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Tableof Contents
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Chapter One: Managerial Accounting and Cost Concepts
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Chapter Two: Job-Order Costing: Calculating Unit Product Costs
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Chapter Three: Job-
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Order Costing: Cost Flows and External Reporting
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Chapter Four: Process Costing
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Chapter Five: Cost-Volume-Profit Relationships
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Chapter Six: Variable Costing and Segment Reporting: Tools for Managem
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ent
Chapter Seven: Activity-Based Costing: A Tool to Aid Decision Making
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Chapter Eight: Master Budgeting
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Chapter Nine: Flexible Budgets and Performance Analys
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is
Chapter Ten: Standard Costs and Variances
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Chapter Eleven: Responsibility Accounting Systems
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Chapter Twelve: Strategic Performance Measurement
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Chapter Thirteen: Differential Analysis: The Key to Decision Maki
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ng
Chapter Fourteen: Capital Budgeting Decisions
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Chapter Fifteen: Statement of Cash Flow
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s
Chapter Sixteen: Financial Statement Analysis
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Chapter 1 w
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Managerial Accounting and Cost Concepts w
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Questions
1-1 The three major types of product c
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1-2
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a. Direct materials are an integral part
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a finished product and their costs can be
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ay be an integral part of a finished product
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Tableof Contents
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Chapter One: Managerial Accounting and Cost Concepts
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Chapter Two: Job-Order Costing: Calculating Unit Product Costs
w# w# w# w# w# w# w#
Chapter Three: Job-
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Order Costing: Cost Flows and External Reporting
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Chapter Four: Process Costing
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Chapter Five: Cost-Volume-Profit Relationships
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Chapter Six: Variable Costing and Segment Reporting: Tools for Managem
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ent
Chapter Seven: Activity-Based Costing: A Tool to Aid Decision Making
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Chapter Eight: Master Budgeting
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Chapter Nine: Flexible Budgets and Performance Analys
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is
Chapter Ten: Standard Costs and Variances
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Chapter Eleven: Responsibility Accounting Systems
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Chapter Twelve: Strategic Performance Measurement
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Chapter Thirteen: Differential Analysis: The Key to Decision Maki
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ng
Chapter Fourteen: Capital Budgeting Decisions
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Chapter Fifteen: Statement of Cash Flow
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s
Chapter Sixteen: Financial Statement Analysis
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Chapter 1 w
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Managerial Accounting and Cost Concepts w
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Questions
1-1 The three major types of product c
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s in a ost
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w# w# w# w# w# w# a. w Variable cost: The variable cost per u
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mat nit i w#
erials, direct labor, and manufacturing over
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he e
1-2
ad. s in direct proportion to changes in vol
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a. Direct materials are an integral part
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ofw# me.
a finished product and their costs can be
w# w# w# w# w# w# w# w b. w Fixed cost: The total fixed cost is co
# w# w# w# w# w# w# w#
# conb. Indirect materials are generally small
w # w# w# w# w# nstant Mixed cost: A mixed cost contains
c. w # w# w# w# w# w#
ite
venientlyw# traced to it.w# w# w# w#bothwithin
variable
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relevant w# The average f
cost element
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## w# w# w # ww#
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ms of material such as glue and nails. The
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y m w# 1-5 ed cost per unit varies inversely with c
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ay be an integral part of a finished product
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their costs can be traced to the product o
w# w# w# w# w# w# w# w# el increases.
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nly b. w Unit variable costs remain constant as
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at great
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costis or
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c. w Total fixed costs remain constant as
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d. Direct labor
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the costs
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cost e activity level increases.
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sat ofcanjanitors,
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handlers,
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s. other factory workers that cannot be co
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nv a. w Cost behavior: Cost behavior refers to
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eniently traced to particular products. These
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# l way in which costs change in respons
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abor costs are incurred to support productio
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but the workers involved do not directly w
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purchasing
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activity w# of a variabl
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irect
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eaddirect
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aken directly to the income statement as a
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xpense in the period in which it is incurre
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1-8 The linear assumption is reasonably
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alid providing
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