Questions from Cost Accounting

Q: What is meant by classifying costs (a) functionally and (

What is meant by classifying costs (a) functionally and (b) behaviorally? Why would a company be concerned about functional and behavioral classifications?

Q: What is budgetary slack, and what might top managers do to

What is budgetary slack, and what might top managers do to rid their firms’ budgets of slack?

Q: (Appendix) Why is it helpful for a company to prepare

(Appendix) Why is it helpful for a company to prepare a budget manual? Appendix: Most companies combine many materials and various classes of direct labor to produce goods. In such settings, the mate...

Q: How does the strategic plan influence preparation of the master budget?

How does the strategic plan influence preparation of the master budget?

Q: Distinguish between a strategic plan and a tactical plan. How are

Distinguish between a strategic plan and a tactical plan. How are these plans related?

Q: After a master budget has been prepared, what is its role

After a master budget has been prepared, what is its role in managerial control?

Q: How does budgeting provide important information to managers and operating personnel?

How does budgeting provide important information to managers and operating personnel?

Q: Lansing Mfg. prepared the following 2010 abbreviated flexible budget for different

Lansing Mfg. prepared the following 2010 abbreviated flexible budget for different levels of machine hours: Each product requires 4 hours of machine time, and the company expects to produce 10,000 uni...

Q: Use the information in Exercise 11 and assume that Lansing Mfg.

Use the information in Exercise 11 and assume that Lansing Mfg. has decided to use units of production to apply overhead to production. In April 2010, the company produced 875 units and incurred $7,50...

Q: For 2010, Omaha Mechanical has a monthly overhead cost formula of

For 2010, Omaha Mechanical has a monthly overhead cost formula of $42,900+$6 per direct labor hour. The firm’s 2010 expected annual capacity is 78,000 direct labor hours, to be incurred evenly each mo...