Managerial Accounting
15th Edition
ISBN: 9781337912020
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: South-Western College Pub
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Textbook Question
Chapter 6, 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:
1. Financial aid office salaries
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.
Define direct costs and indirect costs and prepare a list of three direct and three indirect costs for the Accounting Department at your university.
Chapter 6 Solutions
Managerial Accounting
Ch. 6 - Describe how total variable costs and unit...Ch. 6 - Which of the following costs would be classified...Ch. 6 - Describe how total fixed costs and unit fixed...Ch. 6 - Prob. 4DQCh. 6 - Prob. 5DQCh. 6 - Prob. 6DQCh. 6 - Prob. 7DQCh. 6 - Prob. 8DQCh. 6 - Prob. 9DQCh. 6 - What does operating leverage measure, and how is...
Ch. 6 - High-low method The manufacturing costs of...Ch. 6 - Contribution margin Waite Company sells 250,000...Ch. 6 - Prob. 3BECh. 6 - Prob. 4BECh. 6 - Prob. 5BECh. 6 - Operating leverage Haywood Co. reports the...Ch. 6 - Margin of safety Jorgensen Company has sales of...Ch. 6 - Classify Costs Following is a list of various...Ch. 6 - Identify cost graphs The following cost graphs...Ch. 6 - Identify activity bases For a major university,...Ch. 6 - Prob. 4ECh. 6 - Identify fixed and variable costs Intuit Inc....Ch. 6 - Relevant range and fixed and variable costs Child...Ch. 6 - High-low method Ziegler Inc. has decided to use...Ch. 6 - Prob. 8ECh. 6 - Contribution margin ratio Young Company budgets...Ch. 6 - Contribution margin and contribution margin ratio...Ch. 6 - Prob. 11ECh. 6 - Break-even sales Anheuser-Busch InBev SA/NV (BUD)...Ch. 6 - Prob. 13ECh. 6 - Prob. 14ECh. 6 - Prob. 15ECh. 6 - Break-even analysis for a service company3 Sprint...Ch. 6 - Prob. 17ECh. 6 - Prob. 18ECh. 6 - Prob. 19ECh. 6 - Prob. 20ECh. 6 - Prob. 21ECh. 6 - Prob. 22ECh. 6 - Prob. 23ECh. 6 - Prob. 24ECh. 6 - Prob. 25ECh. 6 - Classify costs Seymour Clothing Co. manufactures a...Ch. 6 - Break-even sales under present and proposed...Ch. 6 - Prob. 3PACh. 6 - Prob. 4PACh. 6 - Prob. 5PACh. 6 - Contribution margin, break-even sales,...Ch. 6 - Classify costs Cromwell Furniture Company...Ch. 6 - Prob. 2PBCh. 6 - Prob. 3PBCh. 6 - Prob. 4PBCh. 6 - Prob. 5PBCh. 6 - Contribution margin, break-even sales,...Ch. 6 - Analyze Global Airs cost-volume-profit...Ch. 6 - Prob. 2MADCh. 6 - Prob. 3MADCh. 6 - Prob. 4MADCh. 6 - Prob. 1TIFCh. 6 - Prob. 3TIFCh. 6 - Profitability strategies Somerset Inc. has...Ch. 6 - Prob. 5TIFCh. 6 - Analysis of costs for a shipping department Sales...Ch. 6 - Taylor Corporation is analyzing the cost behavior...Ch. 6 - Prob. 2CMACh. 6 - Bolger and Co. manufactures large gaskets for the...Ch. 6 - Prob. 4CMA
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- 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 costarrow_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_forwardUsing the step method to allocate the service center costs, what is the total cost of programming and classes?arrow_forward
- Give 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_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_forwardWhat are possible allocation bases that might be used to allocate costs in a library function to programs (degrees) or students.arrow_forward
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