管理会计双语课程习题chapter-2

1、CH02COSTMANAGEMENTCONCEPTSANDCOSTBEHAVIORTRUE/FALSEThereisnosingledefinitionofcost.TrueFalseTheroleofthemanagementaccountantistotailorthecostcalculationtofitthecurrentdecisionsituation.TrueFalseAcostthatisusefulforonedecisionmaynotbeusefulinformationforanotherdecision.TrueFalseInmostorganizations,ma

2、nagingnonmanufacturingcostsaswellasmanufacturingcostsisimportantforfinancialsuccess.TrueFalseThecostofacustomizedmachineonlyusedintheproductionofasingleproductwouldbeclassifiedasadirectcost.TrueFalseThewagesofaplantsupervisorwouldbeclassifiedasaperiodcost.TrueFalseTheclassificationofproductandperiod

3、costsisparticularlyvaluableinmanagementaccounting.TrueFalseForexternalreporting,generallyacceptedaccountingprinciplesrequirethatcostsbeclassifiedaseitherflexibleorcapacity-relatedcosts.TrueFalseKnowingwhetheracostisaperiodoraproductcosthelpstoestimatetotalcostatanewlevelofactivity.TrueFalseFlexiblec

4、ostsarealwaysdirectcosts.TrueFalseCapacity-relatedcostsvarywiththelevelofproductionorsalesvolume.TrueFalseCurrently,mostpersonnelcostsareclassifiedascapacity-relatedcosts.TrueFalseSomecapacity-relatedcostsmightbeclassifiedasdirectmanufacturingcosts.TrueFalseCapacity-relatedcostsdependontheresourcesu

5、sed,nottheresourcesacquired.TrueFalseBreak-evenpointisNOTanimportantconceptsincethegoalofbusinessistomakeaprofit.TrueFalseToperformcost-volume-profitanalysis,acompanymustbeabletoseparatecostsintocapacity-relatedandflexiblecomponents.TrueFalseCost-volume-profitanalysismaybeusedforsingle-productandmul

6、tiproductanalysis.TrueFalseSellingpriceperunitis$30,flexiblecostperunitis$15,andcapacity-relatedcostperunitis$10.Whenthiscompanyoperatesabovethebreak-evenpoint,thesaleofonemoreunitwillincreasenetincomeby$5.a.Trueb.FalseAcompanywithsalesof$100,000,flexiblecostsof$70,000,andcapacity-relatedcostsof$50,

7、000willreachitsbreak-evenpointifsalesareincreasedby$20,000.a.Trueb.FalseInmultiproductsituationswhenthesalesmixshiftstowardtheproductwiththelowestcontributionmargin,thebreak-evenquantitywilldecrease.TrueFalseTheopportunitycostofaresourceiszeroifthereisexcesscapacityofthatresource.TrueFalseWhenafirmm

8、aximizesprofitsitwillsimultaneouslyminimizeopportunitycosts.a.Trueb.FalseEvenwhentheonlyconstraintlimitingproductionismachinetime,acompanyshouldbemostconcernedwithmaximizingcontributionmarginperunit.a.Trueb.FalseThetimeoverwhichadecisionmakercanadjustcapacityisreferredtoastheshortrun.a.Trueb.FalseFo

9、rgeneralcustomers,thepricechargedforaproductmustcoveritslong-runcosttotheorganization.a.Trueb.FalseInrecentyears,capacity-relatedcostshaveincreasedasaproportionoftotalmanufacturingcosts.a.Trueb.FalseMachinesetupcostsareusuallyclassifiedasabusiness-sustainingactivity.a.Trueb.FalseThebenefitsofclassif

10、yingactivitiesusingthebroaderframeworkofunit-related,batch-related,product-sustaining,customer-sustaining,andbusiness-sustainingactivitiesaretherearegenerallymorecoststhataredirectlytraceabletocostobjects.a.Trueb.FalseProductlife-cyclecostinghelpsorganizationsdecidewhetheranewproductshouldbelaunched

11、.a.Trueb.FalseMULTIPLECHOICEAnexampleofacostobjectis:aproductacustomeradepartmentAlloftheabovearecorrect.Manufacturingcostsinclude:machineryusedinsideofthefactoryresearchanddevelopmentcostscostsofdealingwithcustomersafterthesalegeneralandadministrativecostsManufacturingcostsincludeallofthefollowingE

12、XCEPT:costsincurredinsidethefactorybothdirectandindirectcostsbothflexibleandcapacity-relatedcostsbothproductandperiodcostsNonmanufacturingcosts:includeonlycapacity-relatedcostsseldominfluencefinancialsuccessorfailureincludethecostofselling,distribution,andafter-salescostsforcustomersareconsideredbyG

13、AAPtobeanelementofproductcostsProductcosts:includeadministrativeandmarketingcostsareparticularlyusefulinfinancialaccountingareexpensedintheaccountingperiodmanufacturedarealsoreferredtoasnonmanufacturingcostsForexternalreporting:costsareclassifiedaseitherproductorperiodcostscostsreflectcurrentvaluest

14、herearenoprescribedrulessincenooneisexactlysurehowtheinvestorsandcreditorswillusethesenumbersexpensesincludeamountsthatreflectcurrentandfuturebenefitsProductcostsareexpensedontheincomestatementwhen:rawmaterialsfortheproductarepurchasedrawmaterialsarerequisitionedfortheproducttheproductcompletesthema

15、nufacturingprocesstheproductissoldDepreciationofplantfacilitiesisclassifiedasa(n):directmaterialcostdirectlaborcostindirectmanufacturingcostgeneralandadministrativecostThecostofinventoryreportedonthebalancesheetmayincludethecostofallthefollowingEXCEPT:advertisingwagesoftheplantsupervisordepreciation

16、ofthefactoryequipmentpartsusedinthemanufacturingprocessAplantmanufacturesseveraldifferentproducts.Thewagesoftheplantsupervisorcanbeclassifiedasa:directcostproductcostflexiblecostnonmanufacturingcostPeriodcosts:aretreatedasexpensesintheperiodtheyareincurredaredirectlytraceabletoproductsincludedirectl

17、aborarealsoreferredtoasindirectmanufacturingcostsWhichofthefollowingisNOTaperiodcost?marketingcostsgeneralandadministrativecostsresearchanddevelopmentcostsmanufacturingcostsAdvertisingisanexampleofacostexpensedontheincomestatementintheaccountingperiodincurred.directmanufacturingperiodproduct(CMAadap

18、ted,June1992)Thetermsdirectcostandindirectcostarecommonlyusedincostaccounting.Classifyingacostaseitherdirectorindirectdependsupon:thebehaviorofthecostinresponsetovolumechangeswhetherthecostisexpendedintheperiodinwhichitisincurredwhetherthecostcanberelatedreadilytoresourcesconsumedforacostobjectwheth

19、eranexpenditureisunavoidablebecauseitcannotbechangedregardlessofanyactiontakenIndirectmanufacturingcosts:canbetracedtotheproductthatcreatedthecostsmayhaveacause-and-effectrelationshipwithcapacityratherthanwithindividualunitsofproductiongenerallyincludethecostofmaterialandthecostoflaborareincludedinp

20、eriodcostsAmanufacturingplantproducestwoproductlines:footballequipmentandhockeyequipment.Anindirectcostforthehockeyequipmentlineisthe:materialusedtomakethehockeystickslabortobindtheshafttothebladeofthehockeystickshiftsupervisorforthehockeylineplantsupervisorAmanufacturingplantproducestwoproductlines

21、:footballequipmentandhockeyequipment.Directcostsforthefootballequipmentlinearethe:beveragesprovideddailyintheplantbreakroommonthlyleasepaymentsforaspecializedpieceofequipmentneededtomanufacturethefootballhelmetsalariesoftheclericalstaffthatworkinthecompanyadministrativeofficesutilitiespaidforthemanu

22、facturingplantTHEFOLLOWINGINFORMATIONAPPLIESTOQUESTIONS47THROUGH53.TheBowleyCompanymanufacturesseveraldifferentproducts.UnitcostsassociatedwithproductICT101areasfollows:TOC o 1-5 h zDirectmaterials$60Directlabor10Flexiblemanufacturingsupportcosts18Capacity-relatedmanufacturingsupportcosts32Salescomm

23、issions(2%ofsales)4Administrativesalaries16Total$140TotalproductcostsassociatedwithproductICT101are:a.$50b.$88c.$120d.$140TotalperiodcostsassociatedwithproductICT101are:a.$4b.$16c.$20d.$5249.TotalflexiblecostsassociatedwithproductICT101area.$18b.$22c.$88d.$92Totalcapacity-relatedcostsassociatedwithp

24、roductICT101are:a.$16b.$32c.$48d.$52TotalnonmanufacturingcostsassociatedwithproductICT101are:a.$4b.$16c.$20d.$52TotalmanufacturingcostsassociatedwithproductICT101are:a.$70b.$88c.$120d.$140DirectmanufacturingcostsassociatedwithproductICT101are:a.$70b.$88c.$92d.$108Costbehaviorrefersto:howcostsreactto

25、achangeinthelevelofactivitywhetheracostisincurredinamanufacturing,merchandising,orservicecompanyclassifyingcostsaseitherproductorperiodcostswhetheraparticularexpensehasbeenethicallyincurredWhichstatementisFALSE?Allflexiblecostsaredirectcosts.Becauseofacost-benefittradeoff,somedirectcostsmaybetreated

26、asindirectcosts.Allcapacity-relatedcostsareindirectcosts.Directcostsmaybeflexibleorcapacity-related.AnunderstandingoftheunderlyingbehaviorofcostshelpsinallofthefollowingEXCEPT:salesvolumecanbebetterestimatedcostscanbebetterestimatedasvolumeexpandsandcontractstruecostsofprocessescanbebetterevaluatedp

27、rocessinefficienciescanbebetteridentifiedand,asaresult,improvedCapacity-relatedcosts:maybeeitherdirectorindirectcostsvarywithproductionorsalesvolumeincludepartsandmaterialsusedtomanufactureaproductcanbeadjustedintheshortruntomeetactualdemandsCapacity-relatedcostsdependon:theamountofresourcesusedthea

28、mountofresourcesacquiredthevolumeofproductionthevolumeofsalesCurrently,mostcompaniesconsiderannuallaborcostsas:acapacity-relatedcostaflexiblecostanopportunitycostaperiodcostWhichofthefollowingdoesNOTdescribeaflexiblecost?Flexiblecostarealwaysindirectcosts.Flexiblecostsincreaseintotalwhentheactuallev

29、elofactivityincreases.Flexiblecostsincludemostpersonnelcostsanddepreciationonmachinery.Flexiblecostscanalwaysbetraceddirectlytothecostobject.Cost-volume-profitanalysisisusedPRIMARILYbymanagement:asaplanningtoolforcontrolpurposestoestablishatargetnetincomefornextyeartoattainextremelyaccuratefinancial

30、resultsContributionmarginequalsrevenuesminus:productcostsperiodcostsflexiblecostscapacity-relatedcostsThebreak-evenpointisthelevelatwhichrevenues:equalcapacity-relatedcostsequalflexiblecostsequalcapacity-relatedcostsminusflexiblecostsequalflexiblecostspluscapacity-relatedcostsThebreak-evenpointis:to

31、talcostsdividedbyflexiblecostsperunitcontributionmarginperunitdividedbyrevenueperunitcapacity-relatedcostsdividedbycontributionmarginperunit(capacity-relatedcostsplusflexiblecosts)dividedbycontributionmarginperunitCost-volume-profitanalysisassumesallofthefollowingEXCEPT:allcostsarepurelyflexibleorca

32、pacityrelatedunitsmanufacturedequalunitssoldtotalflexiblecostsremainthesameovertherelevantrangetotalcapacity-relatedcostsremainthesameovertherelevantrangeAllofthefollowingareassumedinacost-volume-profitanalysisEXCEPT:aconstantproductmixcapacity-relatedcostsincreasewhenactivityincreasesrevenueperunit

33、doesnotchangeasvolumechangesallcostscanbeclassifiedaseithercapacity-relatedorflexibleInmultiproductsituations,whensalesmixshiftstowardtheproductwiththehighestcontributionmargin,then:totalrevenueswilldecreasebreakevenquantitywillincreasetotalcontributionmarginwilldecreaseoperatingincomewillincreaseTH

34、EFOLLOWINGINFORMATIONAPPLIESTOQUESTIONS68THROUGH71.KarensKraftKorner,Inc.,sellsasingleproduct.Thisyear,7,000unitsweresoldresultingin$70,000ofsalesrevenue,$28,000offlexiblecosts,and$12,000ofcapacity-relatedcosts.Contributionmarginperunitis:$4.00$4.29$6.00Noneoftheaboveiscorrect.Break-evenpointinunits

35、is:2,000units3,000units5,000unitsNoneoftheaboveiscorrect.Thenumberofunitsthatmustbesoldtoachieve$60,000ofprofitsis:10,000units11,666units12,000unitsNoneoftheaboveiscorrect.Ifsalesincreaseby$25,000,profitswillincreaseby:$10,000$15,000$22,200anunknownamountTHEFOLLOWINGINFORMATIONAPPLIESTOQUESTIONS72TH

36、ROUGH74.Mr.PaulsCompanysellsseveralproductsforanaveragepriceof$20perunitandtheaverageflexiblecostsperunitareasfollows:TOC o 1-5 h zDirectmaterial$4.00Directlabor$1.60Indirectmanufacturingcosts$0.40Sellingcommissions$2.00Mr.Paulsannualcapac-riteylatedcoststotal$96,000.Thecontributionmarginperunitis:T

37、henumberofunitsthatMr.Paulsmustselleachyeartobreakevenis:a.$6b.$8c.$12d.$148,000units12,000units16,000unitsanunknownamountsmustsellannuallytomakeaprofitof$144,000is:ThenumberofunitsthatMr.Paul12,000units18,000units20,000units30,000unitsTHEFOLLOWINGINFORMATIONAPPLIESTOQUESTIONS75THROUGH79.Thefollowin

38、ginformationisforBarnettCorporation:ProductXProductYRevenueperunit:$10.00$15.00Flexiblecostperunit:$2.50$5.00Totalcapacity-relatedcosts:$50,000IfthesalesmixconsistsoftwounitsofProductXandoneunitofProductY,whatistherevenueperunitofaverageproduct?$10.00$11.66$13.33$15.00Ifthesalesmixconsistsoftwounits

39、ofProductXandoneunitofProductY,whatisthebreak-evenpoint?1,000unitsofYand2,000unitsofX1012.5unitsofYand2,025unitsofX2012.5unitsofYand4,025unitsofX2,000unitsofYand4,000unitsofXWhatistheoperatingincome,assumingactualsalestotal150,000units,andthesalesmixistwounitsofProductXandoneunitofProductY?$1,200,00

40、0$1,250,000$1,750,000Noneoftheaboveiscorrect.IfthesalesmixshiftstooneunitofProductXandtwounitsofProductY,thentheweighted-averagecontributionmarginwill:increaseperunitstaythesamedecreaseperunitbeundeterminableIfthesalesmixshiftstooneunitofProductXandtwounitsofProductY,thenthebreak-evenpointwill:incre

41、asestaythesamedecreasebeundeterminableOpportunitycost(s):ofaresourcewithexcesscapacityiszeroshouldbemaximizedbyorganizationsarerecordedasanexpenseintheaccountingrecordsaremostimportanttofinancialaccountantsArecentcollegegraduatehasthechoiceofbuyinganewautofor$20,000ortoinvestthemoneyforfouryearswith

42、a12%expectedrateofreturn.Ifthegraduatedecidestopurchasetheauto,theBESTestimateoftheopportunitycostofthatdecisionis:$2,400$11,740$20,000Thereisnoopportunitycostforthisdecision.THEFOLLOWINGINFORMATIONAPPLIESTOQUESTIONS82THROUGH86.BrendasBrakesmanufacturesthreedifferentproductlines,ModelX,ModelY,andMod

43、elZ.Considerablemarketdemandexistsforallmodels.Thefollowingperunitdataapply:ModelXModelYModelZSellingprice$50$60$70Directmaterials666Directlabor($12perhour)121224Flexiblesupportcosts($4permachinehour)488Capacity-relatedcosts101010Whichmodelhasthegreatestcontributionperunit?ModelXModelYModelZbothMode

44、lsXandYWhichmodelhasthegreatestcontributionpermachinehour?ModelXModelYModelZbothModelsYandZIfthereisexcesscapacity,whichmodelisthemostprofitabletoproduce?ModelXModelYModelZbothModelsXandYIfthereisamachinebreakdown,whichmodelisthemostprofitabletoproduce?ModelXModelYModelZbothModelsYandZHowcanBrendaen

45、couragehersalespeopletopromotethemoreprofitablemodel?Putallsalespersonsonsalary.Providehighersalescommissionsforhigherpriceditems.Providehighersalescommissionsforitemswiththegreatestcontributionmarginperconstrainedresource.Both(b)and(c)arecorrect.WhichstatementisFALSE?Shortruncosts:areactuallyflexib

46、lecostsaffectlong-runcapacityareincludedinthecalculationoflong-runcostsincreasewhenonemoreunitisproducedorservedTosustaintheprofitabilityofaproduct,thelistpriceofaproductmustcoverits:flexiblecostscapacity-relatedcostsindirectcostslong-runcostsComparedtotheearly1900s,costsnowcompriseamuchhighershareo

47、ftotalproductcosts.a.directlaborb.directmaterialsflexiblecapacity-relatedInrecentyears,themanufacturingcoststructurehaschangedasaresultof:a.greaterautomationb.bettercustomerservicetheproliferationofmultipleproductsAlloftheabovearecorrect.Costdistortioniscommoninconventionalcostingsystemsbecause:a.of

48、therecentchangeincoststructureb.thenumberofproductsbeingmanufacturedisincreasingcapacity-relatedcostsareallocatedusingavolumemeasurecapacity-relatedcostscreatehigherrisksforacompanyCoststhatmustbeallocatedtoproductsforexternalreportingpurposesinclude:a.sellingandmarketingcostsb.directmaterialanddire

49、ctlaborcoststhecostofequipmentusedtomanufactureseveraldifferentproductsAlloftheabovearecorrect.Thebenefitsofclassifyingactivitiesusingthebroaderframeworkofunit,batch,product,customer,andbusiness-sustainingactivitiesarethattherearegenerallymorecosts:directlytraceabletocostobjectstreatedasindirectcost

50、sarbitrarilyallocatedtocostobjectsThereisnomajordifferenceregardingcosts.Forbudgetingpurposes,product-sustainingactivitycostsshouldbe:allocatedtoindividualunitsallocatedtoindividualcustomersassigneddirectlytoindividualproductlinesassigneddirectlytoindividualbatchesWhichofthefollowingactivitiesisauni

51、t-relatedactivity?a.preparingandfilingtheannualtaxreturnfortheorganizationb.machinesetupsforeachproductionrunqualityinspectionsof2%oftheitemsproducedobtainingpatentsandregulatoryapprovalforeachproductproducedWhichofthefollowingactivitiesisabatch-relatedactivity?a.preparingandfilingtheannualtaxreturn

52、fortheorganizationb.machinesetupsforeachproductionrunqualityinspectionsof2%oftheitemsproducedobtainingpatentsandregulatoryapprovalforeachproductproducedWhichofthefollowingactivitiesisaproduct-sustainingactivity?a.preparingandfilingtheannualtaxreturnfortheorganizationb.machinesetupsforeachproductionr

53、unqualityinspectionsof2%oftheitemsproducedobtainingpatentsandregulatoryapprovalforeachproductproducedWhichofthefollowingactivitiesisabusiness-sustainingactivity?a.preparingandfilingtheannualtaxreturnfortheorganizationb.machinesetupsforeachproductionrunmakingsalescallsobtainingpatentsandregulatoryapp

54、rovalforeachproductproducedWhichofthefollowingactivitiesisacustomer-sustainingactivity?a.preparingandfilingtheannualtaxreturnfortheorganizationb.machinesetupsforeachproductionrunmakingsalescallsobtainingpatentsandregulatoryapprovalforeachproductproducedProductlife-cyclecosting:isusefulforexternalrep

55、ortingisprimarilyaplanningtoolincludesmanufacturingcostsbutnotthecostofresearchanddevelopmentslifetimeassumesproductrelatedcostsareincurredevenlyovertheproductCompanieswanttoensurethatproductrevenuescovertheproducts:a.manufacturingcostsb.manufacturinganddistributioncostsdeveloping,supporting,andaban

56、doningcostsmanufacturing,distribution,developing,supporting,andabandoningcostsMoreattentionisbeingdevotedtotheproductdevelopmentandplanningphasebecause:a.abandonmentincludessignificantcostsb.oftheneedtobetterunderstandtherelevantcostsduringthisphaseoftheproduct-lifecycle,revenuesfinallybegintocoverl

57、ong-runcostsduringthisphaseoftheproduct-lifecycle,pricecompetitionbecomesintenseOneoftheprimarymotivationsforconsideringcostsotherthanmanufacturinganddistributioncostsissothat:a.thesecostscanbeamortizedoverthelifeoftheproductb.costscanbemoreevenlydistributedovertheproductslifecycleplannerscandevelop

58、reasonableestimatesofthecostsassociatedwithnewproductsifpricecompetitionbecomesintensethesellingpricecanberationalizedEXERCISE/PROBLEMWinfieldManufacturingCompanyproducesseveraldifferentproducts.Classifyeachoftheirfollowingcostsasdirectmaterials,directlabor,indirectmanufacturingcosts,ornonmanufactur

59、ingcosts.a.Productionsupervisorysalaries.b.Controllersofficesupplies.Executiveofficeheatandairconditioning.Executiveofficesecuritypersonnel.Factoryheatandairconditioning.Suppliesusedinsmallquantities,suchasglue,tocompleteassemblywork.Powertooperatefactoryequipment.Partsusedinassembly.Wagesoftheassem

60、bly-lineworkers.Propertytaxesonofficebuildingsforsalesstaff.Depreciationonfurnitureforsalesstaff.Salariesoftopexecutivesinthecompany.Wagesofthefinishingdepartmentworkers.Salescommissions.Salespersonnelofficerental.105.StephaniesStuffedAnimalsreportedthefollowing:RevenuesFlexiblemanufacturingcostsFle