A partial list of The Grand Hotel’s costs follows: a. Advertising in local newspaper b. Bedding (sheets, blankets, pillows) c. Bellhop wages d. Champagne for special guest packages e. Coffee and tea for rooms f. Cost of customer surveys g. Depreciation of the hotel h. Desk clerk wages i. Guest long-distance telephone costs j. Kitchen employee wages k. Laundering towels and sheets l. Lobby furniture m. Maid wages n. Mini-bar supplies o. New carpeting p. Painting lobby q. Pay-per-view movie rental costs (in rooms) r. Salary of the hotel manager s. Soaps and shampoos for rooms t. Training for hotel restaurant servers u. Utility costs for hotel v. Valet parking services w. Wages of convention setup employees Instructions 1. What would be The Grand Hotel’s most logical definition for the final cost object? 2. Identify whether each of the costs is to be classified as direct or indirect. For purposes of classifying each cost as direct or indirect, use the hotel guest as the cost object.

BuyFind

Managerial Accounting

15th Edition
Carl Warren + 1 other
Publisher: South-Western College Pub
ISBN: 9781337912020
BuyFind

Managerial Accounting

15th Edition
Carl Warren + 1 other
Publisher: South-Western College Pub
ISBN: 9781337912020

Solutions

Chapter
Section
Chapter 1, Problem 3PB
Textbook Problem

A partial list of The Grand Hotel’s costs follows:

  1. a. Advertising in local newspaper
  2. b. Bedding (sheets, blankets, pillows)
  3. c. Bellhop wages
  4. d. Champagne for special guest packages
  5. e. Coffee and tea for rooms
  6. f. Cost of customer surveys
  7. g. Depreciation of the hotel
  8. h. Desk clerk wages
  9. i. Guest long-distance telephone costs
  10. j. Kitchen employee wages
  11. k. Laundering towels and sheets
  12. l. Lobby furniture
  13. m. Maid wages
  14. n. Mini-bar supplies
  15. o. New carpeting
  16. p. Painting lobby
  17. q. Pay-per-view movie rental costs (in rooms)
  18. r. Salary of the hotel manager
  19. s. Soaps and shampoos for rooms
  20. t. Training for hotel restaurant servers
  21. u. Utility costs for hotel
  22. v. Valet parking services
  23. w. Wages of convention setup employees

Instructions

  1. 1. What would be The Grand Hotel’s most logical definition for the final cost object?
  2. 2. Identify whether each of the costs is to be classified as direct or indirect. For purposes of classifying each cost as direct or indirect, use the hotel guest as the cost object.

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Chapter 1 Solutions

Managerial Accounting
Ch. 1 - Management process Three phases of the management...Ch. 1 - Direct materials, direct labor, and factory...Ch. 1 - Prime and conversion costs Identify the following...Ch. 1 - Product and period costs Identify the following...Ch. 1 - Cost of goods sold, cost of goods manufactured...Ch. 1 - Jakes Cabins is a small motel chain with locations...Ch. 1 - Indicate whether each of the following costs of an...Ch. 1 - Indicate whether the following costs of Procter ...Ch. 1 - Which of the following items are properly...Ch. 1 - For apparel manufacturer Abercrombie Fitch, Inc....Ch. 1 - From the choices presented in parentheses, choose...Ch. 1 - From the choices presented in parentheses, choose...Ch. 1 - Classifying costs In a service company A partial...Ch. 1 - Classifying costs The following is a manufacturing...Ch. 1 - Financial statements of a manufacturing firm The...Ch. 1 - Manufacturing company balance sheet Partial...Ch. 1 - Cost of direct materials used in production for a...Ch. 1 - Cost of goods manufactured for a manufacturing...Ch. 1 - Cost of goods manufactured for a manufacturing...Ch. 1 - Income statement for a manufacturing company Two...Ch. 1 - Statement of cost of goods manufactured for a...Ch. 1 - Cost of goods sold, profit margin, and net income...Ch. 1 - Cost flow relationships The following information...Ch. 1 - The following is a list of costs that were...Ch. 1 - The following is a list of costs incurred by...Ch. 1 - A partial list of Foothills Medical Centers costs...Ch. 1 - Manufacturing income statement, statement of cost...Ch. 1 - Statement of cost of goods manufactured and income...Ch. 1 - The following is a list of costs that were...Ch. 1 - The following is a list of costs incurred by...Ch. 1 - A partial list of The Grand Hotels costs follows:...Ch. 1 - Several items are omitted from the income...Ch. 1 - Statement of cost of goods manufactured and income...Ch. 1 - Comfort Plus, Inc., has a hotel with 300 rooms in...Ch. 1 - Hilton Hotels and Marriott International:...Ch. 1 - Comparing occupancy for two hotels Sunrise Suites...Ch. 1 - Occupancy for a Hospital The Valley Hospital...Ch. 1 - Passenger load on a flight Eastern Skies Airlines...Ch. 1 - Ethics in Action Avett Manufacturing Company...Ch. 1 - Communication Todd Johnson is the Vice President...Ch. 1 - For each of the following managers, describe how...Ch. 1 - The following situations describe scenarios that...Ch. 1 - Geek Chic Company provides computer repair...Ch. 1 - Which of the following items would not be...Ch. 1 - A review of Plunkett Corporations accounting...Ch. 1 - A firm has 100,000 in direct materials costs,...Ch. 1 - In practice, items such as wood screws and glue...

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