Chapter 4 Cost-Volume-Profit Analysis QUESTIONS 1. A mixed cost is a cost that has a fixed cost component and a variable cost component. For example‚ the amount paid for telecommunication services would be a mixed cost if there was a fixed monthly fee plus a charge for use. 2. Discretionary fixed costs are those fixed costs that management can easily change in the short-run (e.g.‚ advertising). Committed fixed costs are those fixed costs that cannot be easily changed in the short-run
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are: (a) Payment of an accounts payable. (b) Collection of an accounts receivable from a customer. (c) Transfer of an accounts payable to a note payable. 2. Transactions (a)‚ (b)‚ (d) are considered business transactions and are recorded in the accounting records because a change in assets‚ liabilities‚ or owners’/stockholders’ equity has been effected as a result of a transfer of values from one party to another. Transactions (c) and (e) are not business transactions because a transfer of values
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| | | | Sole proprietorships and partnerships generally have a tax advantage over many corporations‚ especially large ones. | | | | Corporations of all types are subject to the corporate income tax. | | Instructor Explanation: | Chapter 1Explanation: Ch 1: d is correct‚ all others are incorrecta: incorporating provides owners limited liabilityb: sole proprietorship has less regulation than corporationc: In limited partnerships certain partners can be designated general partners
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the total cost of borrowing over the life of the bond. (4) Would the total bond interest expense be greater than‚ the same as‚ or less than the total interest expense that would be reported if the straight-line method of amortization were used? SOLUTION (a) (1) 2010 July 1 Cash 3‚501‚514 Discount on Bonds Payable 498‚486 Bonds Payable 4‚000‚000 (2) Dec. 31 Bond Interest Expense ($3‚501‚514 X 5%) 175‚076 Discount on Bonds Payable 15‚076
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number of units put into production. | | | | less than the number of units put into production. | | | | the same as the number of units completed. | | | | less than the number of units completed. | | Instructor Explanation: | Chapter 4 | | | | Points Received: | 0 of 5 | | Comments: | | | | 2. | Question : | (TCO F) Luft Company uses the weighted-average
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Chapter 2 Cost Terms‚ Concepts‚ and Classifications Solutions to Questions 2-15 Direct labour cost (46 hours $18 per hour) $828 Manufacturing overhead cost (6 hours $9 per hour) 54 Total wages earned $882 2-16 Direct labour cost (35 hours $26 per hour) $910 Manufacturing overhead cost (5 hours $26 per hour) 130 Total wages earned $1‚040 Problem 2-15 (30 minutes) Name of the Cost Variable Cost Fixed Cost Product Cost Period (Selling
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Chapter 19 Completing the Audit / Postaudit Responsibilities |Learning Check | 19-1. The three categories of activities in completing the audit are (a) completing field work‚ (b) evaluating the findings‚ and (c) communicating with the client. 19-2. The activities involved in completing the field work are (a) making subsequent events review‚ (b) reading minutes of meetings‚ (c) obtaining evidence concerning litigation‚ claims‚ and assessments‚ (d) obtaining
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CHAPTER 3 PROBLEM 3-43 (35 MINUTES) 1. Predetermined overhead rate = budgeted overhead ÷ budgeted direct-labor cost = $2‚730‚000 ÷ $2‚100‚000 = 130% of direct labor cost 2. Additions (debits) total $7‚802‚500 [$2‚800‚000 + $2‚175‚000 + ($2‚175‚000 x 130%)]. 3. The finished-goods inventory consisted of job no. 3154‚ which cost $175‚750 [$78‚000 + $42‚500 + ($42‚500 x 130%)]. 4. Since there is no work in process at year-end‚ all amounts in the Work-in-Process account must
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CHAPTER 21 Accounting for Leases ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) Topics Questions Brief Exercises Exercises Problems Concepts for Analysis *1. Rationale for leasing. 1‚ 2‚ 4 1‚ 2 *2. Lessees; classification of leases; accounting by lessees. 3‚ 5‚ 7‚ 8‚ 14 1‚ 2‚ 3‚ 4‚ 5 1‚ 2‚ 3‚ 5‚ 7‚ 8‚ 11‚ 12‚ 13‚ 14 1‚ 2‚ 3‚ 4‚ 6‚ 7‚ 8‚ 9‚ 11‚ 12‚ 14‚ 15‚ 16 1‚ 2‚ 3‚ 4‚ 5‚ 6 *3. Disclosure of leases. 19 2‚ 4‚ 5‚ 7‚ 8 2‚ 3‚ 5 *4. Lessors;
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CHAPTER 7 CORPORATIONS: REORGANIZATIONS SOLUTIONS TO PROBLEM MATERIALS Status: Q/P Question/ Learning Present in Prior Problem Objective Topic Edition Edition 1 LO 1 IRS Letter Ruling Unchanged 1 2 LO 1 Reorganizations follow tax law Unchanged 2 3 LO 1 Types of reorganizations Unchanged 3 4 LO 2 Comparing like-kind exchange to corporate New reorganization 5 LO 2 Four-column template Unchanged 5 6 LO 1‚ 2‚ 3 Reorganization: tax attributes Unchanged 6 7
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