Why is the Process Cost Summary important to management and how does the Process Cost Summary accomplish its purposes?
What will be an ideal response?
The Process Cost Summary depicts a four-step process detailing physical flows and
cost flows. It allows management to verify inputs and outputs as part of a cost control and monitoring system. It also lets management logically perform unit costing–a necessary activity to allow for appropriate product pricing. By detailing physical flow, a process cost summary measures accountability and responsibility. By detailing cost flow, it allows management to determine and derive appropriate cost allocations in a logical format.
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According to the ________ law of thermodynamics (the conservation of matter/energy), neither matter nor energy can truly be "created," but can only be transferred from one form to another.
A. third B. first C. second D. fourth
In this stage, the listener assigns meaning to the message ______.
A. evaluating B. interpreting C. remembering D. responding
At which stage of the product life cycle would you see sales peak for a product?
a. the decline stage b. the maturity stage c. the business stage d. the growth stage e. the introduction stage
Granfield Company has a piece of manufacturing equipment with a book value of $40,000 and a remaining useful life of four years. At the end of the four years the equipment will have a zero salvage value. The market value of the equipment is currently $22,000. Granfield can purchase a new machine for $120,000 and receive $22,000 in return for trading in its old machine. The new machine will reduce variable manufacturing costs by $19,000 per year over the four-year life of the new machine. The total increase or decrease in net income by replacing the current machine with the new machine (ignoring the time value of money) is:
A. $76,000 increase B. $22,000 decrease C. $22,000 increase D. $52,000 increase E. $18,000 decrease