Horngren's Cost Accounting, Student Value Edition (16th Edition)
16th Edition
ISBN: 9780134476032
Author: Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
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Textbook Question
Chapter 1, Problem 1.22E
Planning and control decisions. Gregor Company makes and sells brooms and mops. It takes the following actions, not necessarily in the order given. For each action (a–e), state whether it is a planning decision or a control decision.
- a. Gregor asks its advertising team to develop fresh advertisements to market its newest product.
- b. Gregor calculates customer satisfaction scores after introducing its newest product.
- c. Gregor compares costs it actually incurred with costs it expected to incur for the production of the new product.
- d. Gregor’s design team proposes a new product to compete directly with the Swiffer.
- e. Gregor estimates the costs it will incur to distribute 30,000 units of the new product in the first quarter of next fiscal year.
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Students have asked these similar questions
Match each of the following cost items with the value chain business function where you would expect the cost to be incurred:
Cost Item
1. Labor time to repair products under warranty
2. Radio commercials
3. Labor costs of delivering customer orders
4. Testing of competitor's product
5. Direct manufacturing labor costs
6. Development of order tracking system for online sales
7. Design cost of new product brochures
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9. Training costs for representatives to staff the customer call center
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Business Function
The success of a business depends
on many things. For example, you are
the senior manager of the ABC
Hypermarket, Explain Mr. Said, the
new manager how to understand the
customers and the competition. In
addition also explain control costs
and how to price their products and
services. Explain Mr. Said about
Markup & Margin with the following
situations.
Required:
(a) Situation 1: Calculating OMR
amount of markup and percent
markup on cost.
Signature" jeans cost, OMR 1800.
Signature" jeans selling price OMR
2300.
(b) Situation 2: Calculating selling
price based on following
information.
Lamp cost, OMR200.
40% markup on selling price
(c) Situation 3: Calculating cost
based on following information
Tennis racket selling price OMR
800
40% markup on cost
The following is a financial information from MayPagAsaPa Company:
Additional information:The company purchase office supplies from big manufacturers and distributes among different segments. Cost of goods sold and shipping expenses are both variable.
1.Prepare a new contribution format segmented income statement.
2.Analyze your requirement #1. What points that might help to improve the company’s performance would you bring to management’s attention?
3.Compare your output with Requirement 1 with the information above. List the items you think that is an error/disadvantage/weakness of the given data.
Chapter 1 Solutions
Horngren's Cost Accounting, Student Value Edition (16th Edition)
Ch. 1 - How does management accounting differ from...Ch. 1 - Management accounting should not fit the...Ch. 1 - How can a management accountant help formulate...Ch. 1 - Describe the business functions in the value...Ch. 1 - Explain the term supply chain and its importance...Ch. 1 - Management accounting deals only with costs. Do...Ch. 1 - How can management accountants help improve...Ch. 1 - Prob. 1.8QCh. 1 - Prob. 1.9QCh. 1 - What three guidelines help management accountants...
Ch. 1 - Prob. 1.11QCh. 1 - Prob. 1.12QCh. 1 - Prob. 1.13QCh. 1 - Prob. 1.14QCh. 1 - Prob. 1.15QCh. 1 - Which of the following is not a primary function...Ch. 1 - Value chain and classification of costs, computer...Ch. 1 - Prob. 1.18ECh. 1 - Value chain and classification of costs, fast-food...Ch. 1 - Key success factors. Dominion Consulting has...Ch. 1 - Key success factors. Vargas Construction Company...Ch. 1 - Planning and control decisions. Gregor Company...Ch. 1 - Planning and control decisions. Gavin Adams is the...Ch. 1 - Prob. 1.24ECh. 1 - Five-step decision-making process, service firm....Ch. 1 - Professional ethics and reporting division...Ch. 1 - Professional ethics and reporting division...Ch. 1 - Planning and control decisions, Internet company....Ch. 1 - Prob. 1.29PCh. 1 - Prob. 1.30PCh. 1 - Management accounting guidelines. For each of the...Ch. 1 - Prob. 1.32PCh. 1 - Prob. 1.33PCh. 1 - Budgeting, ethics, pharmaceutical company. Chris...Ch. 1 - Professional ethics and end-of-year actions. Linda...Ch. 1 - Professional ethics and end-of-year actions....Ch. 1 - Ethical challenges, global company environmental...
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