CUSTOM COST ACCOUNTING 15E
15th Edition
ISBN: 9781269831338
Author: Horngren
Publisher: PEARSON C
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Chapter 4, Problem 4.3Q
Why might an advertising agency use
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Would an advertising agency use job order or process cost? What about a cell phone manufacturer?
Advertising agency—process costing; Cell phone manufacturer—process costing
Advertising agency—job order costing; Cell phone manufacturer—job order costing
Advertising agency—process costing; Cell phone manufacturer—job order costing
Advertising agency—job order costing; Cell phone manufacturer—process costing
Would an advertising agency use job order or process costing? What about a cell phone manufacturer?
a. Advertising agency—process costing; Cell phone manufacturer—process costing
b. Advertising agency—job order costing; Cell phone manufacturer—job order costing
c. Advertising agency—process costing; Cell phone manufacturer—job order costing
d. Advertising agency—job order costing; Cell phone manufacturer—process costing
Which of the following is not a reason for banks to use activity-based costing?
a.to determine service quality
b.to determine profitability of services provided
c.to determine the amounts charged to customers for services provided
d.All of these choices are correct.
Chapter 4 Solutions
CUSTOM COST ACCOUNTING 15E
Ch. 4 - Define cost pool, cost tracing, cost allocation,...Ch. 4 - How does a job-costing system differ from a...Ch. 4 - Why might an advertising agency use job costing...Ch. 4 - Describe the seven steps in job costing.Ch. 4 - Give examples of two cost objects in companies...Ch. 4 - Describe three major source documents used in...Ch. 4 - What is the advantage of using computerized source...Ch. 4 - Give two reasons why most organizations use an...Ch. 4 - Distinguish between actual costing and normal...Ch. 4 - Describe two ways in which a house-construction...
Ch. 4 - Comment on the following statement: In a...Ch. 4 - Describe three different debit entries to the...Ch. 4 - Describe three alternative ways to dispose of...Ch. 4 - When might a company use budgeted costs rather...Ch. 4 - Prob. 4.15QCh. 4 - Which of the following does not accurately...Ch. 4 - Sturdy Manufacturing Co. assembled the following...Ch. 4 - For which of the following industries would...Ch. 4 - ABC Company uses job-order costing and has...Ch. 4 - Under Stanford Corporations job costing system,...Ch. 4 - (10 min) Job costing, process costing. In each of...Ch. 4 - Actual costing, normal costing, accounting for...Ch. 4 - Job costing, normal and actual costing. Atkinson...Ch. 4 - Budgeted manufacturing overhead rate, allocated...Ch. 4 - Job costing, accounting for manufacturing...Ch. 4 - Job costing, consulting firm. Frontier Partners, a...Ch. 4 - Time period used to compute indirect cost rates....Ch. 4 - Accounting for manufacturing overhead. Creative...Ch. 4 - Job costing, journal entries. The University of...Ch. 4 - Journal entries, T-accounts, and source documents....Ch. 4 - Job costing, journal entries. Donald Transport...Ch. 4 - Job costing, unit cost, ending work in process....Ch. 4 - Job costing; actual, normal, and variation from...Ch. 4 - Job costing; variation on actual, normal, and...Ch. 4 - Proration of overhead. The Ride-On-Wave Company...Ch. 4 - Job costing, accounting for manufacturing...Ch. 4 - Service industry, job costing, law firm. Kidman ...Ch. 4 - Service industry, job costing, two direct- and two...Ch. 4 - Proration of overhead. (Z. Iqbal, adapted) The Zaf...Ch. 4 - Normal costing, overhead allocation, working...Ch. 4 - Proration of overhead with two indirect cost...Ch. 4 - General ledger relationships, under- and...Ch. 4 - Overview of general ledger relationships. Estevez...Ch. 4 - Allocation and proration of overhead. Resource...Ch. 4 - (2530 min.) Job costing, ethics. Joseph Underwood...Ch. 4 - Job costingservice industry. Market Pulse performs...
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- A job order costing system is most likely used by which of the following? a pet food manufacturer a paper manufacturing company an accounting firm specializing in tax returns a stereo manufacturing companyarrow_forwardWalsh & Coggins, a professional accounting firm, collects cost information about the services they provide to their clients. Describe the types of cost data they would collect and explain the importance of analyzing this cost data.arrow_forwardIn the decision by a grocery company that is trying to decide whether to keep or drop the bakery department in its grocery stores, what would the bakery managers salary be in relationship to the decision if the manager will be laid off?arrow_forward
- For the following descriptions, state whether the cost is controllable or uncontrollable by responsibility center managers. A. advertising for a merchandiser B. corporate income taxes C. office supplies for a merchandiser D. donations to the Salvation Army E. insurance for delivery vehiclesarrow_forwardIn a team of two or three students, interview the manager/owner of a local business. In this interview, ask the manager/owner the following questions: A. Does the business collect and use cost information to make decisions? B. Does it have a specialist in cost estimation who works with this cost data? If not, who is responsible for the collection of cost information? Be as specific as possible. C. What type of cost information does the business collect and how is each type of information used? D. How important does the owner/manager believe cost information is to the success of the business? Then, write a report to the instructor summarizing the results of the interview. Content of the memo must include date of the interview, the name and title of the person interviewed, name and location of the business, type of business (service, merchandising, manufacturing) and brief description of the goods/services provided by the business, and responses to questions A-D.arrow_forwardYou are interviewing for an accountant position with Smith Industries. There are several candidates, and you intend to stand out. You learn the company is not satisfied with the timeliness of its information and its inventory management. The company manufactures custom-order holiday decorations and display items. To show your abilities, you plan to recommend the company use a job order accounting system., include recommendations and why a job order costing system would be advantageous to the company.arrow_forward
- The manager of High Times Restaurant wants to determine the price to charge for various lunch plates. Discuss what managerial accounting information the marginal accountant should provide and how the information would be usefularrow_forwardWhich of the following is not a period cost? Group of answer choices Sales commissions. Public relations costs. The salary of a company's chief financial officer (CFO). Legal costs. Wages of assembly-line workers.arrow_forwardABC jewelers makes custom jewelry for celebrities. Would you expect the company to use a job order or a process cost accounting system? Explain?arrow_forward
- Why should an employee have some understanding of costing if they are not in the accounting department? Explain how the method of costing used will impact the company with: (A) the quoting of customer jobs and (B) gross margin/profit on the Income statementarrow_forwardABC Bank would like to determine the price to charge for customer services and which classes of customers should be emphasized or de-emphasized. It has provided details of the activities and the cost drivers relating to those expenses that can be attributed to customers as follows: Activity Activity costs (R) Activity driver Activity volume Providing ATM services 400 000 Number of transactions 200 000 Computer processing 1 300 000 Number of transactions 2 500 000 Issuing Statements 1 100 000 Number of statements 500 000 Collections 160 000 Number of transactions 100 000 Customer inquiries 660 000 Telephone minutes 600 000 The following are annual information on the four types of customers: Personal Loans Cheque accounts Platinum accounts Savings accounts Number of product 7 000 28 000 12 000 2 000 ATM transactions 0 160 000 18 000 20 000 Computer transactions 210 000…arrow_forwardOffice salaries, depreciation expense on office equipment, and office supplies expense are examples of what type of expenses for a merchandising business? Group of answer choices administrative expenses selling expenses miscellaneous expenses other expensesarrow_forward
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