part 6 7 8 Question 6.1 For each item listed, select the appropriate purpose of cost allocation from the list below. A purpose may be used more than once. A - To provide information for economic decisions B - To motivate managers and other employees C - To measure income and assets for reports to external parties D - To justify costs or compute reimbursement amounts Required To encourage simpler product design To cost inventories for reporting on a company's tax return To encourage the sales department to focus on high-margin products To evaluate a make or buy decision To cost inventories for the balance sheet To decide whether to add or delete a product line To decide on an appropriate selling price for a special-order product To cost a product at a fair price for government contracts

part 6 7 8 Question 6.1 For each item listed, select the appropriate purpose of cost allocation from the list below. A purpose may be used more than once. A - To provide information for economic decisions B - To motivate managers and other employees C - To measure income and assets for reports to external parties D - To justify costs or compute reimbursement amounts Required To encourage simpler product design To cost inventories for reporting on a company's tax return To encourage the sales department to focus on high-margin products To evaluate a make or buy decision To cost inventories for the balance sheet To decide whether to add or delete a product line To decide on an appropriate selling price for a special-order product To cost a product at a fair price for government contracts

Financial & Managerial Accounting

14th Edition

ISBN:9781337119207

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter26: Lean Manufacturing And Activity Analysis

Section: Chapter Questions

Problem 26.18EX: Cost of quality and value-added/non-value-added reports for a service company A. Using the...

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Cost of quality and value-added/non-value-added reports for a service company A. Using the information in Exercise 17, identify the cost of quality classification for each activity and whether the activity is value-added or non-value-added. B. Prepare a cost of quality report. Assume that sales are 5,000,000. (Round percentages to one decimal place.) C. Prepare a value-added/non-value-added analysis. D. Interpret the information in (D) and (C).
Question 6.1 For each item listed, select the appropriate purpose of cost allocation from the list below. A purpose may be used more than once. A - To provide information for economic decisions B - To motivate managers and other employees C - To measure income and assets for reports to external parties D - To justify costs or compute reimbursement amounts Required To encourage simpler product design To cost inventories for reporting on a company's tax return To encourage the sales department to focus on high-margin products To evaluate a make or buy decision To cost inventories for the balance sheet To decide whether to add or delete a product line To decide on an appropriate selling price for a special-order product To cost a product at a fair price for government contracts
EX 15-5 Concepts and terminology Obj. 1, 2, 4 From the choices presented in parentheses, choose the appropriate term for completing each of the following sentences: Advertising costs are usually viewed as (period, product) costs. Feedback is often used to (improve, direct) operations. Payments of cash or the commitment to pay cash in the future for the purpose of generating revenues are (costs, expenses). A product, sales territory, department, or activity to which costs are traced is called a (direct cost, cost object). The balance sheet of a manufacturer would include an account for (cost of goods sold, work in process inventory). Factory overhead costs combined with direct labor costs are called (prime, conversion) costs. The implementation of automatic, robotic factory equipment normally (increases, decreases) the direct labor EX 15-7 Classifying costs in a service company Obj. 2 A partial list of the costs for Wisconsin and Minnesota Railroad, a short hauler of freight,…
QUESTION 15 The reports generated by variable costing system of a company is mostly used by: lenders and creditors internal management investors and stockholders government and tax agencies
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