Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN: 9781305970663
Author: Don R. Hansen, Maryanne M. Mowen
Publisher: Cengage Learning
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Chapter 7, Problem 13E
To determine
Classify each of the following departments in a large metropolitan law firm as a producing department or a support department.
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Students have asked these similar questions
In each of the following situations, identify which type of responsibility center is appropriate based on the decision-making authority the manager would possess:
1.
The manager of the accounting department in Ford’s corporate office.
2.
The sales manager of a Ford dealership.
3.
The general manager of a Ford dealership.
4.
The manager of Ford’s corporate division.
5.
The production manager in a Ford plant.
options:
Cost Center
Investment Center
Profit Center
Revenue Center
10.
Which of the following correctly describes the support activities of the value chain?
The firm infrastructure includes accountants in the auditing service line of an accounting firm.
Technological development includes gathering technical knowledge, hardware and software necessary for the improved operations of the other activities in the value chain.
The procurement activity focuses on undertaking supplier background checks and negotiating prices.
The human resource department is solely in charge of the number of employees to hire and the pay which those employees will be receiving.
11.
Aling Rosa is a sari-sari store owner. Along the street where she operates her store, there are three other stores offering similar products at similar prices. What should she do to allow her business to thrive in the next three to five years?
Determine whether building good supplier relations will allow her to lower costs, and therefore provide lower prices.
Determine whether selling hard-to-get…
When you look at the organizational structure of ABC Inc., you notice that the Marketing department is divided into communications, event planning, marketing, and web content. You also see that the Accounting department has separate units for accounts payable and accounts receivable. ABC Inc. uses ________ departmentalization.
Question 9 options:
A)
product
B)
geographic
C)
functional
D)
customer
E)
process
Chapter 7 Solutions
Cornerstones of Cost Management (Cornerstones Series)
Ch. 7 - Describe the two-stage allocation process for...Ch. 7 - Why must support service costs be assigned to...Ch. 7 - Explain how allocation of support service costs is...Ch. 7 - Prob. 4DQCh. 7 - Explain how allocating support service costs will...Ch. 7 - Prob. 6DQCh. 7 - Explain why it is better to allocate budgeted...Ch. 7 - Why is it desirable to allocate variable costs and...Ch. 7 - Explain why either normal or peak capacity of the...Ch. 7 - Explain why variable bases should not be used to...
Ch. 7 - Prob. 11DQCh. 7 - Explain the difference between the direct method...Ch. 7 - The reciprocal method of allocation is more...Ch. 7 - What is a joint cost? How does it relate to...Ch. 7 - How do joint costs differ from other common costs?Ch. 7 - The expected costs for the Maintenance Department...Ch. 7 - Prob. 2CECh. 7 - Valron Company has two support departments, Human...Ch. 7 - Refer to Cornerstone Exercise 7.3. Now assume that...Ch. 7 - Refer to Cornerstone Exercise 7.3. Now assume that...Ch. 7 - Refer to Cornerstone Exercise 7.3 and solve for...Ch. 7 - Orchard Fresh, Inc., purchases apples from local...Ch. 7 - Refer to Cornerstone Exercise 7.7. Assume that...Ch. 7 - Refer to Cornerstone Exercise 7.7. Assume that...Ch. 7 - A company manufactures three products, L-Ten,...Ch. 7 - Refer to Cornerstone Exercise 7.10. (Round...Ch. 7 - Classify each of the following departments in a...Ch. 7 - Prob. 13ECh. 7 - Identify some possible causal factors for the...Ch. 7 - Prob. 15ECh. 7 - Prob. 16ECh. 7 - Prob. 17ECh. 7 - Kumar, Inc., evaluates managers of producing...Ch. 7 - Refer to the data in Exercise 7.18. When the...Ch. 7 - Jasmine Company manufactures both pesticide and...Ch. 7 - Refer to the data in Exercise 7.20. The company...Ch. 7 - Eilers Company has two producing departments and...Ch. 7 - Refer to the data in Exercise 7.22. The company...Ch. 7 - Refer to the data in Exercise 7.22. The support...Ch. 7 - Alomar Company manufactures four products from a...Ch. 7 - Refer to Exercise 7.25 and allocate the joint...Ch. 7 - Pacheco, Inc., produces two products, overs and...Ch. 7 - Minor Co. has a job order cost system and applies...Ch. 7 - A CPA would recommend changing from plantwide...Ch. 7 - A company uses charging rates to allocate service...Ch. 7 - Chester Company provided information on overhead...Ch. 7 - Which of the following statements is true? a. The...Ch. 7 - Biotechtron, Inc., has two research laboratories...Ch. 7 - AirBorne is a small airline operating out of...Ch. 7 - Duweynie Pottery, Inc., is divided into two...Ch. 7 - Macalister Corporation is developing departmental...Ch. 7 - Prob. 37PCh. 7 - Welcome Inns is a chain of motels serving business...Ch. 7 - Sonimad Sawmill, Inc. (SSI), purchases logs from...Ch. 7 - Prob. 40P
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Similar questions
- For each of the following managers, describe how managerial accounting could be used to satisfy strategic or operational objectives: a. The vice president of the Information Systems Division of a bank. b. A hospital administrator. c. The chief executive officer of a food company. The food company is divided into three divisions: Nonalcoholic Beverages, Snack Foods, and Fast-Food Restaurants. d. The manager of the local campus copy shop.arrow_forwardFor the following situations identify whether the description is a centralized or decentralized organization. A. the United States Navy B. Farahs Dominos franchise store C. Dominos Pizza D. Middies Furniture, which is divided into separate operating units, such as living room, kitchen, flooring E. the local community college, which has a single payroll department, a single administrative headquarters, and a single human resources department since it flattened its organization structure F. Conner Corporation, which promotes managers from within the organization whenever possible and which has formal training programs for lower-level managersarrow_forwardFor the following situations, identify whether the description is probably a centralized or decentralized organization. A. Seaside Furniture, a small builder of side tables managed solely by its sole proprietor B. Harbor Marketing, which wants Advertising Team Leaders to be able to respond quickly to needs of potential clients so Team Leaders have the authority to make decisions about advertising and pricing C. Coutures Creations, with a single owner who manages the production, accounting, engineering, sales, and other administrative functions D. British Navy E. McDonalds franchise #3101 in Canton. Ohio F. United States Armyarrow_forward
- Briefly discuss the chain of command for someone being hired into an organization as a staff managerial accountant.arrow_forwardDiscuss the significance of having a separate organizational unit for the HR function (reporting to the vice president of HR), as opposed to having the HR function housed within an administrative organizational unit (reporting to a manager of HR).arrow_forwardThe managers of an organization are responsible for performing several broad functions. They are ____________________________. planning, controlling, and selling directing, controlling, and evaluating planning, evaluating, and manufacturing planning, controlling, and evaluatingarrow_forward
- ORGANIZATION STRUCTURE AND SPAN OF CONTROL Refer to the organization charts labeled Structure A and Structure B in the figure for problem 12. Required a. For the organizational structure A, describe the 1. advantages and disadvantages of this structure. 2. impact of the resulting span of control. 3. effect of the organizational structure on employee behavior. b. For the flat organizational structure B, describe the 1. advantages and disadvantages of that organizational structure. 2. impact of the resulting span of control. 3. effect of the organizational structure on employee behavior. c. When determining the appropriate span of control for a company, discuss the factors that should be considered.arrow_forwardExamine the placement of the manager of HR systems in the organization chart of Figure 14.2 (pg. 541) and review the typical functional responsibilities of this manager, decisions made, and information needs as shown in Table 14.1 (pp. 541542). Describe possible alternatives for the placement of this function in the formal organization chart, and discuss the relative advantages for each placement. Consider the variables of centralized versus decentralized organizational structures.arrow_forwardWhich of the following terms means knowing how a business is run and how it is influenced by external forces, and knowing and understanding the overall industry? A. commercial awareness B. conceptualization C. collaboration D. imaginationarrow_forward
- Taylor Speedy has prepared the following list of statements about managerial accounting, financial accounting, and the functions of management. Identify each statement as true or false. Financial accounting centers on providing information to internal users. Staff positions are directly involved in the companys primary revenue-generating activities. Preparation of budgets is part of financial accounting. Managerial accounting applies only to merchandising and manufacturing companies. Both managerial accounting and financial accounting deal with many of the same economic events.arrow_forwardAssume you have been hired by Cabelas Sporting Goods. As part of your new role in the accounting department, you have been tasked to set up a responsibility accounting structure for the company. As your first task, your supervisor has asked you to give an example of a cost center, profit center, and an investment center within the Cabelas organization. Your supervisor is a little unsure of the difference between a profit center and investment center and would like you to explain the difference.arrow_forwardManagement accountants help the management of an organization in their planning function through ________________________________. monitoring anti-theft systems strategic planning evaluating costs analyzing profitsarrow_forward
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