Company A produces commercial paints and stains in a handful of standard colors, and sells in bulk to home improvement stores. Company B produces shipping crates for electronics manufacturers that are available in a few standard sizes/configurations built on-demand from customer orders, and can also be ordered to specification (irregular sizes, shapes, padding materials, and so on) by individual customers. To account for manufacturing costs Company A would most likely use a costing system while Company B would most likely use a costing system. Order order O Cannot be determined from the information given O proces process

Company A produces commercial paints and stains in a handful of standard colors, and sells in bulk to home improvement stores. Company B produces shipping crates for electronics manufacturers that are available in a few standard sizes/configurations built on-demand from customer orders, and can also be ordered to specification (irregular sizes, shapes, padding materials, and so on) by individual customers. To account for manufacturing costs Company A would most likely use a costing system while Company B would most likely use a costing system. Order order O Cannot be determined from the information given O proces process

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 6PA: Carolina Yachts builds custom yachts in its production factory in South Carolina. Once complete,...

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Cape Cod Shirt Shop manufactures T-shirts and decorates them with custom designs for retail sale on the premises. Several costs incurred by the company are listed below. For each cost, indicate which of the following classifications best describe the cost. More than one classification may apply to the same cost item. For purposes of classifying costs as fixed or variable, assess cost behavior relative to the output quantity of finished T-shirts. (If your answer is "No" leave the cells blank.) Cost items 1. Cost of fabric used in T-shirt 2. Wages of shirt makers 3. Cost of new sign in front of retail T-shirt shop 4. Wages of the employee who repair the firm’s sewing machines 5. Cost of electricity used in the sewing department 6. Wages of T-shirts designers and painters 7. Wages of sales personnel 8. Depreciation on sewing machines 9. Rent on the building. Part of the building’s first floor is used to make and paint T-shirts. Part of it is used for the retail sales shop. The second…
Cape Cod Shirt Shop manufactures T-shirts and decorates them with custom designs for retail sale on the premises. Several costs incurred by the company are listed below. For each cost, indicate which of the following classifications best describe the cost. More than one classification may apply to the same cost item. For purposes of classifying costs as fixed or variable, assess cost behavior relative to the output quantity of finished T-shirts. (If your answer is "No" leave the cells blank.) Cost Items Variable or Fixed? Period or Product? Administrative? Selling? Manufacturing? Research and Development? Direct material, Direct labor, or Manufacturing overhead? 1. Cost of fabric used in T-shirts. 2. Wages of shirtmakers. 3. Cost of new sign in front of retail T-shirt shop. 4. Wages of the employee who repairs the firm’s sewing machines. 5.…
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