MALİYET VE YÖNETİM MUHASEBESİ - Deneme Sınavı - 3

Opearting departments in a bank include:

Auto Loans: Loan processors' salaries, Forms and supplies

Commercial Lending: Lending officers' salaries, Depreciation on office equipment, Bankruptcy prediction software

Personal Banking: Supplies and postage for statements

A furniture maker may include the following support departments:

Materials Storeroom: Clerk's salary, Depreciation on forklift

Cafeteria: Food, Cooks' salaries, Depreciation on stoves

Maintenance: Janitors' salaries, Cleaning supplies, Machine oil and lubricants,

General Factory: Depreciation on building, Security, Utilities

There are two important issues in calculating the charging rate:

1. The choice of a single or a dual charging rate and

2. The use of budgeted versus actual support department costs.

Practical capacity is the amount that an entity can generate if the normal operating disruptions are considered.

The process involves the following steps (Eldenburgh and Wolcott, 2005: 301):

1. Explain the purpose of the allocation.

2. Identify support and operating department cost pools.

3. Assign costs to cost pools.

4. For each support department cost pool, choose an allocation base.

5. Choose and apply a method for allocating support department costs to operating departments.

6. If relevant, allocate support costs from the operating departments to units of goods or services.

The direct allocation method (often called the direct method) is the most widely used method of allocating support department costs. This method allocates each support department’s costs directly to the operating departments. In this method costs accumulated in service departments are allocated to the manufacturing departments depending on the services that each of the manufacturing department requires from each of the service department. In this method, firstly, we have to identify the service carried out by each of the service department.

Reciprocal method is also known as algebraic method.

In step-down method, the cost of service departments will be allocated to other service and operating departments depending on whether they provide services or not.

The correct answer to question is option A. The users of accounting information can be divided into two categories. Internal parties within the organization such as employers, managers, workers and external parties such as shareholders, creditors, goverment and banks outside the organization. Financial accounting produces useful financial information to external users. Whereas, cost accounting and management accounting provide information to internal users.

The correct answer is question E. The role of cost accounting and management accounting have been more strategic in decision making, planning and controlling process within the organization.

The correct answer is B. Cost is a resource sacrificed or forfeit to achieve a
specific objective.

The correct answer is D. Marketing or selling expenses are recognized as period expense.

The correct answer is C. The preparation of general purpose financial statements is one of the purposes of financial accounting.

The correct answer is D. Direct material cost is changes in the volume of operations and increases when the volume of activity increases and is zero.

Economic and technological changes in recent years, many organizations, especially in the manufacturing sector, have faced significant changes in their business environment. These challenges can be summarized under three headings:
• Globalization,
• Automatization and Industry 4.0 revolution,
• Technological developments

The correct answer is D. For merchandising-sector organizations, inventoriable costs are the costs of purchasing the goods that are resold in the same form. Manufacturing-sector organizations, all manufacturing costs are inventoriable costs. In service-sector organizations, there are no inventoriable costs, there are only service costs. Tourism sector and educational sector organizations are service-sector organizations.

Cost accounting can be defined as a system in which financial data regarding business transactions are collected, classified, recorded, evaluated and reported for the following three purposes:
• To find the cost of product or service, (NOT THE PRICE OF PRODUCT/SERVICE)
• Planning and controlling activities,
• Decision-making process.

Unit cost information is also helpful in making important marketing
decisions such as:

Cost is a resource sacrificed or forfeit to achieve a
specific objective.

The correct answer to question is option A. Cost of goods sold is showed to the income statement.