Principles of Accounting Volume 2
19th Edition
ISBN: 9781947172609
Author: OpenStax
Publisher: OpenStax College
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Textbook Question
Chapter 9, Problem 7EB
Discuss how, as warehouse manager for Vinnie’s Vinyls, you view the different rate of allocated costs the warehouse is being charged compared to the West store. Describe the implications of this. What steps could you take to solve this discrepancy? What alternatives would you consider, assuming management is willing to consider making changes in the rate?
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Chapter 9 Solutions
Principles of Accounting Volume 2
Ch. 9 - Which of the following is nor a common goal of an...Ch. 9 - Which of the following does not describe a...Ch. 9 - In centralized organizations, primary decisions...Ch. 9 - A key advantage of a decentralized organization is...Ch. 9 - Strategic decisions occur ______. A. frequently...Ch. 9 - Segments are uniquely identifiable components of...Ch. 9 - Organizational charts _____. A. list the salaries...Ch. 9 - In a centralized organization, where are goals...Ch. 9 - Managers in decentralized organizations make...Ch. 9 - Which of the following is not a type of...
Ch. 9 - A system that establishes financial accountability...Ch. 9 - A responsibility center in which managers are held...Ch. 9 - A responsibility center structure that considers...Ch. 9 - An important goal of a responsibility accounting...Ch. 9 - Costs that a company or manager can influence are...Ch. 9 - An example of an uncontrollable cost would include...Ch. 9 - Internal costs that are charged to the segments of...Ch. 9 - A transfer pricing arrangement that uses the price...Ch. 9 - A transfer pricing structure that considers the...Ch. 9 - What is a management control system? What are its...Ch. 9 - Identify and describe the levels of management,...Ch. 9 - Discuss the difference between centralized and...Ch. 9 - Identity a company where you recently shopped....Ch. 9 - Discuss the difference between daily and strategic...Ch. 9 - Define segments and describe how identifying...Ch. 9 - Choose a company and describe how a specific...Ch. 9 - Choose a company and explain how a specific issue,...Ch. 9 - Assume you are the manager of a local Starbucks....Ch. 9 - Assume you are the manager of a local Starbucks....Ch. 9 - Lavell started out mowing lawns in the...Ch. 9 - Describe the concept of responsibility accounting.Ch. 9 - Describe the concept of a cost center and, using a...Ch. 9 - Describe the concept of a profit center and, using...Ch. 9 - Explain the benefits of a return on investment...Ch. 9 - Explain the benefits of a residual income...Ch. 9 - Discuss the concept of controllable and...Ch. 9 - Discuss the concept of transfer pricing.Ch. 9 - Discuss the advantages and disadvantages of a...Ch. 9 - Discuss the advantages and disadvantages of a...Ch. 9 - Discuss the advantages and disadvantages of a...Ch. 9 - Assume you have been hired by Hilton Hotels and...Ch. 9 - Consider the national nonprofit organization the...Ch. 9 - The following information is from Bluff Run Golf...Ch. 9 - The following information is from Daves Sporting...Ch. 9 - Assume you are the department B manager for...Ch. 9 - As manager of department B in MarIeys...Ch. 9 - Based on your research of the market in the...Ch. 9 - Using the information in the previous exercises...Ch. 9 - Assume you have been hired by Cabelas Sporting...Ch. 9 - Assume you are the regional manager for a hotel...Ch. 9 - The following information is from Dessert Dynasty....Ch. 9 - The following information is from Good Read Books....Ch. 9 - Assume you are the warehouse manager for Vinnies...Ch. 9 - As manager of the warehouse for Vinnies Vinyls,...Ch. 9 - Discuss how, as warehouse manager for Vinnies...Ch. 9 - Determine the operating income for Vinnies Vinyls...Ch. 9 - Use the following information to answer the...Ch. 9 - The income statement comparison for Forklift...Ch. 9 - Assume you are the leather department manager at...Ch. 9 - Financial information for BDS Enterprises for the...Ch. 9 - Using the information from BDS Enterprises,...Ch. 9 - Management of Great Springs Bottled Water Company...Ch. 9 - The following revenue data were taken from the...Ch. 9 - Use the following information to answer the...Ch. 9 - The income statement comparison for Rush Delivery...Ch. 9 - Assume you are the manager for the semi-trucks...Ch. 9 - Financial information for Lighthizer Trading...Ch. 9 - Using the information for Lighthizer Trading...Ch. 9 - Management of Green Peak Tea Company has asked...Ch. 9 - The following revenue data were taken from the...Ch. 9 - You have just been elected president of a...
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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
- Which of the following would not be a period cost? Group of answer choices Sales commissions. Accounting costs. Sales salaries. Tamper-proof packaging. Legal costs.arrow_forwardWhich of the following is not an application of cost-volume-profit analysis? Setting prices for products and services. Performing strategic “what-if” analyses. Deciding whether to cut a product line. Determining the short-term cost or profit implications of many decisions. Deciding whether to make or buy a given product or service.arrow_forwardWhich of the following is relevant to Limited's decision to accept a special order at a lower price?the shipping costs to the customer CEO's salary Limited's investment its warehouse the cost of its furniture and fixturesarrow_forward
- You are the owner of your own company. You want to employ new workers and also buy a delivery van. Finally, you decide to employ new workers instead of buying a deliver van. Which economic concept is implicit in the above statement? Economic cost Accounting cost Opportunity cost Marginal costarrow_forwardPrepare a report from Mary Jane to Don explaining how these changes will affect Mirabel’s overall cost structure. For those changes that are controllable, make a recommendation considering the uncontrollable cost changes. Be certain to consider not only the company’s break-even point, but also the desired margin of safety.arrow_forwardWhich of the following statements is false? Multiple Choice Examples of selling costs include shipping, sales commissions, and costs of finished goods warehouses. Discretionary fixed costs may be altered in the short term by current managerial decisions. A particular cost may be direct or indirect depending on the cost object. All sunk costs should be ignored in making a decision. Some of the conversion costs are period costs.arrow_forward
- What from the upcoming options will be made when using the traditional costing method, relatively to using the ABC costing method? Pick only one answer – Underestimating the products cost with products that have low direct costs, and one-time products that are produced in small series. A tight costing connection between the cost and the factor causing it. All the answers are incorect. A higher cost for implementing and managing the accounts managing system, the general and the costing. Overestimating the products cost with products that have low direct costs, and one-time products that are produced in small series.arrow_forwardFor each of the following items, identify which of the managementaccounting guidelines applies: cost–benefit approach, behavioral and technical considerations, ordifferent costs for different purposes.1. Analyzing whether to produce a component needed for the end product or to outsource it.2. Deciding whether to compensate the sales force by straight commission or by salary.3. Adding the cost of store operations to merchandise cost when deciding on product pricing, but onlyincluding the cost of freight and the merchandise itself when calculating cost of goods sold on theincome statement.4. Considering the desirability of purchasing new technology.5. Weighing the cost of increased inspection against the costs associated with customer returns of defectivegoods.6. Deciding whether to buy or lease an existing production facility to increase capacity.7. Estimating the loss of future business resulting from bad publicity related to an environmental disastercaused by a company’s factory in…arrow_forwardAssume you are the warehouse manager for Vinnies Vinyls, a multi-location business specializing in vinyl records. Vinniess operates under a cost-based transfer structure and the warehouse supplies all stores with the records. The stores can purchase records only from the warehouse, and the warehouse can only sell to Vinnies stores. The manager of the West store has some concerns relating to the stores financial performance and has asked for your help analyzing transfer costs. After calculating the operating income in dollars and the operating income percent, analyze the following financial information to determine costs that may need further investigation. (Hint: it may be helpful to perform a vertical analysis.)arrow_forward
- Although the cost-plus approach to product pricing may be used by management as a general guideline, what are some examples of other factors that managers should also consider in setting product prices?arrow_forwardExplain why a new product costing system may be needed when line managers suggest that an apparently profitable product be dropped.arrow_forwardWhich one of the following statement is not correct? Group of answer choices -Opportunity costs are only considered when resources are limited. -Break-even analysis is used to determine how many units of a product or a service a business has to sell to cover all its costs. -Both fixed and variable costs influence short-term decision-making. -Short-term decision-making is all about analysing those costs that will change as a result of taking a particular action.arrow_forward
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