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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INTRODUCTIONwANDwOVERVIEW
ChapterwOne:wCostwAccounting:wInformationwforwDecisionwMaking
ChapterwTwo:wCostwConceptswandwBehavior


COSTwANALYSISwANDwESTIMATION
ChapterwThree:wFundamentalswofwCost-Volume-ProfitwAnalysis
ChapterwFour:wFundamentalswofwCostwAnalysiswforwDecisionwMaking
ChapterwFive:wCostwEstimation


COSTwMANAGEMENTwSYSTEMS
ChapterwSix:wFundamentalswofwProductwandwServicewCosting
ChapterwSeven:wJobwCosting
ChapterwEight:wProcesswCosting
ChapterwNine:wActivity-BasedwCosting
ChapterwTen:wFundamentalswofwCostwManagement
ChapterwEleven:wServicewDepartmentwandwJointwCostwAllocation


MANAGEMENTwCONTROLwSYSTEMS
ChapterwTwelve:wFundamentalswofwManagementwControlwSystems
ChapterwThirteen:wPlanningwandwBudgeting
ChapterwFourteen:wBusinesswUnitwPerformancewMeasurement
ChapterwFifteen:wTransferwPricing
ChapterwSixteen:wFundamentalswofwVariancewAnalysis
ChapterwSeventeen:wAdditionalwTopicswinwVariancewAnalysis
ChapterwEighteen:wPerformancewMeasurementwtowSupportwBusinesswStrategy w




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,Chapter 01 7w w


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Answers at the end of each chapter
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1) CarleywIncorporatedwincurswmanywtypeswofwcostswinwitswoperations.wPlacewthewnumb
erwofwthewappropriatewstagewinwthewvaluewchainwinwColumnw2winwthewblankwnextwtoweachwcostwi
nwColumnw1.
Cost StagewinwthewValuewChain

Transportationwcostswtowshipwvanswtowcustome 1. CustomerwService
rs
Laborwcostswforwfactorywworkers 2.wDistribution

Overtimewcostswforwscientistswworkingwonwnewwengi 3. Researchw&w
newtechnology Development
Utilitieswcostwforwthewdesignwtestingwcenter 4. Marketing
Costswtowsurveywcustomerswaboutwtheirwsatisfaction
5. Production
Costswtowsponsorwawsportingwevent 6.wDesign




2) SuperMaxwiswanwintegratedwproviderwofwgeneticallywengineeredwcorn.wManywtypeswo
fwcostswarewincurredwinwitswoperations.wPlacewthewnumberwofwthewappropriatewstagewinwthewv
aluewchainwinwColumnw2winwthewblankwnextwtoweachwcostwinwColumnw1.
Cost StagewinwthewValue
Chain
Warehousewcostswtowstorewseedwawaitingwshipme 1. CustomerwService
ntwtowcustomers
Utilitywcostswforwseedwmill 2.wDistribution

Equipmentwcostswinwgeneticswlaboratory 3.wResearchw&
Development
Laborwcostswtowstaffwhelp-linewcallwcenterww 4.wMarketing

Costswtowpreparewadvertisingwcampaignwinwnationalwa 5. Production
griculturewmagazine
Costswtowcontractwwithwgrowerswtowprovidewseed 6. Design
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, 3) Travon'swLimowServicewprovideswtransportationwserviceswinwandwaroundwBentonville
.wItswprofitswhavewbeenwdeclining,wandwmanagementwiswplanningwtowaddwawpackagewdeliveryw
servicewthatwiswexpectedwtowincreasewrevenuewbyw$275,000wperwyear.wThewtotalwcostwtowleas
ewadditionalwdeliverywvehicleswfromwthewlocalwdealerwisw$60,000wperwyear.wThewpresentwman
agerwwillwcontinuewtowsupervisewallwservices.wHowever,wlaborwandwutilitieswcostswwillwincreas
ewbyw40%wandwrentwandwotherwcostswwillwincreasewbyw15%wwhenwthewpackagewdeliverywservi
cewiswadded.

Travon’swLimowServicewAnnu
alwIncomewStatement
Before Expansion
SaleswRevenue $w960,000

Costs:

VehiclewLeases $w400,000

Labor 290,000

Utilities 50,000

Rent 100,000

OtherwCosts 60,000

Manager’swSalary 120,000

TotalwCosts 1,020,000

OperatingwProfitw(Loss) $w(60,000)



a. Preparewawreportwofwthewdifferentialwcostswandwrevenueswifwthewdeliverywservicewiswadded.
b. Shouldwmanagementwstartwupwthewdeliverywservice?wExplainwyourwanswer.




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