# Top PDF Cost Accounting, Chapter 3 11ch03

### Cost Accounting, Chapter 3 11ch03

Cost-Volume-Profit Assumptions and Terminology Cost-Volume-Profit Assumptions and Terminology Operating income = Total revenues from operations – Cost of goods sold and operating cos[r]

### Test Bank Cost Accounting 14E by Horngren 21 chapter

Answer: The four methods are: 1. Net Present Value (NPV); 2. Internal Rate of Return (IRR); 3. Payback; and 4. Accrual Accounting Rate of Return (AARR). NPV has advantages in that it uses discounted cash flows, and can deal with uneven cash flows, considers the inflows and outflows of the project. A disadvantage of NPV is that the results indicate if it achieves a particular cost of capital or not, but it does not indicate what the rate of return actually is. The IRR method generates an expected rate of return for the investment given the time of the project and the discounting of cash flows. A disadvantage of the IRR is that the results are expressed in the form of a percentage rather than in dollars and it is difficult to use when the project has uneven cash flows. The payback is simple to use, and adapts to both even and uneven cash flows. It also highlights the liquidity of a project. A disadvantage to the payback is that it does not consider either the time value of money, or the cash flows that occur after the payback time period. The AARR method uses the information that is most often found in financial statements including net income and depreciation. A drawback is that the method does not take into account the time value of money or the cash flows of the project.
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### Test Bank Cost Accounting 14E by Horngren 7 chapter

14) The textbook discusses three levels of variances, Level 0, Level 1, Level 2, and Level 3. Briefly explain the meaning of each of those levels and provide an example of a variance at each of those levels. Answer: A Level 0 variance is simply the difference between actual operating income and planned operating income in the static budget.

### Test Bank Cost Accounting 14E by Horngren 8 chapter

manufacturing overhead, a spending variance for the fixed overhead component, an efficiency variance for the variable overhead, and a production-volume variance for the fixed overhead. When the firm uses a 3-variance approach, the fixed and variable spending variance is combined into a single variance, while the variable overhead efficiency is still shown separately and the fixed overhead production- volume variance is singled out. In the 2-variance method, the fixed and variable spending variances are combined into one amount along with the variable efficiency, and then the fixed production-volume is shown as a separate variance. The 1-variance method shows the difference between the actual costs incurred and the flexible-budget amount for the output level achieved.
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### Cost Accounting, Chapter 1 11ch01

Budget Actual Variance Revenues \$59,000 \$60,000 \$1,000 F Cost of goods sold 42,000 43,400 1,400 U Wages 6,700 7,000 300 U General 1,300 900 400 F Fixed costs 5,000 5,000 0 Operating income \$ 4,000 \$ 3,700 \$ 300 U

### Test Bank Cost Accounting 14E by Horngren 16 chapter

59) Paragon University operates an extensive and an expensive registration, testing, and counseling center, through which all students are required to pass through when they enter the university. The registration effort's costs (for the most part) are almost impossible to allocate based upon which students require time, effort, etc. The cost of this center is approximately 15% of the total costs of Paragon. This department engages in no other activities than the registration of students. Paragon is interested in determining the profitability of the three technical departments it operates. Paragon has the perception that some departments are more profitable than others, and it would like to determine an appropriate method of allocating the costs of this registration center.
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### Test Bank Cost Accounting 14E by Horngren 11 chapter

18) Pat, a Pizzeria manager, replaced the convection oven just six months ago. Today, Turbo Ovens Manufacturing announced the availability of a new convection oven that cooks more quickly with lower operating expenses. Pat is considering the purchase of this faster, lower-operating cost convection oven to replace the existing one they recently purchased. Selected information about the two ovens is given below:

### International Accounting, Chapter 3 ch 03

The Netherlands contin  Accounting regulation and enforcement  Company law – Act on Annual Financial Statements  Dutch Accounting Standards Board  Develops guidelines on generall[r]

### COST ACCOUNTING JOB ORDER COSTING MATERI-3

cost of a cost object)  biaya yang terkait dengan suatu objek biaya tetapi tidak dapat dilacak ke objek biaya tersebut dengan cara yang layak secara ekonomi (efektif biaya). Biaya tidak langsung dialokasikan ke objek biaya dengan metode pengalokasian biaya.

### Cost Accounting, Chapter 5 11ch05

ABC and Department Indirect-Cost Rates ABC and Department Indirect-Cost Rates Many companies have evolved their costing system from using a single cost pool to using separate indirect-[r]

### Cost Accounting, Chapter 13 11ch13

Price-Recovery Component Price-Recovery Component Cost effect of price-recovery component Input prices in 2004 – Input prices in 2003 Actual units of inputs or capacity that would hav[r]

### Cost Accounting, Chapter 12 11ch12

Time Horizon of Pricing Decisions Time Horizon of Pricing Decisions Short-run decisions have a time horizon of less than a year:  pricing a one-time-only special order  adjustin[r]

### Cost Accounting, Chapter 11 11ch11

Profitability, Activity-Based Costing, and Relevant Costs Profitability, Activity-Based Costing, and Relevant Costs Assume that if Mountain View Furniture drops Cohen’s business it ca[r]

### Cost Accounting, Chapter 10 11ch10

Nonlinearity and Cost Functions Nonlinearity and Cost Functions A step function is a cost function in which the cost is constant over various ranges of the level of activity, but the c[r]

### Cost Accounting, Chapter 9 11ch09

Comparing Income Statements Absorption Costing Comparing Income Statements Absorption Costing Total fixed production costs are \$54,000 at a normal capacity of 12,000 units.. Fixed nonm[r]

### Cost Accounting, Chapter 2 11ch02

Relevant Range Example Relevant Range Example Assume that fixed leasing costs are \$94,500 for a year and that they remain the same for a certain volume range 1,000 to 5,000 bicycles...[r]

### Cost Accounting, Chapter 4 11ch04

Variations of Normal Costing Variations of Normal Costing Home Health budget includes the following: Total direct labor costs: \$400,000 Total indirect costs: \$96,000... Variations of [r]

### Cost Accounting, Chapter 6 11ch06

Ending Inventory Budget Ending Inventory Budget Cost per finished unit: Materials \$ 4 Labor 21 Variable manufacturing overhead 24 Fixed manufacturing overhead 5* Total \$54... Ending[r]

### Cost Accounting, Chapter 14 11ch14

Market-Size Variance Example Market-Size Variance Example Market-size variance Actual market size in units – Budgeted market size in units Budgeted market share Budgeted contribution[r]