Fundamentals Of Cost Accounting (6th Edition)
6th Edition
ISBN: 9781259969478
Author: WILLIAM LANEN, Shannon Anderson, Michael Maher
Publisher: McGraw Hill Education
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Textbook Question
Chapter 1, Problem 27E
Accounting Systems
McDonald’s is a major company in the restaurant business.
Required
For each of the decisions below, indicate whether the decision maker would be more likely to get information from the financial (F) or cost (C) accounting system of McDonald’s (in addition, perhaps, to other information).
- a. An investor is deciding whether to purchase stock in McDonald’s.
- b. A marketing manager at McDonald’s is trying to determine whether to offer breakfast items all day long.
- c. A fast-food competitor wants to compare her company’s financial performance to McDonald’s.
- d. A labor organization representing workers at McDonald’s outlets is deciding whether McDonald’s is profitable enough to negotiate for pay raises.
- e. An advertising manager at McDonald’s is deciding what media to use for commercials based on the profitability of different demographic groups.
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Students have asked these similar questions
(1A) Is it permissible to violate generally accepted accounting principles (GAAP) when preparing reports used strictly by company management? If so, why?
And Please discuss two of the five basic phases of the “management process”
(B) The top management of a fast-food hamburger chain is considering installing point-of-sale machines that will allow customers to pay for food with a debit or credit card. Previously, the restaurant has accepted only cash.
What information could the management accounting department supply to assist management with this decision?
1-Accounting software is related to which system of accounting?
a.
Manual Individual customer records
b.
Manual system of accounting
c.
Computerized accounting
d.
Any system of accounting
2-A Creditor of the business uses the financial statement for
a.
Day to day decision making related to the business
b.
Making the decisions to buy or sell the shares
c.
Evaluating the risks of granting credit or lending money
d.
Verifying whether the company complies with tax laws
3-For every debit there will be an equal credit according to
a.
Dual aspect concept
b.
Matching concept
c.
Money measurement concept
d.
Cost concept
4-Mr. Asif is an accountant. Purchase of Merchandise on credit for OMR 75000 was entered in Furniture Account for OMR 75000 but he posted Accounts payable entry is correct. Which of the following rectification entry is correct?
a.
Debit Accounts payable RO 75000 Credit Furniture RO 75000
b.
Debit Purchase RO 75000 Credit Accounts payable account RO…
Exercise 1-27 (Static) Accounting Systems (LO 1-2)
McDonald’s is a major company in the restaurant business.
Required:
For each of the decisions below, indicate whether the decision maker would be more likely to get information from the financial (F) or cost (C) accounting system of McDonald’s (in addition, perhaps, to other information).
A. An investor is deciding whether to purchase stock in McDonald's.
B. A marketing manager at McDonald's is trying to determine whether to offer breakfast items all day long.
C. A fast-food competitor wants to compare her company's financial performance to McDonald's.
D. A labor organization representing workers at McDonald's outlets is deciding whether McDonald's is profitable enough to negotiate for pay raises.
E. An advertising manager at McDonald's is deciding what media to use for commercials based on the profitability of different demographic groups.
Chapter 1 Solutions
Fundamentals Of Cost Accounting (6th Edition)
Ch. 1 - Explain why it is important to consider the...Ch. 1 - Explain the differences between financial...Ch. 1 - Place the letter of the appropriate accounting...Ch. 1 - Distinguish among the value chain, the supply...Ch. 1 - Who are the customers of cost accounting?Ch. 1 - How can cost accounting information together with...Ch. 1 - Prob. 7RQCh. 1 - Does the passage of Sarbanes-Oxley mean that codes...Ch. 1 - Prob. 9CADQCh. 1 - Prob. 10CADQ
Ch. 1 - Prob. 11CADQCh. 1 - Its not the job of accounting to determine...Ch. 1 - Prob. 13CADQCh. 1 - How would cost accounting information help...Ch. 1 - Airlines are well known for using complex pricing...Ch. 1 - Hostess Brands makes a variety of baked goods just...Ch. 1 - What potential conflicts might arise between...Ch. 1 - Refer to the Business Application discussion of...Ch. 1 - Prob. 19CADQCh. 1 - Why does a cost accountant need to be familiar...Ch. 1 - Will studying cost accounting increase the chances...Ch. 1 - Prob. 22CADQCh. 1 - Value Chain and Classification of Costs Apple...Ch. 1 - Pfizer Inc., a pharmaceutical firm, incurs many...Ch. 1 - Tesla, Inc., incurs many types of costs in its...Ch. 1 - Prob. 26ECh. 1 - Accounting Systems McDonalds is a major company in...Ch. 1 - Accounting Systems Ford Motor Company manufactures...Ch. 1 - Cost Data for Managerial Purposes As an analyst at...Ch. 1 - Prob. 30ECh. 1 - Prob. 31ECh. 1 - Refer to the information in Exercise 1-31. The...Ch. 1 - Refer to Exhibit 1.5, which shows budgeted versus...Ch. 1 - Trends in Cost Accounting Required For each cost...Ch. 1 - Prob. 35ECh. 1 - Prob. 36ECh. 1 - Refer to the information in Exercise 1-32. Jon...Ch. 1 - Prob. 38PCh. 1 - Cost Data for Managerial Purposes Imperial Devices...Ch. 1 - Cost Data for Managerial Purposes You have been...Ch. 1 - Prob. 41PCh. 1 - Cost Data for Managerial Purposes Campus Package...Ch. 1 - Cost Data for Managerial Purposes KC Services...Ch. 1 - Cost Data for Managerial Purposes B-You is a...Ch. 1 - Cost Data for Managerial Purposes Toms Tax...Ch. 1 - Gilman’s Café is a popular restaurant in a local...Ch. 1 - Prob. 47PCh. 1 - Prob. 48PCh. 1 - Refer to Exhibit 1.5, which shows budgeted versus...Ch. 1 - Cost Data for Managerial PurposesFinding Unknowns...Ch. 1 - Prob. 51PCh. 1 - Prob. 52PCh. 1 - Prob. 53ICCh. 1 - Miller Cereals is a small milling company that...Ch. 1 - Before Miller Cereals can introduce the new...Ch. 1 - The following story is true except that all names...
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