Financial and Managerial Accounting - CengageNow
15th Edition
ISBN: 9781337911979
Author: WARREN
Publisher: CENGAGE L
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Textbook Question
Chapter 20, Problem 3E
Identify activity bases
For a major university, match each cost in the following table with the activity base most appropriate to it. An activity base may be used more than once or not used at all.
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Identify Activity Bases
For a major university, select the activity base most appropriate for each cost listed below. An activity base may be used more than once or not used at all.
Cost:
Activity Base:
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2. Office supplies
3. Instructor salaries
4. Housing personnel wages
5. Employee wages for maintaining student records
6. Admissions office salaries
Identify a particular support function of a college (the library, for example). Discuss possible allocation bases that might be used to allocate costs in the function to programs (degrees) or students.
Attending college involves incurring many costs. Select the example of a college cost that could be assigned to each of the following
classifications.
a. Sunk cost
b. Discretionary cost
c. Committed cost
d. Opportunity cost
e. Differential cost
f. Allocated cost
Chapter 20 Solutions
Financial and Managerial Accounting - CengageNow
Ch. 20 - Describe how total variable costs and unit...Ch. 20 - Which of the following costs would be classified...Ch. 20 - Describe how total fixed costs and unit fixed...Ch. 20 - In applying the high-low method of cost estimation...Ch. 20 - If fixed costs increase, what would be the impact...Ch. 20 - Prob. 6DQCh. 20 - Prob. 7DQCh. 20 - Both Austin Company and Hill Company had the same...Ch. 20 - Prob. 9DQCh. 20 - What does operating leverage measure, and how is...
Ch. 20 - High-low method The manufacturing costs of...Ch. 20 - Contribution margin Waite Company sells 250,000...Ch. 20 - Prob. 3BECh. 20 - Prob. 4BECh. 20 - Sales mix and break-even analysis Conley Company...Ch. 20 - Prob. 6BECh. 20 - Margin of safety Jorgensen Company has sales of...Ch. 20 - Classify Costs Following is a list of various...Ch. 20 - Identify cost graphs The following cost graphs...Ch. 20 - Identify activity bases For a major university,...Ch. 20 - Identify activity bases From the following list of...Ch. 20 - Identify fixed and variable costs Intuit Inc....Ch. 20 - Relevant range and fixed and variable costs Child...Ch. 20 - High-low method Ziegler Inc. has decided to use...Ch. 20 - High-low method for a service company Continental...Ch. 20 - Contribution margin ratio Young Company budgets...Ch. 20 - Contribution margin and contribution margin ratio...Ch. 20 - Break-even sales and sales to realize operating...Ch. 20 - Prob. 12ECh. 20 - Prob. 13ECh. 20 - Prob. 14ECh. 20 - Break-even analysis Media outlets such as ESPN and...Ch. 20 - Prob. 16ECh. 20 - Prob. 17ECh. 20 - Prob. 18ECh. 20 - Prob. 19ECh. 20 - Prob. 20ECh. 20 - Prob. 21ECh. 20 - Break-even sales and sales mix for a service...Ch. 20 - Margin of safety A. If Canace Company, with a...Ch. 20 - Prob. 24ECh. 20 - Operating leverage Beck Inc. and Bryant Inc. have...Ch. 20 - Classify costs Seymour Clothing Co. manufactures a...Ch. 20 - Prob. 2PACh. 20 - Prob. 3PACh. 20 - Prob. 4PACh. 20 - Prob. 5PACh. 20 - Contribution margin, break-even sales,...Ch. 20 - Classify costs Cromwell Furniture Company...Ch. 20 - Break-even sales under present and proposed...Ch. 20 - Prob. 3PBCh. 20 - Prob. 4PBCh. 20 - Prob. 5PBCh. 20 - Contribution margin, break-even sales,...Ch. 20 - Prob. 1MADCh. 20 - Prob. 2MADCh. 20 - Prob. 3MADCh. 20 - Break-even number of guests for a theme park...Ch. 20 - Prob. 1TIFCh. 20 - Communication Sun Airlines is a commercial airline...Ch. 20 - Profitability strategies Somerset Inc. has...Ch. 20 - Prob. 5TIFCh. 20 - Analysis of costs for a shipping department Sales...Ch. 20 - Taylor Corporation is analyzing the cost behavior...Ch. 20 - Kimber Company has the following unit costs for...Ch. 20 - Bolger and Co. manufactures large gaskets for the...Ch. 20 - Eagle Brand Inc. produces two products as follows:...
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- Define direct costs and indirect costs and prepare a list of three direct and three indirect costs for the Accounting Department at your university.arrow_forwardGive examples of various costs Attending college involves incurring many costs. Give an example of a college cost that could be assigned to each of the following classifications. Explain your reason for assigning each cost to the classification. Sunk cost. Discretionary cost. Committed cost. Opportunity cost. Differential cost. Allocated cost.arrow_forward1.The following are various activities for a business school Required Suggest a feasible cost driver base for each of the following, and explain why cach selected cost driver base is feasible a. Faculty teaching b. Career placement: Scheduling interviews C. Career placement: Counseling students d. Course registration e. Course scheduling f. Admissions: Attending BBA and MBA fairs. g. Admissions: Interviewing applicants h. Admissions: Evaluating applications.arrow_forward
- Why does support department cost allocation matter to service businesses (such as colleges and universities)? Please explain the importance. Also, identify three businesses, companies, or non-profit organizations that you think would use support department cost allocation. Name the company and their corresponding support departments.arrow_forwardWhich of the following will give you the most accurate allocation between a cost's fixed component and variable component? a. Examination of a students’ registration forms for miscellaneous fees and tuition fees b. Use of the least squares method to allocate the cost of electricity c. Dividing the total cost on the water bill among the different departments based on direct labor hours d. Dividing the total cost of the postpaid plan using the high-low methodarrow_forwardStrathmore University can use various cost centres and cost units for cost estimation purposeswithin its cost accounting information system.i) Explain the distinction between a cost centre and a cost unit as used in cost accountingand give two examples of cost centres and two examples of cost units that Strathmore mayuse within its cost accounting information systemarrow_forward
- What are possible allocation bases that might be used to allocate costs in a library function to programs (degrees) or students.arrow_forwardIn developing an ABC system, what is the last step? Identify the primary activities and estimate a total cost pool for each. Select an allocation base for each activity. Allocate the costs to the cost object using the activity cost allocation rates. Calculate an activity cost allocation rate for each activity.arrow_forwardWhat are the total fixed costs of operating the university? What are the variable cost and contribution margin per student at the university? What is the contribution margin ratio for Lihue University?arrow_forward
- Direct Method Seattle Western University has provided the following data to be used in its service department cost allocations: Required: Using the direct method, allocate the costs of the service departments to the two operating departments. Allocate the Administration cost on the basis of student credit-hours and the Facility Services cost on the basis of space occupied.arrow_forwardIn the context of a local/regional organization, explain the idea of “cost object”. Discuss the four “responsibility centres”, in the selected organization, which are linked to responsibility accounting. What are the main drawbacks of responsibility accounting? Support your answer with relevant examples.arrow_forwardFor the following activities and their associated resources, identify the following: (1) a cost driver, (2) flexible resources, and (3) committed resources. Also, label each resource as one of the following with respect to the cost driver: (a) variable and (b) fixed.arrow_forward
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