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
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Textbook Question
Chapter 2, Problem 54P
Refer to Exhibit 2–3, and answer the following questions. Required:
- 1. List the major differences between the income statements shown for Caterpillar, Inc., Walmart Stores, Inc., and Southwest Airlines Company.
- 2. Explain how cost-accounting data were used to prepare these income statements.
- 3. On the income statement for Southwest Airlines Company, where would the ticket agents’ salaries be shown? Where would the costs of the computer equipment used to keep track of reservations be included on the statement?
- 4. On the income statement for Walmart Stores, Inc., where would the cost of newspaper advertising be shown? How about the cost of merchandise?
- 5. Refer to the income statement for Caterpillar, Inc. Where would the salary of the brand manager who plans advertising for Caterpillar equipment be shown? How about the salary of a production employee? Where would the cost of the raw materials used in the company’s products be included on the statement?
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You were hired to assist Oman based Company in designing an
accounting system for Oman Co., Ltd. has developed a list of the
journals, ledgers, reports and documents that he thinks Oman
Co., Ltd. The company asks you to complete the following
tasks:
a) Specify what data you think should be collected on each of
the following four documents: Sales invoice, purchase
order, receiving report, employee time card.
b) Design a report to manage inventory.
e) Design a report to assist in managing credit sales and cash
collections.
d) What types of journals, ledgers and blank forms for various
documents ( Sales invoices, purchase orders etc)
Which of the following would not be considered an internal user of accounting data for the LMN
Company
Select one:
a. Production manager.
b.
President of the employees' labor union.
C. President of the company.
d. Merchandise inventory clerk.
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Indicate whether each of the following costs is a product cost or a period (selling and administrative) cost:
Event
a.
b.
C. Advertising costs.
d.
e.
f.
g.
Goods purchased for resale.
Salaries of salespersons.
h.
i.
Transportation-out.
Interest on a note payable.
Salary of the company president.
Transportation-in.
Insurance on the office building.
Office supplies.
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...
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