Cost Accounting: A Managerial Emphasis, 15th Edition
15th Edition
ISBN: 9780133803815
Author: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
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Textbook Question
Chapter 14, Problem 14.13Q
How can the concept of a composite unit be used to explain why an unfavorable total sales-mix variance of contribution margin occurs?
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From the standpoint of cost control, why is the FIFO method superior to the weighted-averagemethod? Is it possible to monitor cost trends using the weighted-average method?
Which of the following items would be useful to management in
deciding whether to investigate the cause of a reported standard
cost variance?
O Cost-volume-profit analysis.
O Simultaneous equations.
O Linear regression analysis.
O Iso-profit lines.
Indifference probability.
Which of the following is NOT a use of CVP (Cost-Volume-Profit) analysis?
a.what is the impact on the break-even point of an increase or decrease in fixed costs
b.how many units must be sold to break even
c.the identification of price and efficiency variances
d.the ability to conduct sensitivity analysis of cost or price changes
Chapter 14 Solutions
Cost Accounting: A Managerial Emphasis, 15th Edition
Ch. 14 - Prob. 14.1QCh. 14 - Why is customer-profitability analysis an...Ch. 14 - Prob. 14.3QCh. 14 - A customer-profitability profile highlights those...Ch. 14 - Give examples of three different levels of costs...Ch. 14 - What information does the whale curve provide?Ch. 14 - A company should not allocate all of its corporate...Ch. 14 - What criteria might managers use to guide...Ch. 14 - Once a company allocates corporate costs to...Ch. 14 - A company should not allocate costs that are fixed...
Ch. 14 - How should a company decide on the number of cost...Ch. 14 - Show how managers can gain insight into the causes...Ch. 14 - How can the concept of a composite unit be used to...Ch. 14 - Explain why a favorable sales-quantity variance...Ch. 14 - How can the sales-quantity variance be decomposed...Ch. 14 - Prob. 14.16ECh. 14 - Prob. 14.17ECh. 14 - Prob. 14.18ECh. 14 - Prob. 14.19ECh. 14 - Prob. 14.20ECh. 14 - Prob. 14.21ECh. 14 - Prob. 14.22ECh. 14 - Prob. 14.23ECh. 14 - Prob. 14.24ECh. 14 - Prob. 14.25ECh. 14 - Prob. 14.26ECh. 14 - Prob. 14.27PCh. 14 - Prob. 14.28PCh. 14 - Prob. 14.29PCh. 14 - Prob. 14.30PCh. 14 - Prob. 14.31PCh. 14 - Prob. 14.32PCh. 14 - Prob. 14.33PCh. 14 - Prob. 14.34PCh. 14 - Prob. 14.35PCh. 14 - Prob. 14.36PCh. 14 - Prob. 14.37PCh. 14 - Prob. 14.38PCh. 14 - Customer profitability and ethics. KC Corporation...
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- What are some possible reasons for a material price variance? A. substandard material B. labor rate increases C. labor rate decreases D. labor efficiencyarrow_forwardWhat advantage does the FIFO cost method have over the average cost method relative to providing information for cost control?arrow_forwardExplain how the high-low method is used for cost estimation. What, if any, are the limitations of this approach to cost estimation?arrow_forward
- Which of the following is not a method used by managers to determine cost behavior? High-low Method Scatterplot Account analysis Regression Analysis Derivationarrow_forwardWhich of the following is true about the hypothesis test of cost parameters? a) It indicates whether the parameters are different from zero. b) It provides a range of values instead of a single prediction. c) It measures the degree of association between cost and activity output. d) It shows the difference between predicted and actual costs.arrow_forwardWhich of the following underlying assumptions form(s) the basis for grossprofit variance analysis? A. Sales and costs behave in a linear manner.B. Costs can be categorized as variable.C. All of the choices are assumptions that underlie gross profit variance analysis.D. In multiproduct organizations, the sales mix remains discretionary.arrow_forward
- Sales volume variances are attributable to differences between planned and actual activity volumes, as well as differences in selling price. True or Falsearrow_forwardWhich of the following is not an assumption underlying cost-volume-profit analysis?a. The sales mix is constant.b. The break-even point will be passed during the period.c. Total sales and total costs can be represented by straight lines.d. Costs can be accurately divided into fixed and variable components.arrow_forwardWhich tool can be used to easily calculate the change in profit resulting from a change in sales price, sales volume, variable costs, or fixed costs?arrow_forward
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