Module 1 Critical Thinking Option #1 Part B - FINAL

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1 To decide on an appropriate selling price for a special-order product” is an example of which cost allocation. Select one: a.To motivate managers and other employees b. To provide information for economic decisions c. To justify costs or compute reimbursement amounts   d. To measure income and assets for reports to external parties

Value chain classifications Match each of the following cost items with the value chain business function where you would expect the cost to be incurred: Business Function Cost Item Answera. Research and development 1. Purchase of raw materialsb. Design 2. Advertisingc. Production 3. Salary of research scientistsd. Marketing 4. Shipping expensese. Distribution 5. Reengineering of product assembly processf. Customer service 6. Replacement parts for warranty repairs7. Manufacturing supplies8. Sales commissions9. Purchase of CAD (computer-aideddesign) software10. Salary of website designer

Q1. An activity that provides financial and economic information to managers and other internal decision- makers of an organization is called Answer: A. Financial Accounting B. Managerial Accounting C. Auditing D. Cost Accounting Q2. The three basic elements of a cost of a manufactured product are Answer: A. Direct material, Work-in –Process inventory, Finished goods inventory B. Indirect material, indirect labor, Manufacturing overhead C. Direct Material, Direct Labor, Manufacturing overhead D. Raw material inventory, Work-in-Process inventory, Finished goods inventory Q3. The source document for recording the transfer of raw materials to work in process account. Answer: A. Predetermined MOH rate B. Time ticket C. Material requisition slip D. Job cost sheet

Case Study: Cost Accounting for Operational Efficiency and Decision-Making Introduction: Cost accounting plays a pivotal role in helping organizations manage and optimize their financial resources. This case study delves into the realm of cost accounting, examining its significance in operational efficiency and decision-making within a business context. Cost Classification and Allocation: In cost accounting, costs are classified into various categories such as direct costs, indirect costs, variable costs, and fixed costs. Understanding these classifications enables businesses to allocate costs accurately to products, services, or departments. For instance, direct costs like raw materials can be directly traced to a specific product, while indirect costs like overhead may be allocated based on a predetermined formula. Job Order Costing in Manufacturing: For manufacturing businesses, job order costing is a common approach in cost accounting. This method involves assigning costs to…

Manufacturing firms must calculate their cost of goods sold based on how much they manufacture and how much it costs them to manufacture those goods. This requires manufacturing firms to prepare an additional statement before they can prepare their income statement. This additional statement is the Cost of Goods Manufactured statement. Once the cost of goods manufactured is calculated, the cost is then incorporated into the manufacturing firm’s income statement to calculate its cost of goods sold. One thing manufacturing firms must consider in their cost of goods manufactured is that, at any given time, they have products at varying levels of production: some are finished and others are still process. The cost of goods manufactured statement measures the cost of the goods actually finished during the period, whether or not they were started during that period. True / False Even though the income statements for the merchandising firm and the manufacturing firm appear very similar at…

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Value chain classifications Match each of the following cost items with the value chain business function where you would expect the cost to be incurred: Cost Item Answer Business Function a. Research and development b. Design c. Production d. Marketing e. Distribution t Customer service 1. Labor time to repair products under warranty 2. TV commercial spots 3. Labor costs of filling customer orders 4. Testing of competitor's product 5. Direct manufacturing labor costs 6. Development of order tracking system for the Internet 7. Printing cost of new product brochures 8. Hours spent designing childproof bottles 9. Training costs for representatives to staff the customer call center 10. Installation of robotics equipment in manufacturing plant

Explain the meaning of the following terms in the schedule of cost of goods manufactured: (i) Total manufacturing costs (ii) Manufacturing costs to account for (iii)Cost of goods manufactured #############correct answers from experts please . Answer all three parts

Value chain classifications Match each of the following cost items with the value chain business function where you would expect the cost to be incurred: Business Function Cost Item Answera. Research and development 1. Labor time to repair products under warrantyb. Design 2. TV commercial spotsc. Production 3. Labor costs of fi lling customer ordersd. Marketing 4. Testing of competitor’s producte. Distribution 5. Direct manufacturing labor costsf. Customer service 6. Development of order tracking system forthe Internet7. Printing cost of new product brochures8. Hours spent designing childproof bottles9. Training costs for representatives to staff the customer call center10. Installation of robotics equipment in manufacturing plant

Can you please help me solve all 5 parts of this question using the following using the images provided:  1. With respect to cost classifications for preparing financial statements: a. What is the total product cost? b. What is the total period cost?  2. With respect to cost classifications for assigning costs to cost objects: a. What is total direct manufacturing cost?  b. What is the total indirect manufacturing cost?  3. With respect to cost classifications for manufacturers: a. What is the total manufacturing cost?  b. What is the total nonmanufacturing cost?  c. What is the total conversion cost and prime cost?  4. With respect to cost classifications for predicting cost behavior: a. What is the total variable manufacturing cost?  b. What is the total fixed cost for the company as a whole?  c. What is the variable cost per unit produced and sold?  5. With respect to cost classifications for decision making: a. If Dozier had produced 1,001 units instead of 1,000 units, how much…

Use the high-low method to develop a cost estimating equation for total manufacturing costs driven by total tables produced.The answer is Y=$2,556 + $727 x c. Excluding any unusual observations, use the high-low method to develop a cost-estimating equation for total manufacturing costs Comment on the results comparing them with (a).  Using the image, What is the Cost estimating equation?

In this assignment, you are asked to consider impacts of COVID-19 by looking-up a company/firm of your choosing and thinking through the following questions to include in your post to this discussion topic: 1) Name of the company/firm. Identify as the title of your post (click "reply" to this discussion). 2) Identify the industry or company type (i.e. manufacturing; merchandising; service). 3) Which costs do you think would be impacted and why? Be specific with your examples (i.e. variable, fixed, materials, labor, overhead, non manufacturing…). 4) What kind of variances would you expect to see when compared to the budgets created prior to COVID-19 (favorable or unfavorable) and why? Be specific with your examples. Keep in mind not all industries were seeing declines in net operating income due to Covid-19. Some industries turned to increased hiring and showed increases in revenues (for instance, grocery stores).

Question 1. ncome from operations is one of the most important items reported by a company. Depending on the decision-making needs of management, income from operations can be determined using absorption costing or variable costing. Choose whether the following characteristics are most often associated with absorption costing or variable costing.   Absorption Costing Variable Costing Required under generally accepted accounting principles (GAAP)       Often used for internal use in decision making       Cost of goods manufactured includes only variable manufacturing costs       Used in reports prepared for external users       Fixed factory overhead costs are not part of cost of goods manufactured       Both fixed and variable factory costs are included in cost of goods sold and inventory         Question 2. Review the income statements on the Absorption Statement and Variable Statement panels, then complete the…

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Bledsoe Corporation has provided the following data for the month of November: Ending Beginning $ 25,200 $ 17,200 $ 48,200 Inventories: Raw materials Work in process Finished Goods Additional information: Raw materials purchases Direct labor cost $ 72,200 $ 92,200 Manufacturing overhead cost incurred $ 42,220 Indirect materials included in manufacturing overhead cost incurred $ 4,020 Manufacturing overhead cost applied to Work in Process $ 41,200 Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold. Required: Prepare a Schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold. Complete this question by entering your answers in the table below. Schedule of Schedule of COGM COGS $ 21,200 $ 10,200 $ 56,200 Prepare a Schedule of Cost of Goods Manufactured. Direct materials BLEDSOE CORPORATION Schedule of Cost of Goods Manufactured

1. What is the primary trade-off an accountant must consider when deciding whether to identify cost drivers? Is the cost/benefit of the process reasonable for more accurate behavior obtained. Will the cost driver identification provide different costs for different purposes Will material related drivers be more accurate than labor-related drivers Will the cost relationship be to complex to  understand There is non trade-off to consider using cost drivers 2. An important first step in studying managerial accounting is to create a framework for thinking about the various types of cost incurred by organizations and how those costs are actively managed. True or False

What are the most important factors tor instolling a cost accounting system? O The Industry in which business is operating. O Obtaining the complete knowiedge of the production process. O The lowest installation price is a good reoson tor installing the cost accounting system. O Inatypical business organisation accounts department needs to satisty bank requirements while installing o cost system. O Cost apportionment can be done on the basis that can be easily changed to save the cost. O Costing system should fultil the requirement of difforent level of manogement. O Nature of product determines the type of costing system to be implemented. O The costing system should repeat the same system as the mojor competitor has.

Describe the flow of costs through a product costing system for inventory valuation purposes (i.e., excluding non-manufacturing overhead costs). Address the following in your answer:Classification of product costs as an asset and then as an expense.      o Make reference to the definition of an asset in the 2018 New Zealand Conceptual Framework      oDescribe assets and expenses from a management accounting perspective.

Q6 b. You are working with a firm of Cost Consultants. A client having a large manufacturing FMCG co. comes to you for advice for installing a cost accounting system in his organization. What are the basic considerations you would keep in mind in designing a cost accounting and management accounting system for your client? What are the practical difficulties you perceive on its implementation by your client and how do you propose to overcome the same?