Managerial Accounting: Creating Value in a Dynamic Business Environment
12th Edition
ISBN: 9781260417074
Author: HILTON, Ronald
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 12, Problem 12RQ
Referring to Exhibit 12–5, why are marketing costs distributed to the Waikiki Sands Hotel’s departments on the basis of budgeted sales dollars?
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Students have asked these similar questions
When the hotel routes all of the financial data for their individual properties to a different site, this is called which of the following?
Question 15 options:
a)
Decentralized budget
b)
Quality financial control
c)
Centralized accounting
d)
Internal financial control
Waterfield Company is looking for a way to help its executive managers assess how its three divisions are meeting the company’s goals and objectives for the performance of its purchasing department. Which of the following metrics might be used for this purpose?
a.
customer satisfaction rating
b.
the material price variance
c.
the amount of time employees spend in training
d.
operating income
(Ch 8) Which departments in an organization produce services for external customers?
Question 1 options:
Support departments.
Dual-rate departments.
Operating departments.
Sales departments.
(Ch 8) When allocating support department costs, managers must identify cost pools. The choice of cost pools is:
Question 2 options:
not influenced by the allocation base.
not important, because all support department costs will eventually be allocated anyway.
influenced by the design of the accounting information system.
determined by whether a company uses IFRS or ASPE.
Chapter 12 Solutions
Managerial Accounting: Creating Value in a Dynamic Business Environment
Ch. 12 - Why is goal congruence important to an...Ch. 12 - Define and give examples of the following terms:...Ch. 12 - Prob. 3RQCh. 12 - Explain the relationship between performance...Ch. 12 - Prob. 5RQCh. 12 - What is the key feature of activity-based...Ch. 12 - Prob. 7RQCh. 12 - Define and give examples of the following terms:...Ch. 12 - Give an example of a common resource in an...Ch. 12 - Explain how and why cost allocation might be used...
Ch. 12 - Define the term cost allocation base. What would...Ch. 12 - Referring to Exhibit 125, why are marketing costs...Ch. 12 - Prob. 13RQCh. 12 - Why do some managers and accountants choose not to...Ch. 12 - Why is it important in responsibility accounting...Ch. 12 - Prob. 16RQCh. 12 - Prob. 17RQCh. 12 - Prob. 18RQCh. 12 - Prob. 19RQCh. 12 - Prob. 21RQCh. 12 - Prob. 22RQCh. 12 - Prob. 23RQCh. 12 - Define the term manufacturing cycle efficiency.Ch. 12 - Prob. 25RQCh. 12 - What is meant by aggregate productivity, and what...Ch. 12 - For each of the following organizational subunits,...Ch. 12 - Prob. 28ECh. 12 - Prob. 29ECh. 12 - The following data pertain to the Waikiki Sands...Ch. 12 - Lackawanna Community College has three divisions:...Ch. 12 - Countywide Cable Services, Inc. is organized with...Ch. 12 - Prob. 36ECh. 12 - Prob. 37ECh. 12 - Prob. 38ECh. 12 - Prob. 39PCh. 12 - Prob. 40PCh. 12 - Prob. 41PCh. 12 - Rocky Mountain General Hospital serves three...Ch. 12 - Refer to the organization chart for Rocky Mountain...Ch. 12 - Prob. 44PCh. 12 - Buckeye Department Stores, Inc. operates a chain...Ch. 12 - Building Services, Co. (BSC) was started a number...Ch. 12 - Warriner Equipment Company, which is located in...Ch. 12 - Prob. 49PCh. 12 - MedTech, Inc. manufactures diagnostic testing...Ch. 12 - Prob. 51PCh. 12 - Cathys Classic Clothes is a retailer that sells to...Ch. 12 - Pacific Rim Industries is a diversified company...
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- As manager of department B in MarIeys Manufacturing, based on the costs you identified in the previous exercise for further research, how does this impact the financial performance of your department, and what might be some questions you want to ask or solutions you might propose to Marleys management?arrow_forwardExplain how a budgeted income statement for a service business may be used for both planning and control purposes.arrow_forwardWhich of the following is a reason to allocate support department costs? O To measure income more accurately for external purposes O To encourage operating departments to use support departments in an efficient way To encourage support departments to use operating departments in an efficient way O To more accurately reflect the true cost of support departmentsarrow_forward
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- a. How cost accounting helps tourism firm in determining the price? b. Which kind of decision can be taken by tourism firm using cost accounting method? c. Which technique of costing can be used in tourism firm and why that technique can be used? d. What are the benefits enjoyed by tourism firm by adopting cost accounting?arrow_forwardThe actions listed next are associated with either an activity-based operational control system or a traditional operational control system: a. Budgeted costs for the maintenance department are compared with the actual costs of the maintenance department. b. The maintenance department manager receives a bonus for beating budget. c. The costs of resources are traced to activities and then to products. d. The purchasing department is set up as a responsibility center. e. Activities are identified and listed. f. Activities are categorized as adding or not adding value to the organization. g. A standard for a products material usage cost is set and compared against the products actual materials usage cost. h. The cost of performing an activity is tracked over time. i. The distance between moves is identified as the cause of materials handling cost. j. A purchasing agent is rewarded for buying parts below the standard price set by the company. k. The cost of the materials handling activity is reduced dramatically by redesigning the plant layout. l. An investigation is undertaken to find out why the actual labor cost for the production of 1,000 units is greater than the labor standard allowed. m. The percentage of defective units is calculated and tracked over time. n. Engineering has been given the charge to find a way to reduce setup time by 75 percent. o. The manager of the receiving department lays off two receiving clerks so that the fourth-quarter budget can be met. Required: Classify the preceding actions as belonging to either an activity-based operational control system or a traditional control system. Explain why you classified each action as you did.arrow_forwardFrom the choices presented in parentheses, choose the appropriate term for completing each of the following sentences: A. Advertising costs are usually viewed as (period, product) costs. B. Feedback is often used to (improve, direct) operations. C. Payments of cash or the commitment to pay cash in the future for the purpose of generating revenues are (costs, expenses). D. A product, sales territory, department, or activity to which costs are traced is called a (direct cost, cost object). E. The balance sheet of a manufacturer would include an account for (cost of goods sold, work in process inventory). F. Factory overhead costs combined with direct labor costs are called (prime, conversion) costs. G. The implementation of automatic, robotic factory equipment normally (increases, decreases) the direct labor component of product costs.arrow_forward
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