Test Bank for Fundamentals of Cost Accounting, 7th Edition by (Lanen/ Anderson/ Maher), ISBN: 9781264100842, All 18 Chapters Covered, Verified Latest Edition

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




VersionN1 1

,TABLE OF CONTENTS
N N N




INTRODUCTIONNANDNOVERVIEW
ChapterNOne:NCostNAccounting:NInformationNforNDecisionNMaking
ChapterNTwo:NCostNConceptsNandNBehavior


COSTNANALYSISNANDNESTIMATION
ChapterNThree:NFundamentalsNofNCost-Volume-ProfitNAnalysis
ChapterNFour:NFundamentalsNofNCostNAnalysisNforNDecisionNMaking
ChapterNFive:NCostNEstimation


COSTNMANAGEMENTNSYSTEMS
ChapterNSix:NFundamentalsNofNProductNandNServiceNCosting
ChapterNSeven:NJobNCosting
ChapterNEight:NProcessNCosting
ChapterNNine:NActivity-BasedNCosting
ChapterNTen:NFundamentalsNofNCostNManagement
ChapterNEleven:NServiceNDepartmentNandNJointNCostNAllocation


MANAGEMENTNCONTROLNSYSTEMS
ChapterNTwelve:NFundamentalsNofNManagementNControlNSystems
ChapterNThirteen:NPlanningNandNBudgeting
ChapterNFourteen:NBusinessNUnitNPerformanceNMeasurement
ChapterNFifteen:NTransferNPricing
ChapterNSixteen:NFundamentalsNofNVarianceNAnalysis
ChapterNSeventeen:NAdditionalNTopicsNinNVarianceNAnalysis
ChapterNEighteen:NPerformanceNMeasurementNtoNSupportNBusinessNStrategy N




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,Chapter 01 7e
N N N




Answers at the end of each chapter
N N N N N N




1) CarleyNIncorporatedNincursNmanyNtypesNofNcostsNinNitsNoperations.NPlaceNtheNnumberNofNth
eNappropriateNstageNinNtheNvalueNchainNinNColumnN2NinNtheNblankNnextNtoNeachNcostNinNColumnN1.
Cost StageNinNtheNValueNChain

TransportationNcostsNtoNshipNvansNtoNcustomers 1. CustomerNService
LaborNcostsNforNfactoryNworkers 2.NDistribution

OvertimeNcostsNforNscientistsNworkingNonNnewNengineNtec 3. ResearchN&NDe
hnology velopment
UtilitiesNcostNforNtheNdesignNtestingNcenter 4. Marketing
CostsNtoNsurveyNcustomersNaboutNtheirNsatisfaction
5. Production
CostsNtoNsponsorNaNsportingNevent 6.NDesign




2) SuperMaxNisNanNintegratedNproviderNofNgeneticallyNengineeredNcorn.NManyNtypesNofNcostsN
areNincurredNinNitsNoperations.NPlaceNtheNnumberNofNtheNappropriateNstageNinNtheNvalueNchainNinN
ColumnN2NinNtheNblankNnextNtoNeachNcostNinNColumnN1.
Cost StageNinNtheNValue
Chain
WarehouseNcostsNtoNstoreNseedNawaitingNshipmentNtoN 1. CustomerNService
customers
UtilityNcostsNforNseedNmill 2.NDistribution

EquipmentNcostsNinNgeneticsNlaboratory 3.NResearchN&
Development
LaborNcostsNtoNstaffNhelp-lineNcallNcenterN N 4.NMarketing

CostsNtoNprepareNadvertisingNcampaignNinNnationalNagricult 5. Production
ureNmagazine
CostsNtoNcontractNwithNgrowersNtoNprovideNseed 6. Design

VersionN1 3

, 3) Travon'sNLimoNServiceNprovidesNtransportationNservicesNinNandNaroundNBentonville.NItsNpr
ofitsNhaveNbeenNdeclining,NandNmanagementNisNplanningNtoNaddNaNpackageNdeliveryNserviceNthatNi
sNexpectedNtoNincreaseNrevenueNbyN$275,000NperNyear.NTheNtotalNcostNtoNleaseNadditionalNdelivery
NvehiclesNfromNtheNlocalNdealerNisN$60,000NperNyear.NTheNpresentNmanagerNwillNcontinueNtoNsuper


viseNallNservices.NHowever,NlaborNandNutilitiesNcostsNwillNincreaseNbyN40%NandNrentNandNotherNcost
sNwillNincreaseNbyN15%NwhenNtheNpackageNdeliveryNserviceNisNadded.

Travon’sNLimoNServiceNAnnualNIn
comeNStatement
Before Expansion
SalesNRevenue $N960,000

Costs:

VehicleNLeases $N400,000

Labor 290,000

Utilities 50,000

Rent 100,000

OtherNCosts 60,000

Manager’sNSalary 120,000

TotalNCosts 1,020,000

OperatingNProfitN(Loss) $N(60,000)



a. PrepareNaNreportNofNtheNdifferentialNcostsNandNrevenuesNifNtheNdeliveryNserviceNisNadded.
b. ShouldNmanagementNstartNupNtheNdeliveryNservice?NExplainNyourNanswer.




VersionN1 4