MANAGERiAL ACCOUNTING CHAPTER Answer
会计英语unit 15 Introduction to Managerial Accounting
15
(3) Budgeting
• It is also a critical element. • It outlines the financial limit within which
– Recruit graduate and undergraduate students of the highest academic capabilities who are committed to public health.
– Provide a multicultural setting for public health learning. – Provide excellent educational programs and opportunities. – Apply innovative pedagogical methods to enhance teaching and
3
Planning
Management accounting
Directing
Strategy
Costing
Positioning Budgeting
Production
Special analysis
Monitoring & Controlling
6
1. Planning
Planning requires management to look into the future to establish objectives.
《会计专业英语》Chapter 9 Managerial Accounting
Production Volume (Units) 900 1,000 800 1,000 1,200 900 2,000 1,200 500 800 750 300
Utility Fee ($)
2,250 2,550 2,150 2,460 2,620 2,200 3,250 2,700 1,000 2,170 2,060 900
• Contribution Margin/Net Operating Income
• Segment Income Байду номын сангаасtatement
• Traceable Fixed Costs • Common Fixed Costs • The Segment Margin
11
Applications
• Keeping or Dropping a Segment
3
Managerial Accounting Overview
• The Definition of Managerial Accounting
• A Business Language for Insiders
• The Definition of Financial Accounting
• A Business Language for Outsiders
10
Applications
• Cost Structure and Operating Leverage
• Cost Structure
• The relative proportion of fixed costs and variable costs in a firm.
• Degree of Operating Leverage
19版会计学原理怀尔德答案Chapter 1
Chaper 1 Accounting in BusinessMultiple Choice Quiz1-c; 2-b; 3-d; 4-a; 5-aQuick StudyQS 1-1a-E; b-E; c-I; d-E; e-E; f-I; g-E; h-E; i-E; j-E; k-I; l-EQS 1-2GAAP: Generally Accepted Accounting PrinciplesImportance: GAAP are the rules that specify acceptable accounting practices.SEC: Securities and Exchange CommissionImportance: The SEC is charged by Congress to set accounting and reporting rules for organizations that sell ownership shares to the public. The SEC delegates part of this responsibility to the FASB.FASB: Financial Accounting Standards BoardImportance: FASB is an independent group of full-time members who are responsible for setting accounting and reporting rules.IASB: International Accounting Standards BoardImportance: Its purpose is to issue standards that identify preferred practices in the desire of harmonizing accounting practices across different countries. The vast majority of countries and financial exchanges support its activities and objectives.QS 1-3Accounting professionals practice in at least four main areas. These four areas, along with a listing of some work opportunities in each, are:1. Financial accountingPreparation; Analysis; Auditing (external); Consulting; Investigation2. Managerial accountingCost accounting; Budgeting; Auditing (internal); Consulting3. Tax accountingPreparation; Planning; Regulatory; Consulting; Investigation4. Accounting-relatedLending; Consulting; Analyst; Investigator; AppraiserQS 1-4Internal controls serve several purposes:They involve monitoring an organization’s activities to promote efficiency and to prevent wrongful use of its resources.They help ensure the validity and credibility of accounting reports.They are crucial for effective operations and reliable reporting.More generally, the absence of internal controls can adversely affect the effectiveness of domestic and global financial markets.QS 1-5a. Revenue recognition principleb. Cost principle (also called historical cost)c. Business entity principleQS 1-6The choice of an accounting method when more than one alternative method is acceptable often has ethical implications. This is because accounting information can have major impacts on individuals’ (and firms’) well-being.To illustrate, many companies base compensation of managers on the amount of reported income. When the choice of an accounting method affects the amount of reported income, the amount of compensation is also affected. Similarly, if workers in a division receive bonuses based on the d ivision’s income, its computation has direct financial implications for these individuals.QS 1-7a=125,000b=250,000c=125,000QS 1-8QS 1-9(a) Examples of business transactions that are measurable include:Selling products and services.Collecting funds from dues, taxes, contributions, or investments.Borrowing money.Purchasing products and services.(b) E xamples of business events that are measurable include:Decreases in the value of securities (assets).Bankruptcy of a customer owing money.Technological advances rendering patents (or other assets) worthless.An “act of God” (casualty) that destroys assets.QS 1-10a-B; b-I; c-B; d-CF; e-I; f-B; g-B; h-CF; i-OEExcisesExcise 1-1External users and some questions they seek to answer with accounting information include:1. Shareholders (investors), who seek answers to questions such as:a. Are resources owned by a business adequate to carry out plans?b. Are the debts owed excessive in amount?c. What is the current level of income (and its components)?2. Creditors, who seek answers for questions such as:a. Does the business have the ability to repay its debts?b. Can the business take on additional debt?c. Are resources sufficient to cover current amounts owed?3. Employees, who seek answers to questions such as:a. Is the business financially stable?b. Can the business afford to pay higher salaries?c. What are growth prospects for the organization?Excise 1-21. C 5. B2. C 6. A3. A 7. B4. A 8. BExcise 1-3a. Auditing professionals with competing audit clients are likely to learn valuable information about each client that the other clients would benefit from knowing. In this situation the auditor must take care to maintain the confidential nature of information about each client.b. Accounting professionals who prepare tax returns can face situations where clients wish to claim deductions they cannot substantiate. Also, clients sometimes exert pressure to use methods not allowed or questionable under the law. Issues of confidentiality also arise when these professionals have access to clients’ personal records.c. Managers face several situations demanding ethical decision making in their dealings with employees. Examples include fairness in performance evaluations, salary adjustments, and promotion recommendations. They can also include avoiding any perceived or real harassment of employees by the manager or any other employees. It can also include issues of confidentiality regarding personal information known to managers.d. Situations involving ethical decision making in coursework include performing independentwork on examinations and individually completing assignments/projects. It can also extend to promptly returning reference materials so others can enjoy them, and to properly preparing for class to efficiently use the time and question period to not detract from others’ instructional benefits.Excise 1-41-E; 2-G; 3-A; 4-C; 5-D; 6-B; 7-F; 8-HExcise 1-5a-S; b-C; c-S; d-C; e-C; f-P; g-SExcise 1-6a=180,000b=51,000c=139,000Excise 1-71-D; 2-G; 3-B; 4-F; 5-AExcise 1-8a-27,000b-221,607c. beginning balance is 73,000; ending balance is 149,000Excise 1-9a. Business purchases equipment (or some other asset) on credit.b. Business signs a note payable to extend the due date on an account payable.c. Business pays an account payable (or some other liability) with cash (or some other asset).d. Business purchases office supplies (or some other asset) for cash (or some other asset).e. Business incurs an expense that is not yet paid (for example, when employees earn wages that are not yet paid).f. Owner invests cash (or some other asset) in the business; OR, the business earns revenue and accepts cash (or another asset).g. Cash withdrawals (or some other asset) paid to the owner of the business; OR, the business incurs an expense paid in cash.Exercise 1-10Real AnswersIncome StatementFor Month Ended October 31Exercise 1-11Real AnswersStatement of Owner ’s Equity Exercise 1-12Real Answers Balance Sheet October 31AssetsCash $ 11 500 Account receivable 12 000 Office supplies 24 437 Land 46 000 Office equipment 18 000 Total assets $ 111 937LiabilitiesAccount payables $ 25 037 Total liabilities 25 037Owner ’s EquityKeisha King, Capital 86 900 Total liabilities and equity $ 111 937Exercise 1-13Real Answers Cash Flow Statement For Month Ended October 31Excise 1-141-O; 2-O; 3-F; 4-O; 5-O; 6-O; 7-F; 8-IProblem 1-1AProblem 1-2Aa. Cash 67,000Equipment 11,000I. Lopez, Capital 78,000Owner’s investmentb. Building 144,000Cash 15,000Notes Payable 129,000 Purchased building on cash and note payable c. Equipment 12,000Cash 12,000Purchased equipment on cashd. Supplies 1,000Equipment 1,700Account Payable 2,700Purchased supplies and equipment on credite. Advertising Expense 460Cash 460Paid announcement of opening on newspaper f. Account Receivable 2,400Revenue 2,400To record revenue for service provided on account g. Cash 4,000Revenue 4,000Received revenue on cashh. I. Lopez, Withdrawals 3,025Cash 3,025Cash withdrawal by owneri. Cash 1,800Account Receivables 1,800Partially received account receivablej. Account Payables 500Cash 500Partially paid account payablesk. Wages Expense 1,800Cash 1,800Paid wages of secretary’s。
管理会计双语
管理会计双语Managerial Accounting Review Question⼀、True/False QuestionsFor each of the following, circle the T or the F to indicate whether the statement is true or false.1Managerial accounting refers to the preparation and use of accounting information designed to meet the needs of decision makers inside the business organization.2Product costs are selling expenses that appear on the income statement.3Management accounting reports provide a means of monitoring , evaluating and rewarding performance.4Product costs are offset against revenue in the period in which the related products are sold, rather than the period in which the costs are incurred.5Manufacturing overhead is considered an indirect cost, since overhead costs generally cannot be traced conveniently and directly to specific units of product.6Overhead application rates allow overhead to be assigned at the beginning of a period to help set prices.7Pepsi Cola would most likely use a job order costing system.8Activity-based costing tracks cost to the activities that consume resources.9Activity based costing uses multiple activity bases to assign overhead costs to units of production.10The two steps required in Activity Based Costing are 1) Identify separate activity cost pools and 2) allocate each cost pool to the product using an appropriate cost driver11The new manufacturing environment is characterized by its shift toward labor intensive production and declining manufacturing overhead costs.12A cost driver is an activity base that is highly correlated with manufacturing overhead costs.13In ABC, only one cost driver should be used in applying overhead.14As companies become more automated overhead costs decrease and direct labor costs increase.15An equivalent unit measures the percentage of a completed units cost that is present in a partially finished unit.16Costs do not flow through a process cost system in the same sequence as actual products move through the assembly process.17Non-value added activities are those that do not add to a product's desirability.18Target costing centers on new product and service development as opposed to managing the value chain for existing products.19In the target costing process, target price is computed by adding the desired profit margin to the target product cost.20Target cost equals target price plus profit margin.21Variable costs which increase in total amount in direct proportion to an increase in output represent a constant amount per unit of output.22Any business which operates at less than capacity will have larger fixed costs than variable costs.23With variable costs, the cost per unit varies with changes in volume.24The contribution margin is the difference between total revenue and fixed costs.25The volume of output which causes fixed costs to be equal in amount to variable costs is called the break-even point.26Any business which operates at less than capacity will have larger fixed costs than variable costs.27Margin of safety is the dollar amount by which actual sales volume exceeds the break-even sales volume.28Life cycle costing considers all potential resources used by the product over its entire life.29Economies of scale can be achieved by using facilities more intensively.30The break-even point is the level of activity at which operating income is equal to cost of goods sold.31Contribution margin ratio is equal to contribution margin per unit divided by unit sales price.32Opportunity cost is the benefit that could have been obtained by pursuing an alternate course of action.33All incremental revenue or incremental costs are relevant.34Sunk costs are relevant to decisions about replacing plant assets.35In determining whether to scrap or to rebuild defective units of product, the cost already incurred in producing the defective units is not relevant.36In making a decision, management will look thoroughly at both relevant and irrelevant data.373.Responsibility margin is useful in evaluating the consequences of short-run marketing strategies, while contribution margin is more useful in evaluating long-term profitability.38The transfer price is the dollar amount used in recording sales to primary customers.39Under variable costing, fixed manufacturing costs are treated as period costs, rather than product costs.40The transfer price is the dollar amount used in recording sales to primary customers.41Variable costing treats all fixed manufacturing costs as expenses of the current period.42In full costing when production rises above the amount of sales, some of the fixed costs will remain in inventory.43Return on Investment (ROI) tells us how much earnings can be expected for the average invested dollar.44Capital turnover can be improved by reducing invested capital while keeping sales constant.45The value chain consists of only those activities that increase the selling price of a product as it is distributed to a customer.46Residual income is calculated by subtracting the minimum acceptable return on the average invested capital from the operating income.⼆、Multiple Choice QuestionsChoose the best answer for each of the following questions and insert the identifying letter in the space provided.1.Costs that are traceable to a particular unit and are inventoriable are calledA) Period costs B) Product costs C) Overhead costs D) Job costs2. .Determine the amount of manufacturing overhead given the following information:a. Depreciation on a factory building $2,400b. Telephone expense in factory office750c. Telephone expense in sales showroom850d. Factory foreman’s salary5000e. Maintenance for factory` 800f. Maintenance for sales showroom 680A) $4,010 B) $9,800 C) $8,950 D) $10,54024.Goods that are still in the production process would be in which account?A) Materials inventory B) Work-in-process inventory C)Finished goods inventory D)Cost of goods sold29.The principal difference between managerial accounting and financial accounting is that managerial accounting information is:A) Prepared by managers.B) Intended primarily for use by decision makers inside the business organization.C) Prepared in accordance with a set of accounting principles developed by the Institute of CertifiedManagerial Accountants.D) Oriented toward measuring solvency rather than profitability.30.Management accounting systems are designed to assist organizations in the performance of all of the following functions except:A) The assignment of decision-making authority over company assets.B) Planning and decision-making.C) Monitoring, evaluating and rewarding performance.D) The preparation of income tax returns.35.In comparison with a financial statement prepared in conformity with generally accepted accounting principles, a managerial accounting report is less likely to:A) Focus upon the entire organization as the accounting entity. B) Focus upon future accounting periods.C) Make use of estimated amounts. D) Be tailored to the specific needs of an individual decision maker.4.If the salaries of the sales staff of a manufacturing company are improperly recorded as a product cost, what will be the likely effect on net income of the period in which the error occurs?A) Net income will be overstated. B) Net income will be understated.C) Net income will be unaffected. D) Net income will be understated only if inventory levels rise.5.Manufacturing overhead is best described as:A) All manufacturing costs other than direct materials and direct labor.B) All period costs associated with manufacturing operations.C) Indirect materials and indirect labor.D) All operating expenses other than selling expenses and general and administrative expenses.43.Underapplied overhead at the end of a month:A) Results when actual overhead costs are less than amounts applied to work in process.B) Indicates a poorly designed cost accounting system.C) Is represented by a debit balance remaining in the Manufacturing Overhead account.D) Is represented by a credit balance remaining in the Manufacturing Overhead account.58.The account Work-in-Process InventoryA) Consists of completed goods that have not yet been soldB) Consists of goods being manufactured that are incompleteC) Consists of materials to be used in the production processD) Consists of the cost of new materials used, labor but not overhead.66.Red Star Company uses a job order cost system. Overhead is applied to jobs on the basis of direct labor hours.During the current period, Job No. 288 was charged $400 in direct materials, $450 in direct labor, and $180 in manufacturing overhead. If direct labor costs an average of $15 per hour, the company's overhead application rate is:A) $9 per direct labor hour. B) $6 per direct labor hour.C) $17 per direct labor hour. D) $20 per direct labor hour.24.The best cost system to use for a company producing a continuous stream of similar items would be aA) Job order system B) Process costing system C) Production costing systemD) No cost system is required when jobs are similar64.Ken Gorman’s Company uses a job order cost system and has established a predetermined overhead application rate for the current year of 150% of direct labor cost, based on budgeted overhead of $900,000 and budgeted direct labor cost of $600,000. Job no. 1 was charged with direct materials of $30,000 and with overhead of $24,000.The total cost of job no. 1:A) Is $54,000. B) I s $70,000. C)Is $90,000. D) Cannot be determined without additional information.27.Equivalent units of production areA) A measure representing the percentage of a unit's cost that has been completed.B) May be computed separately for each input added during productionC) May be assigned to beginning work-in-process or ending work-in-processD) All of the above27.Equivalent units of production areA) A measure representing the percentage of a unit's cost that has been completed.B) May be computed separately for each input added during productionC) May be assigned to beginning work-in-process or ending work-in-processD) All of the above21.Process costing would be suitable forA) Automobile repair B) Production of television sets C) Boat building D) K itchen remodeling Use the following to answer questions 75-76:Riverview Company's budget for the coming year includes $6,000,000 for manufacturing overhead, 100,000 hours of direct labor, and 500,000 hours of machine time.75. Refer to the above data. If Riverview applies overhead using a predetermined rate based on machine-hours,what amount of overhead will be assigned to a unit of output which requires 0.5 machine hours and 0.25 labor hours to complete?A) $6.00. B) $15.00. C) $21.00. D) S ome other amount.76. Refer to the above data. If Riverview applies overhead using a predetermined rate based on labor-hours, whatamount of overhead will be assigned to a unit of output which requires 0.5 machine hours and 0.25 labor hours to complete?A) $6.00. B) $15.00. C) $21.00. D) S ome other amount.21.Process costing would be suitable forA) Automobile repair B) Production of television sets C)Boat building D)Kitchen remodeling21.Which one of the following is not one of the basic procedures related to ABC?A) Identify the activity. B) Create an associated activity cost pool.C) Transact identified cost centers. D) Calculate the cost per unit of activity.23.Examples of value-adding activities include all of the following except:A) Product design. B) Assembly activities.C) Machinery set-up activities. D) Establishing efficient distribution channels.26.Just-in-time manufacturing systems are also known as:A) Supply push systems. B)Supply pull systems. C)Demand push systems. D) Demand pull systems.28.Target costing is directed toward:A) Reducing the activity costs associated with existing products.B) Identifying the amount by which the costs of existing products must be reduce to achieve a target profitmargin.C) The creation and design of products that will provide adequate profits.D) The improvement of existing production processes by eliminating non-value adding activities.30.During which element of manufacturing cycle time is value added to products?A) Storage and waiting time. B) Processing time.C) Movement time. D) Inspection time.33.Four categories of costs associated with product quality are:A) External failure, internal failure, prevention, and carrying.B) External failure, internal failure, prevention, and appraisal.C) External failure, internal failure, training, and appraisal.D) Warranty, product liability, prevention, and training.41.During cycle time, value is added only duringA) Processing time. B) Storage and waiting time. C) Movement time. D) Inspection time.26.A semivariable cost:A) Increases and decreases directly and proportionately with changes in volume.B) Changes in response to a change in volume, but not proportionately.C) Increases if volume increases, but remains constant if volume decreases.D) Changes inversely in response to a change in volume.27.Which of the following is an example of a fixed cost for an airline?A) Depreciation on the corporate headquarters. B) Fuel costs.C) Income taxes expense. D) Passengers' meals.28.In order to calculate break-even sales units, fixed costs are divided by:A) Contribution margin per unit. B) Contribution margin percentage.C) Target operating income. D) Sales volume.29.A company's relevant range of production is:A) The production range from zero to 100% of plant capacity.B) The production range over which CVP assumptions are valid.C) The production range beyond the break-even point.D) The production range that covers fixed but not variable costs.30.The break-even point in a cost-volume-profit graph is always found:A) At 50% of full capacity.B) At the sales volume resulting in the lowest average unit cost.C) At the volume at which total revenue equals total variable costs.D) At the volume at which total revenue equals total fixed costs plus total variable costs.32.The contribution ratio is computed as:A) Sales minus variable costs, divided by sales. B) F ixed costs plus variable costs, divided by sales.C) Sales minus fixed costs, divided by sales. D) S ales divided by variable costs.33.In comparison to selling a product with a low contribution margin ratio, selling a product with a high contribution margin ratio always:A) Requires less dollar sales volume to cover a given level of fixed costs.B) Results in a greater margin of safety.C) Results in higher operating income. D) Results in a higher contribution margin per unit sold.36.How will a company's contribution margin be affected by an investment in equipment that increases fixed costs in order to achieve a reduction in direct labor cost?A) Contribution margin will increase. B) Contribution margin will fall.C) Contribution margin will either increase or decrease depending on the relative magnitudes of the changesin fixed and variable costs. D) Contribution margin will remain the same.43.If a product sells for $10, variable costs are $6 and fixed costs are $400,000 what would total sales have to be in order to break-even?A) $160,000 B) $166,667 C) $1,000,000 D) $266,66746.If unit sales prices are $10 and variable costs are $6 per unit how many units would have to be sold to break even if fixed costs equal $12,000?A) $1,200 B) $2,000 C) $3,000 D) $2,80062.A company with an operating income of $65,000 and a contribution margin ratio of 55% has a margin of safety of:A) $35,750. B) $118,182.C) $153,932. D) It is not possible to determine the margin of safety from the information provided.63.The following information is available:Sales ............................................................................................. $100,000Break-even sales ........................................................................ $40,000Contribution margin ratio ............................................................ 25%What is the operating income?A) $0. B) $75,000. C) $87,500. D) $12,500.65. A company with monthly fixed costs of $140,000 expects to earn monthly operating income of $10,000 byselling 5,000 units per month. What is the company's expected unit contribution margin?A) $30. B) $28.C) $2. D) The information given is insufficient to determine unit contribution margin.Use the following to answer questions 82-86:Empire Company produces a single product. The selling price is $50 per unit, and variable costs amount to $20 per unit. Empire's fixed costs per month total $80,000.82. Refer to the above information. What is the contribution margin ratio of Empire's product?A) 25%. B) 75%. C) 60%. D) 40%.83. Refer to the above information. What is the monthly sales volume in dollars necessary to break even? (Rounded)A) $320,000. B) $106,667. C) $200,000. D) $133,333.84. Refer to the above information. How many units must be sold each month to earn a monthly operatingincome of $25,000?A) 833. B) 2,300. C) 3,500. D) S ome other amount.85.Refer to the above information. What will be the monthly margin of safety (in dollars) if 3,000 units are sold each month?A) $16,667. B) $100,000. C) $12,000. D) $150,000.86. Refer to the above information. What will be Empire's monthly operating income if 3,500 units are sold eachmonth?A) $15,000. B) $25,000. C) $75,000. D) $105,000.24.A cost that has already been incurred and cannot be changed is called aA) Opportunity cost B) Out of Pocket cost C) Joint cost D) Sunk CostUse the following to answer questions 46-48:Tech Products, Inc. is interested in producing and selling an improved widget. Market research indicates that customers would be willing to pay $95 for such a widget and that 50,000 units could be sold each year at this price. The current cost to produce the widget is estimated to be $60.46. Refer to the information above. If Tech Products requires a 25% return on sales to undertake production, whatis the target cost for the new widget?A) $60. B) $71.25. C) $75. D) Some other amount.47. Refer to the information above. Tech has learned that a competitor plans to introduce a similar widget at a priceof $85. If Tech requires a 25% return on sales, what is the target cost for the new widget?A) $75. B) $63.75. C) $21.75. D) $25.48.Refer to the information above. At a price of $85, Tech's market research indicates that it can sell 40,000 units per year. Assuming Tech can reach its new target cost, how will Tech's profit at the $85 price compare to what it would have earned in the absence of the competitor's product?A) Profit will be $12,500 greater. B) P rofit will be $12,500 smaller.C) Profit will be unaffected if Tech can reach the revised target cost. D) None of the above.33.In comparison to selling a product with a low contribution margin ratio, selling a product with a high contribution margin ratio always:A) Requires less dollar sales volume to cover a given level of fixed costs.B) Results in a greater margin of safety.C) Results in higher operating income.D) Results in a higher contribution margin per unit sold.26.Incremental revenuesA) Always increase revenue when one course of action is selected over anotherB) Always decrease revenue when one course of action is selected over anotherC) May increase or decrease when one course of action is selected over anotherD) Cause revenues to remain steady27.By choosing to go into business for himself, Joe Green foregoes the possibility of getting a highly paid job with alarge company. This is called a (n)A) Sunk cost B) Out-of-pocket cost C) Opportunity cost D) Joint Cost29.Which of the following types of cost are always relevant to a decision?A) Sunk costs. B) Average costs. C) Incremental costs. D) Fixed costs.40.Which cost is not relevant in making financial decisions?A) Sunk costs. B) Opportunity costs. C) Incremental costs. D) All three are relevant.Use the following to answer questions 50-52:John Stag Corporation manufactures and sells 1,000 tractors each month. The primary component in each tractor is the motor. John Stag has the monthly capacity to produce 1,300 motors. The variable costs associated with manufacturing each motor are shown below:Direct materials ............................................................................ $22Direct labor (14)Variable manufacturing overhead (27)Fixed manufacturing overhead per month (for up to 1,300 units of production) averages $26,000. Mary Doe, Inc., has offered to purchase 200 motors from John Stag per month to be used in its own outboard motors.50. Refer to the information above. If Mary Doe's order is rejected, what will be John Stag's average unit cost of manufacturing each motor?A) $83. B) $63. C) $89. D) Some other amount.51. Refer to the information above. What is the incremental cost of producing each additional motor?A) $26. B) $63. C) $89. D) Some other amount.52.Refer to the information above. Assuming John Stag wants to earn a pretax profit of $10,000 on this special order, what price must it charge Mary Doe?A) $62. B) $75 C) $94. D) Some other amount.55.Korler Company currently produces all of the components for its one product an electric eraser. The unit cost of manufacturing the motor for this eraser is:Direct materials ............................................................................ $3.40Direct labor .................................................................................. 3.20Variable overhead ........................................................................ 1.40Fixed overhead ............................................................................ 1.10The company is considering the possibility of buying this motor from a subcontractor and has been quoted a price of $7.60 per unit. The relevant cost of manufacturing the motor to be considered in reaching the decision is:A) $9.10. B) $8.00. C) $6.60. D) $4.80.63.Tony Co. manufactures four products. Direct materials and direct labor are available in sufficient quantities, but machine capacity is limited to 3,000 hours. Cost and revenue data for the four products are given below:Of the four products which is the most profitable for Tony Co.?A) Product A. B) Product B. C) Product C. D) Product D.29.A responsibility accounting system measures the performance of each of the following centers except:A) Profit center B) Investment center C) Control center D) Cost center29.A responsibility accounting system measures the performance of each of the following centers except:A) Profit center B) Investment center C) Control center D) Cost center38.The primary difference between profit centers and cost centers is that:A) Profit centers generate revenue. B) Cost centers incur costs.C) Profit centers are evaluated using return on investment criteria.D) Profit centers provide services to other centers in the organization.46.Cost centers are evaluated primarily on the basis of their ability to control costs and:A) Their return on assets. B) Residual income.C) The quantity and quality of the services they provide. D) Their contribution margin ratio.50.Under a variable costing system:A) All fixed manufacturing costs are treated as period costs.B) All fixed manufacturing costs are not treated as period costs.C) All variable manufacturing costs are treated as period costs.D) All variable costs, manufacturing and selling, are treated as product costs.50.Under a variable costing system:A) All fixed manufacturing costs are treated as period costs.B) All fixed manufacturing costs are not treated as period costs.C) All variable manufacturing costs are treated as period costs.D) All variable costs, manufacturing and selling, are treated as product costs.57.Responsibility margin is equal to:A) Revenue, less contribution margin and traceable fixed costs.B) Revenue, less variable costs.C) Revenue, less variable costs and traceable fixed costs.D) Revenue, less variable fixed costs, traceable fixed costs, and common costs.73.The human resources department of a large company would beconsidered:A) A cost center. B) A profit center. C) An investment center. D) A revenue center.17. Accounting systems can generate motivation byA) Creating and setting goals B) Measuring progress towards those goalsC) Allocating rewards towards goal achievement D) All of the above17.Accounting systems can generate motivation byA) Creating and setting goals B) Measuring progress towards those goalsC) Allocating rewards towards goal achievement D) All of the above25.The value chain usually starts with the _________ and ends with the ____________.A) Supplier, customer. B)Retailer, wholesaler.C) Customer, retailer. D) Retailer, customer./doc/1061907c168884868762d67b.html cy Stores has sales of $3,280,000, cost of sales of $1,360,000, and operating expenses of $608,000. What is Lacy's return on sales?A) 58.5%. B) 41.5%. C) 60%. D) 40%.41.Calculate the residual income assuming the following information:Operating earnings. $300,000Minimum acceptable return. 15%Invested capital. 1,500,000A) $225,000. B) $100,000. C) $75,000. D) $45,000.。
管理会计Managerial accounting习题 Chapter 01【VIP专享】
True/False Questions1.Managerial accounting places less emphasis on precision and more emphasis onflexibility and relevance than financial accounting.Answer: True AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement LO: 1 Level: Medium2.Managerial accounting is not governed by generally accepted accounting principles(GAAP).Answer: True AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Decision Making, Measurement LO: 1 Level: Easy3.Financial accounting and managerial accounting reports must be prepared inaccordance with generally accepted accounting principles (GAAP).Answer: False AACSB: Reflective Thinking AICPA BB: Critical ThinkingAICPA FN: Measurement LO: 1 Level: Easy4.When carrying out their directing and motivating activities, managers mobilize theorganization's human and other resources so that the organization's plans are carriedout.Answer: True AACSB: Reflective Thinking AICPA BB: Resource Management,Critical Thinking AICPA FN: Decision Making LO: 2 Level: Easy5.When carrying out planning activities, managers rely on feedback to ensure that theplan is actually carried out and is appropriately modified as circumstances change.Answer: False AACSB: Reflective Thinking AICPA BB: Resource Management AICPA FN: Decision Making LO: 2 Level: Medium6.When carrying out their directing and motivating activities, managers select a courseof action and specify how the action will be implemented.Answer: False AACSB: Reflective Thinking AICPA BB: Resource Management AICPA FN: Decision Making LO: 2 Level: Medium7.Persons occupying staff positions provide support and assistance to other parts of theorganization.Answer: True AACSB: Reflective Thinking AICPA BB: Resource Management AICPA FN: Decision Making LO: 2 Level: Easy8.Staff departments generally have direct authority over line departments in anorganization.Answer: False AACSB: Reflective Thinking AICPA BB: Resource Management AICPA FN: Decision Making LO: 2 Level: Mediumrmal relationships and channels of communication often develop that do notappear on the organization chart.Answer: True AACSB: Reflective Thinking AICPA BB: Resource Management, Critical Thinking AICPA FN: Decision Making LO: 2 Level: Easy10.The controller's position in a retail company is considered a line position rather than astaff position.Answer: False AACSB: Reflective Thinking AICPA BB: Resource Management AICPA FN: Decision Making LO: 2 Level: Medium11.The Chief Financial Officer of an organization should present facts and refrain fromoffering advice and personal opinion.Answer: False AACSB: Reflective Thinking AICPA BB: Resource Management AICPA FN: Decision Making LO: 2 Level: Medium12. A strategy is a game plan that enables a company to attract customers bydistinguishing itself from competitors.Answer: True AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Decision Making LO: 2 Level: Easy13. A strategy requires effective use of Six Sigma improvement techniques.Answer: False AACSB: Reflective Thinking AICPA BB: Critical ThinkingAICPA FN: Decision Making LO: 2 Level: Medium14. A customer value proposition is essentially a reason for customers to choose acompany's products over its competitors' products.Answer: True AACSB: Reflective Thinking AICPA BB: Marketing AICPA FN: Decision Making LO: 2 Level: Easy15.Customer value propositions tend to fall into three broad categories--customerintimacy, operational excellence, and product leadership.Answer: True AACSB: Reflective Thinking AICPA BB: Marketing AICPA FN: Decision Making LO: 2 Level: Easypanies that adopt a customer intimacy strategy are in essence saying to their targetcustomers, “The reason you should choose us is because we understand and respond to your individual needs better than our competitors.”Answer: True AACSB: Reflective Thinking AICPA BB: Marketing AICPA FN: Decision Making LO: 2 Level: Easypanies that choose an operational excellence strategy are in essence saying totheir customers, “Choose us rather than our competitors because we strive for zerodefects.”Answer: False AACSB: Reflective Thinking AICPA BB: Marketing AICPA FN: Decision Making LO: 2 Level: Medium18. A value chain consists of the major business functions that add value to the company'sproducts and services.Answer: True AACSB: Reflective Thinking AICPA BB: Resource Management AICPA FN: Decision Making LO: 2 Level: Easy19.Efforts designed to increase the rate of output should generally be applied to theworkstation that is the constraint.Answer: True AACSB: Reflective Thinking AICPA BB: Resource Management AICPA FN: Decision Making LO: 3 Level: Easy20.The lean thinking model is a five step management approach that organizes resourcessuch as people and machines around the flow of business processes and that pulls units through theses processes in response to customer orders.Answer: True AACSB: Reflective Thinking AICPA BB: Resource Management AICPA FN: Decision Making LO: 3 Level: Easy21.Supply chain management involves acquiring and bringing inside the company all ofthe processes that bring value to customers.Answer: False AACSB: Reflective Thinking AICPA BB: Resource Management AICPA FN: Decision Making LO: 3 Level: Medium22.An enterprise system integrates data across an organization into a single softwaresystem that enables all employees to have simultaneous access to a common set ofdata.Answer: True AACSB: Reflective Thinking AICPA BB: Leveraging Technology AICPA FN: Leveraging Technology LO: 3 Level: Easy23.Corporate governance is the legal framework that allows managers to control anddirect lower-level workers on the job.Answer: False AACSB: Reflective Thinking AICPA BB: Resource Management AICPA FN: Decision Making LO: 3 Level: Medium24.The Sarbanes-Oxley Act of 2002 was intended to protect the interests of those whoinvest in publicly traded companies by improving the reliability and accuracy ofcorporate financial reports and disclosures.Answer: True AACSB: Reflective Thinking AICPA BB: Legal AICPA FN:Measurement LO: 3 Level: Easy25.The Standards of Ethical Conduct promulgated by the Institute of ManagementAccountants specifically states, among other things, that management accountantshave a responsibility to disclose fully all relevant information that could be reasonably be expected to influence an intended user's understanding of the reports, comments and recommendations presented.Answer: True AACSB: Ethics AICPA BB: Critical Thinking AICPA FN: Decision Making LO: 4 Level: EasyMultiple Choice Questions26.Managerial accounting places considerable weight on:A)generally accepted accounting principles.B)the financial history of the entity.C)ensuring that all transactions are properly recorded.D)detailed segment reports about departments, products, and customers.Answer: D AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPAFN: Measurement LO: 1 Level: Easy27.The plans of management are often expressed formally in:A)financial statements.B)performance reports.C)budgets.D)ledgers.Answer: C AACSB: Reflective Thinking AICPA BB: Resource ManagementAICPA FN: Measurement LO: 1 Level: Easy28.The phase of accounting concerned with providing information to managers for use inplanning and controlling operations and in decision making is called:A)throughput time.B)managerial accounting.C)financial accounting.D)controlling.Answer: B AACSB: Reflective Thinking AICPA BB: Resource ManagementAICPA FN: Measurement LO: 1 Level: Easy29. A staff position:A)relates directly to the carrying out of the basic objectives of the organization.B)is supportive in nature, providing service and assistance to other parts of theorganization.C)is superior in authority to a line position.D)none of these.Answer: B AACSB: Reflective Thinking AICPA BB: Resource ManagementAICPA FN: Decision Making LO: 2 Level: Easy30.For a manufacturing company, what type of position (line or staff) is each of thefollowing?Manager of a Data Processing Department Manager of a ProductionDepartmentA)Staff StaffB)Staff LineC)Line StaffD)Line LineAnswer: B AACSB: Reflective Thinking AICPA BB: Resource ManagementAICPA FN: Decision Making LO: 2 Level: Easy31. A _______________ position in an organization is directly related to the achievementof the organization's basic objectives.A)lineB)managementC)staffD)None of the above.Answer: A AACSB: Reflective Thinking AICPA BB: Resource ManagementAICPA FN: Decision Making LO: 2 Level: Easy32.______________ is an example of a line position.A)Controller for a merchandising companyB)Chief financial officer of a merchandising companyC)Store manager for Best BuyD)Human resources manager for a community collegeAnswer: C AACSB: Reflective Thinking AICPA BB: Resource ManagementAICPA FN: Decision Making LO: 2 Level: Easy33.Which of the following is NOT one of the three major customer value propositionsdiscussed in the text?A)customer intimacyB)discount pricingC)operational excellenceD)product leadershipAnswer: B AACSB: Reflective Thinking AICPA BB: Resource ManagementAICPA FN: Decision Making LO: 2 Level: Easy34.Which of the following is NOT one of the five steps in the lean thinking modeldiscussed in the text?A)Continuously pursue perfection in the business process.B)Identify value in specific products/services.C)Implement an enterprise system.D)Create a pull system that responds to customer orders.Answer: C AACSB: Reflective Thinking AICPA BB: Resource ManagementAICPA FN: Decision Making LO: 2 Level: Easy35.One consequence of a change from a push to a properly implemented pull productionsystem can be:A)an increase in work in process inventories.B)an extremely difficult cultural change due to enforced idleness when demand fallsbelow production capacity.C)an increased mismatch between what is produced and what is demanded bycustomers.D)an increase in raw materials inventories.Answer: B AACSB: Analytic AICPA BB: Industry, Resource ManagementAICPA FN: Decision Making LO: 3 Level: Hard36.All of the following are characteristics of a pull production system EXCEPT:A)Inventories are reduced to a minimum by purchasing raw materials and producingunits only as needed to meet consumer demand.B)Raw materials are released to production far in advance of being needed to ensureno interruptions in work flows due to shortages of raw materials.C)Products are completed just in time to be shipped to customers.D)Manufactured parts are completed just in time to be assembled into products.Answer: B AACSB: Reflective Thinking AICPA BB: Resource ManagementAICPA FN: Decision Making LO: 3 Level: Medium37.The five step framework used to guide Six Sigma improvement efforts includes all ofthe following EXCEPT:A)Analyze.B)Control.C)Digitize.D)Measure.Answer: C AACSB: Reflective Thinking AICPA BB: Resource ManagementAICPA FN: Decision Making LO: 3 Level: Medium38.The Sarbanes-Oxley Act of 2002 contains all of the following provisions EXCEPT:A)The audit committee of the board of directors of a company must hire,compensate, and terminate the public accounting firm that audits the company'sfinancial reports.B)Financial statements must be audited once every three years by the GovernmentAccounting Office.C)Both the CEO and CFO must certify in writing that their company's financialstatements and accompanying disclosures fairly represent the results of operations.D) A company's annual report must contain an internal control report.Answer: B AACSB: Reflective Thinking AICPA BB: Legal AICPA FN:Measurement LO: 3 Level: Medium39.The Institute of Management Accountants' Standards of Ethical Conduct contains apolicy regarding confidentiality that requires that management accountants:A)refrain from disclosing confidential information acquired in the course of theirwork except when authorized by management.B)refrain from disclosing confidential information acquired in the course of theirwork in all situations.C)refrain from disclosing confidential information acquired in the course of theirwork except when authorized by management, unless legally obligated to do so.D)refrain from disclosing confidential information acquired in the course of theirwork in all cases since the law requires them to do so.Answer: C AACSB: Ethics AICPA BB: Critical Thinking AICPA FN: Decision Making LO: 4 Level: Hard40.Which of the following is NOT one of the Institute of Management Accountants' fiveStandards of Ethical Conduct?A)CompetenceB)ConfidentialityC)IndependenceD)IntegrityAnswer: C AACSB: Ethics AICPA BB: Critical Thinking AICPA FN: Decision Making LO: 4 Level: Medium。
MANAGERiAL ACCOUNTING CHAPTER Answer
EX 17-4Work in Process 98,60025,400+19,600+1,200+52,400=98,600Factory Overhead 1450Materials 100,050EX 17-6Work in Process 35475Wages Payable 354752100+1750+3200+11200+3650+2240+1460+9875=35475EX 17-11AEstimated annual operating room overhead: $492,000Estimated operating room activity base, number of operating room hours:Hours per day 8Days per week *6Weeks per year (net of maintenance weeks) *50Estimated annual operating room hours 2,400 Predetermined surgical overhead rate: hours $492,000/2400 = $205 per hourB Gretchen Kelton’s proce dure:Number of surgical room hours 6 Predetermined surgical room overhead rate $205Procedure overhead $1230C Actual hours used in January 192 Predetermined surgical room overhead rate $205Surgical room overhead applied, January $39,360Actual surgical room overhead incurred, January $38,500Over applied surgical room overhead (credit) $860EX 17-14ASalsa INC.Income StatementFor the Month Ended May 31, 2010------------------------------------------------------------------------------------------------------------------------------- Revenues............................................................................ $870,000Cost of goods sold............................................................. 485,000Gross profit......................................................................... $ 385,000Selling expenses........................................................... $210,000Administrative expenses................................................... 75,400 285,400Income from operations.................................................... $ 99,600B Materials inventory:Purchased materials............................................... $244000Less: Materials used in production (210000)Materials inventory, May 31.................................... $34000Work in process inventory:Materials used in production.................................. $210,000Direct labor.................................................... 180,000Factory overhead (75% × $180000)......................... 135,000Additions to work in process................................ . 525,000Less: Transferred to finished goods..................... 510,000Work in process inventory, May 31....................... $ 15,000Finished goods inventory:Transferred to finished goods................................ $510,000Less: Cost of goods sold...................................... 485,000Finished goods inventory, may 31......................... $ 25,000PR17-2Aa. Materials.................................................................... 23,400Accounts Payable............................................... 23,400 b. Work in Process. (35115)Factory Overhead (4110)860+3250=4110Materials (20255)2350+2875+1900+6450+4100+2580=20255Wages Payable (18970)2200+2970+1490+5460+4150+2650=18970c. Factory Overhead..................................................... 4,500Accounts Payable............................................... 4,500 d. Factory Overhead..................................................... 1,560Accumulated Depreciation—Machineryand Equipment.................................................... 1,560 e. Work in Process....................................................... 10,000Factory Overhead (200 hours × $50) 10,000 f. Finished Goods........................................................ $24,265Work in Process.................................................. $24,265 Computation of cost of jobs finished:Job Direct Materials Direct Labor Factory Overhead TotalNo. 201 $ 2350 $2200 50*18=900 5450No. 202 2875 2970 50*30=1500 7345No. 203 1900 1490 50*24=1200 4590No. 205 2580 2650 50*33=1650 6880Total $24,265g. Accounts Receivable............................................... 50530 22290+ 28240= 50530Sales.................................................................... 50530 Cost of Goods Sold.. (28240)Finished Goods................................................... 28240 Computation of cost of jobs sold: JobNo. 201........................................... $6540 No. 202........................................... 8820 No. 203........................................... 12,880 Total.. (28240)3 Job Direct Materials Direct Labor Factory Overhead TotalNo. 204 $6450 $5460 $50*75=3750 15660 No. 206 2580 2650 $50*20=1000 6230 Balance of Work inProcess, April 31 $ 21,8904 Schedule of completed jobs:Job Direct Materials Direct Labor Factory Overhead Total Finished Goods, April 31(Job 205) 25802650 50*33=1650 6880。
管理会计英文版答案
CHAPTER 1Managerial Accounting, the Business Organization, andProfessional Ethics1-A1 Solution:Information is often useful for more than one function, so the following classifications for each activity are not definitive but serve as a starting point for discussion:1. Scorekeeping. A depreciation schedule is used in preparing financialstatements to report the results of activities.2. Problem solving. Helps a manager assess the impact of a purchase decision.3. Scorekeeping. Reports on the results of an operation. Could also beattention directing if scrap is an area that might require management attention.4. Attention directing. Focuses attention on areas that need attention.5. Attention directing. Helps managers learn about the information contained ina performance report.6. Scorekeeping. The statement reports what has happened. Could also beattention directing if the report highlights a problem or issue.7. Problem solving. Assuming the cost comparison is to help the managerdecide between two alternatives, this is problem solving.8. Attention directing. Variances point out areas where results differ fromexpectations. Interpreting them directs attention to possible causes of thedifferences.9. Problem solving. Aids a decision about where to make parts.10. Attention directing and problem solving. Budgeting involves makingdecisions about planned activities -- hence, aiding problem solving. Budgets also direct attention to areas of opportunity or concern --hence, directingattention. Reporting against the budget also has a scorekeeping dimension.1-A2 Solution:1. Budgeted Actual DeviationsAmounts Amounts or Variances Room rental $ 140 $ 140 $ 0Food 700 865 165UEntertainment 600 600 0Decorations 220 260 40UTotal $1,660 $1,865 $205U 2. Because of the management by exception rule, room rental and entertainmentrequire no explanation. The actual expenditure for food exceeded the budget by $165. Of this $165, $150 is explained by attendance of 15 persons morethan budgeted (at a budget of $10 per person for food) and $15 is explained by expenditures above $10 per person.Actual expenditures for decorations were $40 more than the budget. Thedecorations committee should be asked for an explanation of the excessexpenditures.1-29 Solution:1. Controller. Financial statements are generally produced by the controller'sdepartment.2. Controller. Advising managers aids operating decisions.3. Controller. Advice on cost analysis aids managers' operating decisions.4. Treasurer. Analysts affect the company's ability to raise capital, which is theresponsibility of the treasurer.5. Treasurer. Financing the business is the responsibility of the treasurer.6. Controller. Tax returns are part of the accounting process overseen by thecontroller.7. Treasurer. Insurance, as with other risk management activities, is usually theresponsibility of the treasurer.8. Treasurer. Allowing credit is a financial decision.CHAPTER 2INTRODUCTION TO COST BEHAVIOR AND COST-VOLUME RELATIONSHIPS2-A3 Solution:The following format is only one of many ways to present a solution. This situation is reallya demonstration of "sensitivity analysis," whereby a basic solution is tested to see how much it is affected by changes in critical factors. Much discussion can ensue, particularly about the finalthree changes.The basic contribution margin per revenue mile is $1.50 - $1.30 = $.20(1) (2) (3) (4) (5)(1)×(2) (3)-(4)Revenue Cont ri buti on To talMi l es Margi n Pe r Cont ri buti on Fi xed NetSol d Revenue Mi l e Margi n Expen se s In co me 1. 800,000$.20$160,000$120,000$ 40,0002. (a) 800,000.35280,000120,000160,000(b) 880,000.20176,000120,00056,000(c) 800,000.0756,000120,000(64,000)(d) 800,000.20160,000132,00028,000(e) 840,000.17142,800120,00022,800(f) 720,000.25180,000120,00060,000(g) 840,000.20168,000132,00036,0002-B2 Solution:1. $2,300 ÷ ($30 - $10) = 115 child-days or 115 × $30 = $3,450 revenue dollars.2. 176 × ($30 - $10) - $2,300 = $3,520 - $2,300 = $1,2203. a. 198 × ($30 - $10) - $2,300 = $3,960 - $2,300 = $1,660 or (22 × $20) + $1,220 = $440 + $1,220 = $1,660 b. 176 × ($30 - $12) - $2,300 = $3,168 - $2,300 = $868 or $1,220 - ($2 × 176) = $868 c. $1,220 - $220 = $1,000d. [(9.5 × 22) × ($30 - $10)] - ($2,300 + $300) = $4,180 - $2,600 = $1,580e.[(7 × 22) × ($33 - $10)] - $2,300 = $3,542 - $2,300 = $1,2422-B 3 So lu tio n :1.$16)($20$5,000- = $4$5,000= 1,250 units2. Contribution margin ratio:($40,000)$30,000)($40,000- = 25%$8,000 ÷ 25% = $32,0003.$14)($30$7,000)($33,000-+ = $16$40,000 = 2,500 units4. ($50,000 - $20,000)(110%) = $33,000 contribution margin;$33,000 - $20,000 = $13,0005. New contribution margin:$40 - ($30 - 20% of $30)= $40 - ($30 - $6) = $16;New fixed expenses: $80,000 × 110% = $88,000;$16$20,000)($88,000+ = $16$108,000 = 6,750 units2-27 Soluti on:2-38Sol uti on:1. 100% Full 50% FullRoom revenue @ $50 $1,825,000 a$ 912,500 bVariable costs @ $10 365,000 182,500Contribution margin 1,460,000 730,000Fixed costs 1,200,000 1,200,000Net income (loss) $ 260,000 $ (470,000)a 100 × 365 = 36,500 rooms per year36,500 × $50 = $1,825,000b50% of $1,825,000 = $912,5002. Let N = number of rooms$50N -$10N - $1,200,000 = 0N = $1,200,000 ÷ $40 = 30,000 rooms Percentage occupancy = 30,000 ÷ 36,500 = 82.2%2-40 Solution:1. Let R = pints of raspberries and 2R = pints of strawberriessales - variable expenses - fixed expenses = zero net income$1.10(2R) + $1.45(R) - $.75(2R) - $.95(R) - $15,600 = 0$2.20R + $1.45R - $1.50R - $.95R -$15,600 = 0$1.2R - $15,600 = 0 R = 13,000 pints of raspberries2R = 26,000 pints of strawberries2. Let S = pints of strawberries($1.10 - $.75) × S - $15,600 = 0.35S - $15,600 = 0S = 44,571 pints of strawberries3. Let R = pints of raspberries($1.45 - $.95) × R - $15,600 = 0$.50R - $15,600 = 0R = 31,200 pints of raspberries2-42 Solution:Several variations of the following general approach are possible:Sales - Variable expenses - Fixed expenses = Target after-tax net income 1 - tax rateS - .75S - $440,000 =.3)-(1$84,000.25S = $440,000 + $120,000 3-A1 Solution:Some of these answers are controversial, and reasonable cases can be built for alternative classifications. Class discussion of these answers should lead to worthwhile disagreements about anticipated cost behavior with regard to alternative cost drivers.1. (b) Discretionary fixed cost.2. (e) Step cost.3. (a) Purely variable cost with respect to revenue.4. (a) Purely variable cost with respect to miles flown.5. (d) Mixed cost with respect to miles driven.6. (c) Committed fixed cost.7. (b) Discretionary fixed cost.8. (c) Committed fixed cost.9. (a) Purely variable cost with respect to cases of Coca-Cola.10. (b) Discretionary fixed cost.11. (b) Discretionary fixed cost.3-A2 Solution:1. Support costs based on 60% of the cost of materials:Sign A Sign B Direct materials cost $400 $200 Support cost (60% of m ater ial s c o st) $240 $120 Support costs based on $50 per power tool operation:Sign A Sign B Power tool operations 3 6 Support cost $150 $300 2. If the activity analysis is reliable, by using the current method, Evergreen Signs is predicting too much cost for signs that use few power tool operations and is predicting too little cost for signs that use many power tool operations. As a result the company could be losing jobs that require few power tool operations because its bids are too high -- it could afford to bid less on these jobs. Conversely, the company could be getting too many jobs that require many power tool operations, because its bids are too low -- given what the "true" costs will be, the company cannot afford these jobs at those prices. Either way, the sign business could be more profitable if the owner better understood and used activity analysis. Evergreen Signs would be advised to adopt the activity-analysis recommendation, but also to closely monitor costs to see if the activity-analysis predictions of support costs are accurate.3-B2 Solution:Board Z15 Board Q52Mark-up method:Material cost $40 $60Support costs (100%) $40 $60Activity analysis method:Manual operations 15 7Support costs (@$4) $60 $28The support costs are different because different cost behavior is assumed by the two methods. If the activity analyses are reliable, then boards with few manual operations are overcosted with the markup method, and boards with many manual operatio ns are undercosted with the markup method.3-B3 Solution:Variable cost per machine hour =Change in Repair Cost Change in Machine Hours= (P260,000,000 - P200,000,000) (12,000 - 8,000)= P15,000 per machine hourFixed cost per month = total cost - variable cost= P260,000,000 - P15,000 x 12,000= P260,000,000 - P180,000,000= P 80,000,000 per monthor = P200,000,000 - P15,000 x 8,000= P200,000,000 - P120,000,000= P 80,000,000 per month3-32 Solution:1. Machining labor: G, number of units completed or labor hours2. Raw material: B, units produced; could also be D if the company’s purchases do not affect the price of the raw material.3. Annual wage: C or E (depending on work levels), labor hours4. Water bill: H, gallons used5. Quantity discounts: A, amount purchased6. Depreciation: E, capacity7. Sheet steel: D, number of implements of various types8. Salaries: F, number of solicitors9. Natural gas bill: C, energy usage3-34 Solution:1. 2001 2002Sales revenues $57 $116Less: Operating income (loss) (19) 18Operating expenses $76 $ 982. Change in operating expenses ÷ Change in revenues = Variable cost percentage($98 - $76) ÷ ($116 - $57) = $22 ÷ $59 = .37 or 37%Fixed cost = Total cost – Variable cost= $76 - .37 × $57= $55or= $98 - .37 × $116= $55Cost function = $55 + .37 × Sales revenue3. Because fixed costs to not change, the entire additional total contributionmargin is added to operating income. The $57 sales revenue in 2001generated a total contribution margin of $57 × (1 - .37) = $36, which was $19 short of covering the $55 of fixed cost. But the additional $59 of salesrevenue in 2002 generated a total contribution margin of $59 × (1 - .37) = $37 that could go directly to operating income because there was no increase infixed costs. It wiped out the $19 operating loss and left $18 of operatingincome.3-35 Solution:1. Fuel costs: $.40 × 16,000 miles per month = $6,400 per month.2. Equipment rental: $5,000 × 7 × 3 = $105,000 for seven pieces of equipment for three months3. Ambulance and EMT cost: $1,200 × (2,400/200) = $1,200 × 12 = $14,4004. Purchasing: $7,500 + $5 × 4,000 = $27,500 for the month.3-36 Solution:There may be some disagreement about these classifications, but reasons for alternative classifications should be explored.Cost Discretionary Committed Advertising $22,000Depreciation $ 47,000 Company health insurance 21,000 Management salaries 85,000 Payment of long-term debt 50,000 Property tax 32,000 Grounds maintenance 9,000Office remodeling 21,000Research and development 46,000Totals $98,000 $235,000。
Managerial Accounting Study Guide
Managerial Accounting Study GuideDisclaimer: This guide does not include all the material that will be covered on the exam. However, the listed items will direct your attention to the main ideas that will be the source for multiple-choice questions. Some of the multiple choice questions may take the form of small calculation problems.Chapter 1:1. Managerial accounting reports provide decision-making information for internal users. The reports need not follow GAAP, and the reports often focus on the future.2. The controller is the top management accountant in a company.3. Under Total Quality Management, a business strives to improve performance in conjunction with goal setting.Chapter 2:1. Manufacturing or product costs have three components: direct materials, direct labor, and manufacturing overhead. Know what it included in each component.2. Direct costs are costs that can be traced conveniently and economically to a cost object. Indirect costs are not traced directly to a certain cost object.3. Selling and general/administration costs are nonmanufacturing or period costs that are reported on the Income Statement. These costs are used to generate revenues during the current period.4. A manufacturer has three inventory accounts: Raw Materials, Work-in-Process, and Finished Goods. These inventory accounts are assets that are reported on the Balance Sheet.5. A cost object is any product, service, or department which receives allocated costs to determine its cost.6. Sunk costs are past costs that are not relevant for present decision-making purposes.7. The cost of goods manufacturing is the cost of the items that are completed and transferred to Finished Goods during a period.8. Review the cost of goods manufactured formula on page 65 and the cost of goods formula on page 63.Chapter 3:1. There are two basic product-costing systems: job order costing and process costing.2. A job order costing system is used by a manufacturer who produces unique or special-order products.3. Process costing system is used by a manufacturer in a continuous flow or assembly line environment.4. Product costs flow from Raw Materials to Work-in-Process to Finished Goods to Cost of Goods Sold.5. Direct material costs, direct labor costs, and manufacturing overhead costs are added toa Work-in-Process account during production.6. A job order cost card is used in a job order costing system to record the direct materials, direct labor, and overhead costs associated with a specific job. The product unit cost is the total job cost divided by the number of units produced.7. Overhead is allocated or assigned or applied to jobs using an estimated overhead allocation rate.8. Most companies prepare an estimated allocation rate. This estimated overhead allocation rate is called the predetermined overhead rate. It is usually calculated for a year’s time period.9. Predetermined Overhead Rate = Estimated Factory Overhead/Estimated Allocation Base.10. The selected allocation base should be associated with the overhead costs. Common allocation bases are direct labor hours, direct labor costs, and machine hours.11. Usually, the amount of applied overhead will not equal the actual overhead at the end of the year since the applied overhead is based on estimates.12. If the applied overhead is greater than the actual overhead, the difference is called overapplied overhead. If the actual overhead is larger, the difference is called underapplied overhead.18. A just-in-time (JIT) manufacturing system works to reduce the inventory levels of a manufacturer.Chapter 4:1. Cost allocation is the process of assigning indirect costs.2. A cost pool is the total of costs that is allocated by an allocation base (activity driver). The individual costs in a cost pool should be similar or homogeneous.3. An allocation rate is calculated by dividing the budgeted cost pool by the estimated activity driver rate (allocation base). The allocated cost is determined by multiplying the actual usage of the allocation base by the allocation rate.4. Traditional cost allocation systems have used one or two cost pools that have used production volume allocation bases.5. Since the traditional cost allocation systems have used few pools and production bases, product prices are often not accurate.6. Activity-based costing uses many cost pools with different allocation bases. The cost pool rate is the pool costs divided by the cost driver (activity or allocation base).7. When an activity-based costing system is implemented, the accuracy of costing is improved. Usually, the costs of high volume products decrease while the costs of low volume products increase.Chapter 5:1. A process costing system does not use job cost cards.2. In a process cost system, the product costs flow through multiple departments3. Direct materials, direct labor, and overhead costs for each department are accumulated in that department's Work-in-Process account.4. Costs flow from one department’s Work-in-Process account to the next department’s Work-in-Process account. These costs are called transferred-in costs.5. Conversion costs include direct labor and manufacturing overhead costs.6. A process costing system uses equivalent units to calculate an average unit cost.7. Equivalent units measure production in terms of whole units. Know how to calculate equivalent units.8. A production cost report provides information summarizing the units for which departments are accountable and the costs charged to the departments. In particular, it reconciles the units and the costs and calculates cost per equivalent unit.Chapter 6:1. Variable costs are costs that change in total with the level of business activity. The variable cost per unit remains constant.2. Fixed costs are costs that do not change in total with the level of business activity. However, the fixed cost per unit varies inversely with changes in the level of business activity.3. Mixed costs contain both fixed and variable cost components.4. The high-low method can be used to estimate the variable and fixed costs in a mixed cost.5. Full costing (absorption costing) is required by GAAP. Direct labor, direct materials, variable manufacturing overhead, and fixed manufacturing overhead are included in the cost of inventory.6. Variable costing is used internally for decision-making purposes. Direct labor, direct materials, and variable manufacturing overhead are included in the inventory costs.7. The treatment of fixed manufacturing overhead is the only difference between full and variable costing. Fixed manufacturing overhead is an expense on the income statement in the period incurred under variable costing.8. When the units produced equals the units sold, the net income under full costing equals the net income under variable costing.9. When the units produced are greater than the units sold, the net income under full costing is greater than the net income under variable costing.10. When the units produced are less than the units sold, the net income under full costing is less than the net income under variable costing.11. A variable costing income statement reports the contribution margin. A full costing income statement reports the gross margin.12. The full costing method can be used by managers to manipulate performance results. Chapter 7:1. The break-even point is the number of units that must be sold or amount of sales revenue that must generated to have no profit or no loss. In other words, the net income is zero.2. The profit equation is: Profit = Sales less Total Variable Costs less Total Fixed Costs.3. The margin of safety is the difference between the expected sales and the break-even sales.4. The contribution margin per unit is equal to the sales price per unit less the variable costs per unit.5. The breakeven in units is equal to the Total Fixed Costs divided by the contribution margin in units. Know how to calculate the breakeven point.6. The required number of units that must be sold in order to achieve a specified profit level (operating income) is equal to the sum of the Total Fixed Costs plus the Operating Income (Profit Level) divided by the contribution margin in units. Know how to calculate the sales in units to achieve a desired profit level.7. An increase in fixed costs or variable costs will increase the break-even point. An increase in sales price will decrease the break-even point.8. Operating leverage refers to the cost structure of the business. A business with high percentage of fixed costs is considered to have a high operating leverage.Chapter 8:1. Decision making is based on incremental analysis which investigates incremental revenues and incremental costs. Incremental costs are often called differential costs or relevant costs.2. Incremental analysis investigates the differences in revenues and costs for different decision alternatives.3. Sunk costs are not relevant in the decision-making process. Avoidable costs are relevant costs in the decision-making process.4. Opportunity costs are the benefits that are lost when one alternative is chosen over another alternative.5. Common costs are costs that are not directly traceable to a product line or department. Instead, these costs are allocated to the individual product lines or departments. If one product line or department is dropped, the common costs are allocated to the remaining product lines or departments.6. A product line should be dropped only when the total net income of a business will increase if the product line is eliminated. Usually the product line should be retained if contribution margin is greater than the avoidable costs (cost savings).7. Products should be processed further when the incremental revenue from the additional processing is greater than the additional costs of the additional processing. The joint costs are sunk costs in an additional processing decision.8. When there is a resource constraint, a business should strive for the highest contribution margin per unit of the constraint.9. A supplier or vendor is paid for the cost of production plus a fixed amount (or percentage of cost) under a cost-plus contract.Chapter 9:1. A budget is a formal document that outlines a financial plan for achieving goals. A business is not required to prepare budgets.2. Budgets are used to increase communication and coordination and to evaluate performance.3. When budgets are prepared using zero-based budgeting, all budgeted amounts are justified for each budget period.4. The master budget is a collection budgets such the sales budget, the production budget, and the direct materials budget.5. The sales or revenue budget is the first budget prepared in the master budget sequence.6. For a manufacturer, the production budget is the second budget prepared. Productionin units is equal to the budgeted sales in units plus the desired ending inventory in units less the beginning inventory in units. Know how to calculate a production budget.7. After the production budget is prepared, direct materials and direct labor budgets are prepared. Know how to calculate direct materials purchases and direct labor requirements.8. Cash collections (receipts) and cash payments (disbursements) budgets provide information for determining the cash balance, the amount of excess cash for investment, and the amount of cash available for capital acquisitions. Know how to calculate cash receipts from sales and cash disbursements for purchases.9. A budget variance is the difference between the budgeted and actual amount.Chapter 10:1. A decentralized business gives decision-making authority to the mangers of its subunits.2. Two advantages of decentralization are better information at the manager level and quicker response time at the manager level. Additionally, decentralization motivates and trains managers.3. Two disadvantages of decentralization are a duplication of activities at the different subunits and a lack of goal congruence.4. Under responsibility accounting, managers are responsible for the revenues and costs that are under their control. A manager should be accountable for only controllable costs.5. The subunits of a business often are referred to as responsibility centers. Three common responsibility centers are cost centers, profit centers, and investment centers.6. A manager of a cost center is responsible for controlling costs in that subunit. A manager of a profit center is responsible for generating revenues and controlling costs. A manager of an investment center is responsible for investing assets, generating revenues, and controlling costs.7. The return on investment (ROI) is used to evaluate the performance of investment centers. ROI is a better than income as a performance measure for an investment center because it compares the amount of income to the amount of investment.8. However, ROI evaluation can lead to underinvestment when managers reject projects that have returns greater than the required return but that will lower the ROI. Evaluation in terms of profit can lead to overinvestment.9. ROI is income divided by total assets (invested capital). Know how to calculate ROI.10. ROI can be separated into a sales margin component and capital (investment) turnover component.11. Sales margin is income divided by sales. Know how to calculate profit margin.12. Capital (Investment) turnover is sales divided by total assets (invested capital). Know how to calculate the capital turnover.13. Residual income is the net operating income less the required profit.Know how to calculate residual income.14. The balanced scorecard is another method to evaluate performance. The balanced scorecard considers financial, customer, internal process and growth measures.15. Flexible budgets can be adjusted for various activity or production levels16. Managers use the principle of management by exception to investigate the difference between projected results and actual results. Under management by exception, minor differences are not investigated.Chapter 11:1. Standards are costs that a business sets as goals. Standards can be set for direct materials, direct labor, and manufacturing overhead.2. Attainable standards are goals that can be reached with reasonable effort. Attainable standards are not set on perfect performance.3. A budgeted cost can be calculated by multiplying the standard cost by the number of budgeted units.4. Generally, manufacturers set standards for price and quantity for direct materials andfor rate and efficiency for direct labor.5. Cost variances are the difference between the standard cost and the actual cost.6. If the actual cost is greater than the standard cost, the variance is unfavorable. If the actual cost is less than the standard cost, the variance is favorable.7. A volume variance results from an actual production that is different from the estimated production level.8. Different departments have responsibility for the different variances. For example, the Purchasing Department usually would be responsible for the direct materials price variance.Chapter 12:1. Capital expenditures decisions also are called capital budgeting decisions or capital investment decisions. These decisions involve the acquisition of long-term assets.2. Both the net present value method and the internal rate of return method use the time value of money in the evaluation of capital investments.3. The net present value method is the sum of the present values of the cash inflows and cash outflows from an investment.4. A positive net present value indicates that the rate of return is greater than the required rate of required.5. The internal rate of return is the rate of return that results in a net present value of zero.6. If the internal rate of return is greater than the required rate of return (the cost of capital), the investment should be accepted.7. The payback period is the length of time needed to recover the cost of an investment. Know how to calculate the payback period8. The payback method does not use the time value of money and does not consider cash flows after the payback date.Chapter 14:1. Financial statement analysis provides information for decision-making. The information can be used to control operations, to assess the appearance of the company toinvestors or creditors, and to assess the financial condition of vendors, customers, and business partners.2. The Balance Sheet reports assets, liabilities, and owners’ equity. The Income Statement reports revenues and expenses. The Statement of Cash Flows reports cash inflows and outflows from operating, investing, and financing activities.3. Horizontal analysis computes the change in each financial statement item both indollar amount and percentage change. Using comparative financial statements, the amount of change is divided by the base year amount to determine the percentage change.4. Vertical Analysis highlights the relationship between the items on a financial statement on a percentage basis. On the balance sheet, total assets (or total stockholders' equity and liabilities) are set at 100%. Net sales or net revenue is set at 100% on the income statement. All items on a statement are divided by the 100% standard for that statement. Thus, a common-size statement is produced.5. Earnings per share is a profitability ratio. Earnings per share is calculated by dividing the net income less preferred dividends by the number of shares of outstanding common Stock6. Another profitability ratio, the price-earnings ratio, is the multiple of earnings that an investor pays for the stock. Earnings per share is calculated by dividing the market price per share divided by the earnings per share.7. Gross profit (gross margin) is equal to net sales less the cost of goods sold. The gross profit (gross margin) percentage is equal to gross profit (gross margin) divided by net sales.8. Turnover ratios are used to evaluate how efficiently assets are used. A higher number indicates a faster turnover and more efficiency.9. The accounts receivable turnover is determined by dividing net credit sales by average accounts receivable and the inventory turnover is determined by dividing cost of goods sold by average inventory.10. The current ratio, the quick ratio, and the debt-to-equity ratio are all debt related ratios that indicate the financing structure of the business and its ability to pays its debts. 11. The current ratio is equal to current assets divided by current liabilities.。
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EX 17-4Work in Process 98,60025,400+19,600+1,200+52,400=98,600Factory Overhead 1450Materials 100,050EX 17-6Work in Process 35475Wages Payable 354752100+1750+3200+11200+3650+2240+1460+9875=35475EX 17-11AEstimated annual operating room overhead: $492,000Estimated operating room activity base, number of operating room hours:Hours per day 8Days per week *6Weeks per year (net of maintenance weeks) *50Estimated annual operating room hours 2,400 Predetermined surgical overhead rate: hours $492,000/2400 = $205 per hourB Gretchen Kelton’s proce dure:Number of surgical room hours 6 Predetermined surgical room overhead rate $205Procedure overhead $1230C Actual hours used in January 192 Predetermined surgical room overhead rate $205Surgical room overhead applied, January $39,360Actual surgical room overhead incurred, January $38,500Over applied surgical room overhead (credit) $860EX 17-14ASalsa INC.Income StatementFor the Month Ended May 31, 2010------------------------------------------------------------------------------------------------------------------------------- Revenues............................................................................ $870,000Cost of goods sold............................................................. 485,000Gross profit......................................................................... $ 385,000Selling expenses........................................................... $210,000Administrative expenses................................................... 75,400 285,400Income from operations.................................................... $ 99,600B Materials inventory:Purchased materials............................................... $244000Less: Materials used in production (210000)Materials inventory, May 31.................................... $34000Work in process inventory:Materials used in production.................................. $210,000Direct labor.................................................... 180,000Factory overhead (75% × $180000)......................... 135,000Additions to work in process................................ . 525,000Less: Transferred to finished goods..................... 510,000Work in process inventory, May 31....................... $ 15,000Finished goods inventory:Transferred to finished goods................................ $510,000Less: Cost of goods sold...................................... 485,000Finished goods inventory, may 31......................... $ 25,000PR17-2Aa. Materials.................................................................... 23,400Accounts Payable............................................... 23,400 b. Work in Process. (35115)Factory Overhead (4110)860+3250=4110Materials (20255)2350+2875+1900+6450+4100+2580=20255Wages Payable (18970)2200+2970+1490+5460+4150+2650=18970c. Factory Overhead..................................................... 4,500Accounts Payable............................................... 4,500 d. Factory Overhead..................................................... 1,560Accumulated Depreciation—Machineryand Equipment.................................................... 1,560 e. Work in Process....................................................... 10,000Factory Overhead (200 hours × $50) 10,000 f. Finished Goods........................................................ $24,265Work in Process.................................................. $24,265 Computation of cost of jobs finished:Job Direct Materials Direct Labor Factory Overhead TotalNo. 201 $ 2350 $2200 50*18=900 5450No. 202 2875 2970 50*30=1500 7345No. 203 1900 1490 50*24=1200 4590No. 205 2580 2650 50*33=1650 6880Total $24,265g. Accounts Receivable............................................... 50530 22290+ 28240= 50530Sales.................................................................... 50530 Cost of Goods Sold.. (28240)Finished Goods................................................... 28240 Computation of cost of jobs sold: JobNo. 201........................................... $6540 No. 202........................................... 8820 No. 203........................................... 12,880 Total.. (28240)3 Job Direct Materials Direct Labor Factory Overhead TotalNo. 204 $6450 $5460 $50*75=3750 15660 No. 206 2580 2650 $50*20=1000 6230 Balance of Work inProcess, April 31 $ 21,8904 Schedule of completed jobs:Job Direct Materials Direct Labor Factory Overhead Total Finished Goods, April 31(Job 205) 25802650 50*33=1650 6880。