Managerial Accounting: Creating Value in a Dynamic Business Environment
11th Edition
ISBN: 9781259569562
Author: Ronald W Hilton Proffesor Prof, David Platt
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 2, Problem 15RQ
List three direct costs of the food and beverage department in a hotel. List three indirect costs of the department.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Question 1:Assume a local hotel is a service entity. Give some examples of the hotel’s direct and indirect costs, specifying the cost object of each. How might the hotel’s management use this information?
A. Service costing is a costing method used to compute the costs of services rendered.Provide the most suitable basis to calculate the cost for the following services:i) Audit ii) Hotel iii) Hospital
Give an evaluation or comment in the direct and indirect cost of the table
Chapter 2 Solutions
Managerial Accounting: Creating Value in a Dynamic Business Environment
Ch. 2 - Distinguish between product costs and period...Ch. 2 - Why are product costs also called inventoriable...Ch. 2 - What is the most important difference between a...Ch. 2 - List several product costs incurred in the...Ch. 2 - Prob. 5RQCh. 2 - Why is the cost of idle time treated as...Ch. 2 - Explain why an overtime premium is included in...Ch. 2 - Prob. 8RQCh. 2 - Give examples to illustrate how the city of Tampa...Ch. 2 - Distinguish between fixed costs and variable...
Ch. 2 - How does the fixed cost per unit change as the...Ch. 2 - Prob. 12RQCh. 2 - Distinguish between volume-based and...Ch. 2 - Would each of the following characteristics be a...Ch. 2 - List three direct costs of the food and beverage...Ch. 2 - List three costs that are likely to be...Ch. 2 - Which of the following costs are likely to be...Ch. 2 - Distinguish between out-of-pocket costs and...Ch. 2 - Define the terms sunk cost and differential cost.Ch. 2 - Distinguish between marginal and average costs.Ch. 2 - Prob. 21RQCh. 2 - Two years ago the manager of a large department...Ch. 2 - Indicate whether each of the following costs is a...Ch. 2 - For each case below, find the missing amount.Ch. 2 - A foundry employee worked a normal 40-hour shift,...Ch. 2 - A loom operator in a textiles factory earns 16 per...Ch. 2 - Consider the following costs that were incurred...Ch. 2 - Alexandria Aluminum Company, a manufacturer of...Ch. 2 - Prob. 30ECh. 2 - A hotel pays the phone company 100 per month plus...Ch. 2 - Prob. 32ECh. 2 - Orbital Communications, Inc. manufactures...Ch. 2 - The state Department of Education owns a computer...Ch. 2 - Prob. 35ECh. 2 - List the costs that would likely be included in...Ch. 2 - Consider the following cost items: 1. Salaries of...Ch. 2 - The following selected information was extracted...Ch. 2 - Prob. 39PCh. 2 - Mason Corporation began operations at the...Ch. 2 - Determine the missing amounts in each of the...Ch. 2 - The following cost data for the year just ended...Ch. 2 - The following data refer to San Fernando Fashions...Ch. 2 - Highlander Cutlery manufactures kitchen knives....Ch. 2 - Cape Cod Shirt Shop manufactures T-shirts and...Ch. 2 - Heartland Airways operates commuter flights in...Ch. 2 - San Diego Sheet Metal, Inc. incurs a variable cost...Ch. 2 - Hightide Upholstery Company manufactures a special...Ch. 2 - For each of the following costs, indicate whether...Ch. 2 - Indicate for each of the following costs whether...Ch. 2 - Water Technology, Inc. incurred the following...Ch. 2 - The following terms are used to describe various...Ch. 2 - Several costs incurred by Bayview Hotel and...Ch. 2 - Refer to Exhibit 23, and answer the following...Ch. 2 - Roberta Coy makes custom mooring covers for boats....Ch. 2 - The Department of Natural Resources is responsible...Ch. 2 - Prob. 57PCh. 2 - Prob. 58PCh. 2 - CompTech, Inc. manufactures printers for use with...Ch. 2 - You just started a summer internship with the...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Which one of the following options can be used when allocating cafeteria costs? Select one: a. Number of square feet b. Appraised value of square footage c. Number of direct labor hours d. Number of employeesarrow_forwardHow can a hotel’s management use cost-volume-profit analysis to help in deciding on room rates?arrow_forwarda. Using the step method to allocate the service center costs, What is the total cost of Programming and classes?b. Using the direct method of allocating service center costs, Compute the total cost of Individual Fitnessc.Using the algebraic method of allocating service center costs Determine the total costs of Programming and Classesarrow_forward
- Case Questions and Answers 1. Identify the services and/or programs to be included in the cost and profitability analysis. Infant childcare Toddler childcare Pre-K childcare Rent - School district Rent - Head Start 2. Examine the costs listed in Table 2. a. Identify the direct costs associated with each service or program. Labor costs are the only direct costs associated with the programs. Food costs would be direct costs to the kitchen area but indirect to the end services. b. Which costs would be organization- or facility-sustaining costs? Provide an argument for or against assigning these costs to services or programs. The costs that would be considered to be organizationsustaining costs include depreciation, building insurance, and interest expense on the mortgage debt. Both ACDC and the tenants use the facility and, thus, should participate in the costs associated with acquiring the space. 3. Identify the broad activity categories and create cost pools by assigning the costs…arrow_forwardMultiple choice: When a hotel sells a package of services involving several departments, howis the revenue allocated? A. It is divided evenly among all of the departments.B. It is all allocated to the largest department.C. It is divided by means of CVP (cost-volume-profit) analysis.D. It is divided in proportion to the market values of the servicesarrow_forwardFor each cost pool, identify an appropriate cost driver. a. order department b. accounts receivable processing c. catering d. raw material inventoryarrow_forward
- Identify activities and costs at the restaurant that fall into each of the following categories:a. Unit-level activities and costs.b. Customer-level activities and costs. (This is like a batch-level activity at a manufacturing company.)c. Product-level activities and costs.d. Facility-level activities and costs.arrow_forward[The following information applies to the questions displayed below.] National Retail has two departments, Housewares and Sporting. Indirect expenses for the period follow. Rent Advertising Insurance Total $ 45,000 25,000 10,000 $ 80,000 The company occupies 4,000 square feet of a rented building. In prior periods, the company divided the $80,000 of indirect expenses by 4,000 square feet to find an average cost of $20 per square foot, and then allocated indirect expenses to each department based on the square feet it occupied. The company now wants to allocate indirect expenses using the allocation bases shown below. Department Housewares Sporting Total Square Feet 1,440 2,560 4,000 Sales $ 370,000 130,000 $ 500,000 Value of Insured Assets $59,000 41,000 $ 100,000 Required: 1. Allocate indirect expenses to the two departments using the allocation method used in prior periods.arrow_forwardUse the dimensions of quality to describe typical characteristics of these products and services: c. A restaurant meal (service)arrow_forward
- In a cost management system in a restaurant what would the resturant focus on when adding things to their menu?arrow_forwardCASE QUESTIONS AND ANSWERS1. Identify the services and/or programs to be included in thecost and profitability analysis. Infant childcareToddler childcarePre-K childcareRent - School districtRent - Head Start 2. Examine the costs listed in Table 2.a. Identify the direct costs associated with each serviceor program.Labor costs are the only direct costs associated withthe programs. Food costs would be direct costs tothe kitchen area but indirect to the end services.b. Which costs would be organization- or facility-sustainingcosts? Provide an argument for or against assigningthese costs to services or programs. The costs that would be considered to be organizationsustaining costs include depreciation, buildinginsurance, and interest expense on the mortgage debt.Both ACDC and the tenants use the facility and,thus, should participate in the costs associated withacquiring the space. 3. Identify the broad activity categories and create cost poolsby assigning the costs from Table 2 to the…arrow_forwardDefine direct costs and indirect costs and prepare a list of three direct and three indirect costs for the Accounting Department at your university.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College
Cost control, Why cost control is necessary for a business?; Author: Educationleaves;https://www.youtube.com/watch?v=yMg3gJx48Fg;License: Standard youtube license