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




Version 1
ud 1

,TABLE OF CONTENTS ud ud ud




INTRODUCTION AND OVERVIEW ud ud




Chapter One: Cost Accounting: Information for Decision Making
ud ud ud ud ud ud ud




Chapter Two: Cost Concepts and Behavior
ud ud ud ud ud




COST ANALYSIS AND ESTIMATION
ud ud ud




Chapter Three: Fundamentals of Cost-Volume-Profit Analysis
ud ud ud ud ud




Chapter Four: Fundamentals of Cost Analysis for Decision Making
ud ud ud ud ud ud ud ud




Chapter Five: Cost Estimation
ud ud ud




COST MANAGEMENT SYSTEMS
ud ud




Chapter Six: Fundamentals of Product and Service Costing
ud ud ud ud ud ud ud




Chapter Seven: Job Costing
ud ud ud




Chapter Eight: Process Costing
ud ud ud




Chapter Nine: Activity-Based Costing
ud ud ud




Chapter Ten: Fundamentals of Cost Management
ud ud ud ud ud




Chapter Eleven: Service Department and Joint Cost Allocation
ud ud ud ud ud ud ud




MANAGEMENT CONTROL SYSTEMS ud ud




Chapter Twelve: Fundamentals of Management Control Systems
ud ud ud ud ud ud




Chapter Thirteen: Planning and Budgeting
ud ud ud ud




Chapter Fourteen: Business Unit Performance Measurement
ud ud ud ud ud




Chapter Fifteen: Transfer Pricing
ud ud ud




Chapter Sixteen: Fundamentals of Variance Analysis
ud ud ud ud ud




Chapter Seventeen: Additional Topics in Variance Analysis
ud ud ud ud ud ud




Chapter Eighteen: Performance Measurement to Support Business Strategy
ud ud ud ud ud ud ud ud




Version 1 ud 2

,Chapter01 7e ud ud ud




Answers at the end of each chapter ud ud ud ud ud ud




1) Carley Incorporated incurs many types of costs in its operations. Place the number of the appr
ud ud ud ud ud ud ud ud ud ud ud ud ud ud ud




opriate stage in the value chain in Column 2 in the blank next to each cost in Column 1.
ud ud ud ud ud ud ud ud ud ud ud ud ud ud ud ud ud ud




Cost Stagein the Value Chain ud ud ud ud




Transportationcoststoshipvansto customers ud ud ud ud ud ud 1. CustomerService ud




Labor costs for factory workers ud ud ud ud 2. Distribution
ud




Overtimecostsforscientistsworkingon new engine technol d
u ud d
u d
u ud ud ud ud 3. Research& Dev d
u ud




ogy elopment
Utilitiescostforthedesigntesting center ud ud ud ud ud ud 4. Marketing
Coststosurveycustomersabouttheir satisfaction
ud ud ud ud ud ud




5. Production
Costs to sponsor a sporting event ud ud ud ud ud 6. Design ud




2) SuperMax is an integrated provider of genetically engineered corn. Many types of costs are inc ud ud ud ud ud ud ud ud ud ud ud ud ud ud




urred in its operations. Place the number of the appropriate stage in the value chain in Column 2 in th
ud ud ud ud ud ud ud ud ud ud ud ud ud ud ud ud ud ud ud




e blank next to each cost in Column 1.
ud ud ud ud ud ud ud ud




Cost Stagein the Value ud ud ud




Chain
Warehousecoststostoreseedawaiting shipment to cust ud ud ud d
u ud ud ud ud 1. CustomerService ud




omers
Utility costs for seed mill ud ud ud ud 2. Distribution
ud




Equipmentcosts in genetics laboratory ud ud ud ud 3. Research &
ud ud




Development
Labor costs to staff help-line call center 4. Marketing
ud ud ud ud ud ud u d u d ud




Coststoprepareadvertisingcampaignin national agriculture
ud ud ud ud ud ud ud ud 5. Production
magazine
Coststo contractwith growersto provide seed
ud ud ud ud ud ud ud
6. Design

Version 1 ud 3

, 3) Travon's Limo Service provides transportation services in and around Bentonville. Its profits h
ud ud ud ud ud ud ud ud ud ud ud ud




ave been declining, and management is planning to add a package delivery service that is expected to
ud ud ud ud ud ud ud ud ud ud ud ud ud ud ud ud ud




increase revenue by $275,000 per year. The total cost to lease additional delivery vehicles from the lo
ud ud ud ud ud ud ud ud ud ud ud ud ud ud ud ud




cal dealer is $60,000 per year. The present manager will continue to supervise all services. However, l
ud ud ud ud ud ud ud ud ud ud ud ud ud ud ud ud




abor and utilities costs will increase by 40% and rent and other costs will increase by 15% when the pac
ud ud ud ud ud ud ud ud ud ud ud ud ud ud ud ud ud ud ud




kage delivery service is added.
ud ud ud ud




Travon’s Limo Service AnnualInco ud ud ud d
u




meStatement d
u




Before Expansion
Sales Revenue ud $ 960,000
ud




Costs:

Vehicle Leases ud $ 400,000
ud




Labor 290,000

Utilities 50,000

Rent 100,000

Other Costs ud 60,000

Manager’sSalary d
u 120,000

Total Costs ud 1,020,000

OperatingProfit(Loss) ud ud $ (60,000) ud




a. Prepare a report of the differential costs and revenues if the delivery service is added.
ud ud ud ud ud ud ud ud ud ud ud ud ud ud




b. Should management start up the delivery service? Explain your answer.
ud ud ud ud ud ud ud ud ud




Version 1 ud 4