Chapter 5: Cost Behavior: Analysis and Use As we shall see in later chapters‚ the ability to predict how costs respond to changes in activity is critical for making decisions‚ controlling operations‚ and evaluating performance. Three major classifications of costs were discussed in this chapter—variable‚ fixed‚ and mixed. Mixed costs consist of variable and fixed elements and can be expressed in equation form as Y = a + bX‚ where X is the activity‚ Y is the cost‚ a is the fixed cost element‚ and
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|X | | |4. |Salaries of personnel who work in the finished goods warehouse | |X | |5. |Soap and paper towels used by factory workers at the end of a shift |X | | |6. |Factory supervisors’ salaries
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Chapter 1 Managerial Accounting: Tools for Decision Making Discussion QUESTIONS Q1-1. Financial accounting is oriented toward external users and is concerned with general-purpose financial statements. These financial accounting statements are highly aggregated‚ report on relatively long time periods‚ are oriented toward the past‚ and must conform to external standards. These standards emphasize the use of objective data. Management accounting is oriented toward internal users and is
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If the MCE is 35%‚ then 35% of throughput time was spent in value-added activities‚ the other 65% was spent in non-value-added activities. 4. Delivery cycle time = Wait time + Throughput time = 16.0 days + 8.0 days = 24.0 days 5. If all queue time is eliminated‚ then the throughput time drops to only 4 days (0.5 + 2.8 + 0.7). The MCE becomes: Thus‚ the MCE increases to 70%. This exercise shows quite dramatically how lean production approach can improve operations and reduce
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CHAPTER 3 Product Costing and Cost Accumulation in a Batch Production Environment ANSWERS TO REVIEW QUESTIONS 3-1 (a) Use in financial accounting: In financial accounting‚ product costs are needed to determine the value of inventory on the balance sheet and to compute the cost-of-goods-sold expense on the income statement. b) Use in managerial accounting: In managerial accounting‚ product costs are needed for planning‚ for cost control‚ and for decision making. c) Use in cost
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Garrison Managerial Accounting Solutions (PDF Documents) provides by doc.biasbias.com And hosted at /doc11/Garrison_Managerial_Accounting_Solutions.pdf Garrison Managerial Accounting Solutions Table of Contents 1. 2. 3. 4. 5. 6. 7. 8. 9. Managerial Accounting Garrison Noreen Brewer 14th Edition ... Managerial accounting 14th edition garrison solutions - free eBooks Managerial Accounting: Ray Garrison‚ Eric Noreen‚ Peter Brewer ... Managerial Accounting with Connect Plus: Ray Garrison‚ Eric
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200‚000(b)7/1/04Bond Interest Expense 4‚500 (200‚000 X 9 X 3/12) Cash 4‚500(c)12/31/04Bond Interest Expense 4‚500 Interest Payable 4‚500 2.Graceland Company(a)6/1/04Cash 105‚000 Bonds Payable 100‚000 Bond Interest Expense 5‚000 (100‚000 X 12 X 5/12)(b)7/1/04Bond Interest Expense 6‚000 Cash 6‚000 (100‚000 X 12 X 6/12)(c)12/31/04Bond Interest Expense 6‚000
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CHAPTER 8 FLEXIBLE BUDGETS‚ OVERHEAD COST VARIANCES‚ AND MANAGEMENT CONTROL 8-1 Effective planning of variable overhead costs involves: 1. Planning to undertake only those variable overhead activities that add value for customers using the product or service‚ and 2. Planning to use the drivers of costs in those activities in the most efficient way. 8-2 At the start of an accounting period‚ a larger percentage of fixed overhead costs are locked-in than is the case with variable overhead
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Solutions – Chapter 5 Chapter 5 Financial Analysis Question 1. Which of the following types of firms do you expect to have particularly high or low asset turnover? Explain why. Supermarket—High asset turnover. Supermarkets tend to be high volume businesses. Many of the food products in supermarkets are perishable‚ and freshness is often used to differentiate products‚ forcing a certain amount of inventories turnover. The typical consumer buys groceries on a regular basis‚ guaranteeing grocery
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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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