TEST BANK
Fundamentals of Cost Accounting
William Lanen, Shannon Anderson, and Michael Maher
? ?
S
7th Edition
S E
C C
U S
_ ?
A I
V U
ST
, TABLE OF CONTENTS
Fundamentals of Cost Accounting (7th Edition)
William Lanen, Shannon Anderson, and Michael Maher
?
INTRODUCTION AND OVERVIEW
?
Chapter 1 Cost Accounting: Information for Decision Making
S
Chapter 2 Cost Concepts and Behavior
S
COST ANALYSIS AND ESTIMATION
E
Chapter 3 Fundamentals of Cost-Volume-Profit Analysis
C
Chapter 4 Fundamentals of Cost Analysis for Decision Making
C
Chapter 5 Cost Estimation
U
COST MANAGEMENT SYSTEMS
Chapter 6 Fundamentals of Product and Service Costing
S
Chapter 7 Job Costing
_
Chapter 8 Process Costing
?
Chapter 9 Activity-Based Costing
A
Chapter 10 Fundamentals of Cost Management
Chapter 11 Service Department and Joint Cost Allocation
V I
MANAGEMENT CONTROL SYSTEMS
U
Chapter 12 Fundamentals of Management Control Systems
Chapter 13 Planning and Budgeting
T
Chapter 14 Business Unit Performance Measurement
S
Chapter 15 Transfer Pricing
Chapter 16 Fundamentals of Variance Analysis
Chapter 17 Additional Topics in Variance Analysis
Chapter 18 Performance Measurement to Support Business Strategy
, MEDEXCELLENCE
Test Bank Fundamentals of Cost Accounting, 7th Edition by Lanen, Maher
All Chapters
Answers Included
Chapter 01 7e
?
1) Carley Incorporated incurs many types of costs in its operations. Place the number of the
?
appropriate stage in the value chain in Column 2 in the blank next to each cost in Column 1.
Cost Stage in the Value Chain
S
Transportation costs to ship vans to 1. Customer Service
S
customers
Labor costs for factory workers 2. Distribution
E
Overtime costs for scientists working on 3. Research &
C
new engine technology Development
C
Utilities cost for the design testing 4. Marketing
center
U
Costs to survey customers about their 5. Production
satisfaction
Costs to sponsor a sporting event 6. Design
_ S
?
2) SuperMax is an integrated provider of genetically engineered corn. Many types of costs
A
are incurred in its operations. Place the number of the appropriate stage in the value chain in
Column 2 in the blank next to each cost in Column 1.
I
Cost Stage in the Value
V Chain
Warehouse costs to store seed awaiting 1. Customer Service
shipment to customers
U
Utility costs for seed mill 2. Distribution
T
Equipment costs in genetics laboratory 3. Research &
Development
S
Labor costs to staff help-line call center 4. Marketing
Costs to prepare advertising campaign in 5. Production
national agriculture magazine
Costs to contract with growers to provide 6. Design
seed
1
, MEDEXCELLENCE
3) Travon's Limo Service provides transportation services in and around Bentonville. Its
profits have been declining, and management is planning to add a package delivery service that
is expected to increase revenue by $275,000 per year. The total cost to lease additional delivery
vehicles from the local dealer is $60,000 per year. The present manager will continue to
supervise all services. However, labor and utilities costs will increase by 40% and rent and other
costs will increase by 15% when the package delivery service is added.
?
Travon’s Limo Service
?
Annual Income Statement
Before Expansion
S
Sales Revenue $ 960,000
S
Costs:
E
Vehicle Leases $ 400,000
C
Labor 290,000
C
Utilities 50,000
Rent
U 100,000
Other Costs 60,000
S
Manager’s Salary 120,000
_
Total Costs 1,020,000
?
Operating Profit (Loss) $ (60,000)
A I
a. Prepare a report of the differential costs and revenues if the delivery service is added.
V
b. Should management start up the delivery service? Explain your answer.
TU
S
2
Fundamentals of Cost Accounting
William Lanen, Shannon Anderson, and Michael Maher
? ?
S
7th Edition
S E
C C
U S
_ ?
A I
V U
ST
, TABLE OF CONTENTS
Fundamentals of Cost Accounting (7th Edition)
William Lanen, Shannon Anderson, and Michael Maher
?
INTRODUCTION AND OVERVIEW
?
Chapter 1 Cost Accounting: Information for Decision Making
S
Chapter 2 Cost Concepts and Behavior
S
COST ANALYSIS AND ESTIMATION
E
Chapter 3 Fundamentals of Cost-Volume-Profit Analysis
C
Chapter 4 Fundamentals of Cost Analysis for Decision Making
C
Chapter 5 Cost Estimation
U
COST MANAGEMENT SYSTEMS
Chapter 6 Fundamentals of Product and Service Costing
S
Chapter 7 Job Costing
_
Chapter 8 Process Costing
?
Chapter 9 Activity-Based Costing
A
Chapter 10 Fundamentals of Cost Management
Chapter 11 Service Department and Joint Cost Allocation
V I
MANAGEMENT CONTROL SYSTEMS
U
Chapter 12 Fundamentals of Management Control Systems
Chapter 13 Planning and Budgeting
T
Chapter 14 Business Unit Performance Measurement
S
Chapter 15 Transfer Pricing
Chapter 16 Fundamentals of Variance Analysis
Chapter 17 Additional Topics in Variance Analysis
Chapter 18 Performance Measurement to Support Business Strategy
, MEDEXCELLENCE
Test Bank Fundamentals of Cost Accounting, 7th Edition by Lanen, Maher
All Chapters
Answers Included
Chapter 01 7e
?
1) Carley Incorporated incurs many types of costs in its operations. Place the number of the
?
appropriate stage in the value chain in Column 2 in the blank next to each cost in Column 1.
Cost Stage in the Value Chain
S
Transportation costs to ship vans to 1. Customer Service
S
customers
Labor costs for factory workers 2. Distribution
E
Overtime costs for scientists working on 3. Research &
C
new engine technology Development
C
Utilities cost for the design testing 4. Marketing
center
U
Costs to survey customers about their 5. Production
satisfaction
Costs to sponsor a sporting event 6. Design
_ S
?
2) SuperMax is an integrated provider of genetically engineered corn. Many types of costs
A
are incurred in its operations. Place the number of the appropriate stage in the value chain in
Column 2 in the blank next to each cost in Column 1.
I
Cost Stage in the Value
V Chain
Warehouse costs to store seed awaiting 1. Customer Service
shipment to customers
U
Utility costs for seed mill 2. Distribution
T
Equipment costs in genetics laboratory 3. Research &
Development
S
Labor costs to staff help-line call center 4. Marketing
Costs to prepare advertising campaign in 5. Production
national agriculture magazine
Costs to contract with growers to provide 6. Design
seed
1
, MEDEXCELLENCE
3) Travon's Limo Service provides transportation services in and around Bentonville. Its
profits have been declining, and management is planning to add a package delivery service that
is expected to increase revenue by $275,000 per year. The total cost to lease additional delivery
vehicles from the local dealer is $60,000 per year. The present manager will continue to
supervise all services. However, labor and utilities costs will increase by 40% and rent and other
costs will increase by 15% when the package delivery service is added.
?
Travon’s Limo Service
?
Annual Income Statement
Before Expansion
S
Sales Revenue $ 960,000
S
Costs:
E
Vehicle Leases $ 400,000
C
Labor 290,000
C
Utilities 50,000
Rent
U 100,000
Other Costs 60,000
S
Manager’s Salary 120,000
_
Total Costs 1,020,000
?
Operating Profit (Loss) $ (60,000)
A I
a. Prepare a report of the differential costs and revenues if the delivery service is added.
V
b. Should management start up the delivery service? Explain your answer.
TU
S
2
