fast food restaurant is a fixed cost? (FALSE) 4.) A fixed cost is a constant per unit of product? (FALSE) variable would be true 5.) In a manufacturing firm all costs are product costs? (FALSE) 6.) Wages paid to production supervisors would be considered direct labor? (FALSE) 7.) Advertising is a product cost as long as it promotes specific products? (FALSE) 8.) Managerial accounting places less emphasis on non monetary data than financial accounting? (FALSE) 9.) Direct material cost combines with
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Managerial Accounting Analysis of Concepts and Techniques Managerial Accounting BUS 630 Managerial Accounting Analysis of Concepts and Techniques Introduction/Thesis Statement Managerial accounting is a concept used in businesses to manage internal systems. Understanding the importance of effective decision making‚ planning and control creates a foundation for value within the company on a more in depth level. Planning and controlling is measured by performance based on budgeting accounts
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one of the separate legal entities is not necessary for a business combination. An example of one form of business combination in which the separate legal entities are not dissolved is when one corporation becomes a subsidiary of another. In the case of a parent-subsidiary relationship‚ each combining company continues to exist as a separate legal entity even though both companies are under the control of a single management team. 3 A business combination occurs when two or more previously separate
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Managerial Accounting Chapters 11-13 Chapter 10 – 3 Relevant costs are costs that are avoidable by choosing another alternative. If a variable cost differs between alternatives in a decision‚ than it is relevant; however‚ it is not necessarily true that ALL variable costs are relevant. Chapter 10 – 7 Prentiss would need to isolate the unavoidable costs of the product line first. A decision of whether a product line or other segment should be dropped should focus on the differences in the
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| Appraised Value | Percent of Total | Apportioned Cost | Building | $514‚250 | 55% ($514‚250/$935‚000) | $495‚000 ($900‚000 x 55%) | Land | 271‚150 | 29% ($271‚150/$935‚000) | 261‚000 ($900‚000 x 29%) | Land Improvements | 65‚450 | 7% ($65‚450/$935‚000) | 63‚000 ($900‚000 x 7%) | Four Vehicles | 84‚150 | 9% ($84‚150/$935‚000) | 81‚000 ($900‚000 x 9%) | Totals | $935‚000 | 100% | $900‚000 | 1. Prepare a table to allocate the lump-sum purchase price to the separate assets purchased
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Question 11. In early 2003 Bristol-Myers Squibb announced that it would have to restate its financial statements as a result of stuffing as much as $3.35 billion worth of products into wholesalers’ warehouses from 1999 through 2001. The company’s sales and cost of sales during this period was as follows: 2001 2000 1999 Net sales $18‚139 $17‚695 $16‚502 Cost of products sold 5‚454 4‚729 4‚458 The company’s marginal tax rate during the three years was
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Practice Exam 2 1. Short Stay Surgery uses a job costing system for all patients who have surgery. The clinic uses a normal costing system with operating hours as the allocation base. For the month of March‚ estimated total operating hours in the surgery suits were 3‚200 hours. The estimated overhead costs for the suites were $640‚000. Patient Sarah Handy was in surgery for 2.5 hours. Other costs related to Handy’s surgery include: Patient medicine $ 50
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Problem 1 Page 40 a- Cost of goods manufactured = Direct cost + Indirect cost = [Direct Cost of Material + Direct Cost of Labor] + [Indirect Cost of Material + Indirect Cost of Labor + Utilities Overhead] = Total Cost of Material + Total Cost of Labor + Utilities Overhead = 120‚000 + 90‚000 + 40‚000 = $ 250‚000 b- Total Cost of Operation = Cost of goods manufactured + Selling‚ General admin. and expenses. = 250‚000 + 60‚000 = $ 310‚000 c- Prime Cost =Direct Material
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Chapter 2 1. Which of the following would be considered a product cost for external financial reporting purposes? a. Cost of a warehouse used to store finished goods. b. Cost of guided public tours through the company’s facilities. c. Cost of travel necessary to sell the manufactured product. d. Cost of sand spread on the factory floor to absorb oil from manufacturing machines. 1. Which of the following would be considered a product cost for external financial reporting purposes
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Q Suppose we are thinking about replacing an old computer with a new one. The old one cost us 650‚000; the new one will cost 780‚000. The new machine will be depreciated straight-line to zero over its five-year life. It will probably be worth about 140‚000 after five years. The old computer is being depreciated at a rate of 130‚000 per year. It will be completely written off in three years. If we do not replace it now‚ we will have to replace it in two years. We can sell it now for 230‚000; in two
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