objects are items for which managers need separate measures of cost. Examplesare:Cost object ‘Real l ife’ examples Reason for management interestcustomer IAG policy holders, hotelindustry guests, bar patrons,restaurant patrons to find out if particular customers are profitableproduct IAG policies, hotel industryaccommodation, food andbeverage;high technology TVs,cameras, printers and so on;afilm; an ounce of goldto find out if a product is profitableactivities IAG claims handling; hotelroom cleaning; assembling TVs;film editing;drilling for gold to obtain activity cost / per unit of activity for estimating the costs of other cost objects such as products, as well as for benchmarkingdepartment IAG policy and claimsdepartments;hotelaccommodation and food andbeverage departments; hightechnology research anddevelopment and administrativedepartments; film locationlogistics; gold refining to evaluate performance against a budget2.9 A direct cost can be traced to a cost object in an economic manner. An indirect costcannot be traced in an economic manner. Many costs could be traced if the organisation was willing to spend resources on tracing the costs. This is why we use the term ‘in an economic manner’. For indirect costs, the benefits of tracing the cost to the cost object are less than the cost of doing so.In an IT department in a law firm, for example, direct costs would include the depreciation of computer hardware, the cost of software and the salary costs of the IT staff. Other direct costs to the department include heating and lighting and depreciation on their office furniture. Costs that are indirect to the department include a share of accounting costs, the use of cleaning staff, and security costs.2.10 Costs that are direct to a plant but indirect to the products they produce include the costof secretarial staff at the plant, the salaries of the manager, telephone and IT costs, the depreciation of buildings, cleaning costs, car park and landscaping costs. Even costs more closely related to the manufacturing process can be direct to the plant but indirect to items produced. Hence, three other costs that could be classified as direct costs of a chemicals production plant but indirect costs of the chemicals produced are rent of factory, factory machine maintenance and factory supervision.2.11Controllable by CEO of the AFL Uncontrollable by CEO of the AFLWages of staff hired by and under the direction of AFL staff Items controlled by others such as the football club managers,e.g. the maintenance of playing arenasCosts for cleaning and security directly managed by AFL staff Items affected by outside influences such as the weather, legislation, and suppliers, e.g. refreshment costsContract items at the time of making the contract. These can include outsourced security, cleaning and so on. Note that lease costs are included here Contract/lease costs during the life of the contractsNote that ‘control’ relates to the manager's degree of influence. There is a broadspectrum between absolute, total control and no influence at all.Absolute and totalcontrol is rare. When we refer to ‘controllable’ we usually mean ‘significant influence’.2.12 The value chain is a set of linked processes or activities that begins with resources andends with providing (and supporting) products (i.e. goods and services) which customers value. Each of these segments can be examined from the viewpoint of providing managers with useful cost information.Research and development costs include building and running laboratories or research facilities, developing and testing new products and obtaining market data to ascertain demand for the product. As competition escalates, managers need to know where their competitive advantage might lie in keeping ahead of the market in introducing new (or modified) products or services.Design costs involve translating the research and development information into productsthat will satisfy customers’ needs. This includes all costs associated with the design of the product and the processes by which it will be produced. It may also require further R & D to be undertaken if the product or process design reaches a point where the firm cannot proceed until additional information is attained. It is important for managers to know the extent of design costs, since these must be recovered over the life of the product. Changing the design of the product can also bring changes in the costs of production, supply and distribution.Supply costs relate to the procurement and receipt of all incoming materials, parts or components related to the production of the product. Included also should be the costs of dealing with various suppliers so that the firm can evaluate its most suitable and cost-effective supplier profile. Managers who have (and fully understand) supply costs will make more effective supplier relationship decisions.Production costs include the costs associated with the collection and assembly of the resources to produce a product or service. Manufacturing costs (as opposed to costs in service environments) are the most common example of production costs and are regarded as those costs which are incurred within the factory area. Managers can use production costs to determine the cost per unit produced, whether this varies with batch size or volume produced, what additional costs are incurred with variations to the product, and so on. Apart from knowing these costs for planning, control and decisionmaking, production costs are required for financial reporting purposes. Marketing costs include costs associated with linking product features with customer needs and wants, together with promoting and selling the product. Managers need these costs to manage a vital part of the value chain, which is often misunderstood—and the total costs of which are often difficult to determine.Distribution costs are any costs associated with getting the finished product into the hands of the customer, and include transport and storage, distribution channel costs and so on. Managers need these costs to determine the most cost-effective way to distribute the product – something which may change over time and with different markets served by the firm.Customerservice (or support)costs comprise all costs incurred in serving or supporting the customer: answering inquiries, providing information about product features, installation, after-sales service, warranties and repairs, and so on. Managers who understand these costs will be better placed to accurately determine customer profitability compared to managers who do not.2.13 Value chain for a computer manufacturer:Value chain segment Examples of costsResearch and development Evaluating the suitability of using new material to manufacture the computersStudy of overseas trends to determine appropriate styles for local marketDesign Developing a new look computerDesigning new functionality into the computers Supply Cost of materialsCustoms duties on imported materialsManufacturing or production Direct materials and direct labour Factory overheadMarketing Media advertising to promote the productSales force costs associated with calling on prospective retailcustomersDistribution Warehousing and storageDelivery to customersCustomer service Warranty claims relating to defective workmanshipAnswering customer queries relating to installation of softwareand so onOnly manufacturing costs are included in the inventory value (shown on the balance sheet) for financial reporting purposes.2.14 The three main components of product cost are direct material, direct labour andmanufacturing overhead. Direct material is the cost of materials consumed in the process of manufacturing the product that can be directly traced to each product. Direct labour is the cost of personnel who work directly on the manufactured product, including salary, wages and labour on-costs. Manufacturing overhead covers all other costs of manufacturing the product that are not direct material or direct labour, including indirect materials, indirect labour and costs of depreciation, insurance, utilities and costs of manufacturing support departments. For example, if we consider Calvin Klein jeans,the cost of the denim used to make the jeans would be classified as direct material, the wages of the workers who cut and sew the jeans would constitute a direct labour cost and the heating and lighting of the assembly area would be part of the manufacturing overhead cost.A useful discussion can cover the classification of stitching thread as indirect material although it could technically be traced to the jeans.However, when fancy stitching is a design feature of the jeans, how should that thread be classified?2.15 Inventoriable cost is another term for product cost.It relates to the costs normallypermitted to be included as product cost for external reporting purposes (i.e. as inventory cost in the list of assets and for the determination of cost of goods sold in the calculation of profit). The term is derived from the storage of the goods as inventory until the goods are sold.2.16 Product costs are costs that are associated with manufactured goods and once they aresold the product costs become expenses. Period costs are those costs that are expensed during the time period in which they are incurred.Examples of each follow:Product costs Period costsDirect labour Upstream costs such as research anddevelopmentDirect material Support service costs such asaccountants’ salaries, depreciation ofoffice equipmentManufacturing overhead such as wages of factory manager and supervisors, machine maintenance, depreciation of factory building and equipment Downstream costs of selling and marketing such as sales personnel salaries, advertising, distribution2.17 In most service firms there is no inventory as the product is consumed as it is produced.All costs are thustreated as period costs.2.18 The four major steps in the flow of costs through a manufacturing company are outlinedin Exhibit 2.6 and described as follows:1 When raw material for manufacturing production is purchased, its cost is added toraw materials inventory.2 As it is consumed in the production, its cost is removed from raw material inventoryand added to work in process inventory account, which records the cost of productson which manufacture has begun but has only partially been completed at balancedate. Work in process inventory also accumulates the costs of direct labour andmanufacturing overhead incurred in the production.3 When products are finished, their costs are transferred from work in processinventory to finished goods inventory, which refers to manufactured goods that arecomplete and ready for sale.4 Finally, when products are sold their costs are transferred from finished goodsinventory to cost of goods sold account, which is an expense during the period whenthe sale is made.2.19 Product cost in a manufacturing context is the cost assigned to goods that aremanufactured. Product cost is classified as an asset and appears on the balance sheet when it moves through the raw material, work in process and finished goods inventories.When the goods are sold, their cost is transferred from finished goods inventory account to cost of goods sold, an expense account, and is deducted from sales revenue to estimate the gross profit appearing on the income statement. As costs are resources given up to obtain future benefits, if the benefits extend beyond the current accounting period, the costs are recorded as assets (e.g. raw material or finished goods inventories accounts). When the benefits from a cost are confined to the current period, the costs are recorded as an expense that is used up in the generation of revenue (e.g. cost of goods sold expense).2.20 Cost of goods manufactured is the total cost of goods that are completed during theperiod and moved to finished goods inventory, and cost of goods sold is the total cost of goods that are sold during the period and removed from finished goods inventory.Cost of goods manufactured can also be distinguished from manufacturing costs. The manufacturing costs are the total cost of resources consumed in production within a particular period. These can include resources still in the production stage at the end of the period.The cost of goods manufactured is the cost of goods finished in the period, even if they were started in a previous period.SOLUTIONS TO EXERCISESEXERCISE 2.21 (10 minutes) Classifying costs of support department; direct, indirect, controllable and uncontrollable costsEXERCISE 2.22 (20 minutes) Classifying product and period costs, variable and fixed costs, manufacturing costs1 Advertising costs: period cost, fixed non-manufacturing cost2 Straight-line depreciation: product cost, fixed manufacturing overhead3 Wages of assembly line workers: product cost, variable, direct labour4 Delivery costs on customer shipments: period cost, variable non-manufacturing cost5 Newsprint consumed: product cost, variable, manufacturing cost (direct material)6 Plant insurance: product cost, fixed, manufacturing cost (manufacturing overhead)7 Glass costs: product cost, variable, direct material8 Tyre costs: product cost, variable, manufacturing cost (direct material)9 Sales commissions: period cost, variable non-manufacturing cost10 Wood glue: product cost, variable, manufacturing cost (either direct material ormanufacturing overhead (i.e., indirect material) depending on how significant the cost is) 11 Wages of security guards: product cost, variable, (manufacturing cost) manufacturingoverhead12 Salary of financial vice president: period cost, fixed non-manufacturing cost EXERCISE 2.23 (20 minutes) Classifying product and period costs, variable and fixed costs, manufacturing costs1 Handbrake pads: product cost, variable, manufacturing cost (direct material)2 Inward shipping costs: product cost, variable, manufacturing cost (direct material)3 Oil consumed by sewing machines: product cost, variable, manufacturing cost(manufacturing overhead)4 Hourly wages of cleaners: period cost, variable, non-manufacturing cost5 Salary of financial controller: period cost, fixed, non-manufacturing cost6 Advertising: period cost, fixed, non-manufacturing cost7 Straight-line depreciation on factory machinery: product cost, fixed, manufacturing cost(manufacturing overhead)8 Wages of assembly workers: product cost, variable, manufacturing cost (direct labour)9 Delivery costs on customer shipments: period cost, variable, non-manufacturing cost10 Printed circuit boards: product cost, variable, manufacturing cost (direct material)11 Plant insurance: product cost, fixed, manufacturing cost (manufacturing overhead)12 Grain costs: product cost, variable, manufacturing cost (direct material)EXERCISE 2.24 (10 minutes) Classifying costs; value chain: manufacturer1 (d)。
第二章产品成本计算Exercises2–1（指教材上的第2章练习第1题，下同）1. Part #72A Part #172CSteel* $ 12.00 $ 18.00Setup cost** 6.00 6.00Total $ 18.00 $ 24.00*($1.00 ? 12; $1.00 ? 18)**($60,000/10,000)Steel cost is assigned by calculating a cost per ounce and then multiplying this by the ounces used by each part:Cost per ounce= $3,000,000/3,000,000 ounces= $1.00 per ounceSetup cost is assigned by calculating the cost per setup and then dividing this by the number of units in each batch (there are 20 setups per year):Cost per setup = $1,200,000/20= $60,0002. The cost of steel is assigned through the driver tracing using the number of ounces of steel, and the cost of the setups is assigned through driver tracing also using number of setups as the driver.3. The assumption underlying number of setups as the driver is that each part uses an equal amount of setup time. Since Part #72A uses double the setup time of Part #172C, it makes sense to assign setup costs based on setup time instead of number of setups. This illustrates the importance of identifying drivers that reflect the true underlying consumption pattern. Using setup hours [(40 ?10) + (20 ? 10)], we get the following rate per hour:Cost per setup hour = $1,200,000/600= $2,000 per hourThe cost per unit is obtained by dividing each part’s total setup costs by the number of units:Part #72A = ($2,000 ? 400)/100,000 = $8.00Part #172C = ($2,000 ? 200)/100,000 = $4.00Thus, Part #72A has its unit cost increased by $2.00, while Part #172C has its unit cost decreased by $2.00.problems2–51. Nursing hours required per year: 4 ? 24 hours ? 364 days* = 34,944*Note: 364 days = 7 days ? 52 weeksNumber of nurses = 34,944 hrs./2,000 hrs. per nurse = 17.472Annual nursing cost = (17 ? $45,000) + $22,500= $787,500Cost per patient day = $787,500/10,000 days= $78.75 per day (for either type of patient)2. Nursing hours act as the driver. If intensive care uses half of the hours and normal care the other half, then 50 percent of the cost is assigned to each patient category. Thus, the cost per patient day by patient category is as follows:Intensive care = $393,750*/2,000 days= $196.88 per dayNormal care = $393,750/8,000 days= $49.22 per day*$525,000/2 = $262,500The cost assignment reflects the actual usage of the nursing resource and, thus, should be more accurate. Patient days would be accurate only if intensive care patients used the same nursing hours per day as normal care patients.3. The salary of the nurse assigned only to intensive care is a directly traceable cost. To assign the other nursing costs, the hours of additional usage would need to be measured. Thus, both direct tracing and driver tracing would be used to assign nursing costs for this new setting.2–61. Bella Obra CompanyStatement of Cost of Services SoldFor the Year Ended June 30, 2006Direct materials:Beginning inventory $ 300,000Add: Purchases 600,000Materials available $ 900,000Less: Ending inventory 450,000*Direct materials used $ 450,000Direct labor 12,000,000Overhead 1,500,000Total service costs added $ 13,950,000Add: Beginning work in process 900,000Total production costs $ 14,850,000Less: Ending work in process 1,500,000Cost of services sold $ 13,350,000*Materials available less materials used2. The dominant cost is direct labor (presumably the salaries of the 100 professionals). Although labor is the major cost of providing many services, it is not always the case. For example, the dominant cost for some medical services may be overhead (e.g., CAT scans). In some services, the dominant cost may be materials (e.g., funeral services).3. Bella Obra CompanyIncome StatementFor the Year Ended June 30, 2006Sales $ 21,000,000Cost of services sold 13,350,000Gross margin $ 7,650,000Less operating expenses:Selling expenses $ 900,000Administrative expenses 750,000 1,650,000Income before income taxes $ 6,000,0004. Services have four attributes that are not possessed by tangible products: (1) intangibility, (2) perishability, (3) inseparability, and (4) heterogeneity. Intangibility means that the buyers of services cannot see, feel, hear, or taste a service before it is bought. Perishability means that services cannot be stored. This property affects the computation in Requirement 1. Inability to store services means that there will never be any finished goods inventories, thus making the cost of services produced equivalent to cost of services sold. Inseparability simply means that providers and buyers of services must be in direct contact for an exchange to take place. Heterogeneity refers to the greater chance for variation in the performance of services than in the production of tangible products.2–71. Direct materials:Magazine (5,000 ? $0.40) $ 2,000Brochure (10,000 ? $0.08) 800 $ 2,800Direct labor:Magazine [(5,000/20) ? $10] $ 2,500Brochure [(10,000/100) ? $10] 1,000 3,500Manufacturing overhead:Rent $ 1,400Depreciation [($40,000/20,000) ? 350*] 700Setups 600Insurance 140Power 350 3,190Cost of goods manufactured $ 9,490*Production is 20 units per printing hour for magazines and 100 units per printing hour for brochures, yielding monthly machine hours of 350 [(5,000/20) + (10,000/100)]. This is also monthly labor hours, as machine labor only operates the presses.2. Direct materials $ 2,800Direct labor 3,500Total prime costs $ 6,300Magazine:Direct materials $ 2,000Direct labor 2,500Total prime costs $ 4,500Brochure:Direct materials $ 800Direct labor 1,000Total prime costs $ 1,800Direct tracing was used to assign prime costs to the two products.3. Total monthly conversion cost:Direct labor $ 3,500Overhead 3,190Total $ 6,690Magazine:Direct labor $ 2,500Overhead:Power ($1 ? 250) $ 250Depreciation ($2 ? 250) 500Setups (2/3 ? $600) 400Rent and insurance ($4.40 ? 250 DLH)* 1,100 2,250Total $ 4,750Brochure:Direct labor $ 1,000Overhead:Power ($1 ? 100) $ 100Depreciation ($2 ? 100) 200Setups (1/3 ? $600) 200Rent and insurance ($4.40 ? 100 DLH)* 440 940Total $ 1,940*Rent and insurance cannot be traced to each product so the costs are assigned using direct labor hours: $1,540/350 DLH = $4.40 per direct labor hour. The other overhead costs are traced according to their usage. Depreciation and power are assigned by using machine hours (250 for magazines and 100 for brochures): $350/350 = $1.00 per machine hour for power and $40,000/20,000 = $2.00 per machine hour for depreciation. Setups are assigned according to the time required. Since magazines use twice as much time, they receive twice the cost: Letting X = the pro?portion of setup time used for brochures, 2X + X = 1 implies a cost assignment ratio of 2/3 for magazines and 1/3 for brochures.Exercises3–11. Resource Total Cost Unit CostPlastic1 $ 10,800 $0.027Direct labor andvariable overhead2 8,000 0.020Mold sets3 20,000 0.050Other facility costs4 10,000 0.025Total $ 48,800 $0.12210.90 ? $0.03 ? 400,000 = $10,800; $10,800/400,000 = $0.0272$0.02 ? 400,000 = $8,000; $8,000/400,000 = $0.023$5,000 ? 4 quarters = $20,000; $20,000/400,000 = $0.054$10,000; $10,000/400,000 = $0.0252. Plastic, direct labor, and variable overhead are flexible resources; molds and other facility costs are committed resources. The cost of plastic, direct labor, and variable overhead are strictly variable. The cost of the molds is fixed for the particular action figure being produced; it is a step cost for the production of action figures in general. Other facility costs are strictly fixed.3–3High (1,400, $7,950); Low (700, $5,150)V = ($7,950 – $5,150)/(1,400 – 700)= $2,800/700 = $4 per oil changeF = $5,150 – $4(700)= $5,150 – $2,800 = $2,350Cost = $2,350 + $4 (oil changes)Predicted cost for January = $2,350 + $4(1,000) = $6,350problems3–61. High (1,700, $21,000); Low (700, $15,000)V = (Y2 – Y1)/(X2 – X1)= ($21,000 – $15,000)/(1,700 – 700) = $6 per receiving orderF = Y2 – VX2= $21,000 – ($6)(1,700) = $10,800Y = $10,800 + $6X2. Output of spreadsheet regression routine with number of receiving orders as the independent variable:Constant 4512.98701298698Std. Err. of Y Est. 3456.24317476605R Squared 0.633710482694768No. of Observations 10Degrees of Freedom 8X Coefficient(s) 13.3766233766234Std. Err. of Coef. 3.59557461331427V = $13.38 per receiving order (rounded)F = $4,513 (rounded)Y = $4,513 + $13.38XR2 = 0.634, or 63.4%Receiving orders explain about 63.4 percent of the variability in receiving cost, providing evidence that Tracy’s choice o f a cost driver is reasonable. However, other drivers may need to be considered because 63.4 percent may not be strong enough to justify the use of only receiving orders.3. Regression with pounds of material as the independent variable:Constant 5632.28109733183Std. Err. of Y Est. 2390.10628259277R Squared 0.824833789433823No. of Observations 10Degrees of Freedom 8X Coefficient(s) 0.0449642991356633Std. Err. of Coef. 0.0073259640055344V = $0.045 per pound of material delivered (rounded)F = $5,632 (rounded)Y = $5,632 + $0.045XR2 = 0.825, or 82.5%Pounds of material delivered explains about 82.5 percent of the variability in receiving cost. This is a better result than that of the receiving orders and should convince Tracy to try multiple regression.4. Regression routine with pounds of material and number of receiving orders as the independent variables:Constant 752.104072925631Std. Err. of Y Est. 1350.46286973443R Squared 0.951068418023306No. of Observations 10Degrees of Freedom 7X Coefficient(s) 0.0333883151096915 7.14702865269395Std. Err. of Coef. 0.00495524841198368 1.68182916088492V1 = $0.033 per pound of material delivered (rounded)V2 = $7.147 per receiving order (rounded)F = $752 (rounded)Y = $752 + $0.033a + $7.147bR2 = 0.95, or 95%Multiple regression with both variables explains 95 percent of the variability in receiving cost. This is the best result.5–21. Job #57 Job #58 Job #59Balance, 7/1 $ 22,450 $ 0 $ 0Direct materials 12,900 9,900 35,350Direct labor 20,000 6,500 13,000Applied overhead:Power 750 600 3,600Material handling 1,500 300 6,000Purchasing 250 1,000 250Total cost $ 57,850 $ 18,300 $ 58,2002. Ending balance in Work in Process = Job #58 = $18,3003. Ending balance in Finished Goods = Job #59 = $58,2004. Cost of Goods Sold = Job #57 = $57,850problems5–31. Overhead rate = $180/$900 = 0.20 or 20% of direct labor dollars.(This rate was calculated using information from the Ladan job; however, the Myron and Coe jobs would give the same answer.)2. Ladan Myron Coe Walker WillisBeginning WIP $ 1,730 $1,180 $2,500 $ 0 $ 0Direct materials 400 150 260 800 760Direct labor 800 900 650 350 900Applied overhead 160 180 130 70 180Total $ 3,090 $2,410 $3,540 $ 1,220 $ 1,840Note: This is just one way of setting up the job-order cost sheets. You might prefer to keep the detail on the materials, labor, and overhead in beginning inventory costs.3. Since the Ladan and Myron jobs were completed, the others must still be in process. Therefore, the ending balance in Work in Process is the sum of the costs of the Coe, Walker, and Willis jobs.Coe $3,540Walker 1,220Willis 1,840Ending Work in Process $6,600Cost of Goods Sold = Ladan job + Myron job = $3,090 + $2,410 = $5,5004. Naman CompanyIncome StatementFor the Month Ended June 30, 20XXSales (1.5 ? $5,500) $8,250Cost of goods sold 5,500Gross margin $2,750Marketing and administrative expenses 1,200Operating income $1,5505–201. Overhead rate = $470,000/50,000 = $9.40 per MHr2. Department A: $250,000/40,000 = $6.25 per MHrDepartment B: $220,000/10,000 = $22.00 per MHr3. Job #73 Job #74Plantwide:70 ? $9.40 = $658 70 ? $9.40 = $658Departmental:20 ? $6.25 $ 125.00 50 ? $6.25 $ 312.5050 ? $22 1,100.00 20 ? $22 440.00$ 1,225.00 $ 752.50Department B appears to be more overhead intensive, so jobs spending more time in Department B ought to receive more overhead. Thus, departmental rates provide more accuracy.4. Plantwide rate: $250,000/40,000 = $6.25Department B: $62,500/10,000 = $6.25Job #73 Job #74Plantwide:70 ? $6.25 = $437.50 70 ? $6.25 = $437.50Departmental:20 ? $6.25 $ 125.00 50 ? $6.25 $ 312.5050 ? $6.25 312.50 20 ? $6.25 125.00$ 437.50 $ 437.50Assuming that machine hours is a good cost driver, the departmental rates reveal that overhead consumption is the same in each department. In this case, there is no need for departmental rates, and a plantwide rate is sufficient.5–41. Overhead rate = $470,000/50,000 = $9.40 per MHr2. Department A: $250,000/40,000 = $6.25 per MHrDepartment B: $220,000/10,000 = $22.00 per MHr3. Job #73 Job #74Plantwide:70 ? $9.40 = $658 70 ? $9.40 = $658Departmental:20 ? $6.25 $ 125.00 50 ? $6.25 $ 312.5050 ? $22 1,100.00 20 ? $22 440.00$ 1,225.00 $ 752.50Department B appears to be more overhead intensive, so jobs spending more time in Department B ought to receive more overhead. Thus, departmental rates provide more accuracy.4. Plantwide rate: $250,000/40,000 = $6.25Department B: $62,500/10,000 = $6.25Job #73 Job #74Plantwide:70 ? $6.25 = $437.50 70 ? $6.25 = $437.50Departmental:20 ? $6.25 $ 125.00 50 ? $6.25 $ 312.5050 ? $6.25 312.50 20 ? $6.25 125.00$ 437.50 $ 437.50Assuming that machine hours is a good cost driver, the departmental rates reveal that overhead consumption is the same in each department. In this case, there is no need for departmental rates, and a plantwide rate is sufficient.5–51. Last year’s unit-based overhead rate = $50,000/10,000 = $5This year’s unit-based overhead rate = $100,000/10,000 = $10Last Year This YearBike cost:2 ? $20 $ 40 $ 403 ? $12 36 36Overhead:5 ? $5 255 ? $10 50Total $101 $126Price last year = $101 ? 1.40 = $141.40/dayPrice this year = $126 ? 1.40 = $176.40/dayThis is a $35 increase over last year, nearly a 25 percent increase. No doubt the Carsons arenot pleased and would consider looking around for other recreational possibilities.2. Purchasing rate = $30,000/10,000 = $3 per purchase orderPower rate = $20,000/50,000 = $0.40 per kilowatt hourMaintenance rate = $6,000/600 = $10 per maintenance hourOther rate = $44,000/22,000 = $2 per DLHBike Rental Picnic CateringPurchasing$3 ? 7,000 $21,000$3 ? 3,000 $ 9,000Power$0.40 ? 5,000 2,000$0.40 ? 45,000 18,000Maintenance$10 ? 500 5,000$10 ? 100 1,000Other$2 ? 11,000 22,000 22,000Total overhead $50,000 $50,0003. This year’s bike rental overhead rate = $50,000/10,000 = $5Carson rental cost = (2 ? $20) + (3 ? $12) + (5 ? $5) = $101Price = 1.4 ? $101 = $141.40/day4. Catering rate = $50,000/11,000 = $4.55* per DLHCost of Estes job:Bike rental rate (2 ? $7.50) $15.00Bike conversion cost (2 ? $5.00) 10.00Catering materials 12.00Catering conversion (1 ? $4.55) 4.55Total cost $41.55*Rounded5. The use of ABC gives Mountain View Rentals a better idea of the types and costs of activities that are used in their business. Adding Level 4 bikes will increase the use of the most expensive activities, meaning that the rental rate will no longer be an average of $5 per rental day. Mountain View Rentals might need to set a Level 4 price based on the increased cost of both the bike and conversion cost.分步成本法6–11. Cutting Sewing PackagingDepartment Department DepartmentDirect materials $5,400 $ 900 $ 225Direct labor 150 1,800 900Applied overhead 750 3,600 900Transferred-in cost:From cutting 6,300From sewing 12,600Total manufacturing cost $6,300 $12,600 $14,6252. a. Work in Process—Sewing 6,300Work in Process—Cutting 6,300b. Work in Process—Packaging 12,600Work in Process—Sewing 12,600c. Finished Goods 14,625Work in Process—Packaging 14,625 3. Unit cost = $14,625/600 = $24.38* per pair6–21. Units transferred out: 27,000 + 33,000 – 16,200 = 43,8002. Units started and completed: 43,800 – 27,000 = 16,8003. Physical flow schedule:Units in beginning work in process 27,000Units started during the period 33,000Total units to account for 60,000Units started and completed 16,800Units completed from beginning work in process 27,000Units in ending work in process 16,200Total units accounted for 60,0004. Equivalent units of production:Materials ConversionUnits completed 43,800 43,800Add: Units in ending work in process:(16,200 ? 100%) 16,200(16,200 ? 25%) 4,050 Equivalent units of output 60,000 47,8506–31. Physical flow schedule:Units to account for:Units in beginning work in process 80,000Units started during the period 160,000Total units to account for 240,000Units accounted for:Units completed and transferred out:Started and completed 120,000From beginning work in process 80,000 200,000 Units in ending work in process 40,000Total units accounted for 240,0002. Units completed 200,000Add: Units in ending WIP ? Fraction complete(40,000 ? 20%) 8,000Equivalent units of output 208,0003. Unit cost = ($374,400 + $1,258,400)/208,000 = $7.854. Cost transferred out = 200,000 ? $7.85 = $1,570,000Cost of ending WIP = 8,000 ? $7.85 = $62,8005. Costs to account for:Beginning work in process $ 374,400Incurred during June 1,258,400Total costs to account for $ 1,632,800Costs accounted for:Goods transferred out $ 1,570,000Goods in ending work in process 62,800Total costs accounted for $ 1,632,8006–31、Units t0 account for:Units in beginning work in process(25% completed) 10000Units started during the period 70000 Total units to account for 80000 Units accounted forUnits completed and transferred outStarted and completed 50000From beginning work in process 10000 60000 Units in ending work in process(60% completed) 20000 Total units accounted for 80000 2、60000+20000×60%=72000（units）3、Unit cost for materials:（$/unit）Unit cost for convension:（$/unit）Total unit cost:5+1.13=6.13（$/unit）4、The cost of units of transferred out:60000×6.13=367800($)The cost of units of ending work in process:20000×5+20000×20%×1.13=113560($)作业成本法4–21. Predetermined rates:Drilling Department: Rate = $600,000/280,000 = $2.14* per MHrAssembly Department: Rate = $392,000/200,000= $1.96 per DLH*Rounded2. Applied overhead:Drilling Department: $2.14 ? 288,000 = $616,320Assembly Department: $1.96 ? 196,000 = $384,160Overhead variances:Drilling Assembly TotalActual overhead $602,000 $ 412,000 $ 1,014,000Applied overhead 616,320 384,160 1,000,480Overhead variance $ (14,320) over $ 27,840 under $ 13,5203. Unit overhead cost = [($2.14 ? 4,000) + ($1.96 ? 1,600)]/8,000= $11,696/8,000= $1.46**Rounded4–31. Yes. Since direct materials and direct labor are directly traceable to each product, their cost assignment should be accurate.2. Elegant: (1.75 ? $9,000)/3,000 = $5.25 per briefcaseFina: (1.75 ? $3,000)/3,000 = $1.75 per briefcaseNote: Overhead rate = $21,000/$12,000 = $1.75 per direct labor dollar (or 175 percent of direct labor cost).There are more machine and setup costs assigned to Elegant than Fina. This is clearly a distortion because the production of Fina is automated and uses the machine resources much more than the handcrafted Elegant. In fact, the consumption ratio for machining is 0.10 and 0.90 (using machine hours as the measure of usage). Thus, Fina uses nine times the machining resources as Elegant. Setup costs are similarly distorted. The products use an equal number of setups hours. Yet, if direct labor dollars are used, then the Elegant briefcase receives three times more machining costs than the Fina briefcase.3. Overhead rate = $21,000/5,000= $4.20 per MHrElegant: ($4.20 ? 500)/3,000 = $0.70 per briefcaseFina: ($4.20 ? 4,500)/3,000 = $6.30 per briefcaseThis cost assignment appears more reasonable given the relative demands each product places on machine resources. However, once a firm moves to a multiproduct setting, using only one activity driver to assign costs will likely produce product cost distortions. Products tend to make different demands on overhead activities, and this should be reflected in overhead cost assignments. Usually, this means the use of both unit- and nonunit-level activity drivers. In this example, there is a unit-level activity (machining) and a nonunit-level activity (setting up equipment). The consumption ratios for each (using machine hours and setup hours as the activity drivers) are as follows:Elegant FinaMachining 0.10 0.90 (500/5,000 and 4,500/5,000)Setups 0.50 0.50 (100/200 and 100/200)Setup costs are not assigned accurately. Two activity rates are needed—one based on machine hours and the other on setup hours:Machine rate: $18,000/5,000 = $3.60 per MHrSetup rate: $3,000/200 = $15 per setup hourCosts assigned to each product:Machining: Elegant Fina$3.60 ? 500 $ 1,800$3.60 ? 4,500 $ 16,200Setups:$15 ? 100 1,500 1,500Total $ 3,300 $ 17,700Units ÷3,000 ÷3,000Unit overhead cost $ 1.10 $ 5.904：Elegant Unit overhead cost：[9000+3000+18000*500/5000+3000/2]/3000=$5.1 Fina Unit overhead cost：[3000+3000+18000*4500/5000+3000/2]/3000=$7.94–51. Deluxe Percent Regular PercentPrice $900 100% $750 100%Cost 576 64 600 80Unit gross profit $324 36% $150 20%Total gross profit:($324 ? 100,000) $32,400,000($150 ? 800,000) $120,000,0002. Calculation of unit overhead costs:Deluxe gularUnit-level:Machining:$200 ? 100,000 $20,000,000$200 ? 300,000 $60,000,000Batch-level:Setups:$3,000 ? 300 900,000$3,000 ? 200 600,000Packing:$20 ? 100,000 2,000,000$20 ? 400,000 8,000,000Product-level:Engineering:$40 ? 50,000 2,000,000$40 ? 100,000 4,000,000Facility-level:Providing space:$1 ? 200,000 200,000$1 ? 800,000 800,000Total overhead $25,100,000 $73,400,000Units ÷100,000 ÷800,000Overhead per unit $251 $91.75Deluxe Percent Regular PercentPrice $900 100% $750.00 100%Cost 780* 87*** 574.50** 77***Unit gross profit $120 13%*** $175.50 23%***Total gross profit:($120 ? 100,000) $12,000,000($175.50 ? 800,000) $140,400,000*$529 + $251**$482.75 + $91.753. Using activity-based costing, a much different picture of the deluxe and regular products emerges. The regular model appears to be more profitable. Perhaps it should be emphasized.4–61. JIT Non-JITSalesa $12,500,000 $12,500,000Allocationb 750,000 750,000a$125 ? 100,000, where $125 = $100 + ($100 ? 0.25), and 100,000 is the average order size times the number of ordersb0.50 ? $1,500,0002. Activity rates:Ordering rate = $880,000/220 = $4,000 per sales orderSelling rate = $320,000/40 = $8,000 per sales callService rate = $300,000/150 = $2,000 per service callJIT Non-JITOrdering costs:$4,000 ? 200 $ 800,000$4,000 ? 20 $ 80,000Selling costs:$8,000 ? 20 160,000$8,000 ? 20 160,000Service costs:$2,000 ? 100 200,000$2,000 ? 50 100,000Total $1,160,000 $340,0 0For the non-JIT customers, the customer costs amount to $750,000/20 = $37,500 per order under the original allocation. Using activity assign?ments, this drops to $340,000/20 = $17,000 per order, a difference of $20,500 per order. For an order of 5,000 units, the order price can be decreased by $4.10 per unit without affecting customer profitability. Overall profitability will decrease, however, unless the price for orders is increased to JIT customers.3. It sounds like the JIT buyers are switching their inventory carrying costs to Emery without any significant benefit to Emery. Emery needs to increase prices to reflect the additional demands on customer-support activities. Furthermore, additional price increases may be needed to reflectthe increased number of setups, purchases, and so on, that are likely occurring inside the plant. Emery should also immediately initiate discussions with its JIT customers to begin negotiations for achieving some of the benefits that a JIT supplier should have, such as long-term contracts. The benefits of long-term contracting may offset most or all of the increased costs from the additional demands made on other activities.4–71. Supplier cost:First, calculate the activity rates for assigning costs to suppliers:Inspecting components: $240,000/2,000 = $120 per sampling hourReworking products: $760,500/1,500 = $507 per rework hourWarranty work: $4,800/8,000 = $600 per warranty hourNext, calculate the cost per component by supplier:Supplier cost:Vance FoyPurchase cost:$23.50 ? 400,000 $ 9,400,000$21.50 ? 1,600,000 $ 34,400,000Inspecting components:$120 ? 40 4,800$120 ? 1,960 235,200Reworking products:$507 ? 90 45,630$507 ? 1,410 714,870Warranty work:$600 ? 400 240,000$600 ? 7,600 4,560,000Total supplier cost $ 9,690,430 $ 39,910,070Units supplied ÷400,000 ÷1,600,000Unit cost $ 24.23* $ 24.94**RoundedThe difference is in favor of Vance; however, when the price concession is considered, the cost of Vance is $23.23, which is less than Foy’s component. Lumus should accept the contractual offer made by Vance.4–7 Concluded2. Warranty hours would act as the best driver of the three choices. Using this driver, the rate is $1,000,000/8,000 = $125 per warranty hour. The cost assigned to each component would be:Vance FoyLost sales:$125 ? 400 $ 50,000$125 ? 7,600 $ 950,000$ 50,000 $ 950,000Units supplied ÷400,000 ÷1,600,000Increase in unit cost $ 0.13* $ 0.59**Rounded$0.075 per unitCategory II: $45/1,000 = $0.045 per unitCategory III: $45/1,500 = $0.03 per unitCategory I, which has the smallest batches, is the most undercosted of the three categories. Furthermore, the unit ordering cost is quite high relative to Category I’s selling price (9 to 15 percent of the selling price). This suggests that something should be done to reduce the order-filling costs.3. With the pricing incentive feature, the average order size has been increased to 2,000 units for all three product families. The number of orders now processed can be calculated as follows:Orders = [(600 ? 50,000) + (1,000 ? 30,000) + (1,500 ? 20,000)]/2,000= 45,000Reduction in orders = 100,000 – 45,000 = 55,000Steps that can be reduced = 55,000/2,000 = 27 (rounding down to nearest whole number)There were initially 50 steps: 100,000/2,000Reduction in resource spending:Step-fixed costs: $50,000 ? 27 = $1,350,000Variable activity costs: $20 ? 55,000 = 1,100,000$2,450,000预算9-4Norton, Inc.Sales Budget For the Coming YearModel Units Price Total SalesLB-1 50,400 $29.00 $1,461,600LB-2 19,800 15.00 297,000WE-6 25,200 10.40 262,080 WE-7 17,820 10.00 178,200 WE-8 9,600 22.00 211,200 WE-9 4,000 26.00 104,000 Total $2,514,080二、1. Raylene’s Flowers and GiftsProduction Budget for Gift BasketsFor September, October, November, and DecemberSept. Oct. Nov. D ec.Sales 200 150 180 250Desired ending inventory 15 18 25 10Total needs 215 168 205 260Less: Beginning inventory 20 15 18 25 Units produced 195 153 187 2352. Raylene’s Flowers and GiftsDirect Materials Purchases BudgetFor September, October, and NovemberFruit: Sept. Oct. Nov.Production 195 153 187? Amount/basket (lbs.) ? 1 ? 1 ?1Needed for production 195 153 187Desired ending inventory 8 9 12Needed 203 162 200Less: Beginning inventory 10 8 9Purchases193 154 190Small gifts: Sept. Oct. Nov.Production 195 153 187 ? Amount/basket (items) ? 5 ? 5 ? 5Needed for production 975 765 935Desired ending inventory 383 468 588Needed 1,358 1,233 1,523Less: Beginning inventory 488 383 468Purchases 870 850 1,055Cellophane: Sept. Oct. Nov.Production 195 153 187。
《管理会计（双语）》课程教学大纲课程编码：12120203k206课程性质：专业必修课学分：3课时：48开课学期：第五学期适用专业：会计学一、课程简介《管理会计(双语》是会计学专业（本科）的一门必修课程。
是以现代企业所处的社会经济环境为背景，明确阐明以企业为主体，密切联系现代会计的预测、决策、规划、控制、考核评价等职能，系统地介绍了现代管理会计的基本理论、基本方法和实用操作技术。
课程分为三部分，第一部分主要交代了管理会计的基本原理和传统管理会计的基本方法；第二部分主要分别讨论管理会计各项职能在实践中的应用程序与具体操作方法。
第三部分集中介绍管理会计发展的新领域。
管理会计是一门理论性较强、计算内容较多的课程。
通过该门课程的学习，使学生领会管理会计的精髓，掌握管理会计的基本理论和基本方法，学会各种分析方法的应用技能和技巧，不断提高学生分析问题和解决问题的能力。
二、教学目标课程总体目标：通过本课程教学，掌握管理会计的基本理论和基本分析方法，结合相应的实践教学，培养学生能独立开展各项管理会计工作的能力。
具体入下：1.了解管理会计的产生与发展，明确管理会计的特点、职能、内容和任务；2.掌握成本习性与变动成本法、本量利分析等管理会计基础分析方法，并了解方法的一般原理；3.掌握短期经营决策分析、长期投资决策分析、全面预算、标准成本控制、责任会计等内容的基本理论与方法。
三、教学内容（一）Chapter 1 Managerial Accounting Concepts and PrinciplesThe main content: Chapter 1 introduces students to managerial accounting and the manufacturing process. Students will learn how managerial accounting is used in the management decision process. They will also be exposed to the terminology used to describe costs related to manufacturing.Learning Objectives：After studying the chapter, your students should be able to:1. Describe managerial accounting and the role of managerial accounting in a business.2. Define and illustrate the following costs: 1. direct and indirect costs, 2. direct materials,direct labor, and factory overhead costs, 3. product and period costs.3. Describe and illustrate the following statements for a manufacturing business: 1.balance sheet, 2. statement of cost of goods manufactured, 3. income statement.4. Describe the uses of managerial accounting information.Some key points: direct and indirect costs, direct materials, direct labor, factory overhead costs, product and period costs; cost of goods manufactured.Teaching methods: use of multimedia tools. We ad opt Classroom-based teaching, which is supplemented by the necessary classroom discussion. Besides，arrange stud ents to d o some appropriate exercises and self-extending reading after class.（二）Chapter 2Job Order CostingThe main content：Chapter 2 introduces students to managerial job order cost systems. Students will be exposed to the terminology used to describe costs related to manufacturing. The first of two basic manufacturing accounting systems, job order, is described in this chapter. Students learn how costs flow through a manufacturing system and the basis for determining product costs under job order costing.Learning Objectives：After studying the chapter, your students should be able to:1. Describe cost accounting systems used by manufacturing businesses.2. Describe and illustrate a job order cost accounting system.3. Describe the use of job order cost information for decision making.4. Describe the flow of costs for a service business that uses a job order cost accountingsystem.Some key points: Job Order Cost System; Overapplied Factory Overhead; Underapplied Factory Overhead; predetermined overhead rate;Teaching methods: use of multimedia tools. We adopt Classroom-based teaching, which is suppl emented by the necessary classroom discussion. Besides，arrange stud ents to d o some appropriate exercises and self-extending reading after class.（三）Chapter 3Process Cost SystemsThe main content：Chapter 3 completes the coverage of manufacturing accounting by introducing process costing. The text demonstrates process costing under the FIFO method.The average cost method is presented in th e chapter’s appendix. Chapter 3 also discusses the impact of just-in-time systems on manufacturing.Learning Objectives：After studying the chapter, your students should be able to:1. Describe process cost systems.2. Prepare a cost of production report.3. Journalize entries for transactions using a process cost system.4. Describe and illustrate the use of cost of production reports for decision making.5. Compare just-in-time processing with traditional manufacturing processing.Some key points: Process Cost System; First-in, First-out (FIFO) Method; Cost of Production Report; Just-in-Time (JIT) Processing.Teaching methods: use of multimedia tools. We adopt Classroom-based teaching, which is supplemented by the necessary classroom discussion. Besides，arrange students to do some appropriate exercises and self-extending reading after class.（四）Chapter 4 Cost Behavior and Cost-Volume-Profit AnalysisThe main content: In Chapter 4, students learn how to conduct cost-volume-profit analysis. In preparation for this activity, the chapter discusses variable, fixed, and mixed costs.Learning Objectives：After studying the chapter, your students should be able to:1. Classify costs as variable costs, fixed costs, or mixed costs.2. Compute the contribution margin, the contribution margin ratio, and the unitcontribution margin.3. Determine the break-even point and sales necessary to achieve a target profit.4. Using a cost-volume-profit chart and a profit-volume chart, determine the break-evenpoint and sales necessary to achieve a target profit.5. Compute the break-even point for a company selling more than one product, theoperating leverage, and the margin of safety.Some key points:variable costs; fixed costs; mixed costs; High-Low Method; Contribution Margin; Cost-Volume-Profit Analysis; Contribution Margin Ratio; Unit Contribution Margin.Teaching methods: use of multimedia tools. We adopt Classroom-based teaching, which is supplemented by the necessary classroom discussion. Besides，arrange students to do some appropriate exercises and self-extending reading after class.（五）Chapter 5 BudgetingThe main content: Chapter 5 emphasizes accounting activities that help managers plan, direct, and control the operations of a business. Budgeting is used to establish business goals in the planning function. Budgets help guide managers’ operational decisions. Budgets are also used to control operations as actual results are compared to the budgeted results.Learning Objectives：After studying the chapter, your students should be able to:1. Describe budgeting, its objectives, and its impact on human behavior.2. Describe the basic elements of the budget process, the two major types of budgeting,and the use of computers in budgeting.3. Describe the master budget for a manufacturing company.4. Prepare the basic income statement budgets for a manufacturing company.5. Prepare balance sheet budgets for a manufacturing company.Some key points: Goal Conflict；Budgetary Slack；Continuous Budgeting；Static Budget；Flexible Budget；Zero-Based Budgeting；Capital Expenditures Budget.Teaching methods: use of multimedia tools. We adopt Classroom-based teaching, which is supplemented by the necessary classroom discussion. Besides，arrange students to do some appropriate exercises and self-extending reading after class.（六）Chapter 6 Performance Evaluation Using Variances from Standard Costs The main content: Standard cost systems set budgets for the materials, labor, and factory overhead used by a manufacturer to produce its product. Deviations from these standards are reported as variances.Learning Objectives：After studying the chapter, your students should be able to:1. Describe the types of standards and how they are established.2. Describe and illustrate how standards are used in budgeting.3. Compute and interpret direct materials and direct labor variances.4. Compute and interpret factory overhead controllable and volume variances.5. Journalize the entries for recording standards in the accounts and prepare an incomestatement that includes variances from standard.6. Describe and provide examples of nonfinancial performance measures.Some key points: Direct Labor Rate Variance ；Direct Materials Price Variance；Direct Labor Time Variance；Direct Materials Quantity Variance；Budgeted Variable Factory Overhead；Factory Overhead Cost Variance Report；Controllable Variance；Volume Variance.Teaching methods: use of multimedia tools. We adopt Classroom-based teaching, which is supplemented by the necessary classroom discussion. Besides，arrange students to do some appropriate exercises and self-extending reading after class.（七）Chapter 7 Performance Evaluation for Decentralized Operations The main content: Chapter 7 applies responsibility accounting to cost, profit, and investment centers. The chapter demonstrates the responsibility accounting reports that are used to evaluate department or division performance. This provides an excellent opportunity to remind your students that managers are judged, at least in part, using accounting data.Learning Objectives：After studying the chapter, your students should be able to:1. Describe the advantages and disadvantages of decentralized operations.2. Prepare a responsibility accounting report for a cost center.3. Prepare responsibility accounting reports for a profit center.4. Compute and interpret the rate of return on investment, the residual income, and thebalanced scorecard for an investment center.5. Describe and illustrate how the market price, negotiated price, and cost priceapproaches to transfer pricing may be used by decentralized segments of a business.Some key points:Responsibility Accounting；Balanced Scorecard；Profit Margin；DuPont Formula；Rate of Return on Investment (ROI)；Investment Center ;Residual Income；Investment TurnoverTeaching methods: use of multimedia tools. We adopt Classroom-based teaching, which is supplemented by the necessary classroom discussion. Besides，arrange students to do some appropriate exercises and self-extending reading after class.（八）Chapter 8 Differential Analysis, Product Pricing, and Activity-Based Costing The main content: This chapter covers (1) differential analysis, (2) methods of determining the selling price of a product using a cost-plus markup approach, (3) the effects of production bottlenecks, and (4) activity-based costing. The cost-plus approach of product cost is described in Objective 2; total cost and variable cost methods are presented in thechapter appendix. All topics in this chapter are able to stand alone. Therefore, the instructor is free to cover only one or two of the topics if class time is a limited resource as the term draws to a close.Learning Objectives：After studying the chapter, your students should be able to:1. Prepare differential analysis reports for a variety of managerial decisions.2. Determine the selling price of a product, using the product cost concept.3. Compute the relative profitability of products in bottleneck production processes.4. Allocate product costs using activity-based costing.Some key points:Product Cost Concept ; Target Costing; Production Bottleneck; Theory of Constraints (TOC); Activity-Based Costing (ABC).Teaching methods: use of multimedia tools. We adopt Classroom-based teaching, which is supplemented by the necessary classroom discussion. Besides，arrange students to do some appropriate exercises and self-extending reading after class.（九）Chapter 9 Capital Investment AnalysisThe main content: Capital investment analysis is a topic that usually receives detailed coverage in introductory finance courses and/or intermediate accounting. The purpose of this chapter is to give students a brief introduction to the basics of capital investment analysis using the following methods: average rate of return, cash payback, net present value, and internal rate of return.Learning Objectives：After studying the chapter, your students should be able to:1. Explain the nature and importance of capital investment analysis.2. Evaluate capital investment proposals using the average rate of return and cashpayback methods.3. Evaluate capital investment proposals using the net present value and internal rate ofreturn methods.4. List and describe factors that complicate capital investment analysis.5. Diagram the capital rationing process.Some key points: Capital Investment Analysis；Time Value of Money Concept；Average Rate of Return；Cash Payback Period；Internal Rate of Return (IRR) Method；Capital Rationing.Teaching methods: use of multimedia tools. We adopt Classroom-based teaching, which is supplemented by the necessary classroom discussion. Besides，arrange students to do some appropriate exercises and self-extending reading after class.四、整体课时分配五、实验教学1. 实验项目与课时分配3.实验报告The basic requirements of the experiment report, including: name of the experiment, purpose of the experiment, case data, case analysis, conclusions and enlightenment.六、课程考核与成绩评定1.考核方式：考查；笔试；闭卷。
管理会计（F2）选择题题库---2016一、单项选择题1.The sales manager has prepared a manpowerplan to ensure that sales quotas for the forthcoming year are achieved. This is an example of what type of planning （B）A Strategic planningB TacticalplanningC Operational planningD Corporate planning2．Which of the following statements is correct （B ）A Management accounting systems provide information for use in fulfilling legal requirementsB Management accounting systems provide information for the use of decision-makers within an organisationC Management accounting systems provide information for use by shareholdersD Management accounting systems provideinformation for use by tax authorities3． Which of the following would be data rather than information（ B）A Sales increase/decrease per product in lastquarterB Total sales value per productC Sales made per salesman as a percentage of totalsalesD Sales staff commission as a percentage of totalsales4．Which of the following would be classed asindirect labour （ B ）A Assembly workers in a company manufacturingtelevisionsB A stores assistant in a factory storeC Plasterers in a construction companyD A consultant in a firm of management consultants5． A company makes chairs and tables. Which of the following items would be treated as anindirect cost （ D ）A Wood used to make a chairB Metal usedfor the legs of a chairC Fabric to cover the seat of a chairD The salary of the sales director of the company6．Which of the following best describes a controllable cost （ C ）A A cost which arises from a decision already taken, which cannot, in the short run, be changed.B A cost for which the behaviour pattern can be easily analysed to facilitate valid budgetary control comparisons.C A cost which can be influenced by its budget holder.D A specific cost of an activity or business which would be avoided if the activity or business did not exist.7． Which of the following best describes a period cost （ A ）A cost that relates to a time period which is deducted as expenses for the period and is not included in the inventory valuation.B A cost that can be easily allocated to a particular period, without the need for arbitraryapportionment between periods.C A cost that is identified with a unit produced during the period, and is included in the value of inventory. The cost is treated as an expense for the period when the inventory is actually sold.D A cost that is incurred regularly every period, eg every month or quarter.8．Fixed costs are conventionally deemed to be which of the following （D ）A Constant per unit of outputB Outside the control of managementC Easily controlledD Constant in total when production volume changes9．．Which one of the above graphs illustrates the costs described A linear variable cost – when the vertical axis represents cost incurred. （ B ）A Graph 1B Graph 2C Graph 4D Graph 5Which one of the above graphs illustrates the costs described A fixed cost –when the vertical axis represents cost incurred. （ A ）A Graph 1B Graph 2C Graph 3D Graph 6Which one of the above graphs illustrates the costs described A linear variable cost – when the vertical axis represents cost per unit. （ A ）A Graph 1B Graph 2C Graph 3D Graph 6Which one of the above graphs illustrates the costs described A semi-variable cost – when the vertical axis represents cost incurred. （ C ）A Graph 1B Graph 2C Graph 4D Graph 5Which one of the above graphs illustrates the costs described A step fixed cost –when the vertical axis represents cost incurred. （ A ）A Graph 3B Graph 4C Graph 5D Graph 610．A production worker is paid a salary of $650 per month, plus an extra 5 cents for each unitproduced during the month. How is this type of labour cost best described （ D ）A A variable costB A fixed costC A step costD A semi-variable cost11．A total cost is described as staying the same over a certain activity range and thenincreasing but remaining stable over a revisedactivity range in the short term.What type of cost is this （ D ）A A fixed costB A variable costC Asemi-variable cost D A stepped fixed cost12．What is the economic batch quantity used to establish Optimal （ C ）A reorder quantityB recorder levelC order quantityD inventory level for production13．A company determines its order quantity fora raw material by using the Economic Order Quantity(EOQ) model. What would be the effects on the EOQ and the total annual holding cost of a decrease in the cost of ordering a batch of raw material （D ）EOQ Total annual holding costA Higher LowerB Higher HigherC Lower HigherD Lower Lower14．Over-absorbed overheads occur when （ A ）A Absorbed overheads exceed actual overheadsB Absorbed overheads exceed budgeted overheadsC Actual overheads exceed absorbed overheadsD Actual overheads exceed budgeted overheads15．Budgeted overheads $690,480 Budgeted machine hours 15,344Actual machine hours 14,128 Actual overheads $679,550Based on the data above, what is the machine hour absorption rate (to the nearest $)（ B ）A 44 per machine hourB 45 per machine hourC 48 per machine hourD 49 per machine hour16. Absorption costing is concerned with which of the following （ D ）A Direct materialsB Direct labourC Fixed costsD Variable and fixed costs17. The following statements have been made about life cycle costing.(1) Life cycle costing can be applied to products with a short life cycle.(2) Product life cycle costing is not well-suited for use within budgetary control systems.Which of the above statements is/are true （ D ）A 1 onlyB 2 onlyC Neither 1 nor 2D Both 1 and 218 . The following statements have been made about target costing.(1) Target costing makes the business look atwhat competitors are offering at an early stage in the new product development process.(2) Cost control is emphasised at the new product design stage so any engineering changes must happen before production starts.Which of the above statements is/are true （ D ）A 1 onlyB 2 onlyC Neither 1 nor 2D Both 1 and 219. The following statements have been made about target costing.(1) Target costing is inappropriate for a new product that has no existing market.(2) It may be acceptable for a target cost for anew product to be exceeded during the growth stage of its life cycle.Which of the above statements is/are true （ B ）A 1 onlyB 2 onlyC Neither 1 nor 2D Both 1 and 220. The following statements have been made about throughput accounting.(1) When throughput accounting (TA) is used, the aim should be to have sufficient inventories to overcome bottlenecks in production.(2) Throughput accounting is based on the assumption that in the short run, most factory costs, other than materials, are fixed.Which of the above statements is/are true （ B ）A 1 onlyB 2 onlyC Neither 1 nor 2D Both 1 and 221. The following statements have been made about activity based costing.;’’(1) Implementation of ABC is unlikely to be cost-effective when variable production costs are a low proportion of total production costs.(2) In a system of ABC, for costs that vary withproduction levels, the most suitable cost driver is likely to be direct labour hours or machine hours.Which of the above statements is/are true ( B )A 1 onlyB 2 onlyC Neither 1 nor 2D Both 1 and 222. In the theory of constraints and throughputaccounting, which of the following methods may be used to elevate the performance of a bindingconstraint ( C )(1) Acquire more of the resource that is the binding constraint.(2) Improve the efficiency of usage of the resource that is the binding constraint.A 1 onlyB 2 onlyC 1 and 2D Neither 1 nor 223. The following statements have been made about life cycle costing.(1) Life cycle costing is more useful for planning than for control purposes.(2) Most of the life cycle costs for a product are determined by decisions taken in the early stage ofa product’s life cycle.Which of the above statements is/are true ( D )A 1 onlyB 2 onlyC Neither 1 nor 2D Both 1 and 224. The following statements have been made about activity based costing.(1) Activity based costs are not the same as relevant costs for the purpose of short-run decision-making.(2) Activity based costing is a form of absorption costing.Which of the above statements is/are true ( D )A 1 onlyB 2 onlyC Neither 1 nor 2D Both 1 and 225. The following statements have been made about activity based costing.(1) In a system of ABC, apportionment of some overhead costs may need to be done on an arbitrary basis.(2) The costs of introducing and maintaining an activity based costing system may exceed the benefitsof such a costing system.Which of the above statements is/are true ( D )A 1 onlyB 2 onlyC Neither 1 nor 2D Both 1 and 226. The following statements have been made about target costing.(1) Target costing ensures that new product development costs are recovered in the target pricefor the product.(2) A cost gap is the difference between thetarget price and the target cost.Which of the above statements is/are true ( C )A 1 onlyB 2 onlyC Neither 1 nor 2D Both 1 and 227. In which of the following ways might financial returns be improved over the life cycle of a product ( C )( 1) Maximising the breakeven time.(2) Minimising the time to market.(3) Minimising the length of the life cycle.A 1 and 2 onlyB 1 and 3 onlyC 2 onlyD 2 and 3 only28. The following statements have been made about target costing.(1) Target costing is not well-suited for services that have a large fixed cost base.(2) Costs may be reduced in target costing byremoving product features that do not add value.Which of the above statements is/are true ( D )A 1 onlyB 2 onlyC Neither 1 nor 2D Both 1 and 229. The following statements have been made about activity based costing.(1) Activity based costs are not the same as relevant costs for the purpose of short-run decision-making(2) Activity based costing is a form of absorption costingWhich of the above statements is/are true ( D )A 1 onlyB 2 onlyC Neither 1 nor 2D Both 1 and 230. The following statements have been made about target costing.(1) A target cost gap is the difference betweenthe target cost for a product and its projected cost.(2) Products should not be manufactured if there is a target cost gap.Which of the above statements is/are true (A )A 1 onlyB 2 onlyC Neither 1 nor 2D Both 1 and 231. The following statements have been made about throughput accounting.(1) Inventory has no value and should be valued at $0.(2) Efficiency is maximised by utilising direct labour time and machine time to full capacity.Which of the above statements is/are true (C )A 1 onlyB 2 onlyC Neither 1 nor 2D Both 1 and 232. The following statements have been made about activity based costing.(1) In the short run, all the overhead costs for an activity vary with the amount of the cost driver for the activity.(2) A cost driver is an activity based cost.Which of the above statements is/are true (C )A 1 onlyB 2 onlyC Neither 1 nor 2D Both 1 and 233. The following statements have been made about target costing.(1) The value of target costing depends on having reliable estimates of sales demand.(2) Target costing may be applied to services that are provided free of charge to customers, such as costs of call centre handling.Which of the above statements is/are true (A )A 1 onlyB 2 onlyC Neither 1 nor 2D Both 1 and 234. The following statements have been made about life cycle costing.(1) An important use of life cycle costing is to decide whether to go ahead with the development of a new product.(2) Life cycle costing encourages management tofind a suitable balance between investment costs and operating expenses.Which of the above statements is/are true (D )A 1 onlyB 2 onlyC Neither 1 nor 2D Both 1 and 235. The following statements have been madeabout traditional absorption costing and activity based costing.(1) Traditional absorption costing may be used to set prices for products, but activity based costing may not.(2) Traditional absorption costing tends to allocate too many overhead costs to low-volume products and not enough overheads to high-volume products.Which of the above statements is/are true (C )A 1 onlyB 2 onlyC Neither 1 nor 2D Both 1 and 236. For which one of the following reasonswould the choice of penetration pricing beunsuitable for a product during the initial stageof its life cycle (B )A To discourage new entrants to the marketB To increase the length of the initial stage of the life cycleC To achieve economies of scaleD To set a price for a product that has a high price elasticity of demand37. The following statements have been madeabout the use of ex pected values for decision-making under conditionsof uncertainty.(1) Expected values are used to support a risk-averse attitude todecision-making.(2) Expected values are more valuable as a guide to decision-making wherethey refer to outcomes which will occur many times over.Which of the above statements is/are true ( B )A 1 onlyB 2 onlyC Neither 1 nor 2D Both 1 and 238. Which of the following statements about relevant costing is/are correct ( C )(1) An opportunity cost is defined as the relevant cost of taking a business opportunity.(2) Business decisions should be taken on the basis of whether they improveprofit or reduce costs.A 1 only is correctB 2 only is correctC Neither 1 nor 2 is correctD Both 1 and 2 are correct39. In which one of the following circumstances would the choice of a market skimming pricing policy be unsuitable for a product during the initial stage of its life cycle ( C )A The product is protected by a patentB Expected demand and the price sensitivity of customers for the new product are unknownC When the product is expected to have a long life cycleD To maximise short-term profitability40. The following statements have been made about relevant costing.(1) Sunk costs can never be a relevant cost for the purpose of decision-making.(2) If a company charges the minimum price for a product or service, based on relevant costs, it will not improve its overall profitability.Which of the above statements is/are true ( D )A 1 onlyB 2 onlyC Neither 1 nor 2D Both 1 and 241. The following statements have been made about full cost plus pricing.(1) Charging prices at full cost plus a fixed margin for profit will ensurethat the business will make a profit in each period.(2) Full cost plus pricing can lead to under- and over-pricing of productsWhich of the above statements is/are true ( B )A 1 onlyB 2 onlyC Neither 1 nor 2D Both 1 and 242. A company wishes to decide on a selling price for a new product, and wantsto choose the price that will provide the most satisfactory weekly total contribution. Weekly sales of each product will depend on the price charge and also on c ustomers’ response to the new product. The following pay-off table has been prepared( C )A P1B P2C P3D P443. The constraints in a linear programming problem are as follows:3x + 120,000 (Grade A labour hours)5x + 4y 160,000 (Grade B labour hours)x 30,000 (Sales demand product X)y 20,000 (Sales demand Product Y)x, y ≥ 0The objective function is to maximise total contribution: 20x + 30y. A graph of the constraints is as followsWhere is the optimal solution to the linear programming problem （ C）A Point AB Point BC Point CD Point D44. A decision tree is a way of representing decision choices in the formof a diagram. It is usual for decision trees to include probabilities of different outcomes.The following statements have been made about decision trees.(1) Each possible outcome from a decision is given an expected value.(2) Each possible outcome is shown as a branch on a decision tree.Which of the above statements is/are true ( B )A 1 onlyB 2 onlyC Neither 1 nor 2D Both 1 and 2following statements have been made about cost plus pricing.(1) A price in excess of full cost per unit will ensure that a company willcover all its costs and make a profit.(2) Cost plus pricing is an appropriate pricing strategy when jobs are carriedout to customer specifications.Which of the above statements is/are true ( B )A 1 onlyB 2 onlyC Neither 1 nor 2D Both 1 and 246. The following statements have been made about solving linear programmingproblems for budgeting purposes.(1) Slack occurs when less than the maximum available of a limited resource is required.(2) When the linear programming problem includes a constraint for minimumsales demand for a product, there may be a surplus for sales demand in the optimal solution.Which of the above statements is/are true ( D )A 1 onlyB 2 onlyC Neither 1 nor 2D Both 1 and 247. The following statements have been made about decision-making underconditions of uncertainty.(1) Expected value is a more reliable basis for decision-making where thesituation and outcome will occur many times than for a one-off decision.(2) A risk-averse decision maker avoids all risks in decision-making.Which of the above statements is/are true ( A )A 1 onlyB 2 onlyC Neither 1 nor 2D Both 1 and 248. Which method of pricing is most easily applied when two or more marketsfor the product or service can be kept entirely separate from each other ( A )A Price discriminationB Product line pricingC SkimmingD Volume discounting50. Which of the following statements about decision trees is/are correct ( B )(1) A decision tree can be used to identify the preferred decision choiceusing the minimax regret decision rule.(2) A decision tree is likely to present a simplified representation of reality.A 1 only is correctB 2 only is correctC Neither 1 nor 2 is correctD Both 1 and 2 are correct51. A company makes and sells four products. Direct labour hours are a scarceresource, but the company is able to sub-contract production of any products to external suppliers. The following information is relevant（ A ）A W, Y, X then ZB W, Z, X then YC X, Z, W then YD Z, X, Y then W52. A benefit sacrificed by taking one course of action instead of the mostprofitable alternative course of action is known as: （ A ）A An incremental costB An opportunity costC A relevant costD A sunk cost53. The following decision tree shows four decision options: 1, 2, 3 and 4Using the expected value rule, which choice should be made so as to optimise the expected benefit （ D ）A Choice 1B Choice 2C Choice 3D Choice 454. Good information should have certain qualities. Which of the following are qualities of good information 1 Complete 2 Extensive 3 Relevant 4 Accurate （ B ）A 1, 2 and 3B 1, 3 and 4C 2 and 4D All of them55．Over which of the following is the manager of a profit centre likely to have control （ D ）(i) Selling (ii) Controllable costs(iii) Apportioned head office costs (iv) Capital investment in the centreA All of the aboveB (i), (ii) and (iii)C (i), (ii) and (iv)D (i) and (ii)56. Which of the following statements is/are true about group bonus schemes （ C ）(i) Group bonus schemes are appropriate when increased output depends on a number of people all making extra effort(ii) With a group bonus scheme, it is easier to award each individual's performance(iii) Non-production employees can be rewarded as part of a group incentive schemeA (i) onlyB (i) and (ii) onlyC (i) and (iii) onlyD (ii) and (iii) only57． Factory overheads can be absorbed by which of the following methods （ A ）(i) Direct labour hours (ii) Machine hours(iii) As a percentage of prime cost (iv) $x per unitA (i), (ii), (iii) and (iv)B (i) and (ii) onlyC (i), (ii) and (iii) onlyD (ii), (iii) and (iv) only58. Which of the following would be the most appropriate basis forapportioning machinery insurance costs to cost centres within a factory （ C ）A The number of machines in each cost centreB The floor area occupied by the machinery in each cost centreC The value of the machinery in each cost centreD The operating hours of the machinery in each cost centre59. Consider the following statements, regarding the reapportionment ofservice cost centre overheads to production cost centres, where reciprocal services exist:(1). The direct method results in costs being reapportioned between service cost centres(2). If the direct method is used, the order in which the service cost centre overheads arereapportioned is irrelevant(3). The step down method results in costs being reapportioned between service cost centres(4). If the step down method is used, the order in which the service cost centre overheads arereapportioned is irrelevantWhich statement(s) is/are correct ( D )A (1), (2) and (4)B (1), (3) and (4)C (2) onlyD (2) and (3)60. Which of the following are acceptable bases for absorbing production overheads ( C )(i) Direct labour hours (ii) Machine hours(iii) As a percentage of the prime cost (iv) Per unitA Methods (i) and (ii) onlyB Methods (iii) and (iv) onlyC Methods (i), (ii), (iii) and (iv)D Methods (i), (ii) or (iii) only61. When comparing the profits reported under absorption costing and marginalcosting during a period when the level of inventory increased, which of the following is true （ B ）A Absorption costing profits will be higher and closing inventory valuations lower than those under marginal costing.B Absorption costing profits will be higher and closing inventory valuations higher than those under marginal costing.C Marginal costing profits will be higher and closing inventory valuations lower than those under absorption costing.D Marginal costing profits will be higher and closing inventory valuations higher than those under absorption costing.62．When comparing the profits reported under absorption costing and marginal costing during a period when the level of inventory increased, which of the following is true （ B ）A Absorption costing profits will be higher and closing inventory valuations lower than those under marginal costing.B Absorption costing profits will be higher and closing inventory valuations higher than those under marginal costing.C Marginal costing profits will be higher and closing inventory valuations lower than those underabsorption costing.D Marginal costing profits will be higher and closing inventory valuations higher than those underabsorption costing.。
【财务会计管理】管理会计示范性双语课件习题xxxx年xx月xx日xxxxxxxx集团企业有限公司Please enter your company's name and contentvCHAPTER 1MANAGEMENT ACCOUNTING: INFORMATION THAT CREATES VALUETRUE/FALSE1. Management accounting gathers short-term, long-term, financial, andnonfinancial information.a. Trueb. False2. Management accounting information generally reports on the organizationas a whole.a. Trueb. False3. Companies have to follow strict guidelines when designing a managementaccounting system.a. Trueb. False4. A good management accounting system is intended to meet specificdecision-making needs at all levels in the organization.a. Trueb. False5. During the history of management accounting, innovations were developedto address the decision-making needs of managers.a. Trueb. False6. A key element in any organization’s strategy is to identify its targetcustomers and to deliver what those target customers want.a. Trueb. False7. The value proposition has only two elements: cost and quality.a. Trueb. False8. Quality is the degree of conformance between what the customer ispromised and what the customer receives.a. Trueb. False9. Recently, the demand for improved management accounting and controlinformation within manufacturing firms has also occurred in serviceorganizations.a. Trueb. False10. Recently, the competitive environment for both manufacturing and servicecompanies has become far more challenging and demanding.a. Trueb. False11. Service companies are very similar to manufacturing companies in mayways, including the fact that many employees have direct contact withcustomers.a. Trueb. False12. Sensitivity to timeliness and quality of service is especially important toservice organizations.a. Trueb. False13. Government and nonprofit organizations, as well as profit-seekingenterprises, are feeling the pressures for improved performance.a. Trueb. False14. Management accounting information allows managers to compare actualand planned costs and to identify areas and opportunities for processimprovement.a. Trueb. False15. Management accounting can provide information on customer satisfaction.a. Trueb. False16. ROI (return on investment) combines two profitability measures to producea single measure of departmental or divisional performance.a. Trueb. False17. Around 1920, centralized control of decentralized operations wasaccomplished by having corporate managers receive financial reports about divisional operations and profitability.a. Trueb. False18. In the late 1990s, little interest or attention was paid to evaluatingmanagement’s appropriate governance and strategy choices.a. Trueb. False19. Financial information identifies and explains the underlying problems.a. Trueb. False20. Management accounting measures can provide advance warnings ofproblems.a. Trueb. False21. Customer satisfaction is an example of financial information.a. Trueb. False22. Operating profit is an example of nonfinancial information.a. Trueb. False23. Organizational leadership plays a critical role in fostering an organization’sculture of high ethical standards.a. Trueb. False24. Information is never neutral; just the act of measuring and reportinginformation affects the individuals involved.a. Trueb. False25. Boundary systems are always stated in positive terms that outline maximumstandards of behavior.a. Trueb. FalseMULTIPLE CHOICE26. Management accounting helps a company achieve:a. its strategic objectivesb. its operational objectivesc. control and also supports performance evaluationd. All of the above are correct.27. Which of the following types of information are used in managementaccounting?a. financial informationb. nonfinancial informationc. information focused on the long termd. All of the above are correct.28. Management accounting:a. focuses on estimating future revenues, costs, and other measures toforecast activities and their resultsb. provides information about the company as a wholec. reports information that has occurred in the past that is verifiable andreliabled. provides information that is generally available only on a quarterly orannual basis29. Which of the following descriptors refer to management accountinginformation?a. It is verifiable and reliable.b. It is driven by rules.c. It is prepared for shareholders.d. It provides reasonable and timely estimates.30. Which of the following statements refers to management accountinginformation?a. There are no regulations governing the reports.b. The reports are generally delayed and historical.c. The audience tends to be stockholders, creditors, and tax authorities.d. The scope tends to be highly aggregate.31. Management accounting information includes:a. tabulated results of customer satisfaction surveysb. the cost of producing a productc. the percentage of units produced that is defectived. All of the above are correct.32. Management accounting reports MOST likely include information about:a. customer complaintsb. net income for the yearc. total assetsd. All of the above are correct.33. The person MOST likely to use management accounting information is a(n):a. banker evaluating a credit applicationb. shareholder evaluating a stock investmentc. governmental taxing authorityd. assembly department supervisor34. Which of the following is NOT a function of a management accountingsystem?a. strategic planningb. financial reportingc. operational controld. product costing35. Financial accounting provides the PRIMARY source of information for:a. decision making in the finishing departmentb. improving customer servicec. preparing the income statement for shareholdersd. planning next year’s operating budget36. Financial accounting:a. focuses on the future and includes activities such as preparing nextyear's operating budgetb. must comply with GAAP (generally accepted accounting principles)c. reports include detailed information on the various operating segmentsof the business such as product lines or departmentsd. is prepared for the use of department heads and other employees37. The person MOST likely to use ONLY financial accounting information is a:a. factory shift supervisorb. vice president of operationsc. current shareholderd. department manager38. The accounting process is constrained by mandated reporting requirementsby all of the following organizations EXCEPT the:a. Internal Revenue Service (IRS)b. Institute of Management Accountants (IMA)c. Financial Accounting Standards Board (FASB)d. Securities and Exchange Commission (SEC) for companies that arepublicly traded39. Historically:a. in the beginning of the 20th century, the Guilds kept detailed records ofraw materials and labor costs as evidence of product qualityb. in medieval England, the basics of modern management accountingemerged with standards for material use, employee productivity, andbudgetsc. in the late 19th century, railroad managers implemented large andcomplex costing systems to compute the cost of different types offreightd. from 1400-1600, large and integrated companies such as DuPont andGeneral Motors, developed ways to measure return on investment40. In general, it was not until the 1970s that management accounting systems:a. were improved because of demands by the FASB and the SECb. stagnated and proved inadequatec. started to develop innovations in costing and performance-measurement systems due to intense pressure from overseascompetitorsd. started to address the decision-making needs of managers41. All successful organizations must identify and understand their:a. weaknessesb. competitionc. strategyd. definition of quality42. A key ele ment of any organization’s strategy is identifying:a. its potential shareholdersb. its target customersc. competitor’s productsd. employee needs43. What an organization tries to deliver to customers is called its valueproposition, which includes the elements of:a. cost and qualityb. cost, quality, and functionality and featuresc. cost, quality, functionality and features, and serviced. cost, quality, functionality and features, service, and industry standards44. The price paid by the customer, given the product features andcompetitor’s prices, is referred to as the __________ element of the value proposition.a. costb. industry standardsc. qualityd. service45. The degree of conformance between what the customer is promised andwhat the customer receives is referred to as the __________ element of the value proposition.a. costb. industry standardsc. qualityd. service46. The performance of the product, for example, a meal in a restaurantprovides the diner with the level of satisfaction expected for the price paid, is referred to as the __________ element of the value proposition.a. functionality and featuresb. industry standardsc. qualityd. service47. How the customer is treated at the time of the purchase is an example ofthe __________ element of the value proposition.a. functionality and featuresb. industry standardsc. qualityd. service48. Management accounting provides:a. information on the efficiency of factory laborb. information on the cost of servicing commercial customersc. information on the performance of an operating divisiond. All of the above are correct.49. Which of the following groups would be LEAST likely to receive detailedmanagement accounting reports?a. stockholdersb. customer service representativesc. production supervisord. vice president of operations50. Top executives of a multi-plant firm are LEAST likely to use managementaccounting information:a. to support decisions that result in long-term consequencesb. to evaluate the performance of individual plantsc. for strategic planningd. for operational control51. Managers of service departments need all of the following informationEXCEPT:a. efficiency data on work performanceb. quality data on work performancec. profitability data of the whole companyd. profitability data of the service department52. A national company manufactures a line of modern furniture. InformationMOST useful to the employee who assembles the furniture includes:a. a daily report comparing the actual time it took to assemble a piece offurniture to the standard time allowedb. a monthly report on the portion of furniture pieces assembled withdefectsc. the number of furniture pieces sold this monthd. revenue per employee53. A national company manufactures a line of modern furniture. InformationMOST useful to the top executive includes:a. individual job summaries of materials usedb. monthly financial reports on the company’s profitability by productlinec. time reports submitted by each employeed. scheduled downtime for routine maintenance on machines54. A quarterly report disclosing declining market share information is MOSTuseful to:a. a front-line employeeb. the manager of operationsc. the chief executive officerd. the accounting department55. A weekly report comparing machine time used to available machine time isinformation MOST useful to:a. a front-line employeeb. the manager of operationsc. the chief executive officerd. the accounting department56. A daily report on the number of quality units assembled by each employeeis information MOST useful to:a. a front-line assembly workerb. the accounting departmentc. the chief executive officerd. the personnel department57. Which of the following would be LEAST helpful for a top manager of acompany?a. profitability report of the companyb. information to monitor hourly and daily operationsc. number of customer complaintsd. operating expense summary reported by department58. Recently, increased demand for management accounting information hasbeen:a. primarily from manufacturing firmsb. primarily from service organizationsc. from both the manufacturing and the service industriesd. an illusion; in fact, the demand for management accounting haschanged very little59. Management accounting can play a critical role in the service industrybecause of all the following reasons EXCEPT:a. firms must be especially sensitive to the timeliness and quality ofcustomer serviceb. many employees have very little contact with customersc. customers immediately notice defects and a delay in serviced. dissatisfied customers may never return60. Historically, the NEGLECT of management accounting in the service industrywas a result of:a. noncompetitive environmentsb. global customer demandsc. the switch to free market economiesd. an influx of higher-quality and lower-priced products from overseas61. Currently, management accounting information within government andnonprofit organizations is in greater demand because:a. public and private donors are demanding accountabilityb. citizens are requesting responsive and efficient performance from theirgoverning unitsc. more nonprofit organizations are competing for limited fundsd. All of the above are correct.62. Currently, pressures for improved cost and performance measurements arebeing felt by:a. nonprofit organizationsb. governmental agenciesc. profit-seeking enterprisesd. All of the above are correct.63. Financial accounting information:a. provides a signal that something is wrongb. identifies what is wrongc. explains what is wrongd. simply summarizes information but gives no indication that anything iswrong64. Decentralized responsibility refers to allowing lower-level managers to doall of the following EXCEPT:a. make decisions without seeking higher approvalb. take advantage of local opportunitiesc. make periodic financial reports to upper-managementd. pursue individual objectives even though they may not contribute tothe entire company65. The return on investment (ROI) performance measure uses __________ toevaluate the performance of operating divisions.a. a single numberb. four numbersc. five numbersd. ten numbers66. The return on investment (ROI) performance measure combines __________to produce a measure of departmental performance.a. two profitability measuresb. two capital utilization measuresc. one profitability measure and one capital intensity measured. two profitability measures and two capital intensity measures67. All of the following are true regarding the return on investment (ROI)formula developed at Dupont EXCEPT that:a. it is the sole measure top-management utilizes to evaluate whichdivision should receive additional capitalb. it allows companies to have centralized control with decentralizedresponsibilityc. it produces a measure of divisional performanced. it equals (Operating income/Sales) x (Sales/Investment)THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 68 AND 69.The following information pertains to three divisions:Flowers Shrubs TreesSales $15,000 $28,000 $120,000Operating income $2,000 $2,000 $6,000Investment $22,000 $40,000 $100,00068. What is the return on investment for the Shrub Division?a. 2.00%b. 5.00%c. 7.14%d. 70.00%69. Which division is more profitable based on ROI?a. Flowersb. Shrubsc. Treesd. Both Flowers and Shrubs are equally more profitable than Trees.70. To help evalua te management’s appropriate governance and strategicchoices, organizations have called on management accountants to develop:a. internal control systems to protect assets from theftb. measures to monitor compliance with behavior that is consistent withthe organization’s best interestsc. systems to evaluate profitabilityd. reports to highlight variances from amounts planned71. Management accounting information is BEST described as:a. providing a signal that something is wrongb. identifying and helping to explain what is wrongc. simply summarizing information, but giving no indication that anythingis wrongd. measuring overall organizational performance72. For improving operational efficiencies and customer satisfaction,nonfinancial information is:a. criticalb. helpfulc. infrequently usedd. unnecessary73. Nonfinancial information might be used to:a. improve qualityb. reduce cycle timesc. satisfy customer needsd. All of the above are correct.74. The act of simply measuring and reporting information:a. focuses the attention of employees on those processesb. diverts the employee’s attention to other activitiesc. disproves the saying “What gets measured gets managed.”d. has no effect on employee behavior75. Which statement below is FALSE?a. “What gets measured gets managed.”b. People react to measurements.c. Employees spend more attention on those variables that are notgetting measured.d. “If I can’t measure it, I can’t manage it.”76. When a change is introduced, employees tend to:a. embrace the changeb. be indifferent to the changec. exhibit no change in behaviord. resist the change77. The introduction of a new management system is MOST likely to motivateUNWANTED employee behavior when it is used for:a. evaluationb. planningc. decision makingd. coordinating individual efforts78. Management accountants are MOST likely to feel outside pressure tofavorably influence the numbers favorably when the information is used for:a. budgetingb. compensation and promotionsc. continuous improvementd. product costing79. Fostering a culture of high ethical standards includes all of the followingEXCEPT:a. following the good example set by senior managementb. communicating to employees a belief system that inspires andpromotes commitment to the organization’s core valuesc. following the general examples set by front-line employeesd. communicating to all employees a boundary system that states whatactions will not be tolerated80. The Institute of Management Accountants (IMA):a. is a professional organization of management accountantsb. is a professional organization of financial accountantsc. issues standards for management accountingd. issues standards for financial accountingCRITICAL THINKING/ESSAY81. Describe management accounting and financial accounting.82. What is the purpose of management accounting?83. Briefly describe how managers make use of management accountinginformation.84. Describe the value proposition and the elements that comprise it.85. Is financial accounting or management accounting more useful to anoperations manager? Why?86. What role has the increasingly competitive business environment played inthe development of management accounting?87. Describe return on investment (ROI). Why was it developed? When was itdeveloped?88. Give two examples of financial information and nonfinancial information.89. Discuss the potential behavior implications of performance evaluation.CHAPTER 1 SOLUTIONSMANAGEMENT ACCOUNTING: INFORMATION THAT CREATES VALUETRUE/FALSELO1 1. a LO1 2. b LO1 3. b LO1 4. a LO1 5. aLO2 6. a LO2 7. b LO2 8. a LO3 9. a LO3 10. aLO3 11. b LO3 12. a LO3 13. a LO3 14. a LO3 15. aLO4 16. b LO4 17. a LO5 18. a LO5 19. b LO5 20. aLO5 21. b LO5 22. b LO6 23. a LO6 24. aLO6 25. bMULTIPLE CHOICELO1 26. dLO1 27. dLO1 28. aLO1 29. dLO1 30. aLO1 31. dLO1 32. aLO1 33. dLO1 34. bLO1 35. cLO1 36. bLO1 37. cLO1 38. bLO1 39. cLO1 40. cLO2 41. cLO2 42. bLO2 43. cLO2 44. aLO2 45. cLO2 46. aLO2 47. dLO3 48. dLO3 49. a LO3 50. dLO3 51. c LO3 52. a LO3 53. b LO3 54. c LO3 55. b LO3 56. a LO3 57. b LO3 58. c LO3 59. b LO3 60. aLO3 61. d LO3 62. d LO4 63. a LO4 64. d LO4 65. aLO4 66. c LO4 67. a LO4 68. b LO4 69. a LO5 70. bLO5 71. b LO5 72. a LO5 73. d LO6 74. a LO6 75. cLO6 76. d LO6 77. a LO6 78. b LO6 79. c LO6 80. aMULTIPLE CHOICE68. $2,000 / $40,000 = 5.00%69. $2,000 / $22,000 = 9.09%; $2,000 / $40,000 = 5.00%; $6,000 / $100,000= 6.00%CRITICAL THINKING/ESSAYLO181. Describe management accounting and financial accounting.Solution: Management accounting provides information to internaldecision makers of the business such as top executives. Its purpose is to help managers predict and evaluate future results. Reports are generated often and are usually broken down into smaller reporting divisions such as department or product line. There are no rules to be complied with since these reports are for internal use only.Financial accounting provides information to external decision makers such as investors and creditors. Its purpose is to present a fair picture of thefinancial condition of the company. Reports are generated quarterly orannually and report on the company as a whole. The financial statements must comply with GAAP (generally accepted accounting principles). A CPA audits, or verifies, that the GAAP are being followed.LO182. What is the purpose of management accounting?Solution: Management accounting gathers short-term and long-termfinancial and nonfinancial information to plan, coordinate, motivate,improve, control, and evaluate success factors of an organization.Management accounting converts data into usable information thatsupports strategic, operational, and control decision making.LO183. Briefly describe how managers make use of management accountinginformation.Solution: Managers use accounting information for three broad purposes.ONE: To plan business operations that includes preparing strategies and budgets and determining the prices and costs of products and services. A company must know the cost of each product and service to decide which products to offer and whether to expand or discontinue product lines.TWO: To control business operations that includes comparing actual results to the budgeted results and taking corrective action when needed.THREE: To evaluate performance.LO284. Describe the value proposition and the elements that comprise it.Solution: The value proposition is what an organization tries to deliver to its target customers – it defines the organizational strategy.The four elements are cost, quality, functionality and features, and service.•Cost is the price paid by the customer, given the product features and competitor’s prices.•Quality is the degree of conformance between what the customer is promised and what the customer receives.•Functionality and features refers to the performance of the product. For example: A meal in a restaurant provides the diner with the level ofsatisfaction expected for the price paid.•Service is all of the other elements of the product. For example: How the customer is treated at the time of the purchase.LO385. Is financial accounting or management accounting more useful to anoperations manager? Why?Solution: Management accounting is more useful to an operationsmanager because management accounting reports operating results by department or unit rather than for the company as a whole, it includesfinancial as well as nonfinancial data such as on-time deliveries and cycle times, and it includes quantitative as well as qualitative data such as the type of rework that was needed on defective units.LO386. What role has the increasingly competitive business environment played inthe development of management accounting?Solution: The competitive environment has changed dramatically. There has been a deregulation movement in North America and Europe during the 1970s and 1980s that changed the ground rules under which servicecompanies operated. In addition, organizations encountered severecompetition from overseas companies that offered high-quality products at low prices. There has been an improvement of operational control systems such that information is more current and provided more frequently. The nature of work has changed from controlling to informing. Firms areconcerned about continuous improvement, employee empowerment, and total quality. Nonfinancial information has become a critical feedbackmeasure. Finally, the focus of many firms is now on measuring andmanaging activities.LO487. Describe return on investment (ROI). Why was it developed? When was itdeveloped?Solution: ROI = (operating income / sales) x (sales / investment)The ROI measure combines a profitability measure (operating income /sales) with a capital intensity measure (sales / investment) to provide asingle measure of departmental and divisional performance.ROI was developed in the early decades of the 1900s so that seniormanagers at multi-divisional diversified corporations, such as DuPont and General Motors, could evaluate the operating performance of theirdecentralized divisions.LO588. Give two examples of financial information and nonfinancial information.Solution: Financial information includes amounts that can be expressed in dollar amounts such as sales, net income, and total assets. It also includes ratios prepared using financial information such as increase in sales, return-on-sales, and return-on-investment.Nonfinancial information includes measures that are not expressed in dollar amounts. For example, nonfinancial measures of customer satisfactioninclude the number of repeat customers or ranked estimates of satisfaction levels. Nonfinancial measures of production quality include percent of on-time deliveries, the number of defects, production yield, and cycle times.LO689. Discuss the potential behavior implications of performance evaluation.Solution: As measurements are made on operations and, especially, on individuals and groups, the behavior of the individuals and groups are affected. People react to the measurements being made. They will focus on those variables or the behavior being measured and spend less attention on variables and behavior that are not measured. In addition, if managers attempt to introduce or redesign cost and performance measurement systems, people familiar with the previous system will resist. Management accountants must understand and anticipate the reactions of individuals to information and measurements. The design and introduction of new measurements and systems must be accompanied with an analysis of the likely reactions to the innovations.谢谢阅读!!! 随心编辑，值得下载拥有！专业│专注│精心│卓越。
Cost ManagementConcepts and CostBehaviorQUESTIONS2-1Cost information is used in deciding whether to introduce a new product or discontinue an existing product (given the price and cost structure), assessing the efficiency of a particular operation, and budgeting. Cost information is also used for the valuation of inventory and cost of goods sold.2-2Different types of cost information are needed for different managerial purposes and decisions. For example, product cost information is used for product mix and pricing decisions. The cost of serving customer segments will include the cost of activities that support customer service. For management control purposes, an organization may compare actual costs to budgeted (standard) costs.2-3 A cost object is something for which it is desired to compute a cost. Examples of cost objects include a product, a product line, or an organizational unit such as the call center that responds to customers’ phone calls.2-4 A direct cost is a cost of a resource or activity that is acquired for or used by a single cost object and is easily traced to the cost object, such as a product manufactured or service rendered. An indirect cost is the cost of a resource that was acquired to be used by more than one cost object. Indirect costs cannot be easily identified with individual cost objects.2-5Variable costs are the costs of variable resources, whose costs are proportional to the amount of the resource used. Fixed costs are the costs of capacity-related resources, which are acquired and paid for in advance of when the work is done. Fixed costs depend on how much of the resource (capacity) is acquired, rather than on how much is used. Depreciation on machinery is an example of a fixed cost.– 29 –Atkinson, Solutions Manual t/a Management Accounting, 5E2-6Variable costs can be direct or indirect. For example, suppose the cost object isa passenger on an airplane. The cost of complimentary refreshments varies inproportion to the number of passengers, and is a direct variable cost. The cost of fuel varies with the number of flights (and perhaps to a small extent with respect the total weight of the passengers and their luggage, which is related to the number of passengers). The cost of the fuel that varies with the number of flights is an indirect variable cost.In some cases, direct variable costs may be treated as indirect costs if it is inconvenient to account for them as direct costs and the cost is only a small part of total costs. Costs for materials such as glue or thread, for example, are variable costs with respect to products but are generally a very small part of product cost. These costs are consequently often labeled as indirect materials and included with manufacturing overhead.2-7Fixed costs can be direct or indirect. For example, in the case of a multi-product firm that acquires a special piece of equipment for the exclusive use of one product, that equipment would be fixed and direct to the product that uses it. If the equipment will be used to produce multiple products, its cost will be indirect.2-8For external reporting, costs in a manufacturing firm are classified as product costs or period costs. The portion of product costs assigned to the products sold in a period appears as cost of goods sold expense in that period’s income statement; the remaining portion of product costs is assigned to the products in inventory and appears as an asset in the balance sheet. Period costs are expensed in the period incurred.2-9Costs represent the monetary value of goods and services expended to obtain current or future benefits. Expenses reported in the income statement are the costs of assets that the financial accountant deems have been used up when goods or services are sold (e.g., cost of goods sold), or period costs, whose benefits are not easily matched with products or services sold in a specific period (e.g., advertising).2-10The two principal categories of manufacturing costs are direct manufacturing costs (traced or assigned to the products that created those costs) and indirect manufacturing costs (allocated to products).– 30 –Chapter 2: Cost Management Concepts and Cost Behavior 2-11Only the manufacturing costs are included in the valuation of finished goods inventory. Therefore, traditional cost accounting systems, designed for valuing inventory, analyze these costs in greater detail in order to assign them to individual products.2-12Inside the organization, costs serve two broad purposes: planning and evaluation. Cost calculations can be tailored to a specific purpose. For example, for planning purposes, cost might serve as a reference point for determining the selling price of a prospective product, or might be used in a budgeting model to forecast costs under different levels of production and selling activities. Evaluation purposes occur, for example, when comparing actual costs to budgeted (standard) costs or when judging whether a process is efficient compared with the costs of similar internal or external processes.2-13Contribution margin per unit is the difference between revenue per unit and variable cost per unit. The contribution margin is an important component of the equation to determine the breakeven point. It is also used to help evaluate whether or not an investment in a business venture can be profitable.2-14In evaluating whether a business venture will be profitable, the breakeven point is the volume at which the profit equals zero, that is, revenues equal costs.2-15The most accurate and complete cost system possible may be inordinately costly to implement. Although it is often difficult to compute the value of usinga particular cost system, in principle the benefit should outweigh the cost of thesystem.2-16An opportunity cost is the sacrifice one makes when using a resource for one purpose instead of another.2-17Short-run is the period over which a decision-maker cannot adjust capacity.Short-run costs are variable costs, which vary in proportion to production.Long-run costs are the sum of variable and fixed costs associated with a cost object. Long-run costs are important for product planning purposes because they are an estimate of the cost of the all the resources consumed to make the product.2-18In the early part of the twentieth century, when formal cost systems were first installed at many businesses, direct labor comprised a large proportion of the total manufacturing cost. In today’s industrial environment, direct labor comprises a much smaller portion of the total costs, while the share of indirect costs has grown considerably. As a result, cost accounting systems must now– 31 –Atkinson, Solutions Manual t/a Management Accounting, 5Eanalyze indirect costs in greater detail to reflect their true behavior. Cost accounting systems that use volume measures to allocate indirect costs may be very inaccurate.2-19The five categories of production-related activities and their descriptions are listed below.1. Unit-related activities relate directly to the number of units produced(e.g., direct labor costs).2. Batch-related activities relate to the number of batches produced ratherthan the number of units produced (e.g., machine setups).3.Product-sustaining activities are performed to support the production andsale of individual products (e.g., product design).4.Customer-sustaining activities enable the company to sell to anindividual customer but are independent of the volume and mix of theproducts and services sold and delivered to the customer (e.g., technicalsupport provided to individual customers).5.Business-sustaining activities are required to support the upkeep of theplant or the basic functioning of the plant or the business (e.g., rent, plantmaintenance, a nd CEO’s salary).2-20Customer-related costs have attracted increasing attention in recent years because they are large and growing in many organizations. Furthermore, the costs can vary widely across different customers or customer segments.Organizations may use customer cost information to decide which customers or customer groups to retain or de-emphasize, or to decide on differential service fees to cover costs of services.EXERCISES2-21(a) Manufacturing (g) Nonmanufacturing(b) Nonmanufacturing (h) Nonmanufacturing(c)Nonmanufacturing (i) Manufacturing(d)Nonmanufacturing (j) Nonmanufacturing(e)Manufacturing (k) Nonmanufacturing(f) Nonmanufacturing (l) Nonmanufacturing– 32 –Chapter 2: Cost Management Concepts and Cost Behavior 2-22(a) Indirect (g) Indirect(b) Direct (h) Indirect(c)Direct (i) Direct(d)Indirect (j) Indirect(e)Direct (k) Direct(f) Indirect (l) Indirect2-23(a) Unit-related (g) Product-sustaining(b) Batch-related (h) Business-sustaining(c)Product-sustaining (i) Batch-related(d)Business-sustaining (j) Batch-related(e)Unit-related (k) Business-sustaining(f) Batch-related (l) Product-sustaining2-24(a) Unit- or batch-related (g) Business-sustaining(b) Batch-related (h) Product-sustaining(c)Product-sustaining (i) Business-sustaining(d)Business-sustaining (j) Business-sustaining(e)Batch-related (k) Business-sustaining(f)Unit-related (l) Unit-related2-25(a) Fixed(b)Variable(c)Variable(d)Fixed(e)Variable(f)Fixed(g)Fixed or variable (if number of billing clerks can vary in the short run)(h)Variable(i)Variable(j)Variable(k)Fixed– 33 –Atkinson, Solutions Manual t/a Management Accounting, 5E2-26(a) Variable(b)Fixed or variable (if number of production workers can vary in the shortrun)(c)Fixed(d)Variable(e)Fixed(f)Fixed(g)Variable(h)Variable(i)Fixed(j)Fixed2-27(a) Let P= charges per patient-day.(2,300 ⨯P) - (45.70 ⨯ 2,300) - 91,000) = 0P = $196,110 ) 2,300 = $85.27(b) Let X= the average number of patient days per month necessary togenerate a target profit of $45,000 per monthRevenue – Costs = Income(Price × Quantity) – Variable costs – Fixed costs = Income$100X– $45.70X– $91,000 = $45,000$54.30X = $91,000 + $45,000 = $136,000X = 2,505 patient days (rounded)2-28(a) Contribution margin per unit = $30 – $19.50 = $10.50(b) Let X = the number of units sold to break evenSales revenue – Costs = Income(Price × Quantity) – Variable costs – Fixed costs = Income$30X– $19.50X– $147,000 = $0$10.50X– $147,000 = 0X = 14,000 units– 34 –Chapter 2: Cost Management Concepts and Cost Behavior (c) Let X = the number of units sold to generate revenue necessary to earn pretaxincome of 20% of revenueSales revenue – Costs = Income(Price × Quantity) – Variable costs – Fixed costs = Income$30X– $19.50X– $147,000 = 0.2 × $30X$10.50X– $147,000 = $6XX = 32,667 units (rounded)Desired revenue = $30X = $30 × 32,667 = $980,010(d) Let Y = necessary increase in sales unitsIncremental sales revenue –Incremental variable costs –Incremental fixed costs = $0$30Y– $19.50Y– $38,500 = $0Y = 3,667 units (rounded)2-29(a)Sales $1,260,000– Cost of Goods Sold (Expense) $640,500Gross Margin or Gross Profit $619,500Selling & Admin (or GS&A or Operating expenses) $410,000 Net income (Operating income) $209,500(b) Revenue – Variable costs – Fixed costs = Profit$1,260,000 – $570,000 – $480,500 = $209,500(c)Let Y = sales dollars necessary for a before-tax target profit of $250,000The contribution margin ratio = ($1,260,000 – $570,000)/$1,260,000 =0.547619 (rounded).Using equation (2.10),Y = (Target Profit + Fixed Cost)/Contribution Margin RatioY = ($250,000 + $480,500)/0.547619Y = $1,333,956.60(d)Let Y = sales dollars necessary to break evenUsing equation (2.11),Y = Fixed Cost/Contribution Margin RatioY = $480,500/0.547619Y = $877,434.85– 35 –Atkinson, Solutions Manual t/a Management Accounting, 5E– 36 –2-30 (a)Alligators DolphinsTotalUnits sold140,00060,000200,000Sales mix percentage*.7.3Weighted average**Weighted average**Sum of weighted averagesSales price per unit$20.00$14.00$25.00$7.50 $21.50Variable costs per unit$ 8.00$ 5.60$10.00 $3.00$ 8.60Unit CM$12.00$ 8.40 $15.00$4.50$12.90* 140,000/(140,000 + 60,000) = .7; 60,000/(140,000 + 60,000) = .3 ** $20 × .7 = $14; $8 × .7 = $5.60; $25 × .3 = $7.50; $10 × .3 = $3Breakeven units = $1,290,000/$12.90 = 100,000 units. Of these, 100,000 × .7 = 70,000 will be alligators and 100,000 × .3 = 30,000 will be dolphins.(b) AlligatorsDolphinsTotalUnits sold60,000140,000200,000Sales mix percentage*.3.7Weighted average**Weighted average** Sum of weighted averagesSales price per unit$20.00$6.00$25.00$17.50$23.50Variable costs per unit$ 8.00$2.40$10.00$ 7.00 $ 9.40Unit CM$12.00$3.60$15.00 $10.50$14.10* 60,000/(140,000 + 60,000) = .3; 140,000/(140,000 + 60,000) = .7** $20 × .3 = $6; $8 × .3 = $2.40; $25 × .7 = $17.50; $10 × .7 = $7Chapter 2: Cost Management Concepts and Cost Behavior Breakeven units = $1,290,000/$14.10 = 91,489.36, which we round up to91,490 units. Of these, 91,490 × .3 = 27,447 will be alligators and 91,490× .7 = 64,043 will be dolphins.(c) In part (b), the sales mix percentage for the higher-CM product(dolphins) is greater than in part (a). Consequently, fewer total units arerequired to break even (91,490 in part (b) versus 100,000 in part (a)).2-31(a) Healthy Hearth has sufficient excess capacity to handle the one-time (short-run) order for 1,000 meals next month. Consequently, the analysisfocuses on incremental revenues and costs associated with the order:Incremental revenue per meal $3.50Incremental cost per meal 3.00Incremental contribution margin per meal $0.50Number of meals × 1,000Increase in contribution margin and operating income $ 500Healthy Hearth will be better off by $500 with this one-time order. Notethat total fixed costs remain unchanged, so it is sufficient to evaluate thechange in the contribution margin. If the order had been long-term,Healthy Hearth would need to evaluate whether the price provides thedesired profitability considering the fixed costs and whether filling thegovernment order might require giving up higher-priced regular sales.(b) Healthy Hearth has insufficient excess capacity to handle the one-timeorder for 1,000 meals next month, and must give up regular sales of 500meals at $4.50 each, resulting in an opportunity cost.Incremental contribution margin from one-time orderIncremental revenue per meal $3.50Incremental cost per meal 3.00Incremental contribution margin per meal $0.50Number of meals 1,000Increase in operating income from one-time order $ 500Opportunity costLost contribution margin on regular sales: 500 × ($4.50 – $3.00) $(750)Change in contribution margin and operating income $(250)– 37 –Atkinson, Solutions Manual t/a Management Accounting, 5ENow, Healthy Hearth will be worse off by $250 with this one-time order.Again, total fixed costs remain unchanged, so it is sufficient to evaluatethe change in the contribution margin.2-32(a) Customer 1 Customer 2 Sales revenue $1,200 $1,200Cost of goods sold $750 $750Support costs: 30% of revenue 360 1,110 360 1,110Customer margin $ 90 $ 90(b) Customer 1 Customer 2Sales revenue $1,200 $1,200Cost of goods sold $750 $750Support costs: $35 per order 70 820 420 1,170Customer margin $ 380 $ 30(c) The current system does not reflect the different costs of servingcustomers with very different ordering patterns. Although the revenueand cost of goods sold are the same for both customers, customer 1orders only twice per year and customer 2 orders 12 times per year.Because customer support costs are assigned on the basis of salesrevenue, the reported support costs are the same for both customers, andboth customers appear equally profitable. The proposed system moreaccurately assigns customer support costs to each customer based on thenumber of orders, showing the customer 1 is more profitable thancustomer 2 under the current pricing and sales volume.– 38 –Chapter 2: Cost Management Concepts and Cost Behavior PROBLEMS2-33(a)Sales $3,500,000Cost of goods sold a1,900,000Gross margin 1,600,000Selling and administrative expenses b620,000Net income before taxes, etc. $980,000a Cost of goods sold:Carpenter labor to make shelves $600,000Wood to make the shelves 450,000Depreciation on carpentry equipment 50,000Miscellaneous fixed manufacturing overhead (support) 150,000Rent for the building where the shelves are made 300,000Miscellaneous variable manufacturing overhead (support) 350,000$1,900,000b Selling and administrative expenses:Sales staff salaries $80,000Office and showroom rental expenses 150,000Advertising 200,000Sales commissions based on number of units sold 180,000Depreciation for office equipment 10,000$620,000(b)The following items are variable costs:Carpenter labor to make shelves $600,000Wood to make the shelves 450,000Sales commissions based on number of units sold 180,000Miscellaneous variable manufacturing overhead (support) 350,000Total variable costs $1,580,000Atkinson, Solutions Manual t/a Management Accounting, 5EThe variable costs per unit are $1,580,000/50,000 = $31.60. The followingitems are fixed costs:Sales staff salaries $80,000Office and showroom rental expenses 150,000Depreciation on carpentry equipment 50,000Advertising 200,000Miscellaneous fixed manufacturing overhead (support) 150,000Rent for the building where the shelves are made 300,000Depreciation for office equipment 10,000Total fixed costs $940,000 Let X = the number of units sold to earn a pre-tax profit of $500,000Revenue – Costs = Income(Price × Quantity) – Variable costs – Fixed costs = Income$70X– $31.60X– $940,000 = $500,000X = 37,500 units2-34 (a) Expected profit = 0.4($170,000 – 150,000) + 0.6($170,000 – 200,000) = $8,000 – 18,000 = – $10,000. Therefore, JF will not undertake the newproject and will earn $0.(b) If JF knows what the cost will be, it will choose the following decisions:If the cost is $150,000, then JF will undertake the project and earn($170,000 – 150,000) = $20,000.If the cost is $200,000, then JF will not undertake the project and earn$0, which is greater than ($170,000 – 200,000) = – $30,000.Therefore, JF’s expected profit if the consultant is hired is 0.4($20,000)+ 0.6($0) = $8,000. Therefore, JF is willing to pay the differencebetween the expected profit after hiring the consultant and the expectedprofit without hiring the consultant, or $8,000 –$0 = $8,000.Chapter 2: Cost Management Concepts and Cost Behavior 2-35(a) Direct material cost:∙Cost of fabric used in dresses $60,000Direct labor cost:∙Wages of dressmakers $5,000∙Wages of dress designers 4,000 9,000Manufacturing support:∙Wages of the employee who repairs the shop’spattern and sewing machines 2,000∙Cost of electricity used in the PatternDepartment 200∙Depreciation on pattern machines and sewingMachines 10,000∙Cost of insurance for the production employees(could instead be included under direct laborcost) 2,000∙Rent for the building (6,000 ⨯ 1/2) 3,000 17,200Selling costs:∙Wages of sales personnel 1,000∙Rent for the building (6,000 ⨯ 1/4) 1,500 2,500Marketing costs:∙Cost of new sign in front of retail shop 400∙Cost of advertisements in local media 800∙Cost of hiring a plane and a pilot to advertise 1,400 2,600R & D costs:∙Wages of designers who experiment with newfabrics and dress designs 3,000 General & administrative costs:∙Salary of the owner’s assistant1,200∙Rent for the building (6,000 ⨯ 1/4) 1,500 2,700Total costs $97,000Atkinson, Solutions Manual t/a Management Accounting, 5E(b) Classifications in this question may depend on the interpretation of theproduction and selling processes, and assumptions about how variouscosts are related to activities.Unit-related cost:∙Cost of fabric used in dresses $60,000∙Wages of dressmakers 5,000∙Wages of dress designers 4,000∙Depreciation on pattern machines and sewingmachines (depreciation on pattern machinescould be included in product-sustainingcost) 10,000 79,000 Batch-related cost:∙Wages of sales personnel (could also beclassified as unit-related if customersgenerally purchase only one dress at a time) 1,000 Product-sustaining cost:∙Cost of electricity used in the PatternDepartment 200∙Wages of designers who experiment withnew fabrics and dress designs 3,000 3,200 Business-sustaining cost:∙Wages of the employee who repairs thepattern and sewing machines 2,000∙Salary of the owner’s assistant1,200∙Cost of new sign in front of retail shop 400∙Cost of advertisements in local media 800∙Cost of hiring a plane and a pilot to advertise 1,400∙Cost of insurance for the productionEmployees 2,000∙Rent for the building 6,000 13,800Total costs $97,000Chapter 2: Cost Management Concepts and Cost Behavior 2-36(a) The number of miles driven is an important activity measure in estimating the cost of driving. In comparing the cost of driving to workor taking public transportation, Shannon may also want to consider thecost of parking at work. The cost of parking may vary with the numberof days at work or may be a flat rate per month.(b)Incremental costs of driving include gas, oil, maintenance, and tireexpenditures. Costs associated with driving also include toll costs andparking fees.(c)Fixed costs include taxes, depreciation of the vehicle, car registration,and insurance.(d)For a two-week vacation by car, two likely activity measures are numberof miles driven and number of days (for lodging and meals).2-37(a) Estimated support costs based on direct labor cost:May: $28,500 (= $9.50 × 3,000)June: $39,900 (= $9.50 × 4,200)Estimated support costs based on the new equation:May: $42,000 (= $3,000 + [$200 × 50] + [$300 × 30] + [$20 × 1,000])June: $54,200 (= $4,200 + [$200 × 70] + [$300 × 40] + [$20 × 1,200])(b) The two sets of estimates differ because the old equation omits severalimportant cost drivers that are not proportional to direct labor cost.(c) Neither method recognizes that some support costs may be committedand will not vary unless their resource capacity is exceeded. This willlead to discrepancies with both methods. The second equation, however,is preferred because it recognizes important cost drivers.Atkinson, Solutions Manual t/a Management Accounting, 5E2-38(a) Direct materialcost Meat, cheese, bread, lettuce and otheringredients. $ 8,100Direct labor cost Cooks’ wages.5,000Indirect support costs Utilities, depreciation on cookingequipment, paper supplies, rent, andjanitor’s wag es.2,200Selling support Servers’ wages1,500Marketing costs Advertisement in local newspaper 300Total cost $17,100 * A portion of utilities, janitor’s wages, and rent could be allocated to administrative support, if we were given a suitable allocation basis.(b) Unit-relatedcost Meat, cheese, bread, lettuce and other ingredients, cooks’ wages,depreciation on equipment, andpaper supplies. $13,600Batch-related cost Servers’ wages1,500Business-sustaining cost Janitor’s wages, utilities, rent, andadvertisement in local newspaper. 2,000Total cost $17,100 2-39(a) Costs that vary with number of passengers:Meals and refreshments = $5Let X= number of passengers needed to break even each weekTotal revenue per week – costs per passenger per week – costs per flightper week – fixed costs per week = profit per week($200 ⨯X⨯ 70) – ($5 ⨯X⨯ 70) – ($5,000 ⨯ 70) – $400,000 = $0$13,650X = $750,000X= $750,000 ÷ $13,650 = 54.95 (i.e., 55 passengers per flight)(b) Let N= number of flights to earn a profit of $500,000 per weekNumber of passengers per flight = 60% ⨯ 150 = 90($200 ⨯ 90 ⨯N)– ($5 ⨯ 90 ⨯N)– ($5,000 ⨯N– $400,000) = $500,000N= 71.71 (i.e., 72 flights)Chapter 2: Cost Management Concepts and Cost Behavior (c)Fuel costs are fixed once the flights are scheduled, but these costs varywith the number of flights.(d)In this case, there is no opportunity cost to the airline because the seatwould otherwise go empty. The variable cost for the additional passenger is $5 for the meals and refreshments and perhaps a small amount of additional fuel cost.2-40(a) Johnson Co. breakeven point in number of ridesCapacity-related costs Unit contribution marginrides===$300,$6,00050000Smith Co. breakeven point in number of ridesCapacity-related costs Unit contribution marginrides===$1,,$15,500000100000(b) Let x be the number of rides.Johnson Co.’s profit function:πJ x x x=--=-$30,$6,24300000300000 Smit h Co.’s profit function:πS x x x=--=-$30,,$15,,1515000001500000Atkinson, Solutions Manual t/a Management Accounting, 5ENumber of ridesProfitProfit-Volume ChartπJπS 133,333100,00050,000$0($300,000)($1,500,000)Loss(c)We cannot say which firm’s cost structure is more profitable as profits depend on sales volume. If sales drop to below 133,333 rides, Johnson Company’s cost structure leads to more profits. Howe ver, if sales remain above 133,334 rides, then Smith Company’s cost structure leads to more profits.(d)The contribution margin generated must first cover the fixed costs and then the balance remaining after the fixed costs are fully covered goes toward profits. If the contribution margin is not sufficient to cover the fixed costs, then a loss occurs for the period. Once the breakeven point has been reached, profit will increase by the unit contribution margin for each additional unit sold. Here, Smith Company is more risky because it has higher fixed costs to cover and a higher unit contribution margin, which makes its profits more sensitive to decreases in the sales activity level.2-41 (a) Contribution margin per unit:Selling price$250Less variable costs:Variable production costs$100Variable selling and distribution support 20120Contribution margin per unit$130Chapter 2: Cost Management Concepts and Cost Behavior(b) Let X = the sales volume at which the profit on sales is 10%Profit =250X X X X XX X --+()=⨯()-===12020000062,50001250130262,50025105262,5002,500 units.,.(c)(1) Single-shift operations 04,400≤≤()X : Selling price $200 Variable costs120 Contribution margin per unit $80Fixed costs =$200,000 + $62,500 + $17,500 = $280,000Breakeven point = $280,000 ÷ $80 = 3,500 unitsnote: 0≤≤()35004400,,Atkinson, Solutions Manual t/a Management Accounting, 5E(2) Two-shift operations 4,4008800≤≤()X ,:Selling price $200 Variable costs120Contribution margin per unit$80Fixed costs =$310,000 + $62,500 + $17,500 = $390,000 Breakeven point = $390,000 ÷ $80 = 4,875 units()800,8875,4,4004 :note ≤≤(d)Profit to sales ratio in September:=⨯-⨯=-=13030002625002503000390000262500750000017,,,,,,.(1) Single-shift operations 04,400≤≤()X2001202800000172008028000034462800006087X X XX XX X --=⨯-===,.,,, units(Not acceptable because X cannot be more than 4,400 units with single-shift operations)(2) Two-shift operations 4,4008800≤≤()X , 2001203900000172008039000034463900008478 unitsX X XX XX X --=⨯-===,.,,,()800,8478,8,4004 :note ≤≤。
CH02COST MANAGEMENT CONCEPTS AND COST BEHAVIOR TRUE/FALSE1. There is no single definition of cost.a. Trueb. False2. The role of the management accountant is to tailor the cost calculation to fit the currentdecision situation.a. Trueb. False3. A cost that is useful for one decision may not be useful information for another decision.a. Trueb. False4. In most organizations, managing nonmanufacturing costs as well as manufacturing costs isimportant for financial success.a. Trueb. False5. The cost of a customized machine only used in the production of a single product would beclassified as a direct cost.a. Trueb. False6. The wages of a plant supervisor would be classified as a period cost.a. Trueb. False7. The classification of product and period costs is particularly valuable in managementaccounting.a. Trueb. False8. For external reporting, generally accepted accounting principles require that costs beclassified as either flexible or capacity-related costs.a. Trueb. False9. Knowing whether a cost is a period or a product cost helps to estimate total cost at a newlevel of activity.a. Trueb. False10. Flexible costs are always direct costs.a. Trueb. False11. Capacity-related costs vary with the level of production or sales volume.a. Trueb. False12. Currently, most personnel costs are classified as capacity-related costs.a. Trueb. False13. Some capacity-related costs might be classified as direct manufacturing costs.a. Trueb. False14. Capacity-related costs depend on the resources used, not the resources acquired.a. Trueb. False15. Break-even point is NOT an important concept since the goal of business is to make aprofit.a. Trueb. False16. To perform cost-volume-profit analysis, a company must be able to separate costs intocapacity-related and flexible components.a. Trueb. False17. Cost-volume-profit analysis may be used for single-product and multiproduct analysis.a. Trueb. False18. Selling price per unit is $30, flexible cost per unit is $15, and capacity-related cost per unitis $10. When this company operates above the break-even point, the sale of one more unit will increase net income by $5.a. Trueb. False19. A company with sales of $100,000, flexible costs of $70,000, and capacity-related costs of$50,000 will reach its break-even point if sales are increased by $20,000.a. Trueb. False20. In multiproduct situations when the sales mix shifts toward the product with the lowestcontribution margin, the break-even quantity will decrease.a. Trueb. False21. The opportunity cost of a resource is zero if there is excess capacity of that resource.a. Trueb. False22. When a firm maximizes profits it will simultaneously minimize opportunity costs.a. Trueb. False23. Even when the only constraint limiting production is machine time, a company should bemost concerned with maximizing contribution margin per unit.a. Trueb. False24. The time over which a decision maker can adjust capacity is referred to as the short run.a. Trueb. False25. For general customers, the price charged for a product must cover its long-run cost to theorganization.a. Trueb. False26. In recent years, capacity-related costs have increased as a proportion of total manufacturingcosts.a. Trueb. False27. Machine setup costs are usually classified as a business-sustaining activity.a. Trueb. False28. The benefits of classifying activities using the broader framework of unit-related, batch-related, product-sustaining, customer-sustaining, and business-sustaining activities are there are generally more costs that are directly traceable to cost objects.a. Trueb. False29. Product life-cycle costing helps organizations decide whether a new product should belaunched.a. Trueb. FalseMULTIPLE CHOICE30. An example of a cost object is:a. a productb. a customerc. a departmentd. All of the above are correct.31. Manufacturing costs include:a. machinery used inside of the factoryb. research and development costsc. costs of dealing with customers after the saled. general and administrative costs32. Manufacturing costs include all of the following EXCEPT:a. costs incurred inside the factoryb. both direct and indirect costsc. both flexible and capacity-related costsd. both product and period costs33. Nonmanufacturing costs:a. include only capacity-related costsb. seldom influence financial success or failurec. include the cost of selling, distribution, and after-sales costs for customersd. are considered by GAAP to be an element of product costs34. Product costs:a. include administrative and marketing costsb. are particularly useful in financial accountingc. are expensed in the accounting period manufacturedd. are also referred to as nonmanufacturing costs35. For external reporting:a. costs are classified as either product or period costsb. costs reflect current valuesc. there are no prescribed rules since no one is exactly sure how the investors andcreditors will use these numbersd. expenses include amounts that reflect current and future benefits36. Product costs are expensed on the income statement when:a. raw materials for the product are purchasedb. raw materials are requisitioned for the productc. the product completes the manufacturing processd. the product is sold37. Depreciation of plant facilities is classified as a(n):a. direct material costb. direct labor costc. indirect manufacturing costd. general and administrative cost38. The cost of inventory reported on the balance sheet may include the cost of all thefollowing EXCEPT:a. advertisingb. wages of the plant supervisorc. depreciation of the factory equipmentd. parts used in the manufacturing process39. A plant manufactures several different products. The wages of the plant supervisor can beclassified as a:a. direct costb. product costc. flexible costd. nonmanufacturing cost40. Period costs:a. are treated as expenses in the period they are incurredb. are directly traceable to productsc. include direct labord. are also referred to as indirect manufacturing costs41. Which of the following is NOT a period cost?a. marketing costsb. general and administrative costsc. research and development costsd. manufacturing costs42. Advertising is an example of a _________ cost expensed on the income statement in theaccounting period incurred.a. directb. manufacturingc. periodd. product43. (CMA adapted, June 1992) The terms "direct cost" and "indirect cost" are commonlyused in cost accounting. Classifying a cost as either direct or indirect depends upon:a. the behavior of the cost in response to volume changesb. whether the cost is expended in the period in which it is incurredc. whether the cost can be related readily to resources consumed for a cost objectd. whether an expenditure is unavoidable because it cannot be changed regardless of anyaction taken44. Indirect manufacturing costs:a. can be traced to the product that created the costsb. may have a cause-and-effect relationship with capacity rather than with individualunits of productionc. generally include the cost of material and the cost of labord. are included in period costs45. A manufacturing plant produces two product lines: football equipment and hockeyequipment. An indirect cost for the hockey equipment line is the:a. material used to make the hockey sticksb. labor to bind the shaft to the blade of the hockey stickc. shift supervisor for the hockey lined. plant supervisor46. A manufacturing plant produces two product lines: football equipment and hockeyequipment. Direct costs for the football equipment line are the:a. beverages provided daily in the plant break roomb. monthly lease payments for a specialized piece of equipment needed to manufacturethe football helmetc. salaries of the clerical staff that work in the company administrative officesd. utilities paid for the manufacturing plantTHE FOLLOWING INFORMATION APPLIES TO QUESTIONS 47 THROUGH 53.The Bowley Company manufactures several different products. Unit costs associated with product ICT101 are as follows:Direct materials $ 60Direct labor 10Flexible manufacturing support costs 18Capacity-related manufacturing support costs 32Sales commissions (2% of sales) 4Administrative salaries 16Total $14047. Total product costs associated with product ICT101 are:a. $ 50b. $ 88c. $120d. $14048. Total period costs associated with product ICT101 are:a. $ 4b. $16c. $20d. $5249. Total flexible costs associated with product ICT101 are:a. $18b. $22c. $88d. $9250. Total capacity-related costs associated with product ICT101 are:a. $16b. $32c. $48d. $5251. Total nonmanufacturing costs associated with product ICT101 are:a. $ 4b. $16c. $20d. $5252. Total manufacturing costs associated with product ICT101 are:a. $70b. $88c. $120d. $14053. Direct manufacturing costs associated with product ICT101 are:a. $70b. $88c. $92d. $10854. Cost behavior refers to:a. how costs react to a change in the level of activityb. whether a cost is incurred in a manufacturing, merchandising, or service companyc. classifying costs as either product or period costsd. whether a particular expense has been ethically incurred55. Which statement is FALSE?a. All flexible costs are direct costs.b. Because of a cost-benefit tradeoff, some direct costs may be treated as indirect costs.c. All capacity-related costs are indirect costs.d. Direct costs may be flexible or capacity-related.56. An understanding of the underlying behavior of costs helps in all of the followingEXCEPT:a. sales volume can be better estimatedb. costs can be better estimated as volume expands and contractsc. true costs of processes can be better evaluatedd. process inefficiencies can be better identified and, as a result, improved57. Capacity-related costs:a. may be either direct or indirect costsb. vary with production or sales volumec. include parts and materials used to manufacture a productd. can be adjusted in the short run to meet actual demands58. Capacity-related costs depend on:a. the amount of resources usedb. the amount of resources acquiredc. the volume of productiond. the volume of sales59. Currently, most companies consider annual labor costs as:a. a capacity-related costb. a flexible costc. an opportunity costd. a period cost60. Which of the following does NOT describe a flexible cost?a. Flexible cost are always indirect costs.b. Flexible costs increase in total when the actual level of activity increases.c. Flexible costs include most personnel costs and depreciation on machinery.d. Flexible costs can always be traced directly to the cost object.61. Cost-volume-profit analysis is used PRIMARILY by management:a. as a planning toolb. for control purposesc. to establish a target net income for next yeard. to attain extremely accurate financial results62. Contribution margin equals revenues minus:a. product costsb. period costsc. flexible costsd. capacity-related costs63. The break-even point is the level at which revenues:a. equal capacity-related costsb. equal flexible costsc. equal capacity-related costs minus flexible costsd. equal flexible costs plus capacity-related costs64. The break-even point is:a. total costs divided by flexible costs per unitb. contribution margin per unit divided by revenue per unitc. capacity-related costs divided by contribution margin per unitd. (capacity-related costs plus flexible costs) divided by contribution margin per unit65. Cost-volume-profit analysis assumes all of the following EXCEPT:a. all costs are purely flexible or capacity relatedb. units manufactured equal units soldc. total flexible costs remain the same over the relevant ranged. total capacity-related costs remain the same over the relevant range66. All of the following are assumed in a cost-volume-profit analysis EXCEPT:a. a constant product mixb. capacity-related costs increase when activity increasesc. revenue per unit does not change as volume changesd. all costs can be classified as either capacity-related or flexible67. In multiproduct situations, when sales mix shifts toward the product with the highestcontribution margin, then:a. total revenues will decreaseb. breakeven quantity will increasec. total contribution margin will decreased. operating income will increaseTHE FOLLOWING INFORMATION APPLIES TO QUESTIONS 68 THROUGH 71. Karen’s Kraft Korner, Inc., sells a single product. This year, 7,000 units were sold resulting in $70,000 of sales revenue, $28,000 of flexible costs, and $12,000 of capacity-related costs.68. Contribution margin per unit is:a. $4.00b. $4.29c. $6.00d. None of the above is correct.69. Break-even point in units is:a. 2,000 unitsb. 3,000 unitsc. 5,000 unitsd. None of the above is correct.70. The number of units that must be sold to achieve $60,000 of profits is:a. 10,000 unitsb. 11,666 unitsc. 12,000 unitsd. None of the above is correct.71. If sales increase by $25,000, profits will increase by:a. $10,000b. $15,000c. $22,200d. an unknown amountTHE FOLLOWING INFORMATION APPLIES TO QUESTIONS 72 THROUGH 74.Mr. Paul’s Company sells several products for an average price of $20 per unit and the average flexible costs per unit are as follows:Direct material $4.00Direct labor $1.60Indirect manufacturing costs $0.40Selling commissions $2.00Mr. Pau l’s annual capacity-related costs total $96,000.72. The contribution margin per unit is:a. $6b. $8c. $12d. $1473. The number of units that Mr. Paul’s must sell each year to break even is:a. 8,000 unitsb. 12,000 unitsc. 16,000 unitsd. an unknown amount74. The number of units that Mr. Paul’s must sell annually to make a profit of $144,000 is:a. 12,000 unitsb. 18,000 unitsc. 20,000 unitsd. 30,000 unitsTHE FOLLOWING INFORMATION APPLIES TO QUESTIONS 75 THROUGH 79.The following information is for Barnett Corporation:Product X Product YRevenue per unit: $10.00 $15.00Flexible cost per unit: $ 2.50 $ 5.00Total capacity-related costs: $50,00075. If the sales mix consists of two units of Product X and one unit of Product Y, what is therevenue per unit of average product?a. $10.00b. $11.66c. $13.33d. $15.0076. If the sales mix consists of two units of Product X and one unit of Product Y, what is thebreak-even point?a. 1,000 units of Y and 2,000 units of Xb. 1012.5 units of Y and 2,025 units of Xc. 2012.5 units of Y and 4,025 units of Xd. 2,000 units of Y and 4,000 units of X77. What is the operating income, assuming actual sales total 150,000 units, and the sales mixis two units of Product X and one unit of Product Y?a. $1,200,000b. $1,250,000c. $1,750,000d. None of the above is correct.78. If the sales mix shifts to one unit of Product X and two units of Product Y, then theweighted-average contribution margin will:a. increase per unitb. stay the samec. decrease per unitd. be undeterminable79. If the sales mix shifts to one unit of Product X and two units of Product Y, then the break-even point will:a. increaseb. stay the samec. decreased. be undeterminable80. Opportunity cost(s):a. of a resource with excess capacity is zerob. should be maximized by organizationsc. are recorded as an expense in the accounting recordsd. are most important to financial accountants81. A recent college graduate has the choice of buying a new auto for $20,000 or to invest themoney for four years with a 12% expected rate of return. If the graduate decides to purchase the auto, the BEST estimate of the opportunity cost of that decision is:a. $2,400b. $11,740c. $20,000d. There is no opportunity cost for this decision.THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 82 THROUGH 86. Brenda’s Brakes manufactures three different product lines, Model X, Model Y, and Model Z. Considerable market demand exists for all models. The following per unit data apply:Model X Model Y Model Z Selling price $50 $60 $70Direct materials 6 6 6Direct labor ($12 per hour) 12 12 24Flexible support costs ($4 per machine hour) 4 8 8Capacity-related costs 10 10 1082. Which model has the greatest contribution per unit?a. Model Xb. Model Yc. Model Zd. both Models X and Y83. Which model has the greatest contribution per machine hour?a. Model Xb. Model Yc. Model Zd. both Models Y and Z84. If there is excess capacity, which model is the most profitable to produce?a. Model Xb. Model Yc. Model Zd. both Models X and Y85. If there is a machine breakdown, which model is the most profitable to produce?a. Model Xb. Model Yc. Model Zd. both Models Y and Z86. How can Brenda encourage her salespeople to promote the more profitable model?a. Put all sales persons on salary.b. Provide higher sales commissions for higher priced items.c. Provide higher sales commissions for items with the greatest contribution margin perconstrained resource.d. Both (b) and (c) are correct.87. Which statement is FALSE? Short run costs:a. are actually flexible costsb. affect long-run capacityc. are included in the calculation of long-run costsd. increase when one more unit is produced or served88. To sustain the profitability of a product, the list price of a product must cover its:a. flexible costsb. capacity-related costsc. indirect costsd. long-run costs89. Compared to the early 1900s, __________ costs now comprise a much higher share of totalproduct costs.a. direct laborb. direct materialsc. flexibled. capacity-related90. In recent years, the manufacturing cost structure has changed as a result of:a. greater automationb. better customer servicec. the proliferation of multiple productsd. All of the above are correct.91. Cost distortion is common in conventional costing systems because:a. of the recent change in cost structureb. the number of products being manufactured is increasingc. capacity-related costs are allocated using a volume measured. capacity-related costs create higher risks for a company92. Costs that must be allocated to products for external reporting purposes include:a. selling and marketing costsb. direct material and direct labor costsc. the cost of equipment used to manufacture several different productsd. All of the above are correct.93. The benefits of classifying activities using the broader framework of unit, batch, product,customer, and business-sustaining activities are that there are generally more costs:a. directly traceable to cost objectsb. treated as indirect costsc. arbitrarily allocated to cost objectsd. There is no major difference regarding costs.94. For budgeting purposes, product-sustaining activity costs should be:a. allocated to individual unitsb. allocated to individual customersc. assigned directly to individual product linesd. assigned directly to individual batches95. Which of the following activities is a unit-related activity?a. preparing and filing the annual tax return for the organizationb. machine setups for each production runc. quality inspections of 2% of the items producedd. obtaining patents and regulatory approval for each product produced96. Which of the following activities is a batch-related activity?a. preparing and filing the annual tax return for the organizationb. machine setups for each production runc. quality inspections of 2% of the items producedd. obtaining patents and regulatory approval for each product produced97. Which of the following activities is a product-sustaining activity?a. preparing and filing the annual tax return for the organizationb. machine setups for each production runc. quality inspections of 2% of the items producedd. obtaining patents and regulatory approval for each product produced98. Which of the following activities is a business-sustaining activity?a. preparing and filing the annual tax return for the organizationb. machine setups for each production runc. making sales callsd. obtaining patents and regulatory approval for each product produced99. Which of the following activities is a customer-sustaining activity?a. preparing and filing the annual tax return for the organizationb. machine setups for each production runc. making sales callsd. obtaining patents and regulatory approval for each product produced100. Product life-cycle costing:a. is useful for external reportingb. is primarily a planning toolc. includes manufacturing costs but not the cost of research and developmentd. assumes product related costs are incurred evenly over the product’s lifetime101. Companies want to ensure that product revenues cover the product’s:a. manufacturing costsb. manufacturing and distribution costsc. developing, supporting, and abandoning costsd. manufacturing, distribution, developing, supporting, and abandoning costs102. More attention is being devoted to the product development and planning phase because:a. abandonment includes significant costsb. of the need to better understand the relevant costsc. during this phase of the product-life cycle, revenues finally begin to cover long-runcostsd. during this phase of the product-life cycle, price competition becomes intense 103. One of the primary motivations for considering costs other than manufacturing and distribution costs is so that:a. these costs can be amortized over the life of the productb. costs can be more evenly distributed over the product’s life cyclec. planners can develop reasonable estimates of the costs associated with new productsd. if price competition becomes intense the selling price can be rationalizedEXERCISE/PROBLEM104. Winfield Manufacturing Company produces several different products. Classify each of their following costs as direct materials, direct labor, indirect manufacturing costs, or nonmanufacturing costs.a. Production supervisory salaries.b. Controller's office supplies.c. Executive office heat and air conditioning.d. Executive office security personnel.e. Factory heat and air conditioning.f. Supplies used in small quantities, such as glue, to complete assembly work.g. Power to operate factory equipment.h. Parts used in assembly.i. Wages of the assembly-line workers.j. Property taxes on office buildings for sales staff.k. Depreciation on furniture for sales staff.l. Salaries of top executives in the company.m. Wages of the finishing department workers.n. Sales commissions.o. Sales personnel office rental.105. Stephanie’s Stuffed Animals reported the following:Revenues $1,000Flexible manufacturing costs $ 200Flexible nonmanufacturing costs $ 230Capacity-related manufacturing costs $ 150Capacity-related nonmanufacturing costs $ 140Required:a. Compute contribution margin.b. Compute gross margin.c. Compute operating income.106. In 2005, Grant Company has sales of $800,000, flexible costs of $200,000, and capacity-related costs of $300,000. In 2006, Grant Company expects annual property taxes todecrease by $15,000.Required:a. Calculate operating income and the break even point for 2005.b. Calculate the break even point for 2006.107. Sunshine, Inc., sells a single product. The company's most recent income statement is given below.Sales (4,000 units) $120,000Less flexible expenses (68,000)Contribution margin 52,000Less capacity-related expenses (40,000)Net income $ 12,000Required:a. Contribution margin per unit is $ _______________ per unitb. If sales are doubled to $240,000,total flexible costs will equal $ _______________c. If sales are doubled to $240,000,total capacity-related costs will equal $ _______________d. If 10 more units are sold, profits will increase by $ _______________e. Compute how many units must be sold to break even. # _______________f. Compute how many units must be soldto achieve a profit of $20,000. # _______________ 108. Jeffrey’s, Inc., sells a single produ ct. The company's most recent income statement is given below.Sales $200,000Less flexible expenses (120,000)Contribution margin 80,000Less capacity-related expenses (50,000)Net income $ 30,000Required:a. Contribution margin ratio is __________ %b. Break-even point in total sales dollars is $ _______________c. To achieve $40,000 in net income, sales must total $ _______________d. If sales increase by $50,000, net income will increase by $ _______________109. Yurus Manufacturing Company produces two products, X and Y. The following information is presented for both products:X YSelling price per unit $36 $24Flexible cost per unit 28 12Total capacity-related costs $234,000 Required:Assume the sales mix is 3 units of X for every unit of Y:a. What is the revenue per unit of average product, the weighted average flexible cost,and the contribution margin per unit of average product?b. What is the break-even point in units of both X and Y?110. Bob’s Textile Company sells shirts for men and boys. The average selling price and flexible cost for each product are as follows:Men’s BoysSelling price $28.80 $24.00Flexible cost $20.42 $16.80Total capacity-related costs $38,400Required:Assume the sa les mix is 2 men’s shirts for each boy’s shirt:a. What is the revenue per unit of average product, the weighted average flexible cost,and the contribution margin per unit of average product?b. What is the break-even point in units for each type of shirt?c. What is the operating income, assuming sales total 9,000 shirts?111. Charlie’s Chairs manufactures two models, Standard and Premium. Weekly demand is estimated to be 120 units of the Standard Model and 70 units of the Premium Model. Only 420 machine hours are available per week. The following per unit data apply:Standard PremiumContribution margin per unit $12 $15Number of machine hours required 2 3Required:a. For each model, compute the contribution per machine hour.b. To maximize weekly production profits, how many machine hours would yourecommend of each model? How many units of each model?c. If there are 500 machine hours available per week (instead of only 420 machine hoursper week), how many chairs of each model should Cha rlie’s produce to maximizeprofits?。
