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49) Required: Present the following, a.The change in operating income from cost leadership. b.The change in operating income due to industry wide effects. c.The effect of product differentiation on operating income and a summarization of the change in operating income between Year 1 to Year 2. 50) Describe three key balanced scorecard components in doing.
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  Use the information below to answer the following question(s). Troy Company processes 15,000 litres of direct materials to produce two products, Product X and Product Y. Product X, a byproduct, sells for $4 per litre, and Product Y, the main product, sells for $50 per litre. The following information is for.
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  Use the information below to answer the following question(s).   Following a strategy of product differentiation, Instruments Inc. makes a hand held calculator, II400. Instruments Inc. presents the following data for the years 1 and 2 Year 1Year 2 Units of II400 produced and sold50,00052,500 Selling price$40$44 Direct materials (kilograms)150,000153,375 Direct materials costs per kilogram $4.00$4.40 Manufacturing capacity.
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15.4   Identify the strategic implications of a decision to implement one joint cost allocation method. 1) Different joint cost allocation methods will result in different product margin percentages for the individual products. 2) If managers make processing or selling decisions using incremental revenue / incremental cost approach, which of the following statements.
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42) The Alex Miller Corporation operates one central plant that has two divisions, the Flashlight Division and the Lamp Division. The following data apply to the coming budget year: Budgeted costs of the operating the plant for 10,000 to 20,000 hours: Fixed operating costs per year$240,000 Variable operating costs$10per hour Practical capacity20,000hours per year Budgeted long-run.
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14.4   Evaluate and select among three cost allocation methods for a product-sustaining inventoriable period cost and a facilities-sustaining period cost. 1) The direct allocation method ignores any services rendered between support departments. 2) The step-down allocation method allows partial recognition of services rendered by support departments to other support departments. 3) The reciprocal.
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39) Total factor productivity (TFP) is easy to compute for a single-product company. When dealing with a multiproduct company, one of two adjustments must be made. What are these potential adjustments? 40) Fairytale Weddings manufactures wedding dresses. The following information relates to the manufacture of gowns in its Perth plant: Year 1Year.
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15.2   Analyze the physical measure and sales value at splitoff methods to allocate joint costs. 1) The cause-and-effect criterion is not present when joint costing is used. 2) It is easier to cost inventory if the joint products are sold before the split off point without further processing. 3) The sales value.
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15.3   Evaluate two different market-based cost allocation methods to identify which is most appropriate to decide whether to sell at splitoff or process further. 1) The method of allocating joint product costs is an important guide for other management decisions. 2) The estimated net realizable value method allocates joint costs on the.
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11) How much of the cost of the Personnel Department is allocated to Department A using the direct method? A) $5,000 B) $15,000 C) $13,333 D) $12,632 E) $48,000 12) What is the cost of the Maintenance Department allocated to Department B using the step-down method if the support department with the highest percentage of interdepartmental.
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11) The estimated net realizable method allocates joint costs on the basis of A) expected final sales value less separable costs of production and marketing. B) value added after the split off point. C) sales value less value added after the split off point. D) revenue less all direct manufacturing costs after split off.
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31) In rate regulation settings, which method is usually preferred over the sales value method? A) constant gross-margin percentage NRV method B) estimated net-realizable method C) physical measure method D) sales value at split off method E) rate regulation method 32) Advantages of the sales value at split off method include all of the following EXCEPT A).
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41) Using the physical measures method, the weightings for joint cost allocations for Jarlon and Kharton respectively are: A) 27.62% and 72.38% B) 80.00% and 20.00% C) 39.58% and 60.42% D) 72.38% and 27.62% E) 60.42% and 39.58% 42) Using the sales value at split off method, the joint costs allocated to Jarlon would be: A) $289,520 B).
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21) Scarborough Sales, a real estate company specializing in apartment rentals and home sales, is having difficulty in gathering appropriate cost information for evaluating its operations. It owns several large apartment complexes and sells homes owned by builders or existing homeowners. As the company's new accountant you define cost by.
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11) One way to eliminate unused capacity is to downsize. 12) Downsizing often means eliminating jobs, which can have an adverse effect on employee morale. 13) Which of the following best describes the effect of uncertainty? A) The higher the level of uncertainty about the relationship between resources used and outputs,.
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11) Using the single-rate method transforms the fixed costs per hour into a variable cost to users of that facility. 12) The single-rate cost-allocation method provides better information for decision making than the dual-rate method. 13) An advantage of the single-rate method is that it is easier and always the.
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  15.1   Distinguish among different types of saleable products, scrap and toxic waste. 1) Joint costs are incurred beyond the split off point and are assignable to individual products. 2) A byproduct has a minimal sales value. 3) Scrap frequently has a zero sales value. 4) There are no logical reasons for allocating joint costs. 5).
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31) The incremental benefit or (loss) of processing Kharton into Kraxton is: A) $74,000 B) $22,000 C) ($22,000) D) ($96,000) E) $170,000 32) Green Paper Company processes wood pulp into two products. During January the joint costs of processing were $144,000. Production and sales value information for the month were as follows: Sales Value at Product    Kilograms Produced   Split.
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22) Van Meter Company has substantial fluctuations in its production costs because of the seasonality of figs. Most fig growers have two crops a year, one in June and one in August. However, the company has been importing figs from southern hemisphere countries, which extends the supply to the months.
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11) Which of the following illustrates a purpose for allocating costs to cost objects? A) to provide information for economic decisions B) to reduce competition C) to determine employee benefit costs D) to defer income and reduce taxes payable E) to motivate employees 12) Deciding whether to make a component part or to purchase it, would.
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14.2   Evaluate and select between a single- and dual-rate cost method to apply period costs of IT services. 1) There are multiple cost objects in most costing systems. 2) A cost pool is a grouping of individual cost items. 3) The cost pool is homogeneous if all included activities have the same or.
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21) What is the direct manufacturing labour partial productivity, assuming 20,000 widgets were produced during the year and 80,000 direct manufacturing labour-hours were used? A) 0.25 unit per direct manufacturing labour-hour B) 0.50 unit per direct manufacturing labour-hour C) 0.75 unit per direct manufacturing labour-hour D) 4.00 unit per direct manufacturing labour-hour E) 1.25 unit.
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  Use the information below to answer the following question(s). Following a strategy of product differentiation, Ernsting Ltd. makes high quality electronic components. Ernsting Ltd. presents the following data for the past two years relating to its XJ649 product. Year 1Year 2 Units of XJ649 produced and sold4,0004,320 Selling price$800$850 Direct materials (kilograms)10,40012,360 Direct materials costs per.
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40) AAA Fence Company manufactures wireless and aluminum fences in a common manufacturing facility. The company has become aware of unusual discrepancies in the costs of its products which management cannot explain. It seems that the sales and related production of wireless fences are in a very consistent growth market.
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38) Juno Ltd. manufactures three separate products Q, R, and S from a joint production process . During March, the joint costs of processing were $875,000. Production and sales value information for the month were as follows: Product Units Produced Final Sales Value per Unit Separable Costs Q 42,000 $18 $190,000 R 68,000 32 720,000 S 35,000 26 210,000 Required: Determine the amount.
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31) If a dual-rate cost-allocation method is used, what amount of copying facility costs will be budgeted for the Operations Department? A) $28,500 B) $28,200 C) $30,245 D) $29,945 E) $24,600 32) If a dual-rate cost-allocation method is used, what amount of copying facility costs will be allocated to the Operations.
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  Use the information below to answer the following question(s). Chem Manufacturing Company processes direct materials up to the split off point, where two products (X and Y) are obtained and sold. The following information was collected for the month of November. Direct materials processed: 10,000 litres (10,000 litres yield 9,500 litres of good.
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25) For each of the following items tell whether it is a main product, joint product, byproduct, or scrap. Assume traditional situations. a.Bones from a butcher shop b.Sawdust from a sawmill c.Sawdust from a furniture manufacturer d.Fuel oil from petroleum processing e.Salt from a salt works process f. Broth from cooking food g.Raw milk for dairy processing h.Skim.
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11) Both fixed and variable costs are allocated according to capacity used. The fixed and variable costs allocated to the Barbell Department are A) $30,000 and $50,000, respectively. B) $30,000 and $60,000, respectively. C) $30,000 and $75,000 respectively. D) $40,000 and $60,000, respectively. E) $60,000 and $40,000, respectively. 12) Both fixed and variable costs are allocated.
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36) Grader Company manufactures road graders. Because its managers all have engineering backgrounds, it prefers nonfinancial information for its decision-making models. Therefore, it requires that the accountants gather data to assist in the examination of nonfinancial results of operations. The following information relates to the manufacture of a mobile paver. Year.
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21) Which of the following is a valid conclusion, in comparing the three allocation methods? A) The reciprocal method is conceptually inferior. B) The direct method is viewed as too complex by most organizations. C) The step-down method is viewed as too complex by most organizations. D) Many managers find the step-down method too.
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53) CSI Chemical, Inc. processes pine rosin into three products; turpentine, paint thinner, and spot remover. During May the joint costs of processing were $240,000. Production and sales value information for the month were as follows: Product       Units Produced   Sales Value at Split off Point Turpentine3,000 litres$30,000 Paint thinner3,000 litres25,000 Wood alcohol1,500 litres12,500 Required: Determine the amount of.
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41) Define engineered and discretionary costs and give two examples of each. 42) Can a company identify unused capacity and, if so, how can unused capacity be managed? 43) Ranger Electronics Ltd. manufactures a variety of high quality electronic components. Data from the last three months are presented below: April May June Direct.
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13.5   Analyze the results from specific productivity and capacity control strategies to achieve BSC expectations. 1) Engineered costs result specifically from a clear cause-and-effect relationship between output and the resources needed to produce that output. 2) Discretionary costs arise from periodic (usually yearly) decisions regarding the maximum amount to be incurred. 3) Uncertainty.
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14.3   Analyze how the selection of the single or dual cost allocation rate affects the calculation of the efficiency variance. 1) The user department is responsible for any unfavourable cost variances during the budgeting period if budgeted prices and quantities are used for cost allocation. 2) User departments will be able to.
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35) Red Sauce Canning Company processes tomatoes into catsup, tomato juice, and canned tomatoes. During the summer the joint costs of processing the tomatoes were $420,000. There was no beginning or ending inventories for the summer. Production and sales value information for the summer were as follows: Sales Value at Product    Cases    Split off.
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  14.1   Apply relevance as a criterion to decide how to allocate non-manufacturing (period) costs. 1) The allocation of one particular cost must satisfy all four justifications of cost allocation. 2) Indirect costs typically constitute a large percentage of the costs assigned to cost objects. 3) For the economic decision purpose of cost allocation,.
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21) Under which of the following methods of cost allocation is there no distinction between fixed and variable costs? A) fixed method B) dual-rate method C) homogeneous method D) standard cost method E) single-rate method 22) Which cost allocation method differentiates between variable and fixed costs? A) dual-rate method B) heterogeneous method C) single-rate method D) variable method E) fixed rate.
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31) Germaine Company provided the following information. Budgeted input 9,750 litres Actual input 8,950 litres Budgeted production 10,000 units Actual production 9,500 units What is the partial productivity ratio? A) 0.97 unit per litre B) 1.02 units per litre C) 1.06 units per litre D) 1.12 units per litre E) 1.71 units per litre 32) Vinetta Ltd. provided the following information: Budgeted input 18,000.
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50) CSI Chemical, Inc. processes pine rosin into three products; turpentine, paint thinner, and spot remover. During May the joint costs of processing were $240,000. Production and sales value information for the month were as follows: Product       Units Produced   Sales Value at Split off Point Turpentine3,000 litres$30,000 Paint thinner3,000 litres25,000 Wood alcohol1,500 litres12,500 Required: Determine the amount of.
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31) Seacrest Corp. allocates support department overhead costs to operating departments X and Y by means of the reciprocal allocation method. Information for the current month is as follows: Support Departments A B Overhead Costs$20,000$10,000 Services provided to departments: A-10% B20% - X40%30% Y40%60% 100%100% Required: Provide the linear equation to be used in the allocation of A's costs: The equation.
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19) The cost of operating the quality control department of Ames Manufacturing includes $608,000 of fixed costs and $400,000 of variable costs. The department normally budgets 21,000 inspection hours a year. Two departments receive quality control checks, fabrication and assembly. Fabrication is budgeted at 1,000 hours a month, while assembly.
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