a. Solution: Planning and control
Explanation: As a non-value added activity has to be eliminated thus a proper plan is required
b. Solution: Costing of service
Explanation: Because cost of a service has to be computed thus it’s costing of service.
c. Solution: Costing of products/activity
Explanation: As cost is allocated when inspecting activity occurs thus it’s costing of product.
d. Solution: Planning and control
Explanation: Planning and control for the development and usage of income statement for a division
e. Solution: Planning and control
Explanation: It’s planning and control because it needs to improve the quality in the future.
f. Solution: Decision making
Explanation: Because decision has to be taken, it’s a decision making
g. Solution: Costing of products
Explanation: Because it need to compute cost of producing a product thus it is costing of product
h. Solution: Planning and control
Explanation: Because of improvement it’s categorised as planning and control
i. Solution: Decision making
Explanation: Because number of units need to be computed thus it’s decision making
j. Solution: Costing of services
Explanation: Since it perform a tooth extraction is a kind of servic thus is costing of service
k. Solution: Costing of an activity
Explanation: As moving of goods is an activity, thus it’s costing of an activity
l. Solution: Planning and control.
Explanation: A plan is needed for reduce inventories, therefore it's categorised as planning and control
m. Solution: Decision making
Explanation: Because decision is to be made on bid price thus is it’s decision making
Consider the following actions associated with a cost management information system: a. Eliminating a non-value-added activity...
Listed below are eight technical accounting terms introduced or emphasized in this chapter: Activity-based management Value-added activit) Target costing Just-in-tiime manufacturing system Each ofthe following statements may (or may not) describe one of these technical terms. In the space provided below each statement, indicate the accounting term described, or answer "None" if the statement does not correctly describe any of the terms Life-cycle costing Non-value-added activity Total quality management Cycle time a The process ofusing activity-based costs to helpreduce or...
Which one of the following cast drivers would best be associated with the activity of physician time in a medical clinic? The number of accreditations held by the clinic. Physician minutes with a patient Number of new patients visits Number of continuing patient visits 2. Magnolia Industries combines all manufacturing overhead into a single cost pool and allocates this overhead to products by using machine hours. Activity based costing would likely show that with Magnolia’s current procedures that: All of...
cost management A strategic Emphasis seventh edition book chapter 5 question 41 parts 1,2,3 Volume-based costing versus ABC Eastern Chemica Company produces three products. The operating results of the current year are: Product Sales Quantity Target Price Actual Price Difference A 1,000 $285.50 $286.00 $1.00 B 5,000 297.60 255.60 (42.00) C 500 202.50 310.00 $107.50 The firm sets the target price of each product at 150% of the product's total manufacturing cost. Recognizing that the firm was able to sell...
Traditional costing system allocate overhead based on a standard unit-based measure that ll products have in common machine hours, processing time or direct labor hours but these allocation measures assume all overhead cost are directly related to units produced. Company uses a standard allocation method for overhead of 400% of direct labor costs. to produce 100000 units of product A requires $35000 of direct material and $80000 of direct labor costs. To produce 3000 units of product B requires $12000...
Radakovich Corporation has provided the following data from its activity-based costing system: Activity Cost Pools Total Cost Total Activity Assembly $ 1,443,140 59,000 machine-hours Processing orders $ 80,905 2,750 orders Inspection $ 145,733 1,910 inspection-hours The company makes 890 units of product F60N a year, requiring a total of 2,070 machine-hours, 41 orders, and 35 inspection-hours per year. The product's direct materials cost is $56.46 per unit and its direct labor cost is $22.67 per unit. The product sells for...
Sky Plasties: Activity-Based Costing System Case Study Mr. Sami Sultan, Chairman of Sky Plastics, was studying a schedule showing the product costs for each of the company's three plastic water containers. He had been thinking of how to increase the while facing the international competition for plastic water containers. Usually, Sami time to review company's performance reports. Since profits were being made, Sami believed that company's exports did not spend a lot of accounting to was the responsibility of the...
please read carefully and give answer with working a Internal and External Linkages, Strategic Cost Management Maxwell Company produces a variety of kitchen appliances, including cooking ranges intensified. In order to maintain-and perhaps increase-its Maxwell's management increased. Furthermore, costs needed to be reduced so that the selling prices of its products could be reduced. After some i that many of its problems could be traced to the unreliability of the parts that were purchased from outside suppliers. Many of work...
1. 1000 points value Fellar Corp. has identified the following information Activity cost pools Materials handling Machine maintenance $60,000 51,750 Cost drivers Number of material moves Number of machine hours 960 75,000 1. Calculate the activity rate for each cost pool. (Round your answers to 2 decimal places.) Activity Rate Material Handling per Material Move Machine Maintenance per Machine Hour 2. Delermine the amount of overhead assigned to Fellar's producls if they have theolowing activity demands: (Round your intermediate calculations...
Activity based costing and management Opsonin Inc manufactures three products for the pharmaceuticals industry . product P annual sales, 8000 units. product Q annual sales, 15 000 units. product R : annual sales, 4000 units. The company uses a traditional, volume-based product costing system with manufacturing overhead applied on the basis of direct labour dollars. The product costs have been calculated as follows: Product P Product Q Product R $52.50 12.00 (0.6 hr x $20) 105.00 ($12x875%) Raw material Direct...
25-15 ACTIVITY-BASED COSTING AND ACTIVITY-BASED MANAGEMENT, AUTOMOTIVE SUPPLIER O'Sullivan Company is an automotive component supplier. O'Sullivan has been approached by Honda Canada's Alliston, Ontario, plant to consider expanding its production of part 24Ž2 to a total annual quantity of 2,000 units. This part is a low-volume, complex product with a high gross margin that is based on a proposed (quoted) unit sales price of $7.50. O'Sullivan uses a traditional costing system that allocates indirect manufacturing costs based on direct labour...