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

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




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,TABLE OF CONTENTS ho ho ho




INTRODUCTION AND OVERVIEW ho ho




Chapter One: Cost Accounting: Information for Decision Making
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Chapter Two: Cost Concepts and Behavior
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COST ANALYSIS AND ESTIMATION
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Chapter Three: Fundamentals of Cost-Volume-Profit Analysis
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Chapter Four: Fundamentals of Cost Analysis for Decision Making
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Chapter Five: Cost Estimation
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COST MANAGEMENT SYSTEMS
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Chapter Six: Fundamentals of Product and Service Costing
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Chapter Seven: Job Costing
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Chapter Eight: Process Costing
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Chapter Nine: Activity-Based Costing
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Chapter Ten: Fundamentals of Cost Management
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Chapter Eleven: Service Department and Joint Cost Allocation
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MANAGEMENT CONTROL SYSTEMS ho ho




Chapter Twelve: Fundamentals of Management Control Systems
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Chapter Thirteen: Planning and Budgeting
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Chapter Fourteen: Business Unit Performance Measurement
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Chapter Fifteen: Transfer Pricing
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Chapter Sixteen: Fundamentals of Variance Analysis
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Chapter Seventeen: Additional Topics in Variance Analysis
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Chapter Eighteen: Performance Measurement to Support Business Strategy
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,Chapter017e ho ho ho




Answers at the end of each chapter ho ho ho ho ho ho




1) Carley Incorporated incurs many types of costs in its operations. Place the number of the appr
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opriate stage in the value chain in Column 2 in the blank next to each cost in Column 1.
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Cost Stagein the Value Chain ho ho ho ho




Transportationcoststoshipvansto customers ho ho ho ho ho ho 1. CustomerService ho




Labor costs for factory workers ho ho ho ho 2. Distribution
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Overtimecostsforscientistsworkingon new engine technol o
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ogy elopment
Utilitiescostforthedesigntesting center ho ho ho ho ho ho 4. Marketing
Coststosurveycustomersabouttheir satisfaction
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5. Production
Costs to sponsor a sporting event ho ho ho ho ho 6. Design ho




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




urred in its operations. Place the number of the appropriate stage in the value chain in Column 2 in th
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e blank next to each cost in Column 1.
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Cost Stagein the Value ho ho ho




Chain
Warehousecoststostoreseedawaiting shipment to cust ho ho ho o
h ho ho ho ho 1. CustomerService ho




omers
Utility costs for seed mill ho ho ho ho 2. Distribution
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Equipmentcosts in genetics laboratory ho ho ho ho 3. Research &
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Development
Labor costs to staff help-line call center 4. Marketing
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Coststoprepareadvertisingcampaignin national agriculture
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magazine
Coststocontractwith growerstoprovide seed
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6. Design

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, 3) Travon's Limo Service provides transportation services in and around Bentonville. Its profits h
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ave been declining, and management is planning to add a package delivery service that is expected to
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increase revenue by $275,000 per year. The total cost to lease additional delivery vehicles from the lo
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cal dealer is $60,000 per year. The present manager will continue to supervise all services. However, l
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abor and utilities costs will increase by 40% and rent and other costs will increase by 15% when the pac
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kage delivery service is added.
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Travon’s Limo Service AnnualInco ho ho ho o
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meStatement o
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Before Expansion
Sales Revenue ho $ 960,000
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Costs:

Vehicle Leases ho $ 400,000
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Labor 290,000

Utilities 50,000

Rent 100,000

Other Costs ho 60,000

Manager’sSalary o
h 120,000

Total Costs ho 1,020,000

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




a. Prepare a report of the differential costs and revenues if the delivery service is added.
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b. Should management start up the delivery service? Explain your answer.
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