Managerial Accounting: Creating Value in a Dynamic Business Environment
12th Edition
ISBN: 9781260417074
Author: HILTON, Ronald
Publisher: MCGRAW-HILL HIGHER EDUCATION
expand_more
expand_more
format_list_bulleted
Textbook Question
Chapter 6, Problem 3RQ
Suggest an appropriate activity base (or cost driver) for each of the following organizations: (a) hotel, (b) hospital, (c) computer manufacturer, (d) computer sales store, (e) computer repair service, and (f) public accounting firm.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Analyse the system requirement for accounting software for the retail sector. Critically discuss the benefit and possible issues for the proposed system. Give recommendation with reasons to support your selection.
Â
Description of the system requirements for accounting software in retail sector.
Discussion on the benefit of in-house development for proposed accounting software.
Discussion on possible issues of in-house development for proposed accounting software.
Recommendation to overcome the possible issues of in-house development for proposed accounting software.
Â
Â
Please donot provide solution in image format and it should be in step by step format and provide solution asap
Activity Bases for Service Department Charges
For each of the following service departments, select the activity base listed that is most appropriate for charging service expenses to responsible units. Your answer should include the number of the activity base only.
Activity bases to choose from:
Number of conference attendees
Number of computers
Number of employees trained
Number of cell phone minutes used
Number of purchase requisitions
Number of sales invoices
Number of payroll checks
Number of travel claims
Service Department
Activity Base
a. Â Accounts Receivable
fill in the blank 1
b. Â Central Purchasing
fill in the blank 2
c. Â Computer Support
fill in the blank 3
d. Â Conferences
fill in the blank 4
e. Â Employee Travel
fill in the blank 5
f. Â Payroll Accounting
fill in the blank 6
g. Â Telecommunications
fill in the blank 7
h. Â Training
fill in the blank 8
Classify the following organization’s as professional service firms, mass service entities
or service shops. In each case, explain the reason for your classification.
Chapter 6 Solutions
Managerial Accounting: Creating Value in a Dynamic Business Environment
Ch. 6 - Describe the importance of cost behavior patterns...Ch. 6 - Define the following terms, and explain the...Ch. 6 - Suggest an appropriate activity base (or cost...Ch. 6 - Draw a simple graph of each of the following types...Ch. 6 - Explain the impact of an increase in the level of...Ch. 6 - Explain why a manufacturers cost of supervising...Ch. 6 - Explain the impact of an increase in the level of...Ch. 6 - Prob. 8RQCh. 6 - Indicate which of the following descriptions is...Ch. 6 - Prob. 10RQ
Ch. 6 - What is meant by a learning curve? Explain its...Ch. 6 - Suggest an appropriate independent variable to use...Ch. 6 - What is an outlier? List some possible causes of...Ch. 6 - Explain the cost estimation problem caused by...Ch. 6 - Describe the visual-fit method of cost estimation....Ch. 6 - What is the chief drawback of the high-low method...Ch. 6 - Explain the meaning of the term least squares in...Ch. 6 - Prob. 18RQCh. 6 - Prob. 19RQCh. 6 - List several possible cost drivers that could be...Ch. 6 - Prob. 21RQCh. 6 - Prob. 22ECh. 6 - The behavior of the annual maintenance and repair...Ch. 6 - WMEJ is an independent television station run by a...Ch. 6 - Jonathan Macintosh is a highly successful...Ch. 6 - Jonathan Macintosh is a highly successful...Ch. 6 - The Iowa City Veterinary Laboratory performs a...Ch. 6 - Chillicothe Meat Company produces one of the best...Ch. 6 - Rio Bus Tours has incurred the following bus...Ch. 6 - Prob. 31ECh. 6 - Prob. 32ECh. 6 - Prob. 33ECh. 6 - Gator Beach Marts, a chain of convenience grocery...Ch. 6 - For each of the cost items described below, choose...Ch. 6 - The following selected data were taken from the...Ch. 6 - Antioch Extraction, which mines ore in Montana,...Ch. 6 - Nations Capital Fitness, Inc. operates a chain of...Ch. 6 - The Allegheny School of Music has hired you as a...Ch. 6 - Prob. 40PCh. 6 - (Note: Instructors who wish to cover all three...Ch. 6 - Refer to the original data in the preceding...Ch. 6 - Shortly after being hired as an analyst with...Ch. 6 - The controller of Chittenango Chain Company...Ch. 6 - Dana Rand owns a catering company that prepares...Ch. 6 - Prob. 48PCh. 6 - Earth and Artistry, Inc. provides commercial...Ch. 6 - Prob. 51CCh. 6 - Refer to the data and accompanying information in...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- For each of the following support departments, identify a cost driver that could be used for allocating the support department costs to the profit center: a. Legal b. Duplication services c. Electronic data processing d. Central purchasing e. Telecommunications f. Accounts receivablearrow_forwardIdentify some possible causal factors for the following support departments: a. Cafeteria b. Custodial services c. Laundry d. Receiving, shipping, and stores e. Maintenance f. Personnel g. Accounting h. Power i. Building and groundsarrow_forwardWhy does support department cost allocation matter to service businesses (such as colleges and universities)? Please explain the importance. Also, identify three businesses, companies, or non-profit organizations that you think would use support department cost allocation. Name the company and their corresponding support departments.arrow_forward
- For each office or business segment, indicate which type of Responsibility Center it is: a. A retail location, such as the Apple Store    b. A manufacturing division that manages its own facilities and production equipment    c. Call center for a warranty claims processing    d. Consulting department of an accounting firm    e. Quality control department for a golf ball manufacturer         PreviousNextarrow_forwardAssume you are the manager of the finished goods warehouse of a computer manufacturer. Which warehouse-related busi-ness measures might help the company achieve its balanced scorecard goals?arrow_forwardFollowing are activities for a provider of online education. Classify each activity as unit level, batch level, service level, or facility level. Activity 1. Scheduling instructors 2. Controlling course data 3. Receiving supply shipments 4. Registering a student 5. Creating a new course 6. Maintaining course websites 7. Providing electricity 8. Delivering an online course Levelarrow_forward
- Describe a service company, and give an example.arrow_forwardA wide range of accounting information system (AIS) software programs are available in the marketplace. Businesses select one that fits their needs based on budget and systems requirements. Do some research to understand the differences between the way systems process accounting information and produce reports. Â Â Choose two types of software from the following list to compare: QuickBooks, Peachtree, Oracle NetSuite, SAP, or MS Access. Â Â compare these aspects of each software program: Compare the pros and cons of each system to show the system's benefits and drawbacks for businesses in the way they handle transaction processing for accounting cycles. Discuss the way artificial intelligence (AI) or machine learning is utilized in the system and how these tools elevate data processing and data analytics.arrow_forwardIdentify the following users as either External users or Internal users. a. Distribution managers b. Marketing managers C. Suppliers d. Labor unions e. Internal auditors f. Budget officers g. Shareholders h. Chief executive officer (CEO) i. Chief financial officer (CFO) i. Government officials k. Customers L. Nonprofit donorarrow_forward
- Select all that apply  Which of the following are examples of operating departments? (Check all that apply.) Multiple select question. Geography department at a university Production department at a manufacturing firm Custodial department at a service firm Surgery department at a hospitalarrow_forwardWhen the hotel routes all of the financial data for their individual properties to a different site, this is called which of the following?  Question 15 options:  a) Decentralized budget  b) Quality financial control  c) Centralized accounting  d) Internal financial controlarrow_forwardsummarize high level SNF industry trends and the general financial condition of the Skilled Nursing Facility industry.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax CollegeManagerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College PubFinancial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,
- Principles of Cost AccountingAccountingISBN:9781305087408Author:Edward J. Vanderbeck, Maria R. MitchellPublisher:Cengage LearningCornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:Cengage Learning,
Principles of Cost Accounting
Accounting
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser...
Accounting
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Cengage Learning
GE McKinsey Matrix for SBU Strategies; Author: Wolters World;https://www.youtube.com/watch?v=FffD1Ze76JQ;License: Standard Youtube License