Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
16th Edition
ISBN: 9780134475585
Author: Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
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Textbook Question
Chapter 1, Problem 1.19E
Value chain and classification of costs, fast-food restaurant. Burger King, a hamburger fast-food restaurant, incurs the following costs:
- a. Cost of oil for the deep fryer
- b. Wages of the counter help who give customers the food they order
- c. Cost of the costume for the King on the Burger King television commercials
- d. Cost of children’s toys given away free with kids’ meals
- e. Cost of the posters indicating the special “two cheeseburgers for $2.50”
- f. Costs of frozen onion rings and French fries
- g. Salaries of the food specialists who create new sandwiches for the restaurant chain
- h. Cost of “to-go” bags requested by customers who could not finish their meals in the restaurant
Classify each of the cost items (a–h) as one of the business functions of the value chain shown in Figure 1-2 (page 5).
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Students have asked these similar questions
Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well as offering take-out and free home
delivery services. The pizzeria's owner has determined that the shop has two major cost drivers the number of pizzas sold and the
number of deliveries made.
The pizzeria's cost formulas appear below:
Pizza ingredients
Fixed Cost
Cost per
per Month
Pizza
$ 4.50
$ 5,930
Cost per
Delivery
Kitchen staff
Utilities
Delivery person
Delivery vehicle
Equipment depreciation
Rent
Miscellaneous
$ 620
$640
$ 408
$1,890
$740
$0.40
$ 3.20
$ 0.20
$ 1.60
In November, the pizzeria budgeted for 1,590 pizzas at an average selling price of $16 per pizza and for 230 deliveries.
Data concerning the pizzeria's actual results in November appear below.
Actual
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Pizzas
Deliveries
Revenue
1,690
210
Kitchen staff
Delivery person
$27,600
Pizza ingredients
$ 7,390
$ 5,870
Utilities.
$ 890
$ 672
$ 988
$ 408
$ 1,890
$ 796
Delivery vehicle
Equipment depreciation
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Miscellaneous…
Q. Radhuni, a traditional bangla restaurant, incurs the following costs:a. Cost of special Canola oil for developing new dishes on Pohela Boishakh festivalsb. Commissions paid to Food Panda for serving online customer ordersc. Cost of the new clothes for the staffs on the event of Pohela Boishakh television commercialsd. Cost of children’s toys given away free with kids’ mealse. Cost of the posters indicating the special “two dishes for $2.50”f. Costs of frozen onion rings and Fishesg. Salaries of the food specialists who create new Biriyani for the restaurant chainh. Cost of “to-go” bags requested by customers who could not finish their meals in therestaurantRequired: Just Classify each of the cost items (a–h) as one of the business functions of the value chain
Burger Queen offers a lunch meal deal for its customers. The customer will get a burger, fry, soft drink, and ice cream for $5. If the customer were to buy each item individually, the cost would be broken down as follows:
Burger $2.50
Fry $1.25
Soft Drink $1.00
Ice Cream $1.50
Using the incremental cost allocation, how must of the transaction price should be allocated to the burger? (do not round intermediary calculations)
Question options:
a)
$2.50.
b)
$2.10.
c)
$2.08.
d)
$2.48.
Chapter 1 Solutions
Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
Ch. 1 - How does management accounting differ from...Ch. 1 - Management accounting should not fit the...Ch. 1 - How can a management accountant help formulate...Ch. 1 - Describe the business functions in the value...Ch. 1 - Explain the term supply chain and its importance...Ch. 1 - Management accounting deals only with costs. Do...Ch. 1 - How can management accountants help improve...Ch. 1 - Prob. 1.8QCh. 1 - Prob. 1.9QCh. 1 - What three guidelines help management accountants...
Ch. 1 - Prob. 1.11QCh. 1 - Prob. 1.12QCh. 1 - Prob. 1.13QCh. 1 - Prob. 1.14QCh. 1 - Prob. 1.15QCh. 1 - Which of the following is not a primary function...Ch. 1 - Value chain and classification of costs, computer...Ch. 1 - Prob. 1.18ECh. 1 - Value chain and classification of costs, fast-food...Ch. 1 - Key success factors. Dominion Consulting has...Ch. 1 - Key success factors. Vargas Construction Company...Ch. 1 - Planning and control decisions. Gregor Company...Ch. 1 - Planning and control decisions. Gavin Adams is the...Ch. 1 - Prob. 1.24ECh. 1 - Five-step decision-making process, service firm....Ch. 1 - Professional ethics and reporting division...Ch. 1 - Professional ethics and reporting division...Ch. 1 - Planning and control decisions, Internet company....Ch. 1 - Prob. 1.29PCh. 1 - Prob. 1.30PCh. 1 - Management accounting guidelines. For each of the...Ch. 1 - Prob. 1.32PCh. 1 - Prob. 1.33PCh. 1 - Budgeting, ethics, pharmaceutical company. Chris...Ch. 1 - Professional ethics and end-of-year actions. Linda...Ch. 1 - Professional ethics and end-of-year actions....Ch. 1 - Ethical challenges, global company environmental...
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