Question: In a certain city, 30% of the

> The following is the description of a cost: total fixed costs are $50 000 per month and the variable cost per unit is $10 when production is under 1000 units. The variable cost drops to $9 per unit after the first 1000 units are produced. Required (a) W

> Jasmine Krishnan has been taking entrepreneurship courses as part of her business degree. She developed a plan to start a travel agency specialising in semester break trips for students. She learned how to develop CVP analysis in her cost accounting clas

> Joe Davies is thinking about starting a company to produce carved wooden clocks. He loves making the clocks. He sees it as an opportunity to be his own boss, making a living doing what he likes best. Joe paid $300 for the plans for the first clock, and h

> Ersatz manufactures a single product. The following income statement shows two different levels of activity, which are assumed to be within Ersatz’s relevant range. You may want to use a spreadsheet to perform calculations. Required (

> A neighbour asked for your help preparing a grant for a not-for-profit after-school art program that would benefit primary school children in the neighbourhood. He wants to charge low fees for most children, but also offer some scholarships for low-incom

> Dreamtime produces two products: regular boomerangs and premium boomerangs. Last month 1200 units of regular and 2400 units of premium were produced and sold. Average prices and costs per unit for the month are displayed here. Product line fixed costs

> Francesca would like to lease a coffee cart in Melbourne. The lease is $800 per month and a city license to sell food and beverages costs $20 per month. The lessor of the stand has shown Francesca records indicating that gross revenues average $32 per ho

> Oysters Away picks, shucks and packs oysters and then sells them wholesale to fine restaurants across the state. The income statement for last year follows: Pickers, shuckers and packers are employed on an hourly basis and can be laid off whenever nece

> The following information for Pet Palace, a large retail store that sells pet-related merchandise, was recorded for the first quarter. The store tracks merchandise according to product type. The category ‘Other’ includ

> In recent years, slow response times and frequent repairs have plagued Jetson Engineering’s computer system. The cause was a substantial increase in computer-aided design work that pushed the system beyond its intended capacity. Bob Wilson, the productio

> The Gleason Company, a division of a large international company, has prepared estimated costs for next year that can be traced to each department as follows. Management would like to know the estimated total allocated product cost per unit. These cost

> Suppose that the following are activities conducted by Microsoft Corporation. A. Comparing the timeliness of development steps of a new release of Windows with the timeline that was laid out to guide development. B. Developing a timeline for the release

> Danish Hospital recently installed a RAP Scanner, which is a diagnostic tool used both in suspected cancer cases and for detecting certain birth defects while the foetus is still in the womb. The scanner is leased for $5000 per month, and a full-time ope

> In comprehensive example 6 (Middletown Children’s Clinic), we did not perform direct or step-down methods for the dual-rate costs. Following are the allocation bases for these costs. The support cost data are in comprehensive example 6.

> Space Products manufactures commercial and military satellites. Under its government contracts, the company is permitted to allocate administrative and other costs to its military division. These costs are then reimbursed by the government department. Go

> You are an accountant for the Department of Defence. The government is considering a change of rules for the allocation of research and development costs. The government is asking contractors to submit a list of potential cost pools and allocation bases

> Your brother is a physician and has decided to start a home health care agency. The government will reimburse treatment costs for about half of the patients under a new government-sponsored health insurance program for low-income residents. Your brother

> Categorisation of support costs Suppose a charitable organisation called Food on Wheels provides meals for low-income individuals who are unable to leave their homes. To support its services, it solicits contributions from individuals and businesses. Fo

> Prime Personal Trainers is a personal training service in Bankstown for people who want to work out at home. Prime offers two different types of services: Setup and Continuous Improvement. Setup services consist of several home visits by a personal train

> Refer to question 3.41 above. Required (a) Draw a diagram of the costing system currently used by Hawk and Eagle Co. (b) Draw a diagram to show the proposed changes to the costing system under each of the three methods outlined. (c) Briefly comment on

> Hawk and Eagle Co., a law firm, had the following costs last year: The following costs were included in overhead: The firm recently improved its ability to document and trace costs to individual cases. Revised bookkeeping procedures now allow the fir

> Vines Company is a manufacturer of women’s and men’s swimsuits. The company uses a dual-rate system to allocate support costs. Last year’s support departments’ fixed and variable cos

> Differentiate between the management accounting function and the management accountant.

> Software Solutions is a family-owned business that has been in operation for more than 15 years. The board of directors is comprised of mainly family members, plus a few professionals such as an accountant and lawyer. Regina is a staff accountant who has

> Refer to the data and requirements of problem 2.23. Required (a) Perform multiple regression using all three cost drivers. Compare the adjusted R-squares and cost functions for the multiple regression with the results of simple regressions for each pote

> Laura Mills is the controller of Peer Jets International, a manufacturer of small corporate jets. She has undertaken a project to study the behaviour of overhead cost. She has assembled factory overhead data for the last 30 months from the company’s manu

> Polar Bear Ski Wear is a shop that sells skiwear at a ski resort. Its cost accountant developed the following scatter plot for the cost of electricity for lights, heating and cooling against retail sales revenue. Required (a) In a business such as reta

> The Leyland Hospital Café has been reporting losses in past months. In July, for example, the loss was $5000. The café purchases prepared food directly from Hospital Food Services. This charge varies proportionately with the n

> Susan looked at her long-distance telephone bill with dismay. After leaving her job last year to become a self-employed consultant, her long-distance charges had grown considerably. She had not changed long-distance plans for years, partly because she ha

> The following scatter plot and simple regression results used revenue as a potential cost driver for research and development costs. Required (a) Discuss whether the scatter plot suggests that revenue is a cost driver for research and development cost

> Following are sales and administrative cost data for Big Jack Burgers for four months: Administrative cost is a mixed cost, and sales is a potential cost driver. Required (a) Using the high-low method, create a cost function for administrative costs.

> Mernda Health Care Centre recently began to offer day surgery procedures. The Centre was not experienced in the costing of such services and, as a temporary measure, the subsidised patientday charge was set at $100. This charge was similar to other provi

> Wentworth Ltd sold 100 000 1 litre bottles of mineral water last year at $4 per unit and made a profit of $50 000. This year the costs for Wentworth Ltd remained the same, it sold 120 000 units at the same price, and made a profit of $80 000. Required (

> Classify the following reports as internal or external. (a) Operating budget (b) Credit reports (c) Financial statements (d) Capital budget (e) Tax returns (f) Analysis of product mix

> Smeyer Industries is a large entity with more than 40 departments, each employing 35 to 100 people. Recent experience suggests that the cost function used to estimate overhead in department IP-14 is no longer appropriate. The current function was develop

> Suppose you have the responsibility of creating a cost function for the costs of an internet service provider’s help line. Required (a) What is the cost object? Identify where you might obtain information about past costs for the cost object. (b) Identi

> The Elder Clinic, a not-for-profit entity, provides limited medical services to low-income elderly patients. The manager’s summary report for the past four months of operations is reproduced here. The clinic receives an operating sub

> Suppose we need to predict the cost of maintenance for Brush Valley High School for the upcoming school year. From the school district records we gather weekly data about costs and volumes for two potential cost drivers: labour hours used in the maintena

> The Woolworths Group has a goal of having customers put the company first across all their brands. To achieve this the Group has identified five priorities. 1. Building a customer and store-led culture and team. 2. Generating sustainable sales momentum i

> Traditionally, government organisations have tended to operate in silos, focusing on their own objectives and managing and protecting their own budgets. Recently, however, faced with seemingly intractable economic, social and environmental problems, many

> Using figure 1.5 as an example, develop an internal value chain for an airline such as Virgin Australia. Figure 1.5: FIGURE 1.5 Sample organisational value chain for a winery Primary activities Research and development • wine varieties • production

> Australian fashion designer Sean Ashby commenced his men’s swimwear and clothing business aussieBum in 2001. A keen swimmer and surfer, he was unable to find a good pair of men’s cossies and used his life savings of $20 000 to make a series of prototypes

> Frank owns a caravan and loves to visit national parks with his family. However, the family only takes two one-week trips in the caravan each year. Frank’s wife would rather stay in motels than the caravan. She presented him with the fo

> Janet Baker is deciding where to live during her second year at university. During her first year, she lived in the university residence college. Recently, her friend Rachel asked her to share an off-campus flat for the upcoming school year. Janet likes

> Some activities add value to an organisation, while others do not. Required Determine whether each of the following activities is likely to be value-added or non-value-added, and explain your choice. (a) Inspection activities (b) Moving materials to wor

> Explain the value chain and list ways that value chain analysis benefits organisations.

> The Steelcase Workplace Index studied the types of work-related activities that Americans did while on vacation in the summer. Among other things, 40% read work-related material. Thirty-four percent checked in with the boss. Respondents to the study were

> A telephone survey conducted by the Maritz Marketing Research company found that 43% of Americans expect to save more money next year than they saved last year. Forty-five percent of those surveyed plan to reduce debt next year. Of those who expect to sa

> A few years ago, a survey commissioned by The World Almanac and Maturity News service reported that 51% of the respondents did not believe the Social Security system will be secure in 20 years. Of the respondents who were age 45 or older, 70% believed th

> An Adweek Media/Harris Poll revealed that 44% of U.S. adults in the 18–34 years’ category think that “Made in America” ads boost sales. A different Harris Interactive poll showed that 78% of U.S. adults in the 18–34 years’ category use social media onlin

> The U.S. Bureau of Labor Statistics publishes data on the benefits offered by small companies to their employees. Only 42% offer retirement plans while 61% offer life insurance. Suppose 33% offer both retirement plans and life insurance as benefits. If a

> Purchasing Survey asked purchasing professionals what sales traits impressed them most in a sales representative. Seventy-eight percent selected “thoroughness.” Forty percent responded “knowledge of your own product.” The purchasing professionals were al

> The following joint probability table contains a breakdown on the age and gender of U.S. physicians in a recent year, as reported by the American Medical Association. a) What is the probability that one randomly selected physician is 35â€&#14

> Use the values in the cross-tabulation table to solve the equations given. a) P(F ∩ A) = __________ b) P(A|B) = ___________ c) P(B) = _____________ d) P(E ∩ F) = __________ e) P(D|B) = ___________ f) P(B|D) = ________

> Use the values in the cross-tabulation table to solve the equations given. a) P(E) = _____________ b) P(B ∪ D) = __________ c) P(A ∩ E) = __________ d) P(B|E) = ___________ e) P(A ∪ B) = __________ f

> A list of the top 10 manufacturing companies in the United States according to Industry Week along with their total revenue in $ billions follows. Compute the median, Q3, P20, P60, P80, and P93 on these data. Company ___________ Revenue ($ billion) Exxon

> Suppose 70% of all companies are classified as small companies and the rest as large companies. Suppose further, 82% of large companies provide training to employees, but only 18% of small companies provide training. A company is randomly selected withou

> In a small town, two lawn companies fertilize lawns during the summer. Tri-State Lawn Service has 72% of the market. Thirty percent of the lawns fertilized by Tri-State could be rated as very healthy one month after service. Greenchem has the other 28% o

> Alex, Alicia, and Juan fill orders in a fast-food restaurant. Alex incorrectly fills 20% of the orders he takes. Alicia incorrectly fills 12% of the orders she takes. Juan incorrectly fills 5% of the orders he takes. Alex fills 30% of all orders, Alicia

> In a manufacturing plant, machine A produces 10% of a certain product, machine B produces 40% of this product, and machine C produces 50% of this product. Five percent of machine A products are defective, 12% of machine B products are defective, and 8% o

> In a study undertaken by Catalyst, 43% of women senior executives agreed or strongly agreed that a lack of role models was a barrier to their career development. In addition, 46% agreed or strongly agreed that gender-based stereotypes were barriers to th

> According to a survey of restaurant owners in the United States by MustHaveMenus, 77% of restaurant owners believe that they need to use social media as a marketing tool. A different survey by the National Restaurant owners revealed that 80% of restauran

> With the advent of online ordering, shipping has become more important to consumers. One survey showed that 80% of online consumers want same-day shipping. Another study showed that 24% of online consumers are shopping lovers who enjoy buying and purchas

> A national survey of small-business owners was conducted to determine the challenges for growth for their businesses. The top challenge, selected by 46% of the small-business owners, was the economy. A close second was finding qualified workers (37%). Su

> In a recent year, business failures in the United States numbered 83,384, according to Dun & Bradstreet. The construction industry accounted for 10,867 of these business failures. The South Atlantic states accounted for 8,010 of the business failures. Su

> The results of a survey asking, “Do you have a calculator and/or a computer in your home?” follow. Is the variable “calculator” independent of the variable “comput

> The following list shows the 15 largest banks in the world by assets according to Standard and Poor’s. Compute the median and the mean assets from this group. Which of these two measures do you think is most appropriate for summarizing these data and why

> Use the values in the joint probability table to solve the equations given. a) P(C|A) = __________ b) P(B|D) = __________ c) P(A|B) = __________ CD A-36-44 B.11.09

> Use the values in the cross-tabulation table to solve the equations given. a) P(G|A) = __________ b) P(B|F) = __________ c) P(C|E) = __________ d) P(E|G) = __________ EFG A 15 12 8 B11 17 19 C 21 32 27 D18 13 12

> A nationwide CareerBuilder survey was conducted regarding the job hunting experience. From the survey, it was learned that 26% of workers have had a bad experience as a job applicant. Eighty-two percent of workers expect to hear back from a company when

> A study by Becker Associates, a San Diego travel consultant, found that 30% of the traveling public said that their flight selections are influenced by perceptions of airline safety. Thirty-nine percent of the traveling public wants to know the age of th

> According to a report released by the National Center for Health Statistics, 51% of U.S. households has only cell phones (no land line). According to the FCC, nearly 70% of the U.S. households have high-speed Internet. Suppose of the U.S. households havi

> A study by Peter D. Hart Research Associates for the Nasdaq Stock Market revealed that 43% of all American adults are stockholders. In addition, the study determined that 75% of all American adult stockholders have some college education. Suppose 37% of

> The International Housewares Association (IHA) reported that 73% of all U.S. households have ceiling fans. In addition, 77% of all U.S. households have an outdoor grill. Suppose 60% of all U.S. households have both a ceiling fan and an outdoor grill. A U

> a. A batch of 50 parts contains six defects. If two parts are drawn randomly one at a time without replacement, what is the probability that both parts are defective? b. If this experiment is repeated, with replacement, what is the probability that both

> Use the values in the joint probability table to solve the equations given. a) P(E ∩ B) = __________ b) P(C ∩ F) = __________ c) P(E ∩ D) = __________ DEF A.12.13.08 B.18.09.04 C.06.24.06

> Use the values in the cross-tabulation table to solve the equations given. a) P(A ∩ E) = __________ b) P(D ∩ B) = __________ c) P(D ∩ E) = __________ d) P(A ∩ B) = __________ CD

> On a certain day, the average closing price of a group of stocks on the New York Stock Exchange (to the nearest dollar) is shown. What are the mean, the median, and the mode for these data? 21 21 21 22 23 25 28 29 33 35 38 56 61

> A survey conducted by the Northwestern University Lindquist-Endicott Report asked 320 companies about the procedures they use in hiring. Only 54% of the responding companies review the applicant’s college transcript as part of the hiring process, and onl

> According to Nielsen Media Research, approximately 86% of all U.S. households have high-definition television (HDTV). In addition, 49% of all U.S. households own digital video recorders (DVR). Suppose 40% of all U.S. households have HDTV and have DVR. A

> According to a survey conducted by the American Pet Products Association, 68% of U.S. households own a pet. According to the Energy Information Administration, 31% of all U.S. households have trouble paying their energy bills. Suppose 17% of all U.S. hou

> According to a survey conducted by Netpop Research, 65% of new-car buyers use online search engines as part of their car-buying experience. Another study reported that 11% of new-car buyers skip the test drive. Suppose 7% of new-car buyers use online sea

> Use the values in the joint probability table to solve the equations given. a) P(A ∪ F) = __________ b) P(E ∪ B) = __________ c) P(B ∪ C) = __________ d) P(E ∪ F) = __________ E

> Use the values in the cross-tabulation table to solve the equations given. a) P(A ∪ D) = __________ b) P(E ∪ B) = __________ c) P(D ∪ E) = __________ d) P(C ∪ F) = __________ DE

> Given P(A) = .10, P(B) = .12, P(C) = .21, P(A ∩ C) = .05, and P(B ∩ C) = .03 solve the following. a) P(A ∪ C) = __________ b) P(B ∪ C) = __________ c) If A and B are mutually exclusive, P(A ∪ B) = __________

> A small company has 20 employees. Six of these employees will be selected randomly to be interviewed as part of an employee satisfaction program. How many different groups of six can be selected?

> A company places a seven-digit serial number on each part that is made. Each digit of the serial number can be any number from 0 through 9. Digits can be repeated in the serial number. How many different serial numbers are possible?

> A bin contains six parts. Two of the parts are defective and four are acceptable. If three of the six parts are selected from the bin, how large is the sample space? Which counting rule did you use, and why? For this sample space, what is the probability

> Compute P20, P47, P83, Q1, Q2, and Q3 for the following data. 120 138 97 118 172 144 138 107 94 119 139 145 162 127 112 150 143 80 105 116 142 128 116 171

> A company’s customer service 800 telephone system is set up so that the caller has six options. Each of these six options leads to a menu with four options. For each of these four options, three more options are available. For each of these three options

> 1. Statistical measures used to yield information about the center or middle part of a group of numbers are called _______________. 2. The "average" is the _______________. 3. The value occurring most often in a group of numbers is called _______________

> 21. The population standard deviation for this data is _______________. 22. In estimating what proportion of values fall within so many standard deviations of the mean, an analyst should use _______________ if the shape of the distribution of numbers is

> 11. The range of the data is _______________. 12. The value of Q1 is _____________, Q2 is ____________, and Q3 is ____________. 13. The interquartile range is _____________. 14. The value of the 34th percentile is ________________. 15. Subtracting each v

> 1. In several countries of Africa, a common size for a Coke can is 340 milliliters (mL). Because of the variability of bottling machinery, it is likely that every 340-mL bottle of Coca-Cola does not contain exactly 340 mL of fluid. Some bottles may conta

> Compute the mean for the following numbers. 7-2590-3 -6 -7 -4 -5 2-8

> Compute the mean for the following numbers. 17.3 44.5 31.6 40.0 52.8 38.8 30.1 78.5

> Determine the median for the following numbers. 213 345 609 073 167 243 444 524 199 682

> Determine the median and the mode for the following numbers. 248462784389435

> Compute the 35th percentile, the 55th percentile, Q1, Q2, and Q3 for the following data. 16 28 29 13 17 20 11 34 32 27 25 30 19 18 33

> 1. The following data represents the number of printer ribbons used annually in a company by twenty-eight departments. This is an example of ______________ data. 2. Below is a frequency distribution of ages of managers with a large retail firm. This is