Fundamentals Of Cost Accounting (6th Edition)
6th Edition
ISBN: 9781259969478
Author: WILLIAM LANEN, Shannon Anderson, Michael Maher
Publisher: McGraw Hill Education
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 1, Problem 28E
Accounting Systems
Ford Motor Company manufactures cars and trucks. Managers at assembly plants must make many decisions, and for this they use cost accounting information.
Required
For each of the following managers, identify a decision that he or she might make for which cost accounting data would be useful:
- a. Plant manager
- b. Purchasing manager
- c. Quality supervisor
- d. Personnel manager
- e. Maintenance supervisor
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Match each of the following cost items with the value chain business function where you would expect the cost to be incurred:
Cost Item
1. Purchase of raw materials
2. Advertising
3. Salary of research scientists
4. Delivery expenses
5. Reengineering of product assembly process
6. Replacement labor expense for warranty repairs
7. Manufacturing supplies
8. Sales salaries
9. Purchase of CAD (computer-aided design) software
10. Salary of website manager
Business Function
Assume you have just been hired as the management accountant in charge of providing your firm’s
managers with product cost information. Identify the activities you might undertake for the follow-ing four value chain components:
a. Research and developmentb. Productionc. Marketingd. Customer service
The following situations describe decision scenarios that could use managerial accounting information:1. The manager of High Times Restaurant wants to determine the price to charge for various lunch plates.2. By evaluating the cost of leftover materials, the plant manager of a precision tool facility wants to determine how effectively the plant is being run.3. The division controller of West Coast Supplies needs to determine the cost of products left in inventory.4. The manager of the Maintenance Department of a large manufacturing company wants to plan next year’s anticipated expenditures.For each situation, discuss how managerial accounting information could be used.
Chapter 1 Solutions
Fundamentals Of Cost Accounting (6th Edition)
Ch. 1 - Explain why it is important to consider the...Ch. 1 - Explain the differences between financial...Ch. 1 - Place the letter of the appropriate accounting...Ch. 1 - Distinguish among the value chain, the supply...Ch. 1 - Who are the customers of cost accounting?Ch. 1 - How can cost accounting information together with...Ch. 1 - Prob. 7RQCh. 1 - Does the passage of Sarbanes-Oxley mean that codes...Ch. 1 - Prob. 9CADQCh. 1 - Prob. 10CADQ
Ch. 1 - Prob. 11CADQCh. 1 - Its not the job of accounting to determine...Ch. 1 - Prob. 13CADQCh. 1 - How would cost accounting information help...Ch. 1 - Airlines are well known for using complex pricing...Ch. 1 - Hostess Brands makes a variety of baked goods just...Ch. 1 - What potential conflicts might arise between...Ch. 1 - Refer to the Business Application discussion of...Ch. 1 - Prob. 19CADQCh. 1 - Why does a cost accountant need to be familiar...Ch. 1 - Will studying cost accounting increase the chances...Ch. 1 - Prob. 22CADQCh. 1 - Value Chain and Classification of Costs Apple...Ch. 1 - Pfizer Inc., a pharmaceutical firm, incurs many...Ch. 1 - Tesla, Inc., incurs many types of costs in its...Ch. 1 - Prob. 26ECh. 1 - Accounting Systems McDonalds is a major company in...Ch. 1 - Accounting Systems Ford Motor Company manufactures...Ch. 1 - Cost Data for Managerial Purposes As an analyst at...Ch. 1 - Prob. 30ECh. 1 - Prob. 31ECh. 1 - Refer to the information in Exercise 1-31. The...Ch. 1 - Refer to Exhibit 1.5, which shows budgeted versus...Ch. 1 - Trends in Cost Accounting Required For each cost...Ch. 1 - Prob. 35ECh. 1 - Prob. 36ECh. 1 - Refer to the information in Exercise 1-32. Jon...Ch. 1 - Prob. 38PCh. 1 - Cost Data for Managerial Purposes Imperial Devices...Ch. 1 - Cost Data for Managerial Purposes You have been...Ch. 1 - Prob. 41PCh. 1 - Cost Data for Managerial Purposes Campus Package...Ch. 1 - Cost Data for Managerial Purposes KC Services...Ch. 1 - Cost Data for Managerial Purposes B-You is a...Ch. 1 - Cost Data for Managerial Purposes Toms Tax...Ch. 1 - Gilman’s Café is a popular restaurant in a local...Ch. 1 - Prob. 47PCh. 1 - Prob. 48PCh. 1 - Refer to Exhibit 1.5, which shows budgeted versus...Ch. 1 - Cost Data for Managerial PurposesFinding Unknowns...Ch. 1 - Prob. 51PCh. 1 - Prob. 52PCh. 1 - Prob. 53ICCh. 1 - Miller Cereals is a small milling company that...Ch. 1 - Before Miller Cereals can introduce the new...Ch. 1 - The following story is true except that all names...
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
- In a team of two or three students, interview the manager/owner of a local business. In this interview, ask the manager/owner the following questions: A. Does the business collect and use cost information to make decisions? B. Does it have a specialist in cost estimation who works with this cost data? If not, who is responsible for the collection of cost information? Be as specific as possible. C. What type of cost information does the business collect and how is each type of information used? D. How important does the owner/manager believe cost information is to the success of the business? Then, write a report to the instructor summarizing the results of the interview. Content of the memo must include date of the interview, the name and title of the person interviewed, name and location of the business, type of business (service, merchandising, manufacturing) and brief description of the goods/services provided by the business, and responses to questions A-D.arrow_forwardWalsh & Coggins, a professional accounting firm, collects cost information about the services they provide to their clients. Describe the types of cost data they would collect and explain the importance of analyzing this cost data.arrow_forwardA job order cost accounting system accumulates and records product costs by jobs. The resulting total and unit product costs can be used to do all of the following except a.compare actual costs to expected costs b.make cost comparisons across similar jobs c.analyze cost trends over time d.create customer profiles for the sales staffarrow_forward
- The accounting firm which audits the financial statements of a company uses a: a. Process costing system O b. Job costing system c. Average costing system O d. Computer costing systemarrow_forwardClipboard S Voice Sensitivity Editor systems are designed to provide information to decision makers in the organization with the information they need to accomplish this goal. Therefore, the designers of the cost accounting need to understand how value is created in the organization to design systems for their organiz d-None of these is true. Styles 2-Who are the consumers of cost accounting? a-The customers of cost accounting are managers, from plant managers to the CEO. b-The customers of cost accounting are the employees. c-The customers of cost accounting are consumer groups. d-None of these. 3-The four questions of the critical thinking framework are: 1) What are the relevant question decisions do I need to make)? 2) What are the data relevant to the analysis and where do I fi What are the appropriate tools for analyzing data?, and 4) How can I effectively and persuas communicate the results of my analysis?arrow_forwardDefine Job order costing system and provide one example of a business using this system. The subject is Managerial Accounting.arrow_forward
- A plant manager who supervises workers manufacturing products, plans for production, and ensures product quality is what kind of manager? Group of answer choices a) Operations b) Top c) Human Resources d) Leadershiparrow_forwardFor the following activitie, explain which of the objectives of managerial accounting activity is involved. In some cases, several objectives may be involved. Measuring the cost of the inventory of digital cameras on hand in a Best Buy store.arrow_forwardCost Drivers for Support Department Allocations For each of the following support departments, select the cost driver listed that is most appropriate for allocating support department costs to responsible units. Your answer should include the number of the cost driver only. Cost drivers to choose from: Number of conference attendees Number of computers Number of employees trained Number of cell phone minutes used Number of purchase requisitions Number of sales invoices Number of payroll checks Number of travel claims Support Department Cost Driver a. Accounts Receivable b. Central Purchasing c. Computer Support d. Conferences e. Employee Travel f. Payroll Accounting g. Telecommunications h. Trainingarrow_forward
- Ali's accounting work normally has more focus on future perspective, has be timely and involves preparing segment reports. Ali is most likely to be a: Select one: O a. A managerial accountant O b. A financial accountant O C. A human resource manager O d. A marketing manager O e. A cost accountant Manufacturing overhead: Select one: O a. includes all selling costs. b. includes indirect materials, indirect materials, indirect labor, and factory depreciation. O c.is a pool of direct production costs that must somehow be attached to each unit manufactured. O d. should not be assigned to individual jobs because it bears no obvious relationship to them. O e. is easily traced to jobs.arrow_forwardPlease create a study/cheat sheet on these concepts in managerial accounting: 1. Managerial Accounting Concepts and Cost Flows 2. Cost Accounting Systems: Job Order Costing 3. Cost Accounting Systems: Process Costing 4. Activity-Based Costing Just include formulas and include when to use them (what types of problems). Also any rules.arrow_forward1. ABC company services office computer and equipment. Some customers bring their computers to the company'sservice shop; other customers prefer to have the company's service personnel come to their offices to repair theircomputers. What is the most appropriate costing method for ABC company?A. An activity-based costing systemB. A process costing systemC. A job-order costing systemD. An operation costing system 2. The debits in work-in-process are beginning work-in-process, direct labor, direct materials, and factory overhead.Assuming there are minimal items already completed, the account should be credited for production that iscompleted and sent to finished goods inventory. The balance is:A. Ending work-in-process (Debit)B. Ending work-in-process (Credit)C. ZeroD. Total production costs to be accounted for 3. Companies characterized by the production of heterogenous products will most likely use which of the followingmethods for the purpose of averaging costs and providing…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College
Elements of cost | Direct and Indirect: Material, Labor, & Expenses; Author: Educationleaves;https://www.youtube.com/watch?v=UFBaj6AHjHQ;License: Standard youtube license