Classifying Firms as Either Manufacturing or ServiceClassify the following types of firms as either manufacturing or service.a. Bicycle productionb. Pharmaceuticalsc. Income tax preparationd. Application of artificial nailse. Glue productionf. Child care

a. Bicycle production - Manufacturing Reason - Bicycles are tangible goods. b. Pharmaceuticals -…

Answered: Classifying Firms as Either…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter5: Product And Service Costing: Job-order System

Section: Chapter Questions

Problem 6E

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Similar questions

Distinguish between manufacturing-, merchandising-, and service-sector companies?
Which of the following is the primary source of revenue for a service business?A. the production of products from raw materialsB. the purchase and resale of finished productsC. providing intangible goods and servicesD. the sale of raw materials to manufacturing firms
Match each of the following types of companies with its definition. Types of Companies Definitions 1. Service company 2. Merchandising company 3. Manufacturing company a. Purchases goods that are primarily in finished formfor resale to customers.b. Records revenues when providing services tocustomers.c. Produces the goods they sell to customers.
Value chain classifications Match each of the following cost items with the value chain business function where you would expect the cost to be incurred: Business Function Cost Item Answera. Research and development 1. Purchase of raw materialsb. Design 2. Advertisingc. Production 3. Salary of research scientistsd. Marketing 4. Shipping expensese. Distribution 5. Reengineering of product assembly processf. Customer service 6. Replacement parts for warranty repairs7. Manufacturing supplies8. Sales commissions9. Purchase of CAD (computer-aideddesign) software10. Salary of website designer
Which of the following is the primary source of revenue for a manufacturing business?A. the production of products from raw materialsB. the purchase and resale of finished productsC. the provision of intangible goods and servicesD. both the provision of services and the sale of finished goods
For the following descriptions state whether the cost is controllable or uncontrollable by responsibility center managers. A. property tax of an existing manufacturing facility B. research and development of a product C. advertising of a product D. insurance cost of the existing manufacturing facility E. design of a product
Describe merchandising activities and identify income components for a merchandising company
compare service concern from merchandising business as a far as the manner of generating income and concern
The most sector needs the cost accounting information is Select one: a. Manufacturing sector b. Bank sector C. merchandizing sector d. Service sector
Value chain classifications Match each of the following cost items with the value chain business function where you would expect the cost to be incurred: Business Function Cost Item Answera. Research and development 1. Labor time to repair products under warrantyb. Design 2. TV commercial spotsc. Production 3. Labor costs of fi lling customer ordersd. Marketing 4. Testing of competitor’s producte. Distribution 5. Direct manufacturing labor costsf. Customer service 6. Development of order tracking system forthe Internet7. Printing cost of new product brochures8. Hours spent designing childproof bottles9. Training costs for representatives to staff the customer call center10. Installation of robotics equipment in manufacturing plant
Which income statement is most appropriate for a manufacturing business
Explain in detail how a manufacturing company calculates Cost of Goods Manufactured and Cost of Goods Sold. Discuss in detail the importance of these two calculations.

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Classifying Firms as Either lanufacturing or Service Classify the following types of firms as either manufacturing or service. a. Bicycle production b. Pharmaceuticals c. Income tax preparation d. Application of artificial nails e. Glue production f. Child care