CHAPTER 5 PRODUCT AND SERVICE COSTING: A PROCESS SYSTEMS APPROACH LEARNING OBJECTIVES AFTER STUDYING THIS CHAPTER‚ YOU SHOULD BE ABLE TO: 1. Describe the basic characteristics of process costing‚ including cost flows‚ journal entries‚ and the cost of production report. 2. Describe process costing for settings without work-in-process inventories. 3. Define equivalent units‚ and explain their role in process costing. 4. Prepare a departmental production report using the FIFO method
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TEST QUESTIONS: Questions 1-3 refer to the following: The following selected data for March were taken from Rubenstein Company’s financial statements: Cost of goods available for sale Manufacturing overhead Cost of goods manufactured Finished goods inventory ‑ ending Direct materials used Sales Selling and administrative expenses Direct labor Work in process inventory ‑ beginning $ 65‚000 20‚000 51‚000 10‚000 15‚000 105‚000 30‚000 20‚000 0 1. The gross
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Outsourcing Erica Inman BUS630: Managerial Accounting Professor Oscar Lewis April 16‚ 2012 Outsourcing Outsourcing is used very extensively in today’s world. Organizations use all kinds of outsourcing in their ever day activities to improve products and services that they provide to customers. Outsourcing is used to free both capital and brainpower for investment‚ research‚ and development. More than 90 percent of companies view outsourcing as an important part of their business
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Chapter 1 E1-4. The Role and Environment of Managerial Finance 11 Agency Costs Answer: Agency costs are the costs borne by stockholders to maintain a governance structure that ensures against dishonest acts of management‚ and gives managers the financial incentive to maximize share price. One example of agency costs is stock options‚ which are used to provide an incentive for managers to work diligently for the benefit of the firm. Tips are similar to stock options in that they
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Managerial Accounting Vs Financial Accounting Resources carbon.cudenver.edu/~gcolbert/6550.ch12.pdf MANAGERIAL ACCOUNTING AND COST-VOLUME-PROFIT Managerial Accounting Contrasted to Financial Accounting. Managerial accounting supports Managerial Accounting vs. Financial Accounting cob.ohio-state.edu/~bentz_1/525/problems/Finvsmgrl.doc Bentz Financial vs. Managerial Accounting in which financial accounting and managerial accounting are alike in which managerial accounting seems to differ from
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Accounting Alternatives Case At the beginning of the year 20x1‚ two companies began operations to sell home heating units. Eads Heaters Inc. is located in Eads‚ Colorado‚ and Glenwood Heating Inc. is in Glenwood Springs‚ Colorado. The companies operate under similar economic conditions and have identical operations during the year. However‚ each manager makes different accounting choices and estimates when applying generally accepted accounting principles (GAAP) in preparing the company’s financial
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Chapter 1 Lecture Notes Chapter theme: This chapter explains why managerial accounting is important to the future careers of all business students. It answers three questions: (1) What is managerial accounting? (2) Why does managerial accounting matter to your career? and (3) What skills do managers need to succeed? It also discusses the importance of ethics in business and corporate social responsibility. I. What is managerial accounting? A. Examine the difference
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CHAPTER 3 The Accounting Cycle QUESTIONS Q3-1. Much more judgement is required for accrual accounting than for cash accounting because there is greater uncertainty at the time events are recorded in the accounting system. There is no uncertainty around the point in time when the cash is paid or collected. Accrual accounting records economic events‚ not cash flows. When an economic event occurs can be ambiguous. It’s less certain when revenue has been earned than when cash is received. It
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Cost Accounting‚ 14e‚ Global Edition (Horngren/Datar/Rajan) Chapter 12 Pricing Decisions and Cost Management Objective 12.1 1) Companies should only produce and sell units as long as: A) there is customer demand for the product B) the competition allows it C) the revenue from an additional unit exceeds the cost of producing it D) there is a generous supply of low-cost direct materials Answer: C Diff: 2 Terms: target price Objective: 1 AACSB: Ethical reasoning 2) Too high a price may: A)
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CHAPTER 11 DECISION MAKING AND RELEVANT INFORMATION SHORT‐ANSWER QUESTIONS 11‐1 The five steps in the decision process outlined in Exhibit 11‐1 of the text are 1. Identify the problem and uncertainties 2. Obtain information 3. Make predictions about the future 4. Make decisions by choosing among alternatives 5. Implement the decision‚ evaluate performance‚ and learn An example of interdependencies include absenteeism/low employee morale and increased labour costs. 11‐2
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