Professional Documents
Culture Documents
Dwnload Full Managerial Accounting Creating Value in A Dynamic Business Environment 11th Edition Hilton Solutions Manual PDF
Dwnload Full Managerial Accounting Creating Value in A Dynamic Business Environment 11th Edition Hilton Solutions Manual PDF
https://testbankfan.com/download/managerial-accounting-creating-value-in-a-dynamic
-business-environment-11th-edition-hilton-solutions-manual/
CHAPTER 2
Basic Cost Management Concepts
2-6 The cost of idle time is treated as manufacturing overhead because it is a normal cost
of the manufacturing operation that should be spread out among all of the
manufactured products. The alternative to this treatment would be to charge the cost
of idle time to a particular job that happens to be in process when the idle time occurs.
Idle time often results from a random event, such as a power outage. Charging the
cost of the idle time resulting from such a random event to only the job that happened
to be in process at the time would overstate the cost of that job.
2-7 Overtime premium is included in manufacturing overhead in order to spread the extra
cost of the overtime over all of the products produced, since overtime often is a normal
cost of the manufacturing operation. The alternative would be to charge the overtime
premium to the particular job in process during overtime. In most cases, such
treatment would overstate the cost of that job, since it is only coincidental that a
particular job happened to be done on overtime. The need for overtime to complete a
particular job results from the fact that other jobs were completed during regular
hours.
2-8 The phrase “different costs for different purposes” refers to the fact that the word
“cost” can have different meanings depending on the context in which it is used. Cost
data that are classified and recorded in a particular way for one purpose may be
inappropriate for another use.
2-9 The city of Tampa would use cost information for planning when it developed a budget
for its operations during the next year. Included in that budget would be projected
costs for police and fire protection, street maintenance, and city administration. At the
end of the year this budget would be used for cost control. The actual costs incurred
would be compared to projected costs in the budget. City administrators would also
use cost data in making decisions, such as where to locate a new fire station.
2-10 A fixed cost remains constant in total across changes in activity, whereas the total
variable cost changes in proportion to the level of activity.
2-2 Solutions Manual
© 2017 by McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
2-11 The fixed cost per unit declines as the level of activity (or cost driver) increases.
Specifically, it declines at a decreasing rate: going from one unit produced to two
divides the fixed cost per unit in half; going from two units to three divides it into
thirds; three to four into fourths, etc. The cost per unit is reduced because the total
fixed cost, which does not change as activity changes, is spread over a larger number
of activity units.
2-12 The variable cost per unit remains constant as the level of activity (or cost driver)
changes. Total variable costs change in proportion to activity, and the additional
variable cost when one unit of activity is added is the variable cost per unit.
2-13 A volume-based cost driver, such as the number of passengers, causes costs to be
incurred because of the quantity of service offered by the airline. An operations-based
cost driver, such as hub domination, affects costs because of the basic way in which
the airline conducts its operations. Greater control over a hub airport's facilities and
services gives an airline greater ability to control its operating costs.
2-14 a. Number of students: volume-based cost driver. This characteristic of the college
relates to the quantity of services provided.
b. Number of disciplines offered for study: operations-based cost driver. The greater
the diversity in a college's course offerings, the greater will be the costs incurred,
regardless of the overall size of the student body.
c. Urban versus rural location: operations-based cost driver. A college's location will
affect the type of housing and food facilities required, the cost of obtaining
services, and the cost of transportation for college employees acting on behalf of
the college.
2-15 Examples of direct costs of the food and beverage department in a hotel include the
money spent on the food and beverages served, the wages of table service personnel,
and the costs of entertainment in the dining room and lounge. Examples of indirect
costs of the food and beverage department include allocations of the costs of
advertising for the entire hotel, of the costs of the grounds and maintenance
department, and of the hotel general manager's salary.
2-16 Costs that are likely to be controllable by a city's airport manager include the wages
of personnel hired by the airport manager, the cost of heat and light in the airport
manager's administrative offices, and the cost of some materials consumed in the
process of operating the airport, such as cleaning, painting, and maintenance
materials. Costs that are likely to be uncontrollable by the city's airport manager
include depreciation of the airport facilities, fees paid by the airport to the federal
government for air traffic control services, and insurance for the airport employees
and patrons.
BALLOTS.
Ballots. 1 2 3 4 5 6
Grant, 304 305 305 305 305 305
Blaine, 284 282 282 281 281 281
Sherman, 93 94 93 95 95 95
Edmunds, 34 32 32 32 32 31
Washburne, 30 32 31 31 31 31
Windom, 10 10 10 10 10 10
Garfield, 1 1 1 2 2
Harrison, 1
Ballots. 7 8 9 10 11 12
Grant, 305 306 308 305 305 304
Blaine, 281 284 282 282 281 283
Sherman, 94 91 90 91 62 93
Edmunds, 32 31 31 30 31 31
Washburne, 31 32 32 22 32 33
Windom, 10 10 10 10 10 10
Garfield, 1 1 1 2 2 1
Hayes, 1 2
Ballots, 13 14 15 16 17 18
Grant, 305 305 309 306 303 305
Blaine, 285 285 281 283 284 283
Sherman, 89 89 88 88 90 92
Edmunds, 31 31 31 31 31 31
Washburne, 33 35 36 36 34 35
Windom, 10 10 10 10 10 10
Garfield, 1
Hayes, 1 1
Davis, 1
McCrary, 1
Ballots, 19 20 21 22 23 24
Grant, 305 308 305 305 304 305
Blaine, 279 276 276 275 274 279
Sherman, 95 93 96 95 98 93
Edmunds, 31 31 31 31 31 31
Washburne, 31 35 35 35 36 35
Windom, 10 10 10 10 10 10
Garfield, 1 1 1 1 2 2
Hartranft, 1 1 1 1
Ballots, 25 26 27
Grant, 302 303 306
Blaine, 281 280 277
Sherman, 94 93 93
Edmunds, 31 31 31
Washburne, 36 35 36
Windom, 10 10 10
Garfield, 2 2 2
There was little change from the 27th ballot until the 36th and
final one, which resulted as follows:
Hancock 171
Bayard 153½
Payne 81
Thurman 63½
Field 66
Morrison 62
Hendricks 46½
Tilden 38
Ewing 10
Seymour 8
Randall 6
Loveland 5
McDonald 3
McClellan 3
English 1
Jewett 1
Black 1
Lothrop 1
Parker 1
SECOND BALLOT.
Hancock 705
Tilden 1
Bayard 2
Hendricks 30
The 3 per cent. Funding Bill passed the House March 2, and was
on the following day vetoed by President Hayes on the ground that it
dealt unjustly with the National Banks in compelling them to accept
and employ this security for their circulation in lieu of the old bonds.
This feature of the bill caused several of the Banks to surrender their
circulation, conduct which for a time excited strong political
prejudices. The Republicans in Congress as a rule contended that the
debt could not be surely funded at 3 per cent.; that 3½ was a safer
figure, and to go below this might render the bill of no effect. The
same views were entertained by President Hayes and Secretary
Sherman. The Democrats insisted on 3 per cent., until the veto, when
the general desire to fund at more favorable rates broke party lines,
and a 3½ per cent. funding bill was passed, with the feature
objectionable to the National Banks omitted.
The Republicans were mistaken in their view, as the result proved.
The loan was floated so easily, that in the session of 1882 Secretary
Sherman, now a Senator, himself introduced a 3 per cent. bill, which
passed the Senate Feb. 2d, 1882, in this shape:—
Be it enacted, &c. That the Secretary of the Treasury is hereby
authorized to receive at the Treasury and at the office of any
Assistant Treasurer of the United States and at any postal money
order office, lawful money of the United States to the amount of fifty
dollars or any multiple of that sum or any bonds of the United States,
bearing three and a half per cent, interest, which are hereby declared
valid, and to issue in exchange therefore an equal amount of
registered or coupon bonds of the United States, of the denomination
of fifty, one hundred, five hundred, one thousand and ten thousand
dollars, of such form as he may prescribe, bearing interest at the rate
three per centum per annum, payable either quarterly or semi-
annually, at the Treasury of the United States. Such bonds shall be
exempt from all taxation by or under state authority, and be payable
at the pleasure of the United States. “Provided, That the bonds
herein authorized shall not be called in and paid so long as any bonds
of the United States heretofore issued bearing a higher rate of
interest than three per centum, and which shall be redeemable at the
pleasure of the United States, shall be outstanding and uncalled. The
last of the said bonds originally issued and their substitutes under
this act shall be first called in and this order of payment shall be
followed until all shall have been paid.”
Total $52,788,722.03