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 id id id




INTRODUCTION AND OVERVIEW id id




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 id id




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 d
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Answers at the end of each chapter id id id id id id




1) Carley Incorporated incurs many types of costs in itsoperations. Placethenumber of the appro
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priate stage in the value chain in Column 2 in the blank next to each cost in Column 1.
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Cost Stagein theValue Chain d
i d
i d
i id




Transportationcoststoshipvansto customers d
i d
i d
i d
i d
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Laborcostsforfactoryworkers d
i d
i d
i d
i 2.Distribution
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Overtimecostsforscientistsworkingon new engine technolo d
i d
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i d
i d
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gy elopment
Utilitiescostforthedesigntesting center d
i d
i d
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Coststosurveycustomersabouttheir satisfaction
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5. Production
Coststosponsorasporting event d
i d
i d
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2) SuperMaxisanintegratedproviderofgenetically engineeredcorn.Manytypesof costs are inc id id id id id id id id id id id id id id




urred in its operations. Place the number of the appropriate stage in the value chain in Column 2 in the
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blank next to each cost in Column 1.
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Cost Stagein the Value d
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Chain
Warehousecoststostoreseedawaiting shipment to custo d
i d
i d
i d
i d
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mers
Utilitycostsforseedmill d
i d
i d
i d
i 2.Distribution
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Equipmentcostsingeneticslaboratory d
i d
i id d
i 3.Research&
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Development
Laborcoststo staff help-linecallcenter 4.Marketing
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i d
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i d
i d
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Coststoprepareadvertisingcampaignin national agriculture
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i d
i d
i d
i d
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magazine
Coststocontractwithgrowerstoprovide 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 i
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ncrease revenue by $275,000 per year. The total cost to lease additional delivery vehicles from the loca
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l dealer is $60,000 per year. The present manager will continue to superviseall services. However, labo
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r and utilities costswill increaseby 40% and rent andother costs will increase by 15% when the package
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delivery service is added. id id id




Travon’s Limo Service AnnualInco id id id d
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meStatementd
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Before Expansion
SalesRevenue d
i $ 960,000 id




Costs:

VehicleLeases d
i $ 400,000
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Labor 290,000

Utilities 50,000

Rent 100,000

OtherCosts d
i 60,000

Manager’sSalary d
i 120,000

TotalCosts d
i 1,020,000

OperatingProfit(Loss) d
i d
i $ (60,000)
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a. Preparea 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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