Part 1 Cost Accounting

CHAPTER 1 Classification and Flow of Costs 1-3
Problem 1: Flow of Manufacturing Costs and the Income Statement of a Manufacturing Company / 1-14
CHAPTER 2 Cost Allocation 1-17
Problem 1: Allocation of Auxiliary Department Costs - Estimation / 1-26
Problem 2: Allocation of Auxiliary Department Costs - Double Allocation Method, Own Department Consumption Services / 1-28
Problem 3: Single-Rate and Double-Rate Methods - Budget Allocation Ratios, Outsourcing of Services / 1-31
Problem 4: Single-Rate Method and Double-Rate Method
- Budget allocation ratio, decision-making (outsourcing of services, special orders), unused capacity cost / 1-35
Problem 5: Double Allocation Rate Method - Budget Allocation Rate, Comprehensive Costing / 1-40
CHAPTER 3 Individual Costing 1-43
Problem 1: Comprehensive Individual Costing Problems - Reciprocal Apportionment Method, Own Sector Consumption Services, High-Low Point Method / 1-48
CHAPTER 4 Comprehensive Costing 1-51
Problem 1: Estimating the degree of completion of work-in-progress when the degree of completion of work-in-progress is not uniform / 1-66
Problem 2: Comprehensive Costing + Manufacturing Cost Flow / 1-70
Problem 3: Comprehensive Costing - Estimation / 1-74
Problem 4: Politeness Basics - Average Rule / 1-77
Problem 5: Politeness Basics - First-in, First-out / 1-80
Problem 6: Courtesy - If the basic materials pass the electrical inspection / 1-83
Problem 7 Politeness - Presumption, Dispositional Value of Politeness / 1-89
Problem 8: Cost savings and disposal value of the loss when changing the inspection time / 1-93
Problem 9: Politeness - Loss due to change in inspection time / 1-98
Problem 10: Politeness - Continuous Process, Disposal Value of Politeness, Decision Making on Quality Improvement / 1-102
Problem 11: Politeness - Decision Making, Quality Cost / 1-109
Problem 12: Allocating Auxiliary Department Costs, Changing Units of Quantity, and Decision Making / 1-114
Problem 13: Multiple Inspection Points, Continuous Processes, and Abnormal Loss of Negative (-) / 1-118
Problem 14: Comprehensive Problems - Attrition, Rework, and Deterioration (Reaching Standards, Disposal Costs) / 1-124
Problem 15: Costing by Work Process - When There is Ending Work-in-Process / 1-131
CHAPTER 5: COMBINED COSTING 1-135
Problem 1 Multiple Split Points - NRV of Negative (-) / 1- 144
Problem 2: Comprehensive Problem - Byproducts (First Separation Point) / 1-147
Problem 3: Scrap (First Separation Point), Further Processing Decision Making / 1-152
Problem 4 Multiple Split Points - By-Products (Primary Split Point), Break-Even Point / 1-155
Problem 5: Comprehensive Problem - Multiple Split Points + Byproducts (Secondary Split Points) / 1-160
Problem 6 Multiple Split Points - Estimation, NRV of the by-product (-) / 1- 167
Problem 7: Comprehensive Costing and Combined Cost Allocation
- Work waste (first separation point), decision on whether to further process / 1-172
Problem 8: Comprehensive Costing and Combined Cost Allocation - Scrap (Primary Separation Point), Multiple Inspection Points / 1-176
Problem 9: Comprehensive Costing and Combined Cost Allocation - Scrap (Secondary Separation Point) / 1-181
Problem 10: Comprehensive Costing and Combined Cost Allocation / 1-186
Problem 11 Comprehensive Problem - Comprehensive cost calculation and combined cost allocation, multiple separation points,
Decision on whether to proceed with additional processing / 1-192
CHAPTER 6 Normal Costing 1-199
Problem 1: Normal Individual Costing - Allocation of Auxiliary Department Costs (Double Allocation Method) / 1-205
Problem 2: Allocation of auxiliary department costs, calculation of actual individual costs, and calculation of normal individual costs / 1-210
Problem 3: Normal Individual Cost Calculation
- Allocation of auxiliary department costs, proportional allocation method by cost element (presence of basic materials in process) / 1-214
Problem 4: Normal Individual Costing - Proportional Total Cost Allocation Method, Perpetual Inventory Method / 1-220
Problem 5: Normal Individual Costing - Proportional Allocation Method by Cost Element (With Beginning Inventory Assets) / 1-226
CHAPTER 7 Standard Costing 1-229
Problem 1: Cost Variance Analysis - Estimation / 1-246
Problem 2: Manufacturing Indirect Cost Variance Analysis, Standard Costing and Actual Costing / 1-251
Problem 3: Standard Comprehensive Costing - Estimation, When the Standard Cost per Unit is Constant Periodically / 1-254
Problem 4: Standard Comprehensive Costing - When the Standard Cost per Unit Changes Periodically, the Two-Dichotomous Method / 1-259
Problem 5: Standard Costing with Compensation - Basic Problems / 1-263
Problem 6 Standard Comprehensive Costing with Losses - Abnormal Losses of Negative (-) / 1-267
Problem 7: Standard Comprehensive Costing with Compensation
- If the basic materials have passed the electrical inspection / 1-272
Problem 8: Cost Variance Adjustment - Proportional Allocation Method / 1-277
Problem 9: Cost Variance Adjustment - Proportional Distribution Method by Cost Element / 1-282
Problem 10: Adjusting Fixed Manufacturing Indirect Costs for Operating Differences - Various Standard Operating Differences / 1-286
CHAPTER 8: Variable Costing and Super-Variable Costing 1-291
Problem 1: Comparison of Actual Costing - Total and Variable Costing, Manufacturing Budget / 1-302
Problem 2: Comparison of Actual Costing Systems - Total, Variable, and Super-Variable Costing / 1-307
Problem 3: Comprehensive Costing and Combined Cost Allocation - Total and Variable Costing / 1-312
Problem 4 Comparison of Actual Costing and Normal Costing
- Total and variable costing, average costing method / 1-317
Problem 5: Comparison of Actual Costing and Normal Costing - Total and Variable Costing / 1-324
Problem 6: Comparison under Normal Costing - Full and Variable Costing, Break-Even Point / 1-331
Problem 7: Comparison under Normal Costing - Total and Variable Costing / 1-335
Problem 8: Comparison under Normal Comprehensive Costing - Total and Variable Costing / 1-340
Problem 9 Comparison under normal comprehensive cost accounting
- Total and variable costing, when the normal cost per unit changes periodically / 1-346
Problem 10: Comparison under Standard Comprehensive Costing - Total, Variable, and Super-Variable Costing / 1-354
Problem 11 Comparison under Standard Comprehensive Costing - Total, Variable, and Super-Variable Costing / 1-359
Problem 12: Comparison under Standard Comprehensive Costing - Total and Variable Costing, Continuous Process / 1-364
CHAPTER 9 Activity-Based Costing 1-369
Problem 1: Comparison of Traditional Costing and Activity-Based Costing / 1-380
Problem 2: Comparison of Traditional Costing and Activity-Based Costing - Corporate Tax Expenses / 1-384
Problem 3: Comparison of Traditional Costing and Activity-Based Costing - Financial Industry, Decision Making / 1-391
Problem 4: Product Profitability Analysis - Considering Sales and Management Costs / 1-395
Problem 5: Batch-Level Cost Variance Analysis - Basic Problems / 1-399
Problem 6: Comparison of Traditional Costing and Activity-Based Costing - Standard Costing / 1-402
Problem 7 Customer Profitability Analysis / 1-407
Problem 8: Customer Profitability Analysis - Measures for Profitability Improvement / 1-409
Problem 9: Customer Profitability Analysis - Case Study / 1-412

Part 2 Management Accounting

CHAPTER 10 Cost Estimation 2-3
Problem 1: Learning Curve - Batch Production, In-House Manufacturing, or Outsourcing Decisions / 2-10
Problem 2 Learning Curve - Break-even Point, Bid Price / 2-15
CHAPTER 11 CVP Analysis 2-17
Problem 1: Basic CVP Analysis - Lodging Industry / 2-33
Problem 2: CVP Analysis of Multiple Products - Basic Problems / 2-35
Problem 3: CVP Analysis of Multiple Products - Traditional Costing and Activity-Based Costing / 2-39
Problem 4: CVP Analysis of Multiple Products - Sensitivity Analysis / 2-42
Problem 5: CVP Analysis of Multiple Products - Musical Theater Company / 2-46
Problem 6: Operating Leverage, Target Sales / 2-50
Problem 7: CVP Analysis, Safety Margin, and Sensitivity Analysis of Multiple Products / 2-53
Problem 8: Cost Structure and Operating Leverage - Case Study / 2-57
Problem 9: Comprehensive Problem - Various CVP Analysis / 2-62
Problem 10: CVP Analysis under Nonlinear Functions
- When the unit variable cost and total fixed cost are different / 2-67
Problem 11: CVP Analysis under Nonlinear Functions, Operating Leverage / 2-70
Problem 12 CVP Analysis under Nonlinear Functions
- Determining the appropriate production location when the variable cost per unit changes / 2-73
Problem 13: CVP Analysis and Operating Leverage under Nonlinear Functions / 2-76
Problem 14: DOL, CVP Analysis under Nonlinear Functions, CVP Analysis under Uncertainty / 2-81
Problem 15: CVP Analysis of Multiple Products + CVP Analysis under Nonlinear Functions, Operating Leverage / 2-85
Problem 16: CVP Analysis of Multiple Cost-Driven Price Reductions - Airlines / 2-89
Problem 17: CVP Analysis of Multiple Cost-Driven Reductions, Nonlinear CVP Analysis - Hospital / 2-93
Problem 18: CVP Analysis of Multiple Cost-Driven Reductions, Nonlinear CVP Analysis - Cruise Ship Business / 2-98
Problem 19: Cost-Performance Analysis of Multiple Cost-Driven Reductions - Investment Briefing / 2-104
Problem 20: CVP Analysis of Multiple Cost Reductions - Kids Cafe, Multiple Products / 2-109
Problem 21: Operating Leverage and CVP Analysis Under Uncertainty (Uniform Distribution) / 2-114
Problem 22: Use of limited resources, CVP analysis of multiple products,
CVP Analysis under Uncertainty (Normal Distribution) / 2-119
CHAPTER 12 Comprehensive Budget 2-121
Problem 1: All, Variable and Supervariable Costing, Cash Budgeting / 2-129
Problem 2: Comprehensive Budgeting - Full Costing and Variable Costing, Cash Budgeting, EVA / 2-133
Problem 3: Comprehensive Budget Problems - Budget Income Statement, Cash Budget / 2-139
Problem 4: Comprehensive Budget - Existence of Work-in-Process, Multiple Products / 2-145
Problem 5: Comprehensive questions related to the conversion of finished goods for the current period
- Cost variance analysis (SQ), hyper-variable costing (operating costs),
Raw material purchase budget (raw material usage),
Cash Budget (Cash Outflow) / 2-148
CHAPTER 13: Responsibility Accounting and Performance Evaluation 2-153
Problem 1: Comprehensive Corporate Performance Report, Difference Analysis / 2-166
Problem 2 Comprehensive Problem - Corporate Performance Report, Various Analysis of OH (Three-Division Method)
CVP Analysis of Multiple Products, Raw Material Purchase Budget / 2-170
Problem 3: Comprehensive Problems - Comprehensive Budget, Variable Budget, and Cost Variance Analysis / 2-177
Problem 4: Performance Evaluation of Cost Centers
- In case of differences in mixing ratio, yield, and work-in-process, estimate / 2-183
Problem 5 Comprehensive Problem - Comprehensive Budget, Standard Comprehensive Cost Calculation,
Performance Evaluation (Cost Centered and Profit Centered) / 2-188
Problem 6: Performance Evaluation of Profit Centers - Sales Division, Multiple Products / 2-194
Problem 7: Performance Evaluation of Profit Centers or Investment Centers
- Multiple products, break-even point, return on investment / 2-198
Problem 8: Performance Evaluation of Profit Centers or Investment Centers - Business Units, Controllability / 2-202
Problem 9: Performance Evaluation of Investment Centers - Return on Investment, Residual Profit / 2-207
Problem 10: Comprehensive Problem - CVP Analysis of Multiple Products, Performance Evaluation of Investment Focus / 2-210
Problem 11: Return on Investment - Activity-Based Costing / 2-214
Problem 12 Monthly Economic Value Added / 2-216
CHAPTER 14: RELATED COSTS AND SHORT-TERM DECISION MAKING 2-219
Problem 1: Rejecting or Accepting a Special Order - Activity-Based Costing / 2-233
Problem 2: Rejecting or Accepting Special Orders, Break-Even Point / 2-235
Problem 3: Rejecting or Accepting a Special Order - Various Cases / 2-238
Problem 4: Rejecting or Accepting Special Orders, Weighted Average Contribution Margin / 2-243
Problem 5: Self-manufacturing or externally purchasing parts, using limited resources / 2-248
Problem 6: Self-manufacturing or external purchase of parts - Activity-based costing / 2-252
Problem 7: Self-manufacturing or external purchase of parts - Activity-based costing / 2-256
Problem 8: Maintaining or Closing the Auxiliary Sector - When There is Self-Sector Consumption Services / 2-259
Problem 9 Maintaining or Discontinuing a Product Line / 2-262
Problem 10 Maintaining or Discontinuing Product Lines, Maintaining or Closing Business Units / 2-266
Problem 11: The Impact of Common Cost Allocation on Decision Making
- Divisional and company-wide perspectives / 2-270
Problem 12 Maintaining or Discontinuing a Product Line - Activity-Based Costing / 2-273
Problem 13: Maintaining or Discontinuing a Product Line - Activity-Based Costing / 2-277
Issue 14 Maintaining, Closing, or Investing in Product Lines
- Short-term and long-term decision-making / 2-283
Problem 15: Immediate or Post-launch New Product Launches - Relevant and Non-Relevant Costs / 2-287
Problem 16: Using Limited Resources + Rejecting or Accepting Special Orders - Basic Problems / 2-288
Problem 17: Using Limited Resources + Rejecting or Accepting Special Orders - Overtime / 2-291
Problem 18: Using Limited Resources + Rejecting or Accepting Special Orders
- Batch production method / 2-294
Problem 19: Using Limited Resources + Rejecting or Accepting Special Orders
- Understanding Limited Resources / 2-298
Problem 20: Using Limited Resources + Rejecting or Accepting Special Orders
- When fixed costs change / 2-301
Problem 21: Using Limited Resources + Rejecting or Accepting Special Orders
- Batch production method, ABC / 2-305
Problem 22: Use of Limited Resources + External Purchase of Products / 2-312
Problem 23: Using Limited Resources + Overwork / 2-317
Problem 24: Linear Programming - Understanding Limited Resources / 2-321
Problem 25: Linear Programming, Using Limited Resources + Rejecting or Accepting Special Orders / 2-325
Problem 26: Multiple Product Comprehensive Problem
- Target profit, operating leverage, special orders, use of limited resources / 2-330
Problem 27: Multiple Product Comprehensive Problem
- CVP Analysis, Use of Limited Resources, and Performance Evaluation of Profit Centers / 2-335
CHAPTER 15 CAPITAL BUDGETING 2-339
Problem 1: Comprehensive Problem - Economic Analysis Methods for Various Investment Proposals / 2-346
Problem 2: Comprehensive Problem - Uneven Operating Cash Flow / 2-350
Problem 3: Decision Making on Equipment Replacement - Net Present Value Method / 2-354
Problem 4 Whether to discontinue the product line (short-term decision) and
Expansion of new product lines (capital budget) / 2-357
CHAPTER 16 Decision Making Under Uncertainty 2-361
Problem 1: CVP Analysis and Decision-Making Under Uncertainty - Discrete Probability Distributions / 2-366
Problem 2: Break-even Point, Decision-making Under Uncertainty - Expected Value and Expected Utility Criteria / 2-368
Problem 3: Decision-making under uncertainty - EVPI, expected utility criterion / 2-371
Problem 4: Decision-making under uncertainty
- Use of limited resources + rejection or acceptance of special orders / 2-374
Problem 5: Decision Making Under Uncertainty, EVPI, EVSI / 2-377
Problem 6: Use of Limited Resources - Rejecting or Accepting Special Orders, EVPI, EVSI / 2-382
CHAPTER 17 Pricing and Substitution Pricing 2-387
Problem 1: Scope of Replacement Price - When Fixed Costs are Relevant Costs / 2-398
Problem 2: Business Unit Perspective and Corporate Perspective - When Fixed Costs Are Related Costs / 2-400
Problem 3: Divisional and Corporate Perspectives - Different Units of Quantity / 2-405
Problem 4: Divisional Perspective and Company-Wide Perspective
- When the maximum external purchase price or maximum replacement price is uncertain / 2-409
Problem 5: Use of Limited Resources + Minimum Replacement Price - Various Cases / 2-414
Problem 6: Using Limited Resources + Minimum Replacement Price, Rejecting or Accepting Special Orders / 2-418
Problem 7: Comprehensive Problems - Learning Curve, CVP Analysis, Short-Term Decision Making, Substitute Pricing / 2-423
Problem 8: Determining the optimal quantity of substitutes for limited resources + minimum replacement price / 2-428
Problem 9 Minimum Substitution Price - Theory of Constraints / 2-433
Problem 10: Substitution Pricing in Multinational Enterprises - A Whole-Company Perspective / 2-436
Problem 11: Substitution Pricing in Multinational Enterprises - Business Unit and Enterprise Perspectives / 2-441
Problem 12: Substitution Pricing for Multinational Enterprises - Investment Centers and Tariffs / 2-447
CHAPTER 18 STRATEGIC COST MANAGEMENT 2-451
Problem 1: Common Cost Allocation, Unused Capacity Cost / 2-471
Problem 2: Activity-Based Management
Decision-making using the unused capacity cost and activity resource consumption model / 2-476
Problem 3: Product Life Cycle Costing - Product Profitability Analysis / 2-479
Problem 4: Activity-Based Costing - Target Costing / 2-482
Problem 5: Activity-Based Costing - Target Costing, Decision Making / 2-486
Problem 6: Target Costing, Kaizen Costing, Standard Costing - Descriptive, Comparative / 2-491
Problem 7: Traditional Costing and ABC
- Target cost calculation, production suspension (performance evaluation perspective) / 2-496
Problem 8: Quality Cost Report, Quality Cost Analysis, Quality Cost Category Classification / 2-501
Problem 9: Decision Making on Quality Improvement, Quality Cost Report / 2-506
Problem 10: Time Costs Due to Delayed Production Lead Time, Decision Making on New Product Introduction / 2-511
Problem 11 Quality Cost Report, Decision Making on Quality Improvement,
Time cost due to delay in production time / 2-515
Problem 12: Various Decision-Making - EOQ, Inventory-Related Costs Considered / 2-519
Problem 13: Rejecting or Accepting a Special Order - Considering Inventory Holding Costs / 2-522
Problem 14: Decision Making Under the Theory of Constraints - Various Cases / 2-525
Problem 15: Decision-making under the Theory of Constraints - Outsourcing, etc. / 2-529
Problem 16: Decision Making Under the Theory of Constraints - Total Loss Due to Defective Products / 2-531
CHAPTER 19 Strategic Performance Evaluation and Compensation 2-535
Problem 1: Balanced Scorecard, JIT / 2-540
Problem 2: Balanced Scorecard - Performance Measures by Four Perspectives, Linked to Strategy / 2-543
Problem 3: Product Life Cycle Budgeting and Performance Rewards - Suboptimal Phenomenon / 2-546