Principles of Cost Accounting
17th Edition
ISBN: 9781305087408
Author: Edward J. Vanderbeck, Maria R. Mitchell
Publisher: Cengage Learning
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Textbook Question
Chapter 1, Problem 37Q
If the factory operations and selling and administrative offices are housed in the same building, what would be a good cost allocation basis to use in dividing the
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If the factory operations and selling and administrative offices are housed in the samebuilding, what would be a good cost allocation basis to use in dividing the depreciationexpense between the two areas? Why would it be important to make this allocation?
Which of the following is an example of a cost that varies in proportion to changes in the activity base?
Depreciation on machinery
Packaging cost
Factory rent
Insurance cost
Which element of the value chain would depreciation on a factory be classified as?
Design
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Chapter 1 Solutions
Principles of Cost Accounting
Ch. 1 - How does the cost accounting function assist in...Ch. 1 - Prob. 2QCh. 1 - Prob. 3QCh. 1 - Prob. 4QCh. 1 - Prob. 5QCh. 1 - Prob. 6QCh. 1 - How is cost accounting information used by...Ch. 1 - Why is unit cost information important to...Ch. 1 - For a manufacturer, what does the planning process...Ch. 1 - How is effective control achieved in a...
Ch. 1 - Define responsibility accounting.Ch. 1 - What criteria must be met for a unit of activity...Ch. 1 - Prob. 13QCh. 1 - Prob. 14QCh. 1 - What actions should a CMA take when the...Ch. 1 - Prob. 16QCh. 1 - Prob. 17QCh. 1 - Prob. 18QCh. 1 - How is cost accounting related to: financial...Ch. 1 - How does the computation of cost of goods sold for...Ch. 1 - How would you describe the following accounts:...Ch. 1 - Prob. 22QCh. 1 - What is the difference between a perpetual...Ch. 1 - What are the basic elements of production cost?Ch. 1 - How would you define the following costs: direct...Ch. 1 - Why have companies such as Harley-Davidson stopped...Ch. 1 - Distinguish prime cost from conversion cost. Does...Ch. 1 - In what way does the accounting treatment of...Ch. 1 - How do cost of goods sold and cost of goods...Ch. 1 - How are nonfactory costs and costs that benefit...Ch. 1 - What is a mark-on percentage?Ch. 1 - Prob. 32QCh. 1 - When is process costing appropriate, and what...Ch. 1 - What are the advantages of accumulating costs by...Ch. 1 - What is a job cost sheet, and why is it useful?Ch. 1 - What are standard costs, and what is the purpose...Ch. 1 - If the factory operations and selling and...Ch. 1 - Study the performance report for Barbaras Bistro...Ch. 1 - Note that Barbaras Bistro in Figure 1-2 prepares...Ch. 1 - Cost of goods soldmerchandiser The following data...Ch. 1 - The following data were taken from the general...Ch. 1 - Prob. 5ECh. 1 - Explain in narrative form the flow of direct...Ch. 1 - The following data are taken from the general...Ch. 1 - The following data are taken from the general...Ch. 1 - The following inventory data relate to Edwards,...Ch. 1 - The following is a list of manufacturing costs...Ch. 1 - Leen Production Co. uses the job order cost system...Ch. 1 - Gerken Fabrication Inc. uses the job order cost...Ch. 1 - Cycle Specialists manufactures goods on a job...Ch. 1 - Prepare a performance report for the dining room...Ch. 1 - The following data were taken from the general...Ch. 1 - The following data were taken from the general...Ch. 1 - Statement of cost of goods manufactured; income...Ch. 1 - The adjusted trial balance for Appleton...Ch. 1 - The post-closing trial balance of Custer Products,...Ch. 1 - Selected account balances and transactions of...Ch. 1 - OReilly Manufacturing Co.s cost of goods sold for...Ch. 1 - Glasson Manufacturing Co. produces only one...Ch. 1 - Sultan, Inc. manufactures goods to special order...Ch. 1 - Spokane Production Co. obtained the following...Ch. 1 - Bangor Products Co. obtained the following...Ch. 1 - Potomac Automotive Co. manufactures engines that...Ch. 1 - Required Ethics Mary Branson is the Division...
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- For the following descriptions state whether the cost is controllable or uncontrollable by responsibility center managers. A. property tax of an existing manufacturing facility B. research and development of a product C. advertising of a product D. insurance cost of the existing manufacturing facility E. design of a productarrow_forwardWhen allocating service department costs to production departments, why is the standard cost that the service department was expected to incur, rather than the actual cost that was incurred, used in the allocation?arrow_forwardIn a make or buy decision, the relevant costs include variable manufacturing costs as well as A. Depreciation costs B. General office cost C. Avoidable fixed costs D. Factory management costarrow_forward
- Madi Corporation has a single facility that it uses for manufacturing, sales, and administrative activities. Should the company's building depreciation charge be expensed in its entirety or is a different accounting procedure appropriate? Think in different types of cost. Explain.arrow_forwardWhich of the following is a period cost? a. Property taxes on the production facilities. b. The production supervisor's salary. c. Costs to ship the product to the customer. d. Depreciation of the factory equipment.arrow_forwardWhat would be the classification of depreciation of office building as to (1) variability, (2) relation to a product, and (3) planning, control and analytical purposes, respectively? * Variable, period cost, sunk cost. Fixed, product cost, out-of-pocket cost. O Variable, product cost, out-of-pocket cost. Fixed, period cost, sunk cost.arrow_forward
- Which of the following costs would be considered a period rather than a product cost in a manufacturing company? Manufacturing equipment depreciation. Property taxes on corporate headquarters. Direct materials costs. Electrical costs to light the production facility.arrow_forwardWhich of the following is/are not true about Committed costs a. They are costs incurred to maintain a company's facilities. b. They are costs over which the management has little or no discretion. c. Depreciation, Insurance, Taxes etc are examples of committed costs. d. They are also known as Programmed costs.arrow_forward2 Which of the following is least likely to be classified as a facility level activity in an activity-based costing system? a. Plant management salaries b. Property taxes c. Machine processing cost d. Pant maintenance e. Plant depreciationarrow_forward
- What would be the classification of depreciation of office building as to (1) variability, (2) relation to a product, and (3) planning, control and analytical purposes, respectively? * a.Variable, product cost, out-of-pocket cost. b.Fixed, period cost, sunk cost. c.Fixed, product cost, out-of-pocket cost. d.Variable, period cost, sunk cost.arrow_forwardWhich of the following is a conversion cost? raw materials direct materials administrative expenses factory depreciation expensesarrow_forwardHow are nonfactory costs and costs that benefit both factory and nonfactory operations accounted for?arrow_forward
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What is Cost Allocation? Definition & Process; Author: FloQast;https://www.youtube.com/watch?v=hLhvvHvZ3JM;License: Standard Youtube License