Cost Accounting
15th Edition
ISBN: 9780133428834
Author: Horngren
Publisher: PEARSON
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Textbook Question
Chapter 20, Problem 20.5Q
Give three examples of opportunity costs that typically are not recorded in accounting systems, although they are relevant when using the EOQ model in the presence of demand uncertainty.
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Give three examples of opportunity costs that typically are not recorded in accounting systems, although they are relevant when using the EOQ model in the presence of demand uncertainty.
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Chapter 20 Solutions
Cost Accounting
Ch. 20 - Why do better decisions regarding the purchasing...Ch. 20 - Name six cost categories that are important in...Ch. 20 - What assumptions are made when using the simplest...Ch. 20 - Give examples of costs included in annual carrying...Ch. 20 - Give three examples of opportunity costs that...Ch. 20 - What are the steps in computing the cost of a...Ch. 20 - Why might goal-congruence issues arise when...Ch. 20 - JIT purchasing has many benefits but also some...Ch. 20 - What are three factors causing reductions in the...Ch. 20 - You should always choose the supplier who offers...
Ch. 20 - Prob. 20.11QCh. 20 - What are the main features of JIT production, and...Ch. 20 - Distinguish inventory-costing systems using...Ch. 20 - Describe three different versions of backflush...Ch. 20 - Discuss the differences between lean accounting...Ch. 20 - Prob. 20.16ECh. 20 - Prob. 20.17ECh. 20 - Prob. 20.18ECh. 20 - Prob. 20.19ECh. 20 - Prob. 20.20ECh. 20 - Prob. 20.21ECh. 20 - Prob. 20.22ECh. 20 - Prob. 20.23ECh. 20 - Prob. 20.24ECh. 20 - Prob. 20.25PCh. 20 - Prob. 20.26PCh. 20 - Prob. 20.27PCh. 20 - Prob. 20.28PCh. 20 - Prob. 20.29PCh. 20 - Supply-chain effects on total relevant inventory...Ch. 20 - Prob. 20.31PCh. 20 - Prob. 20.32PCh. 20 - Prob. 20.33PCh. 20 - Prob. 20.34PCh. 20 - Lean accounting. Reliable Security Devices (RSD)...Ch. 20 - Prob. 20.36P
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- Which of the following is not one of the five steps in decision-making process? A. identify alternatives B. review, analyze, and evaluate decision C. decide best action D. consult with CFO concerning variable costsarrow_forwardWhat advantage does the FIFO cost method have over the average cost method relative to providing information for cost control?arrow_forwardIn Classification Of Cost, What Is A Business Situational Example of the ff: By Nature Or Traceability: Direct Costs & Indirect Costs By Functions By Behavior: Fixed, Variable, Semi-Variable By Control Ability: Controllable & Uncontrollable Costs By Normality: Normal Costs & Abnormal Costs By Time: Historical Costs & Predetermined Cost By Decision Making Costsarrow_forward
- How cost accounting is useful where financial accounting could not be answered. Give any exampleto support your answer.arrow_forwardTo make predictions about costs and income, you must first classify costs by their behavior. True Falsearrow_forwardManagers often assume a strictly linear relationship between cost and the level of activity.Under what conditions would this be a valid or invalid assumption?arrow_forward
- Define opportunity costs and explain why they represent acommon source of error in making cost analyses.arrow_forwardWhich of the following statements is true? Consistency demands that a cost that is relevant in one decision be regarded as relevant in other decisions as well. Variable costs are always relevant costs in decisions.arrow_forwardDemonstrate why expressing fixed costs on a per unit of activity basis is misleading and may result in faulty decisions.arrow_forward
- explain why GAAP requires full absorption costing (instead of variable costing) if absorption costing can be used to deceptively manipulate financial statementsarrow_forwardGive two examples of sunk costs, and explain why they are irrelevant in decision making.arrow_forwardWhich of the statement is not a true reflection of Target cost gap ? The target cost gap = Estimated product cost - Target cost The first step is to establish a competitive market price TheTarget cost gap is established in the 4th step of the target cost process A target cost gap is predeterminedarrow_forward
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