i). How cost accounting is useful where financial accounting could not be answered. Give any example to support your answer.
Q: Explain what is meant by: The benefits of accounting information must exceed the costs.
A:
Q: Give three examples of opportunity costs that typically are not recorded in accounting systems,…
A:
Q: Traditional accounting systems record only actual transac-tions. As a result, how can opportunity…
A: Financial Accounting: It refers to the process of recording the financial transactions of the…
Q: Explain the political cost hypothesis of Positive Accounting Theory.
A: Positive accounting: It is referred to as the branch of accounting research that helps to explain…
Q: Why is the Modified Accelerated Cost Recovery System not generally accepted for financial accounting…
A:
Q: Which of the following is NOT one of the definitions of "Cost" concept? Select one: a. Cost means…
A: Cost is very broad term used in accounting. It denotes amount and level of expenses that can be…
Q: True or False Cost and managerial accounting are not the same things
A: Cost accounting is the process of accounting and controlling the cost of a product,operation or…
Q: Explain the impact of using indirect material on accounting equation.
A: Indirect materials are materials used in the production process, but which cannot be linked to a…
Q: “Management accounting deals only with costs.” Do you agree? Explain?
A: Management accounting is wide field which encompasses cost computation, pricing analysis,process…
Q: Explain the costbenefits principles and how this affects the reliability and relevance of the…
A: Relevance refers to the concept or an idea that whatever information that is provided by the…
Q: -Cost Accounting is not considered complementary to Financial Accounting? True Flas
A: Cost Accounting is an indirect part of financial Accounting and it is a direct part of management…
Q: Question 1: Determine whether each of the following statement is true or false, and correct the…
A: The income statement is prepared to find the net income or losses incurred during the period.
Q: Cost is a pervasive constraint on the information that can be provided by financial reporting.…
A: The main purpose of financial reporting is to provide the information in faithful and useful manner…
Q: The Multi-Dimensional Statements Approach of Social Accounting was proposed to extend financial…
A: Following is the answer to the given question
Q: Which of the following statement is correct for relevant costs? a. It is avoidable, future and…
A: Relevant cost are those costs which are relevant for decision making. A cost is judged to be…
Q: The origin of management accounting is due to limitations of Financial accounting and cost…
A: Management accounting means an field of accounting where accounting information is used in such a…
Q: Which of the following is the disadvantage of using FIFO method. a. The assumed flow of costs…
A: Lets understand the FIFO method and their advantages and disadvantages. As the name suggest, First…
Q: How do cost management and financial accounting differ?
A: The accounting is a process to identify, classify and record the transactions of the business and…
Q: origin of management accounting is due to limitations of Financial accounting and cost accounting
A: Management accounting is the collection of data and generation of information from it in the forms…
Q: Cost is a pervasive constraint on the information that can be provided by financial reporting.…
A: Financial statements (or financial reports) are official records of a company's, person's, or other…
Q: How cost accounting is useful where financial accounting could not be answered. Give any exampleto…
A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…
Q: What is a mixed attribute measurement model? Why is it used in accounting?
A: (1) It is a measurement basis that is used to measure the value of assets and liabilities under "US…
Q: e joint cost allocated to Reta
A: Joint costs are the combined costs incurred in the production of two or more products produced…
Q: In world information and transaction costs, financial intermediaries would not exist." Is the true,…
A: Financial intermediaries are the people who act as a middlemen and help to make a financial…
Q: Which of the following requires accounting information to be complete, neutral, and free from…
A: Accounting principles: These are the assumption, concepts, and guidelines necessary to prepare and…
Q: Why do you think " Gross versus Net" became such a big issue in accounting?
A: Gross includes all the deduction such as return, allowance, depreciation, and others while the net…
Q: Which of the following costs are irrelevant to business decisions? Avoidable costs Costs that…
A: Sunk costs are irrelevant to business decisions.
Q: Explain what cost behavious is and why it is important for business?
A: Cost Behavior is the change in the behavior of a cost (or costs) due to a change in business…
Q: Are computerized accounting systems different than manual accounting systems? How are these…
A: Computerized accounting system refers to the the use of computer software/system for recording the…
Q: When preparing financial statement, accountants or auditors will determine an amount which is not…
A: It is practically not possible for an auditor to audit all the transactions in an accounting system.…
Q: rial accounting and financial accou
A: Managerial accounting is the accounting used by managers and other internal users to make corporate…
Q: Which of the following principles of accounting are not directly related to accounting depletion…
A: Correct Option : Historical Cost Depletion means the allocation of cost of natural resources…
Q: Is the matching of costs and revenue a basic accounting principle?
A: Accounting Principle: The set rules which defines the way account should be prepared is known…
Q: Which of the following accounting principles or conventions is contradictory to the GAAP requirement…
A: As per matching principle of accounting, all expenses of a particular period are matched with the…
Q: Which two economic concepts are fundamental to the relevance of fair values to accounting? i. The…
A: The two economic concepts are fundamental to the relevance of fair values to accounting are…
Q: Which of the following is correct about the Limitations of accounting? Select one: a. Accounting not…
A: The process of identifying, recording, summarizing, analysis of data is known as accounting. It is…
Q: Which of the following costs would not be included in accounting financial statements? O A.…
A: Financial statement includes all those costs that are incurred in the business such as sunk cost,…
Q: Question 2: It is usually seems as cost accounting cover the financial accounting problems as:…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Cost Accounting verity more from Financial Accounting? True Flase
A: Cost accounting can be defined as an important branch of managerial accounting under which the…
Q: To make predictions about costs and income, you must first classify costs by their behavior.…
A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…
Q: n conceptual framework resolve accounting problems? How?
A: Introduction: Conceptual framework is a guide for preparing financial statements by identifying the…
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- Nutts management is very concerned about the cost of overhead on its jobs. When jobs are complete, overhead costs should be between 15% and 20% of total costs. For example, the labor cost on Job 8958 is 25% of total costs, higher than the norm. Open Job 8961 and click the Chart sheet tab. A pie chart appears showing the cost components on that job. Record the labor cost percentage in the space provided. Repeat this for each of the jobs worked on in August. Did Nutt maintain good cost control on all its jobs? Explain. Worksheet. During September, Job 8963 required two additional material requisitions to complete the job. Open JOB8963 and modify the job cost sheet to include an area for four direct material requisition entries instead of three. Then enter the following two materials requisitions onto the worksheet: Preview the printout to make sure it will print neatly on one page, and then print the worksheet. Save the completed worksheet as JOBT. Chart. Open JOB8964 and click the Chart sheet tab. Prepare a bar chart for JOB8964 showing the amount of material, labor, and overhead required to complete the job. Use the Chart Data Table found in rows 4246 as a basis for preparing the chart. Enter your name somewhere on the chart. Save the file again as J0B8964. Print the chart.Ventana Window and Wall Treatments Company provides draperies, shades, and various window treatments. Ventana works with the customer to design the appropriate window treatment, places the order, and installs the finished product. Direct materials and direct labor costs are easy to trace to the jobs. Ventanas income statement for last year is as follows: Ventana wants to find a markup on cost of goods sold that will allow them to earn about the same amount of profit on each job as was earned last year. Required: 1. What is the markup on cost of goods sold (COGS) that will maintain the same profit as last year? (Round the percentage to two significant digits.) 2. A customer orders draperies and shades for a remodeling job. The job will have the following costs: What is the price that Ventana will quote given the markup percentage calculated in Requirement 1? (Round the price to the nearest dollar.) 3. What if Ventana wants to calculate a markup on direct materials cost, since it is the largest cost of doing business? What is the markup on direct materials cost that will maintain the same profit as last year? (Round the percentage to two significant digits.) What is the bid price Ventana will use for the job given in Requirement 2 if the markup percentage is calculated on the basis of direct materials cost? (Round to the nearest dollar.)Geneva, Inc., makes two products, X and Y, that require allocation of indirect manufacturing costs. The following data were compiled by the accountants before making any allocations: The total cost of purchasing and receiving parts used in manufacturing is 60,000. The company uses a job-costing system with a single indirect cost rate. Under this system, allocated costs were 48,000 and 12,000 for X and Y, respectively. If an activity-based system is used, what would be the allocated costs for each product?
- Listed as follows are various costs found in businesses. Classify each cost as a fixed or variable cost, and as a product and/or period cost. Wages of administrative staff Shipping costs on merchandise sold Wages of workers assembling computers Cost of lease on factory equipment Insurance on factory Direct materials used in production of lamps Supervisor salary, factory Advertising costs Property taxes, factory Health insurance cost for company executives Rent on factoryA new company started production. Job 1 was completed, and Job 2 remains in production. Here is the information from the job cost sheets from their first and only jobs so far: Using the Information provided. A. What Is the balance in work in process? B. What Is the balance in finished goods inventory? C. If manufacturing overhead is applied on the basis of direct labor hours, what is the predetermined overhead rate?Davis Co. uses backflush costing to account for its manufacturing costs. The trigger points are the purchase of materials, the completion of goods, and the sale of goods. Prepare journal entries to account for the following: a. Purchased raw materials, on account, 70,000. b. Requisitioned raw materials to production, 70,000. c. Distributed direct labor costs, 15,000. d. Factory overhead costs incurred, 45,000. (Use Various Credits for the account in the credit part of the entry.) e. Completed all of the production started. f. Sold the completed production for 195,000, on account. (Hint: Use a single account for raw materials and work in process.)
- Darnell Poston, owner of Poston Manufacturing, Inc., wants to determine the cost behavior of labor and overhead. Darnell pays his workers a salary; during busy times, everyone works to get the orders out. Temps (temporary workers hired through an agency) may be hired to pack and prepare completed orders for shipment. During slower times, Darnell catches up on bookkeeping and administrative tasks while the salaried workers do preventive maintenance, clean the lines and building, etc. Temps are not hired during slow times. Darnell found that workers salaries, temp agency payments, rentals, utilities, and plant and equipment depreciation are the largest dollar accounts. He believes that workers salaries and plant and equipment depreciation are fixed, temp agency payments are associated with the number of orders (since temp workers are used to pack and prepare completed orders for shipment), and electricity is associated with the number of machine hours. When the number of different parts stored by Poston exceeds the space in the materials storeroom, Darnell rents nearby warehouse space. He can rent as much or as little space as he wants on a month-to-month basis. Therefore, he believes warehouse rental payments are variable with the number of parts purchased and stored. The account balances for the past six months as well as the six-month total are as follows: Information on number of machine hours, orders, and parts for the six-month period follows: Required: 1. Calculate the monthly average account balance for each account. Calculate the average monthly amount for each of the three drivers. 2. Calculate fixed monthly cost and the variable rates for temp agency payments, warehouse rent, and electricity. Express the results in the form of an equation for total cost. 3. In July, Darnell predicts there will be 420 orders, 250 parts, and 5,900 machine hours. What is the total labor and overhead cost for July? 4. What if Darnell buys a new machine in July for 24,000? The machine is expected to last 10 years and will have no salvage value at the end of that time. What part of the cost equation will be affected? How? What is the new expected cost in July?In a team of two or three students, interview the manager/owner of a local business. In this interview, ask the manager/owner the following questions: A. Does the business collect and use cost information to make decisions? B. Does it have a specialist in cost estimation who works with this cost data? If not, who is responsible for the collection of cost information? Be as specific as possible. C. What type of cost information does the business collect and how is each type of information used? D. How important does the owner/manager believe cost information is to the success of the business? Then, write a report to the instructor summarizing the results of the interview. Content of the memo must include date of the interview, the name and title of the person interviewed, name and location of the business, type of business (service, merchandising, manufacturing) and brief description of the goods/services provided by the business, and responses to questions A-D.A new company started production. Job 10 was completed, and Job 20 remains in production. Here is the information from job cost sheets from their first and only jobs so far: Using the information provided. A. What is the balance in work in process? B. What Is the balance in the finished goods inventory? C. If manufacturing overhead is applied on the basis of direct labor hours, what is the predetermined overhead rate?
- Kenkel, Ltd. uses backflush costing to account for its manufacturing costs. The trigger points are the purchase of materials, the completion of goods, and the sale of goods. Prepare journal entries to account for the following: a. Purchased raw materials, on account, 80,000. b. Requisitioned raw materials to production, 80,000. c. Distributed direct labor costs, 10,000. d. Factory overhead costs incurred, 60,000. (Use Various Credits for the account in the credit part of the entry.) e. Completed all of the production started. f. Sold the completed production for 225,000, on account.A job order costing system is most likely used by which of the following? a pet food manufacturer a paper manufacturing company an accounting firm specializing in tax returns a stereo manufacturing companyStan is opening a coffee shop next to Big State University. He knows that controlling his costs will be important to the success of the shop. He will not be able to work all the hours the shop is open, so the employees will need some guidelines to perform their jobs correctly. After talking to an accounting professor, he decides he needs a standard cost system for his shop. Describe the process Stan should follow in setting his standards for materials and labor.