TEST BANK FOR FUNDAMENTALS OF COST ACCOUNTING, 7TH EDITION (LANEN,2022) ALL CHAPTERS 1 - 18

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




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,TABLE OF CONTENTS
z z z




INTRODUCTIONzANDzOVERVIEW
ChapterzOne:zCostzAccounting:zInformationzforzDecisionzMaking
ChapterzTwo:zCostzConceptszandzBehavior


COSTzANALYSISzANDzESTIMATION
ChapterzThree:zFundamentalszofzCost-Volume-ProfitzAnalysis
ChapterzFour:zFundamentalszofzCostzAnalysiszforzDecisionzMaking
ChapterzFive:zCostzEstimation


COSTzMANAGEMENTzSYSTEMS
ChapterzSix:zFundamentalszofzProductzandzServicezCosting
ChapterzSeven:zJobzCosting
ChapterzEight:zProcesszCosting
ChapterzNine:zActivity-BasedzCosting
ChapterzTen:zFundamentalszofzCostzManagement
ChapterzEleven:zServicezDepartmentzandzJointzCostzAllocation


MANAGEMENTzCONTROLzSYSTEMS
ChapterzTwelve:zFundamentalszofzManagementzControlzSystems
ChapterzThirteen:zPlanningzandzBudgeting
ChapterzFourteen:zBusinesszUnitzPerformancezMeasurement
ChapterzFifteen:zTransferzPricing
ChapterzSixteen:zFundamentalszofzVariancezAnalysis
ChapterzSeventeen:zAdditionalzTopicszinzVariancezAnalysis
ChapterzEighteen:zPerformancezMeasurementztozSupportzBusinesszStrategy z




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,Chapterz01z7
ez



Answers at the end of each chapter
z z z z z z




1) CarleyzIncorporatedzincurszmanyztypeszofzcostszinzitszoperations.zPlaceztheznumb
erzofzthezappropriatezstagezinzthezvaluezchainzinzColumnz2zinzthezblankznextztozeachzcostz
inzColumnz1.
Cost StagezinzthezValuezChain

Transportationzcostsztozshipzvansztozcustome 1. CustomerzService
rs
Laborzcostszforzfactoryzworkers 2.zDistribution

Overtimezcostszforzscientistszworkingzonznewzengi 3. Researchz&z
neztechnology Development
Utilitieszcostzforzthezdesignztestingzcenter 4. Marketing
Costsztozsurveyzcustomerszaboutztheirzsatisfaction
5. Production
Costsztozsponsorzazsportingzevent 6.zDesign




2) SuperMaxziszanzintegratedzproviderzofzgeneticallyzengineeredzcorn.zManyztypesz
ofzcostszarezincurredzinzitszoperations.zPlaceztheznumberzofzthezappropriatezstagezinzthe
zvaluezchainzinzColumnz2zinzthezblankznextztozeachzcostzinzColumnz1.

Cost StagezinzthezValue
Chain
Warehousezcostsztozstorezseedzawaitingzshipme 1. CustomerzService
ntztozcustomers
Utilityzcostszforzseedzmill 2.zDistribution

Equipmentzcostszinzgeneticszlaboratory 3.zResearchz&
Development
Laborzcostsztozstaffzhelp-linezcallzcenterz z 4.zMarketing

Costsztozpreparezadvertisingzcampaignzinznationalza 5. Production
griculturezmagazine
Costsztozcontractzwithzgrowersztozprovidezseed 6. Design
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, 3) Travon'szLimozServicezprovidesztransportationzserviceszinzandzaroundzBentonville
.zItszprofitszhavezbeenzdeclining,zandzmanagementziszplanningztozaddzazpackagezdelivery
zservicezthatziszexpectedztozincreasezrevenuezbyz$275,000zperzyear.zTheztotalzcostztozlea

sezadditionalzdeliveryzvehicleszfromzthezlocalzdealerzisz$60,000zperzyear.zThezpresentzma
nagerzwillzcontinueztozsupervisezallzservices.zHowever,zlaborzandzutilitieszcostszwillzincrea
sezbyz40%zandzrentzandzotherzcostszwillzincreasezbyz15%zwhenzthezpackagezdeliveryzser
viceziszadded.

Travon’szLimozServicezAnnu
alzIncomezStatement
Before Expansion
SaleszRevenue $z960,000

Costs:

VehiclezLeases $z400,000

Labor 290,000

Utilities 50,000

Rent 100,000

OtherzCosts 60,000

Manager’szSalary 120,000

TotalzCosts 1,020,000

OperatingzProfitz(Loss) $z(60,000)



a. Preparezazreportzofzthezdifferentialzcostszandzrevenueszifzthezdeliveryzserviceziszadded.
b. Shouldzmanagementzstartzupzthezdeliveryzservice?zExplainzyourzanswer.




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