Fundamentals Of Cost Accounting (6th Edition)
6th Edition
ISBN: 9781259969478
Author: WILLIAM LANEN, Shannon Anderson, Michael Maher
Publisher: McGraw Hill Education
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Question
Chapter 8, Problem 16CADQ
To determine
Determine the need to treat prior period costs differently for evaluation purposes from direct material costs purchased from another firm.
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Match each definition with its related term by selecting the appropriate term in the dropdown provided. (Select "None of these are correct" if there is no term for the "Definition".)
Possible terms:
Activity-Based Costing
Appraisal or Inspection Costs
Batch-Level Activities
External Failure Costs
Facility-Level Activities
Just-in-Time System
None of These are Correct
Prevention Costs
Unit-Level Activities
Value Chain
Value-Added Activity
Where should firms do most of their quality spending?
Group of answer choices
a. Inspection costs
b. Internal Failure costs
c. External Failure costs
d. Prevention costs
4. A difference between standard costs for cost control and budgeted costs of the same manufacturing effort
a)Cannot exist because the amounts should be the same.
b)Can exist because standard cost represent what cost should be, whereas budgeted cost are expected actual costs
c)Can exist because budgeted costs include some slack, whereas standard cost do not.
d)Can exist because budgeted cost are historical costs, whereas standard cost are based on engineering studies
5. Which of the following statements concerning ideal standards is incorrect?
a)Ideal standards may be better than practical standards when managers seek continual improvement
b)Ideal standards do not make allowances for waste, spoilage, and machine breakdowns
c)Ideal standards generally do not provide the best motivation for workers.
d)Ideal standards are better suited for cash budgeting than practical…
Chapter 8 Solutions
Fundamentals Of Cost Accounting (6th Edition)
Ch. 8 - What are the characteristics of industries most...Ch. 8 - A manufacturing company has records of its...Ch. 8 - If costs increase from one period to another, will...Ch. 8 - What are the five steps to follow when computing...Ch. 8 - What is the distinction between equivalent units...Ch. 8 - Which method, weighted-average or FIFO, better...Ch. 8 - It has been said that a prior departments costs...Ch. 8 - The more important individual unit costs are for...Ch. 8 - Assume that the number of units transferred out of...Ch. 8 - The management of a liquid cleaning product...
Ch. 8 - We have discussed two methods for process costing,...Ch. 8 - A friend owns and operates a consulting firm that...Ch. 8 - The controller of a local firm that uses a...Ch. 8 - Throughout the chapter, we treated conversion...Ch. 8 - Consider a manufacturing firm with multiple...Ch. 8 - Prob. 16CADQCh. 8 - Would process costing work well for a service...Ch. 8 - Compute Equivalent Units: Weighted-Average Method...Ch. 8 - Compute Equivalent Units: FIFO Method Refer to the...Ch. 8 - Compute Equivalent Units: Weighted-Average Method...Ch. 8 - Compute Equivalent Units: FIFO Method Refer to the...Ch. 8 - Compute Equivalent Units Magic Company adds...Ch. 8 - Equivalent Units: Weighted-Average Process Costing...Ch. 8 - Prob. 24ECh. 8 - Prob. 25ECh. 8 - Compute Equivalent Units: Ethical Issues Aaron...Ch. 8 - Equivalent Units and Cost of Production By...Ch. 8 - Compute Costs per Equivalent Unit:...Ch. 8 - Compute the cost per equivalent unit for materials...Ch. 8 - Compute Equivalent Units: FIFO Method Materials...Ch. 8 - Compute Equivalent Units and Cost per Equivalent...Ch. 8 - Cost Per Equivalent Unit: Weighted-Average Method...Ch. 8 - Compute Costs per Equivalent Unit:...Ch. 8 - Refer to the data in Exercise 8–33. Compute the...Ch. 8 - Using the data in Exercise 8-33, compute the cost...Ch. 8 - Refer to the data in Exercises 8-33 and 8-35....Ch. 8 - Compute Costs per Equivalent Unit:...Ch. 8 - Refer to the data in Exercise 8-37. Compute the...Ch. 8 - Refer to the data in Exercise 8-37. Compute the...Ch. 8 - Prob. 40ECh. 8 - Prepare a Production Cost Report: FIFO Method...Ch. 8 - Prob. 42ECh. 8 - Prepare a Production Cost Report: Weighted-Average...Ch. 8 - Prob. 44ECh. 8 - Cost of Production: Weighted-Average and FIFO...Ch. 8 - Operation Costing: Ethical Issues Brokia...Ch. 8 - Prob. 47ECh. 8 - Prob. 48ECh. 8 - Prob. 49ECh. 8 - Suppose the marketing manager’s suggestion is...Ch. 8 - Prob. 51PCh. 8 - Prob. 52PCh. 8 - Prob. 53PCh. 8 - Prob. 54PCh. 8 - Prepare a production cost report for June for the...Ch. 8 - Prob. 56PCh. 8 - Prob. 57PCh. 8 - Prob. 58PCh. 8 - Prob. 59PCh. 8 - Prob. 60PCh. 8 - Prob. 61PCh. 8 - Prob. 62PCh. 8 - Prob. 63PCh. 8 - Prob. 64PCh. 8 - Prob. 65PCh. 8 - Prob. 66PCh. 8 - Prob. 67PCh. 8 - Process Costing and Ethics: Increasing Production...
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Similar questions
- When allocating service department costs to production departments, why is the standard cost that the service department was expected to incur, rather than the actual cost that was incurred, used in the allocation?arrow_forwardWhich of the following is a reason a company would implement activity-based costing? A. The cost of record keeping is high. B. The additional data obtained through traditional allocation are not worth the cost. C. They want to improve the data on which decisions are made. D. A company only has one cost driver.arrow_forwardWhy is the diect method of support department cost allocation less accurate than the sequential and reciproval services methods?arrow_forward
- Why would management take extra effort to ensure approximate budgets for direct labor, direct materials, and manufacturing overhead? Please provide relevant information and terminology to support your response?arrow_forwardThe following sentences relate to achieving the financial goal of cost minimization. Which of the following statements is FALSE? a. Prioritizing which costs to incur relates to the operating decisions of the firm only.b. Savings is the end product of this financial goal.c. There is a need to determine cost.d. Controling costs involves addressing unfavorable cost variances.arrow_forwarda) Briefly discuss the similarities and differences between the terms 'overhead absorption rate' and 'cost driver rate'. b) Briefly discuss the meaning of the term 'sensitivity analysis' and how it could be used in variable costing. c) Briefly discuss the characteristics of good information that budgets might be expected to possess. d) Briefly discuss the reasons why payback period is often preferred as an investment appraisal technique, and also its limitations.arrow_forward
- Which of the following is a benefit of activity-based cost management system? a.It makes it easy to identify the overall activities that bear an influence on cost. b.It is inexpensive. c.It enhances strategic planning. d.It ensures allocation of all costs on the basis of machine hours.arrow_forwardClassify the following under category of cost control or cost reduction: (i) Cost exceeding budgets or standards is investigated. (ii) Preventive Function (ii) Corrective Function (iv) Measures to standardize for increasing productivity.arrow_forwardIf the organization operates at an activity level outside the relevant range, any cost predictions based on data from the relevant range may not be very accurate. True or False?arrow_forward
- When using the general methods to estimate cost behavior, A. It is a good idea to use multiple methods so results can be compared B. Managers often apply their own best judgement as a first step in the estimation process C. Results are likely to differ from method to method D. Large differences in methods suggest that the cost cannot be estimated.arrow_forwardThe theory of constraints suggests that the improvement efforts should usually be focused on: a. Work centers that are not constraints b. The work center that is the constraint c. The work center with the highest total cost. d. The work center with the most obsolete equipment.arrow_forwardWhat are the benefits of Activity-based costing: a.All of the answers are correct b.It assists in justifying equipment purchases or improvements c.It is more credible than traditional costing d.It helps to improve responsibility reportingarrow_forward
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