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
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INTRODUCTION AND OVERVIEW wn wn




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 wn wn




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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Answers at the end of each chapter wn wn wn wn wn wn




1) Carley Incorporated incurs many types of costs in its operations. Place the number of the a
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ppropriate stage in the value chain in Column 2 in the blank next to each cost in Column 1.
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Cost Stage in the Value Chain
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Transportation costs to ship vans to customers wn wn wn wn wn wn 1. Customer Service wn




Labor costs for factory workers
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Overtime costs for scientists working on new engine techn
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ology velopment
Utilities cost for the design testing center
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Costs to survey customers about their satisfaction
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5. Production
Costs to sponsor a sporting event
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2) SuperMax is an integrated provider of genetically engineered corn. Many types of costs ar
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e incurred in its operations. Place the number of the appropriate stage in the value chain in Colu
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mn 2 in the blank next to each cost in Column 1.
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Cost Stage in the Value wn wn wn




Chain
Warehouse costs to store seed awaiting shipment to cu wn wn wn wn wn wn wn wn 1. Customer Service wn




stomers
Utility costs for seed mill
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Equipment costs in genetics laboratory wn wn wn wn 3. Research &
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Development
Labor costs to staff help-line call center 4. Marketing
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Costs to prepare advertising campaign in national agricultur
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e magazine
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Costs to contract with growers to provide seed
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6. Design

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, 3) Travon's Limo Service provides transportation services in and around Bentonville. Its profi
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ts have been declining, and management is planning to add a package delivery service that is exp
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ected to increase revenue by $275,000 per year. The total cost to lease additional delivery vehicle
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s from the local dealer is $60,000 per year. The present manager will continue to supervise all ser
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vices. However, labor and utilities costs will increase by 40% and rent and other costs will increas
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e by 15% when the package delivery service is added.
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Travon’s Limo Service Annual Inc wn wn wn wn




ome Statement wn




Before Expansion
Sales Revenue wn $ 960,000
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Costs:

Vehicle Leases wn $ 400,000wn




Labor 290,000

Utilities 50,000

Rent 100,000

Other Costs wn 60,000

Manager’s Salary wn 120,000

Total Costs wn 1,020,000

Operating Profit (Loss) wn wn $ (60,000)wn




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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