Test Bank for Fundamentals of Cost Accounting, 7th Edition by (Lanen/ Anderson/ Maher), ISBN: 9781264100842, All 18 Chapters Covered, Verified Latest Edition

TEST BANK
Fundamentals of Cost Accounting, 7th Edition
by Lanen & Maher Chapters 1 - 18




VersionS1 1

,TABLE OF CONTENTS
S S S




INTRODUCTIONSANDSOVERVIEW
ChapterSOne:SCostSAccounting:SInformationSforSDecisionSMaking
ChapterSTwo:SCostSConceptsSandSBehavior


COSTSANALYSISSANDSESTIMATION
ChapterSThree:SFundamentalsSofSCost-Volume-ProfitSAnalysis
ChapterSFour:SFundamentalsSofSCostSAnalysisSforSDecisionSMaking
ChapterSFive:SCostSEstimation


COSTSMANAGEMENTSSYSTEMS
ChapterSSix:SFundamentalsSofSProductSandSServiceSCosting
ChapterSSeven:SJobSCosting
ChapterSEight:SProcessSCosting
ChapterSNine:SActivity-BasedSCosting
ChapterSTen:SFundamentalsSofSCostSManagement
ChapterSEleven:SServiceSDepartmentSandSJointSCostSAllocation


MANAGEMENTSCONTROLSSYSTEMS
ChapterSTwelve:SFundamentalsSofSManagementSControlSSystems
ChapterSThirteen:SPlanningSandSBudgeting
ChapterSFourteen:SBusinessSUnitSPerformanceSMeasurement
ChapterSFifteen:STransferSPricing
ChapterSSixteen:SFundamentalsSofSVarianceSAnalysis
ChapterSSeventeen:SAdditionalSTopicsSinSVarianceSAnalysis
ChapterSEighteen:SPerformanceSMeasurementStoSSupportSBusinessSStrategy S




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,Chapter 01 7S S


eS




Answers at the end of each chapter
S S S S S S




1) CarleySIncorporatedSincursSmanyStypesSofScostsSinSitsSoperations.SPlaceStheSnumb
erSofStheSappropriateSstageSinStheSvalueSchainSinSColumnS2SinStheSblankSnextStoSeachScos
tSinSColumnS1.
Cost StageSinStheSValueSChain

TransportationScostsStoSshipSvansStoScustome 1. CustomerSService
rs
LaborScostsSforSfactorySworkers 2.SDistribution

OvertimeScostsSforSscientistsSworkingSonSnewSengi 3. ResearchS&S
neStechnology Development
UtilitiesScostSforStheSdesignStestingScenter 4. Marketing
CostsStoSsurveyScustomersSaboutStheirSsatisfaction
5. Production
CostsStoSsponsorSaSsportingSevent 6.SDesign




2) SuperMaxSisSanSintegratedSproviderSofSgeneticallySengineeredScorn.SManyStypesS
ofScostsSareSincurredSinSitsSoperations.SPlaceStheSnumberSofStheSappropriateSstageSinSth
eSvalueSchainSinSColumnS2SinStheSblankSnextStoSeachScostSinSColumnS1.
Cost StageSinStheSValue
Chain
WarehouseScostsStoSstoreSseedSawaitingSshipm 1. CustomerSService
entStoScustomers
UtilityScostsSforSseedSmill 2.SDistribution

EquipmentScostsSinSgeneticsSlaboratory 3.SResearchS&
Development
LaborScostsStoSstaffShelp-lineScallScenterS S 4.SMarketing

CostsStoSprepareSadvertisingScampaignSinSnationalS 5. Production
agricultureSmagazine
CostsStoScontractSwithSgrowersStoSprovideSseed 6. Design
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, 3) Travon'sSLimoSServiceSprovidesStransportationSservicesSinSandSaroundSBentonvill
e.SItsSprofitsShaveSbeenSdeclining,SandSmanagementSisSplanningStoSaddSaSpackageSdelive
rySserviceSthatSisSexpectedStoSincreaseSrevenueSbyS$275,000SperSyear.STheStotalScostStoSl
easeSadditionalSdeliverySvehiclesSfromStheSlocalSdealerSisS$60,000SperSyear.STheSpresent
SmanagerSwillScontinueStoSsuperviseSallSservices.SHowever,SlaborSandSutilitiesScostsSwillSi


ncreaseSbyS40%SandSrentSandSotherScostsSwillSincreaseSbyS15%SwhenStheSpackageSdeliv
erySserviceSisSadded.

Travon’sSLimoSServiceSAnnu
alSIncomeSStatement
Before Expansion
SalesSRevenue $S960,000

Costs:

VehicleSLeases $S400,000

Labor 290,000

Utilities 50,000

Rent 100,000

OtherSCosts 60,000

Manager’sSSalary 120,000

TotalSCosts 1,020,000

OperatingSProfitS(Loss) $S(60,000)



a. PrepareSaSreportSofStheSdifferentialScostsSandSrevenuesSifStheSdeliverySserviceSisSadded.
b. ShouldSmanagementSstartSupStheSdeliverySservice?SExplainSyourSanswer.




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