Question

Managerial Accounting Chapter 1 EXERCISE 1-2 Differentiating Between Planning, Implementation, and Control Classity the following activities as primanily planning, implementation, or control: a. Doing a cost-benefit analysis of adding a new branch versus installing three new automated teller machines (ATMs). b. Estimating the cost of raw materials to be purchased during the next quarter C. Analyzing market demand to assist in the preparation of the sales budget. d. Compiling the labour report for the past week. e. Outlining the changes to a process based on a process reengineering team report. f. Documenting the savings from reductions in raw materials inventory resulting from the adoption of a JIT inventory system Chapter 2 Cost Classification Questions 1. Why is cost classification important to managers? 2. Briefly describe the four cost classifications.

Answer 1

1-
1-	planning
2-	planning
3-	planning
4-	implementation
5-	control
6-	control
2-	cost classification is important for the managers to control the cost element and to allocation of overheads to various activites incurred during the different process of manufacturing.
3-	some of cost classification are like prime cost = Direct material + direct labor 2- conversion cost = direct labor and variable manufacturing overhead 3- total manufacturing cost = direct material + direct labor + total manufacturing overheads 4- product cost = direct material + direct labor+ total manufacturing overheads + administrative expenses and selling expenses