Question

In: Accounting

Classify the following activities into the appropriate cost hierarchies (unit, batch, product, customer, or org-sustaining): A...

Classify the following activities into the appropriate cost hierarchies (unit, batch, product, customer, or org-sustaining):

  1. A clothing store makes sales calls made to customers
  2. Samsung conducting market research to understand and take into account when developing the new line of products at the company (e.g. the next generation of Galaxy phones)
  3. Coca Cola setting up machinery for bottling
  4. A law firm making trips to meet and talk with clients
  5. A company preparing quarterly financial reports to be filed with the SEC
  6. A CD production company placing CDs individually into protective cases
  7. Lighting and heating at a company’s production facility
  8. Paying property taxes for a manufacturing company’s corporate headquarters
  9. Kraft Foods placing fifty containers into each box before sending the boxes to the warehouse
  10. Hershey’s cutting chocolate into individual pieces before the pieces are sent to be wrapped
  11. Deloitte recruiting and interviewing candidates to be the next group of entry-level auditors
  12. Tesla making designs for its various brands of electric cars

Solutions

Expert Solution

  1. A clothing store makes sales calls made to customers - Customer
  2. Samsung conducting market research to understand and take into account when developing the new line of products at the company - Org. Sustaining
  3. Coca Cola setting up machinery for bottling - Batch
  4. A law firm making trips to meet and talk with clients - Customer
  5. A company preparing quarterly financial reports to be filed with the SEC - Org. Sustaining
  6. A CD production company placing CDs individually into protective cases - Unit
  7. Lighting and heating at a company’s production facility - product
  8. Paying property taxes for a manufacturing company’s corporate headquarters - Org. Sustaining
  9. Kraft Foods placing fifty containers into each box before sending the boxes to the warehouse - batch
  10. Hershey’s cutting chocolate into individual pieces before the pieces are sent to be wrapped - product
  11. Deloitte recruiting and interviewing candidates to be the next group of entry-level auditors - Org. Sustaining
  12. Tesla making designs for its various brands of electric cars - product

Related Solutions

Classify each of the following costs as​ unit-level, batch-level,​ product-level, or​ facility-level. a. Product line manager...
Classify each of the following costs as​ unit-level, batch-level,​ product-level, or​ facility-level. a. Product line manager salary ▼ b CEO salary ▼ Batch-level Batch-level or Facility-level Batch-level or Unit-level Facility-level Facility-level or Product-level Facility-level or Unit-level Product-level Unit-level c. Machine​ set-up costs that are incurred whenever a new production order is started ▼ Batch-level Batch-level or Facility-level Batch-level or Unit-level Facility-level Facility-level or Product-level Facility-level or Unit-level Product-level Unit-level d. Direct materials ▼ Batch-level Batch-level or Facility-level Batch-level or Unit-level...
Classify each of the following activities into one of the four cost of quality categories and/or...
Classify each of the following activities into one of the four cost of quality categories and/or identify it as a value-added or a non-value-added activity. Value-added activity Non-value-added Internal failure cost External failure cost Appraisal cost Prevention cost a. Rework, due to poor materials, on bicycles at Trek b. Inspection costs incurred by Walmart on merchandise purchased from Mattel, Inc. c. Costs incurred by Walmart when merchandise, purchased from Grocers, Inc., spoils in its warehouse before shipping to its stores...
Classify each of the following costs as a period cost (nonmanufacturing) or a product cost (manufacturing)....
Classify each of the following costs as a period cost (nonmanufacturing) or a product cost (manufacturing). Sales Commission Depreciation on manufacturing equipment Insurance for the factory building Marketing materials Plastic used in production Wages paid to factory supervisor A. Period B. Product
An example of a product-sustaining cost is Question 21 options: labels for a can of soup...
An example of a product-sustaining cost is Question 21 options: labels for a can of soup setting up equipment warranty servicing plant manager's salary
Match each of the following activities with the appropriate quality cost classification (a–d). Group of answer...
Match each of the following activities with the appropriate quality cost classification (a–d). Group of answer choices Disposing of scrap       [ Choose ]            Appraisal cost            External failure cost            Internal failure cost            Prevention cost       Recalling defective products       [ Choose ]            Appraisal cost            External failure cost            Internal failure cost            Prevention cost   ...
Classify the costs below as: Product-Direct, Product-Indirect, or Period AND Variable cost, Fixed cost, or Mixed...
Classify the costs below as: Product-Direct, Product-Indirect, or Period AND Variable cost, Fixed cost, or Mixed cost.   Below are budgeted income statements at different team levels, use the information to answer the questions below: Number of Teams 15 25 30 Product Direct, Product Indirect or Period Fixed/         Variable Sales $1,500 $2,500 $3,000 Cost of Goods Sold           Direct Materials 75 125 150           Direct Labor 150 250 300           Applied Overhead 575 625 650 Gross Profit $700 $1,500 $1,900 Selling...
Classify the costs below as: Product-Direct, Product-Indirect, or Period AND Variable cost, Fixed cost, or Mixed...
Classify the costs below as: Product-Direct, Product-Indirect, or Period AND Variable cost, Fixed cost, or Mixed cost.   Below are budgeted income statements at different team levels, use the information to answer the questions below: Number of Teams 15 25 30 Product Direct, Product Indirect or Period Fixed/         Variable Sales $1,500 $2,500 $3,000 Cost of Goods Sold           Direct Materials 75 125 150           Direct Labor 150 250 300           Applied Overhead 575 625 650 Gross Profit $700 $1,500 $1,900 Selling...
Describe the product life cycle and discuss how unit level costs, batch level costs, product level...
Describe the product life cycle and discuss how unit level costs, batch level costs, product level costs and facility level costs behave in relation to the product life cycle.
The insurance cost for a large factory would be considered a: Multiple Choice unit-level cost. batch-level...
The insurance cost for a large factory would be considered a: Multiple Choice unit-level cost. batch-level cost. product-level cost. facility-level cost.
The classification of cost drivers into general levels of activity, volume, batch, product, and so on...
The classification of cost drivers into general levels of activity, volume, batch, product, and so on is known as: A. cost allocation. B. value-added costing. C. a cost hierarchy. D. cost driver management.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT