Cost Accounting - 134556 Words

Solutions Manual for COST ACCOUNTING Creating Value for Management Fifth Edition MICHAEL MAHER University of California, Davis Table of Contents Chapter 1 Cost Accounting: How Managers User Cost Accounting Information Chapter 15 Using Differential Analysis for Production Decisions Chapter 2 Cost Concepts and Behaviour Chapter 16 Managing Quality and Time Chapter 3 Cost System Design: An Overview Chapter 17 Planning and Budgeting Chapter 4 Job Costing Chapter 18 Flexible Budgeting and Performance Evaluation Chapter 5 Process Costing Chapter 19 Performance Evaluation: Cost Variances Chapter 6 Spoilage and Quality Management Chapter 20 Chapter 7 Allocating Costs to Departments†¦show more content†¦Nonvalue-added activities do not add value to the goods or services. 1–4. Differential costs are important for managerial decision making, but other cost data can provide management with additional important information. For example, inventory values and costs of goods sold are important for income tax and financial reporting purposes as well as for most bonus and cost-plus contracting purposes. Costs for performance evaluation are not necessarily differential costs. Companies try to recover all costs, hence some estimate of total costs is needed. (This could be an opportunity to discuss short-run and long-run costs with students, noting that in the long run, all costs must be covered.)  © The McGraw-Hill Companies, Inc., 1997 Solutions Manual, Chapter 1 1 1–5. Costs that could be shared among housemates might include a share of the rent, food, utilities, and other related costs. Costs that would differ with the addition of another person are the differential costs. These differential costs might include food. It would be necessary to negotiate an agreement between you and the other person considering all factors. For example, should you split the total costs or charge only the differential costs of the additional person. Businesses are often faced with similar decisions on finding the appropriate cost base for splitting costs. There are no generally acceptedShow MoreRelatedIn The World Of Accounting, Cost Accounting Serves As Managers1472 Words   |  6 PagesIn the world of accounting, cost accounting serves as managers go to system for cost information. As previously mentioned, cost accounting is a specialized subset of accounting that collects, determines, classifies, and interpret the cost of products or services. In ad dition, the concepts of cost accounting are to account for the incurrence and control of cost and measure the operating efficiency of a company on a periodical basis. â€Å"Cost accounting, as defined here, deals with the rest when, andRead MoreCost Management Techniques And Accounting Principles937 Words   |  4 Pagesâ€Å"Cost management techniques and accounting principles used in the 1950s and 1960s have not changed dramatically in their ability to help in managing the development and innovation in productivity and business philosophy.† (Northrup, 2004, p. 2) Ideally businesses running today use the same methodology which was used in the past 60 years however, management procedures over the past century has changed. If we were to look in the past, we would understand that most manufacturing industries began toRead MoreCost Accounting11189 Words   |  45 PagesChapter 1 Basic Cost Concepts Learning Objectives †¢ To understand the meaning of different costing terms to understand different costing methods †¢ To have a basic idea of different costing techniques †¢ To understand the meaning of cost sheet In order to determine and take a dispassionate view about what lies beneath the surface of accounting figures, a financial analyst has to make use of different management accounting techniques. Cost techniques have a precedence over the otherRead MoreCost Accounting2334 Words   |  10 PagesMultiple Choice Questions 16. Which terms would make the following sentence true? Manufacturing companies that benefit the most from activity-based costing are those where overhead costs are a _________ percentage of total product cost and where there is ___________ diversity among the various products that they produce. A) low, little B) low, considerable C) high, little D) high, considerable 17. Would factory security and assemblyRead MoreCost Accounting1002 Words   |  5 Pagesï » ¿ Peanuts and Cost Accounting A problem faced by a Restaurateur (Joe) as revealed by his Accountant-Efficiency Expert (Eff. Ex.) EFF. EX.   Joe, you said you put in these peanuts because some people ask for them, but do you realize what this rack of peanuts is costing you? JOE   It ain t gonna cost. Sgonna be a profit. Sure, I hadda pay $25 for a fancy rack to holda bags, but the peanuts cost 6 cents and I sell em for 10 cents. Figger I sell 50 bags a week to start. It ll take 12  ½Read MoreImpact of Cost Accounting3133 Words   |  13 PagesIMPACT OF COST ACCOUNTING ON FINANCIAL DECISION INTRODUCTION In the modern business world, the nature and functioning of business organizations have become very complicated. They have to serve the needs of variety of parties who are interested in the functioning of the business. These parties constitute the owners, creditors, employees, government agencies, tax authorities, prospective investors, and last but not the least the management of the business. The business has to serve the needsRead MoreCost Accounting : Cost Audit Essay1615 Words   |  7 PagesMEANING OF COST AUDIT Cost audit is basically the analysis of cost accounts and also checking on the efficiency of cost accounts and to ensure that these accounts are matching the predetermined cost accounting plans. It also determines the accuracy of the cost accounts. They also ensure that the accounts conform to the principles, plans, procedures and objectives. It shows the deviation in plans. It is also known as efficiency audit as it checks the efficiency of working of predetermined plans. ItRead MoreCost Accounting1112 Words   |  5 Pagespoints | | | |  |Jensen Company has relevant costs of $80 per unit to manufacture Part A. A current supplier offers to make Part A for | | | | | |$70 per unit. If capacity is constrained, the opportunity cost of buying Part A from the supplier is: | | | | | |Answer Read More244142550 Principles Of Cost Accounting7232 Words   |  29 PagesPrinciples of Cost Accounting Vanderbeck 16th Edition Test Bank Click here to download the test bank INSTANTLY!!! http://www.solutionsmanualtestbank.com/products/2013/04/29/principles-of-costaccounting-vanderbeck-16th-edition-test-bank Principles of Cost Accounting Vanderbeck 16th Edition Test Bank Principles of Cost Accounting Vanderbeck 16th Edition Test Bank ***THIS IS NOT THE ACTUAL TEXTBOOK. YOU ARE PURCHASING the Test Bank in e-version of the following textbook*** Name: Principles of Cost AccountingRead MoreCost Accounting Practices1869 Words   |  8 PagesSOAL LATIHAN CHAPTER 18 ASISTENSI COST ACCOUNTING UNIVERSITAS BAKRIE 1. 18-16 The following data, in physical units, describe a grinding process for January : WIP, beginning 19,000 Started during current period 150,000 To account for 169,000 Spoiled units 12,000 Good units completed and transferred out 132,000 WIP,ending 25,000 Accounted for 169,000 Inspection occurs at the 100% completion stage. Normal spoilage is 5 % of the good units passing inspection