Fixed cost Essays & Research Papers

Health services managers are essentially interested in how costs are affected by changes in volume. Cost behavior refers to a cost's reactions to activity level. A cost may rise, fall, or remain constant as activity levels fluctuate. We can classify several types of costs on the basis of their relationship to the amount of services provided, often referred to as activity, utilization, or volume (Gapenski, 2012). When dealing with the future there is a level of uncertainty of volume with regard...

 Figuring “fixed costs, variable costs, and” (Oppapers.com, 2012) BEP Week 4 Tina Whittington HSM/260 May 11, 2014 Laura Huffaker Figuring fixed costs, variable costs, and BEP Week 4 10.1 The highest number of meals served was 4,900 in December, with the lowest of meals being 3,500 in July making a difference of 1,400 of meals served, between the two months. The cost per meal variable is 1400÷$5500.00 for a total of $3.93 (WHDM’s) fixed cost is computed as follows...

HSM/260: Fixed Costs, Variable Costs, and Break Fixed Costs, Variable Costs, and Break Exercise 10.1 During the sixth month of the fiscal year, the program director of the Westchester Home-Delivered Meals (WHDM) program decides to again recompute fixed costs, variable costs, and the BEP using the high–low method. Here are the number of meals served and the total costs of the program for each of the first six months: Month Meals Served Total Costs July...

Assignment: Fixed Costs, Variable Costs, and Break-Even Point Exercise 10.1 During the sixth month of the fiscal year, the program director of the Westchester Home-Delivered Meals (WHDM) program decides to again recompute fixed costs, variable costs, and the BEP using the high–low method. Here are the number of meals served and the total costs of the program for each of the first six months: Month Meals Served Total Costs July 3,500 $20,500. August 4,000 $22,600. September 4,200...

Polysar Limited--recent assignment. BACKGROUND Rubber Group is the largest of the three operating units of Polysar Limited. The primary users of its products, such as butyl and halobutyl, are manufacturers of automobile tires; other users are from various industries. In 1986, Rubber group contributed 0.8 billion which is 46 percent of the company annual sale. The operation of the group is divided into four divisions, NASA (North America and South America) and EROW (Europe and rest of the...

Assignment: Fixed and Variable Costs, Break-Even Point Exercise 10.1 Recompute fixed costs, variable costs, and the BEP. What are the variable costs? What are the fixed costs? How many meals will the WHDM program need to provide during the fiscal year to reach the BEP? How much profit will the program earn if it completes its 45,000-meal contract with the City of Westchester? The variable cost of service is $3.93 during the fiscal year the WHDM should provide 1,011 meals to reach...

3 Cost-Volume-Profit Analysis Learning Objectives 1. Explain the features of cost-volumeprofit (CVP) analysis 2. Determine the breakeven point and output level needed to achieve a target operating income 3. Understand how income taxes affect CVP analysis 4. Explain how managers use CVP analysis in decision making 5. Explain how sensitivity analysis helps managers cope with uncertainty 6. Use CVP analysis to plan variable and fixed costs 7. Apply CVP analysis to a company producing...

CONTEXT: Most strategies proposed to control the rising cost of health care are aimed at reducing medical resource consumption rates. These approaches may be limited in effectiveness because of the relatively low variable cost of medical care. Variable costs (for medication and supplies) are saved if a facility does not provide a service while fixed costs (for salaried labor, buildings, and equipment) are not saved over the short term when a health care facility reduces service. OBJECTIVE: To...

8‑2 (Key Question) Gomez runs a small pottery firm. He hires one helper at $12,000 per year, pays annual rent of $5,000 for his shop, and spends $20,000 per year on materials. He has $40,000 of his own funds invested in equipment (pottery wheels, kilns, and so forth) that could earn him $4,000 per year if alternatively invested. He has been offered $15,000 per year to work as a potter for a competitor. He estimates his entrepreneurial talents are worth $3,000 per year. Total annual...

Strategic Cost Management ACCT90009 Seminar 1 Seminar 1 Subject Administration Introduction to SCM oduc o o SC Administration • Subject Coordinator Dr. David Huelsbeck Email: david.huelsbeck@unimelb.edu.au Room: 08.028, The Spot Phone: +61 3 9035 6256 Consultation Hours: Monday 4:15pm – 6:15pm • Seminars: Tuesday: 2.15 pm – 5.15 pm, FBE ‐ Theatre 211 (Theatre 2) Thursday: 6.15 pm – 9.15 pm, Alan Gilbert ‐ Theatre 2 Teaching Format and Resources • Seminar Format...

CHAPTER 2 COST TERMINOLOGY AND COST BEHAVIORS QUESTIONS 1. The term cost is used to refer to so many different concepts that an adjective must be attached to identify which particular type of cost is being discussed. For example, there are fixed costs, variable costs, period costs, product costs, expired costs, and opportunity costs, to name just a few. 2. A cost object is anything for which management wants to collect or accumulate costs. Before a cost can be specified as direct or...

Exercise 2-2 Classify each cost listed below as either a product cost or a period cost for purposes of preparing the financial statements for the bank. 1. The cost of the memory chips used in radar set. * Product Cost 2. Factory Heating Cost * Period Cost 3. Factory Equipment maintenance costs. * Period Cost 4. Training costs for new administrative employees * Period Costs 5. The cost of the solder that is used in assembling the radar sets. * Product...

Assignment: Fixed cost Dora McKinney Hsm/260 Week 4 Instructor: Greg O’Donnell Fixed Costs, Variable Costs, and Break-Even Point Exercise 10.1 Month Meals Served Total Costs July 3,500 $20,500 Low August 4,000 22,600 September 4,200 23,350 October 4,600 24,500 November...

 CONTENTS 1 EXECUTIVE SUMMARY 2 INTRODUCTION 3 - 7 STUDY OF OBJECTIVES, SCOPE & LIMITATION 8 RESEARCH METHODOLOGY 9 - 12 COMPANY PROFILE 13 – 20 CONCEPTUAL BACKGROUND 21 - 25 COMPETITIVENESS OF BUSINESS PROCESS INTEGRATION 26- 65 ANALYSIS & INTREPRETATION 66 - 81 PORTER’S FIVE FORCES MODEL 82 - 84 SWOT ANALYSIS 85 - 87 FINDINGS AND SUGGESTIONS 88 - 89 CONCLUSION 90 ANNEXURE 91 - 92 BIBLIOGRAPHY 93 1. EXECUTIVE SUMMARY This project is done at GARDEN...

THE COST AND SALES CONCEPT Cost is defined as a reduction in the value of an asset for the purpose of securing benefit or gain. Cost is defined in a hotel and restaurant as the expense to a hotel or restaurant for goods or services when the goods are consumed or the services are rendered. KINDS OF COSTS 1. Fixed costs – are those that are normally unaffected by changes in sales volume. They are said to have little direct relationship to the business volume because they do not change...

Transfer Pricing Q 1 of 8 Des Moines Valley Company Des Moines Valley Company has two divisions, Computer Services and Management Advisory Services. In addition to their external customers, each division performs work for the other division. The external fees earned by each division in 19x1 were $200,000 for Computer Services and $350,000 for Management Advisory Services. Computer Services worked 3,000 hours for Management Advisory Services, who, in turn, worked 1,200 hours for Computer...

Cost allocation for indirect costs Cost Pool – Set of costs that are added together before being allocated to cost objects on some common basis Cost Driver/ Allocation base Cost Object Cost Driver Rate = Total Costs in Pool/ Total Quantity of Driver Where total quantity of driver = practical capacity of driver Cost of excess capacity = Cost Driver Rate * Excess capacity Predetermined overhead rate - cost per unit of the allocation base used to charge overhead to products....

CHAPTER 3 COST-VOLUME-PROFIT ANALYSIS TRUE/FALSE 1. To perform cost-volume-profit analysis, a company must be able to separate costs into fixed and variable components. Answer: True Difficulty: 1 Objective: 1 Terms to Learn: cost-volume-profit (CVP) analysis 2. Cost-volume-profit analysis may be used for multi-product analysis when the proportion of different products remains constant. Answer: True Difficulty: 1 Objective: 1 Terms to Learn:...

Solutions Manual for COST ACCOUNTING Creating Value for Management Fifth Edition MICHAEL MAHER University of California, Davis Table of Contents Chapter 1 Cost Accounting: How Managers User Cost Accounting Information Chapter 15 Using Differential Analysis for Production Decisions Chapter 2 Cost Concepts and Behaviour Chapter 16 Managing Quality and Time Chapter 3 Cost System Design: An Overview Chapter 17 Planning and Budgeting Chapter 4 Job Costing...

Costs and budgets The management of costs is a very important aspect of managing financial resources. If costs are not managed effectively, it can lead to profits being damaged and the business potentially unable today its expense. Keeping within a budget, increasing income in order to cope with change and making sure that working capital is available and money and set aside for emergencies is all part of the balancing exercise. Costs managed to budget McDonald’s budget was adverse as there...

Cost Classifications and Estimation 2.0 Introduction Cost classification may be defined as ‘the arrangement of cost items in a logical sequence having regard to their nature and purpose to be fulfilled’. The term cost must be qualified when in use in order that its precise meaning is established in a particular situation; however, cost refers to the amount of resources that have been diverted from other uses or sacrificed so as to achieve the desired objective. But the term is used to refer to...

Cost Behavior Cost behavior is term for describing whether a cost changes when the level of output changes. The cost can vary proportionately with the changes in the level of activity or unaffected by changes in the level of activity. Costs can be variable, fixed, or mixed. A cost that does not change in total as output changes is a fixed cost. A variable cost, on the other hand, increases in total with an increase in output and decreases in total with a decrease in output. Understanding how...

1. A car rental agency uses 96 boxes of staples a year. The boxes cost $4 each. It costs $10 to order staples, and carrying costs are $0.80 per box on an annual basis. Determine: (A) the order quantity that will minimize the sum of ordering and holding boxes of staples (B) the annual cost of ordering and carrying the boxes of staples 2. . A service garage uses 120 boxes of cleaning cloths a year. The boxes cost $6 each. Ordering cost is $3 and holding cost is 10 percent of purchase cost...

Name: ________________________ Class: ___________________ Date: __________ Quiz 2 1) Cost-volume-profit analysis is used primarily by management: A) as a planning tool B) for control purposes C) to prepare external financial statements D) to attain accurate financial results Answer: A Diff: 1 Terms: cost-volume-profit (CVP) Objective: 1 AACSB: Communication 2) One of the first steps to take when using CVP analysis to help make decisions is: A) finding out where the total costs line...

COST ACCOUNTING Select the one best answer for each: 1. Which one of the following would not be classified as manufacturing overhead? a. Indirect labor b. Direct materials c. Insurance on factory building d. Indirect materials 2. Prime costs of a company are $3,000,000, manufacturing overhead is $1,500,000 and direct labor is $750,000. What is the amount of direct materials? a. $1,500,000. b. $750,000. c. $2,250,000....

BANSILAL RAMNATH AGRAWAL CHARITABLE TRUST S VISHWKARMA INSTITUTE OF MANAGEMENT KONDHWA, PUNE 411048 A PROJECT REPORT ON COSTING ANDCOST REDUCTION OF ROTARY AIR LOCK VALVE AT SNEHA INDUSTRIES SUBMITTED BY PRASHANT R. TAMBEKAR MBA II SUBMITTED IN PARTIAL FULFILMENT FOR DEGREE OF MASTER OF BUSINESS ADMINISTRATION DURING THE YEAR 2006-2007 -1- DATE: - 5TH AUGUST 2006 TO WHOMSOEVER IT MAY CONCERN This is to certify that Mr. PRASHANT R. TAMBEKAR, a MBA student of...

Publichttp://pfr.sagepub.com/ Finance Review Public Subsidies to Stadiums: Do the Costs Outweigh the Benefits? Daraius Irani Public Finance Review 1997 25: 238 DOI: 10.1177/109114219702500205 The online version of this article can be found at: http://pfr.sagepub.com/content/25/2/238 Published by: http://www.sagepublications.com Additional services and information for Public Finance Review can be found at: Email Alerts: http://pfr.sagepub.com/cgi/alerts Subscriptions:...

1. Determination of per Unit Total Costs. The estimated unit costs for Hoteling Industries, when operating at a production and sales level of 10,000 units, are as follows: Cost Item Estimated Unit Cost Direct materials $15 Direct labor 10 Variable factory overhead 8 Fixed factory overhead 5 Variable marketing 4 Fixed marketing 3 Required: (1) Identify the estimated conversion cost per unit. (2) Identify the estimated prime cost per unit. (3) Determine the estimated total variable cost...

Chapter 18 Test Bank True/False Questions 1. Indirect compensation includes free meals, life insurance, and discounts on accommodations. (T) * It is a contract between employee and employer * Aim to attract and keep loyal employees * Includes: paid vacation; health benefits; life insurance; free meals; free living accommodation; use of recreational facilities operated by the employer; discounts on accommodations; use of a company vehicle; reimbursement for outside classes;...

Questions: Danshui Plant No. 2 1. Using budget data, how many Apple iPhone 4’s would have to have been completed for Danshui Plant No. 2 to break even? 2. Using budget data, what was the total expected cost per unit if all manufacturing and shipping overhead (both variable and fixed) were allocated to planned production? What was the actual cost per unit of production and shipping. 3. Prepare a flexible budget for 180,000 iPhone 4’s and calculate flexible budget variances using actual...

------------------------------------------------- Chapter 2—Cost Terminology and Cost Behaviors MULTIPLE CHOICE 1. The term "relevant range" as used in cost accounting means the range over which a. | costs may fluctuate. | b. | cost relationships are valid. | c. | production may vary. | d. | relevant costs are incurred. | ANS: B PTS: 1 DIF: Easy OBJ: 2-2 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Measurement, Reporting...

CHAPTER 3 ACTIVITY COST BEHAVIOR LEARNING OBJECTIVES AFTER STUDYING THIS CHAPTER, YOU SHOULD BE ABLE TO: 1. Define and describe fixed, variable, and mixed costs. 2. Explain the use of the resources and activities and their relationship to cost behavior. 3. Separate mixed costs into their fixed and variable components using the high-low method, the scatterplot method, and the method of least squares. 4. Evaluate the reliability of the cost formula. 5. Explain how multiple...

COST ACCOUNTING M.ASAD ABBAS PAF KIET TABLE OF CONTENTS Executive Summary ......................................................................................................3 Introduction .....................................................................................................................4 Costing Strategy of Vesta Apparel.............................................................................5 Full Cost of the Primary...

COST ANALYSIS Prepared by: Nebuchadnezzar Rabaya OBJECTIVES To provide a basic understanding of the nature of cost analysis. To give highlights on the importance of cost analysis on any venture.  To present a clear overview on various types of costs. Cost Definition: an amount that has to be paid or spent to buy or obtain something. Analysis Definition: is the process of breaking a complex topic or substance into smaller parts to gain a better understanding of it. What is cost...

2-22 Variable costs and fixed costs. Consolidated Minerals (CM) owns the rights to extract minerals from beach sands on Fraser Island. CM has costs in three areas: a. Payment to a mining subcontractor who charges $80 per ton of beach sand mined and returned to the beach (after being processed on the mainland to extract three minerals: ilmenite, rutile, and zircon). b. Payment of a government mining and environmental tax of $50 per ton of beach sand mined. c. Payment to a barge operator....

Latasha Thomas January 20, 2013 HSM 260 Jerome Anderson Exercise 10.1 Recompute fixed costs, variable costs, and the BEP. What are the variable costs? What are the fixed costs? How many meals will the WHDM program need to provide during the fiscal year to reach the BEP? How much profit will the program earn if it completes its 45,000-meal contract with the City of Westchester? The variable cost of service is $3.93 during the fiscal year the WHDM should provide 1,011 meals to reach...

1. Differentiate the following: (a) y = 10 x3 - 10 x2 + 4x + 2 (e) y = [pic] (b) y = [pic] (f) y = ( 4 + x ) ( x - 1 ) (c) y = [pic] (g) 2y = 3 x2 + 10 (d) y =[pic] (h) x y = 2 x2 - 5 x + 4 2. Find the integral of the following: (a) [pic] (e) [pic] (b) [pic] (f) [pic] (c) [pic] (g) [pic] (d) [pic] 3. Find the x value of the turning points on the graph of y = [pic] and determine whether it is a maximum or a minimun point. 4. Find the...

LAST NAME: _________________________ FIRST NAME___________________________ PUID________________________________Section________ Purdue University Krannert School of Management MGMT 201 – Managerial Accounting I Summer 2014 Practice Final Exam--SOLUTION This exam consists of 30 multiple choice questions on 10 pages (including this cover page) for a total of 120 points. Answer all questions. No partial credit is available for multiple choice questions. Be sure to put your answers to...

Definition and explanation of mixed or semi variable cost: A mixed cost is one that contains both variable and fixed cost elements. Mixed cost is also known as semi variable cost. Examples of mixed costs include electricity and telephone bills. A portion of these expenses are usually consists line rent. Line rent normally is fixed for each month. Variable portion consists units consumed or calls made. The relationship between mixed cost and level of activity can be expressed by the following...

ACT 2131 – QUIZ 1 solution MATRIX NO: ______________________ Answer all questions by using OMR form given 1. Managerial accounting: A. has its primary emphasis on the future. B. is required by regulatory bodies such as the SEC. C. focuses on the organization as a whole, rather than on the organization's segments. D. Responses a, b, and c are all correct. 2. The plans of management are expressed formally in: A. the annual report to shareholders. B. Form 10-Q submitted...

Cost Classification Introduction: In this assignment I will be discussing how costs incurred in any organization may be classified in a number of different ways for a number of different purposes. I will also be looking to find companies that use a variety of different costing techniques and methods. I will also be discussing the comparisons between marginal and absorption costing and how the concept of activity based costing can also be compared with these. To complete the...

QUESTION 1: CHAPTER 7: ACTIVITY-BASED COSTING AND ACTIVITY-BASED MANAGEMENT Preston Piston manufactures two types of electric sleeping bags- Luxury and Exclusive- and applies manufacturing overhead to all units at the rate of $80 per machine hour. Production information follows: Luxury Exclusive Direct material $35 $60 Direct Labour $20 $20 Budgeted volume (units) 8,000 15,000 The management accountant has determined that the firm’s overhead can be identified with three...

Classification of Cost Cost may be classified into different categories depending upon the purpose of classification. Some of the important categories in which the costs are classified are as follows: 1. Fixed, Variable and Semi-Variable Costs The cost which varies directly in proportion with every increase or decrease in the volume of output or production is known as variable cost. Some of its examples are as follows: • Wages of laborers • Cost of direct material • Power The cost...

MODULE 2 1. To predict costs and manage them on a day-to-day basis, managers must identify: A. cost of resources used B. key activities and resources used to perform activities C. cost drivers D. all of the above 2. Cost drivers are ________. A. measures of activities that require the use of resources and thereby cause costs B. different types of functional areas in the firm C. different types of cost calculations D. the different functions in the value chain 3. Which of the following...

Cost, Volume, and Profit Formulas All businesses require becoming profitable or at some point they will fail. Accounting plays an essential role in determining if the company will become successful and continue to do so over time. Using well-defined formulas in order to assess the exact numbers will facilitate the actions a company needs to carry out in order to maintain its goals. The accounting department would look at the cost-volume-profit analysis to concentrate on the different...

Q. Give an Overview of Cost Classification and Material Management: Ans: Cost Classification: ( Introduction: In this assignment I will be discussing how costs incurred in any organization may be classified in a number of different ways for a number of different purposes. I will also be looking to find companies that use a variety of different costing techniques and methods. I will also be discussing the comparisons between marginal and absorption costing and how the concept of activity...

Shanae Dayes Econ2023 3/25/13 Chap. 23 23-1. The short run is a time period during which the professor cannot enter the job market and find employment elsewhere. This is the nine-month period from August 15 through May 15. The professor can find employment elsewhere after the contract has been fulfilled so the short run is nine months and the long run is greater than nine months. 23-3. input labor 0,1,2,3,4,5,6 total output of flash 0,25,60,85,105,115,120 marginal physical product...

KANPUR CONFECTIONARIES PRIVATE LIMITED By Venkatesh.G, NMIMS Objective: KPCL has to work out for the possible options to cover its losses and provide a sustainable business model. It also has to decide to act upon the proposal offered by A-One Confectionaries Pvt. Ltd. SWOT Analysis: Let us do a SWOT analysis first for KPCL to identify the internal and external monitoring environment that affects its business. Internal Factors: Strengths • • • • • Weakness • • • High Absenteeism among...

1/ Variable Costs: The variable cost will be 40% higher [ an increase of 21,000 - 15,000=6,000 units] Direct Material used 1,060,000 Variable Costs: Direct Labor 1,904,000 Direct material used [ 1,060,000 *1.4] 1,484,000 Unit costs [ 6,335,600 / 21,000] =$ 301.7 Indirect Materials and supplies 247,000 Direct Labor [ 1,904,000 * 1.4] 2,665,600 Variable Cost/ Unit = 228.27 at both 15k & 21k units Power to run plant eqip 213,000 Indirect...

COST-VOLUME PROFIT (CVP) ANALYSIS This is a technique used for planning short-term run profits by finding the relationship between profits and factors that influence profits. The following factors are taken to be influencing profits:- • Selling price • Variable cost of production • Fixed costs • Activity level (production and sales units) Profit planning is based on break-even analysis and can be worked out using either; a) Algebraic method b) Contribution method c)...

Cost Accounting Chapter 2 - Costs – Concepts and classification Problem 1 Problem 2 1. Direct 6. Direct 1. Manufacturing 6. Manufacturing 2. Indirect 7. Direct 2. Selling 7. Administrative 3. Direct 8. Indirect 3. Manufacturing 8. Selling 4. Direct 9. Direct 4. Selling 9. Administrative 5. Direct 10.Direct 5. Administrative 10.Selling Problem 3 1. Variable Product Direct 2. Variable Product Direct 3. Fixed Product Indirect 4. Variable Product Direct 5....

Assignment 2 (20 points) Assignment 2: Costs and Profit Instructions Save this file in your course folder, and name it with Assignment, the section number, and your first initial and last name. For example, Jessie Robinson's assignment for Section 1 would be named Assignment1JRobinson. Type the answers to the assignment questions below. Use complete sentences unless the question says otherwise. You will have more than one day to complete an assignment. At the end of each day, be sure to save...

ACC604 Final Exam Practice Questions – Series H 1. The Work in Process inventory account of a manufacturing company shows a balance of $18,000 at the end of an accounting period. The job cost sheets of the two uncompleted jobs show charges of $6,000 and $3,000 for materials, and charges of $4,000 and $2,000 for direct labor. From this information, it appears that the company is using a predetermined overhead rate, as a percentage of direct labor costs, of: A. 50% B. 200% C. 300% D. 20%...

CHAPTER 12 PRICING DECISIONS AND COST MANAGEMENT 12-1 The three major influences on pricing decisions are 1. Customers 2. Competitors 3. Costs 12-2 Not necessarily. For a one-time-only special order, the relevant costs are only those costs that will change as a result of accepting the order. In this case, full product costs will rarely be relevant. It is more likely that full product costs will be relevant costs for long-run pricing decisions. 12-3 Two examples of pricing decisions...

I. Cost behavior defined Module 4 Review Questions The left column lists several cost classifications. The right column presents short definitions of those costs. In the blank space beside each of the numbers in the right column, write the letter of the cost best described by the definition. A. Curvilinear cost B. Step-wise cost C. Fixed cost D. Mixed cost E. Variable cost F. Total Cost ___E_1. This cost increases in direct proportion to increases in volume; its amount is constant for each...

Case Study: Camelback Communications: Questions 1. What will CCI now have to charge for each product to make a 40% mark-on? If CCI maintains its rule about dropping products with a mark-on below 25%, which additional products, if any, will it drop? To have a charge for each product, first the standard costs are calculated, based on the new allocation rate ($10.36): |Product |B |C |D | |Material |5,00...

Cost, Volume, and Profit Formulas Heather Jauregui University of Phoenix of Axia College “The Cost-volume-profit (CVP) analysis is the study of the effects of changes in costs and volume on a company’s profits.” (Kimmel, P., Weygandt, J., & Kieso, D. 2003) The analysis is used to maximize efficiency in a business. In order to be effective the CVP analysis has to make several assumptions. These assumptions are that the costs can be fitted into either fixed or variable categories. The...

Jump to Navigation Frame Your location: Assessments › View All Submissions › View Attempt View Attempt 1 of 2 Title: | Exam 2 (Chapters 10-18) | Started: | July 7, 2011 12:16 AM | Submitted: | July 7, 2011 2:11 AM | Time spent: | 01:54:47 | Total score: | 94/200 = 47% Total score adjusted by 0.0 Maximum possible score: 200 | 1. | Chapter 10 #265 | | Use this information for questions that refer to the World Tennis Ball (WTB) Company case. World Tennis Ball Co. (WTB)...

Types of Costs by Behavior Cost behavior refers to the way different types of production costs change when there is a change in level of production. There are three main types of costs according to their behavior: Fixed Costs: Fixed costs are those which do not change with the level of activity within the relevant range. These costs will incur even if no units are produced. For example rent expense, straight-line depreciation expense, etc. Fixed cost per unit decreases with increase in...

Cost Accounting Chapter 2 - Costs – Concepts and classification Problem 1 Problem 2 1. Direct 9. Direct 1. Manufacturing 6. Manufacturing 2. Indirect 10.Direct 2. Selling 7. Administrative 3. Direct 11.Indirect 3. Manufacturing 8. Selling 4. Direct 12.Direct 4. Selling 9. Administrative 5. Direct 13.Direct 5. Administrative 10.Selling 6. Direct 14.Direct 7. Direct 15.Indirect 8. Indirect Problem 3...

COST ACCOUNTING Sample Test Materials Chapters 1-4 Multiple Choice Select only one answer for each question. 1. At what point does depreciation on equipment used to produce a table become an expense? a. At the end of the period when the depreciation is recorded b. When the table is started c. When the table is completed d. When the table is sold 2. Which of the following describes an opportunity cost? a. The largest net benefit given up by choosing one action that precludes taking other...

* Short Run Costs A period of time in which the quantity of some inputs cannot be increased beyond the fixed amount that is available. For example, what quantity of inventory to order is a short run decision. Whether or not to build a new factory would be considered a long run decision. 1. Total fixed Coast The total fixed cost curve graphically represents the relation between total fixed costs incurred by a firm in the short-run production of a good or service and the quantity...

Identify two cost oriented approach and provide hypothetical examples for each? Cost oriented approach is when a company sets a price of a product that covers marketing and production cost. An example would be an apples iphone. It cost about $200 to make and they sell a brand new one without an contract for $800. So I am guessing the rest of the money is used to cover production, marketing and make a profit. Also Dr. Dre beats are made in china and are priced at $300 but cost $80 to make. So...

BTEC Centre Guangdong AIB Polytechnic College |Unit |Unit 9: Management Accounting: Costs and Budgeting | |Class |2011 HND Finance | |Assignment |A2: Preparing budgets | |Date issued |Nov 14,2012...

COST-VOLUME-PROFIT ANALYSIS(CVP) Definition of Cost Accounting A type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step of production as well as fixed costs such as depreciation of capital equipment. Definition of Cost-Volume Profit Analysis A method of cost accounting used in managerial economics. Cost-volume profit analysis is based upon determining the breakeven point of cost and volume of goods. It can be useful...

ADM 3346A COST ACCOUNTING Solution Fall 2010 Midterm Examination STUDENT NAME: _________________________________________________ STUDENT NUMBER: ________________________________________________ 90 minutes INSTRUCTIONS 1. 2. 3. 4. Books and notes are not permitted, except language dictionaries. Non programmable calculators are permitted. Put all answers in the question booklet Questions concerning possible errors in the exam only will be answered. Questions Max...

SOLUTION OF ASSIGNMENT OF OPERATIONS MANAGEMENT CAPACITY PLANNING 1. If a plant was designed to produce 7,000 hammers per day, but is limited to making 6,000 hammers per day because of the time needed to change equipment between styles of hammers, what is the utilization? Solution: [pic] 2. If a plant has an effective capacity of 6,500 and an efficiency of 88%, what is the actual output? [pic] 3. Crescent Textile Mills wants to increase capacity by overcoming a bottleneck...

Inventoriable costs are expensed when incurred. Answer Selected Answer: False Correct Answer: False Question 2 1 out of 1 points Correct Finished goods inventory is ordinarily held for sale by a manufacturing company. Answer Selected Answer: True Correct Answer: True Question 3 1 out of 1 points Correct Indirect labor is not a component of manufacturing overhead. Answer Selected Answer: False Correct Answer: False Question 4 1 out of 1 points Correct The following...

Decision Models: Lecture 2 2 Shelby Shelving Decision Model Decision Models Decision Variables: Let S = # of Model S shelves to produce, and LX = # of Model LX shelves to produce. To specify the objective function, we need to be Lecture 2 Shelby Shelving Case Understanding the optimizer sensitivity report ! Dual prices ! Righthand side ranges ! Objective coefficient ranges If time permits: Distribution / Network Optimization Models Summary and Preparation for next class LX ) Net profit...

CHAPTER 1 – COST VOLUME PROFIT- MULTIPLE CHOICE QUESTIONS 1. CVP analysis can be used to study the effect of: A. changes in selling prices on a company's profitability. B. changes in variable costs on a company's profitability. C. changes in fixed costs on a company's profitability. D. changes in product sales mix on a company's profitability. E. All of these. 2. The break-even point is that level of activity where: A. total revenue equals total cost. B. variable cost equals fixed cost....

COST – volume –profit analysis LEARNING OBJECTIVES Students should be able to: 1. Explain the nature of CVP Analysis and name and illustrate planning and Decision-making situations in which it may be used, 2. Separate semi-variable (mixed) costs into their fixed and variable components. 3. Construct profit/volume charts given selling price, costs and volume data. 4. Construct a cost/volume/profit (CVP) model representing the data in a marginal...

Marketing:The Core 5/e Kerin - Hartley - Rudelius Chapter 11 APPLYING MARKETING KNOWLEDGE 1 How would the price equation apply to the purchase price of (a) gasoline, (b) an airline ticket, and (c) a checking account? 2 Under what conditions would a camera manufacturer adopt a skimming price approach for a new product? A penetration approach? 3 What are some similarities and differences between skimming pricing, prestige pricing, and above-market pricing? 4 Touché Toiletries Inc. has...

What was the Kanthal president, Ridderstrale, attempting to accomplish with the Account Management System? Are these sensible goals? Why or why not? The motivation for Carl-Erik Ridderstrale, president of Kanthal, to develop an Account Management System was to find a process of determining the profitability of individual customer orders. An accurate account measurement system was needed in order to achieve a strategy for increasing growth and profitability without adding a significant amount of...

FRANGOR SPA: STRATEGIC COST ANALYSIS FOR PROFIT RECOVERY  by Riccardo Silvi Preliminary draft A) Overview and Strategic Financial Analysis Mr. Paolo Frangor was standing in front of the big window of his office. From there, he could see the wide square and the part of the building where the products -- machines for agriculture (rotary tillers, spading machines, harrows, …) -- were produced. He was satisfied with this new location. The bigger dimension, indeed, could help his employees do a...

FOREST HILL PAPER COMPANY BACKGROUND INFORMATION 1. How would you classify Forest Hill Paper Company in terms of size and ownership? Forest Hill Paper Company is a small, closely-held company. Relatively few shareholders own the majority shares of the company. It is most likely a private company. 2. What is the nature of the industry in which Forest Hill competes? Forest Hill is a small company, but has to compete against large companies in a commodity market. Paper and paperboard...

Max Leonard, Vice President of Marketing for Dysk Compyer, Inc must decide whether to introduce a mid-priced 2 version of the firm's DC6900 minicomputer product line-the DC6900-X minicomputer. The DC6900-X would sell for $ 3900, 3 with unit variable costs of $ 1,800. Projections made by an independent marketing research firm indicate that the DC6900-X 4 would achieve a sales volume of 500,000 units next year, in its first year of commercialization. One-half of the...

uestion 7 1 out of 1 points Answer the question on the basis of the following output data for a firm. Assume that the amounts of all non-labor resources are fixed.Refer to the above data. Diminishing marginal returns become evident with the addition of the:Answer Selected Answer: third worker. Correct Answer: third worker. Question 8 1 out of 1 points Answer the question on the basis of the following output data for a firm. Assume that the amounts of all non-labor...

HSM 260 Final Project: Analyzing Financial Statements Content and Development 140 Points | Points Earned 125/140 | | Additional Comments: | The student covers all key elements of the assignment in a substantive way. * The student includes the information from the CheckPoints completed in previous weeks. * The student includes current ratio, long-term solvency ratio, contribution ratio, programs and expense ratio, general and management and expense ratio, and revenue and...

Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 1. Which is NOT a characteristic of a functional-based costing system? a. It uses traditional product costing definitions. b. It uses unit-based activity drivers to assign overhead to products. c. It is cheaper than an activity-based costing system. d. It offers greater product costing accuracy than an activity-based costing system. ____ 2. Unit-based product costing uses which of the...

Accounting 2082 Managerial Accounting Exam 1 Sample Exam Questions Printed Name: Date: I certify that I have neither given nor received assistance on this exam, in accordance with the University of Cincinnati Student Code of Conduct. Signature: Instructions: Circle your answers for the multiple choice questions on the exam. Fill out the scantron sheet carefully, using a #2 pencil. Your name (last, then first) and M number must be on the scantron sheet. Type...

Assignment 2: Cost Behaviors and Allocation Prof. Gilton Grange HSA 525 Analyze the complexity of cost behaviors in health care organizations and describe how costs are classified according to their relationship with volume. Health services managers are vitally interested in how costs are affected by changes in volume. Before costs can be managed, one must have an understanding of how and why costs are being incurred. For, example medications dispensed from the pharmacy are variable...

Week 6 : Segment Reporting and Relevant Costs for Decisions - Quiz Top of Form A Time Remaining: Page: 1 2 1. (TCO D) Which of the following performance measures will decrease if there is an increase in the accounts receivable? (Points : 5) Choice A Choice B Choice C Choice D 2. (TCO D) Delmar Corporation is considering the use of residual income as a measure of the performance of its divisions. What major disadvantage of this method...

Characteristics of a Shakespearean Tragic Hero 1. A man great and admirable in both his powers and opportunities. 2. Well-placed member of society whose actions involve well-being of its members. 3. Plot involves character working to achieve a very important goal. 4. This action will involve him in choices. 5. Downfall must be result of a web of circumstances spun out of these choices setting off a train of circumstances which hero could not foresee and which cannot be halted....

To begin, download the practice Midterm Exam from Doc Sharing to access questions and topics for review. For multiple-choice questions, please explain why the answer chosen is correct, and why the other choices would not be correct. Please support your response. Let's begin with the questions on Page 1. Page 1 1. Indirect labor is a part of: B. Conversion cost. Labor that cannot be physically traced to particular product is treated as indirect labor and as manufacturing overhead....

1. Henning Co. estimates that variable costs will be 60% of sales and fixed costs will total $2,160,000. The selling price of the product is $10, and 600,000 units will be sold. Instructions Using the mathematical equation, (a) Compute the break-even point in units and dollars. (b) Compute the margin of safety in dollars and as a ratio. (c) Compute net income. 2. Taveras Industries developed the following information for the product it sells: Sales price $50 per unit Variable...

CHapter 16 THE BEHAVIOR OF COSTS Changes from the Twelfth Edition All changes to Chapter 16 were minor. Approach We have retained our approach of putting all C-V-P topics in a single chapter because many schools’ marketing and management accounting core courses start simultaneously, and marketing likes to have break-even analysis covered early in the management accounting course. Also, if there are students in the course with work experience or, in the case of MBA courses, with...

Cost Concepts Semester II Basic Terms • Cost is the amount of expenditure, actual (incurred) or notional (attributable), relating to a specific thing or activity. The specific thing or activity may be a product, job, service, process or any other activity • Expenses are expired costs, incurred and totally used up in generation of revenue • Loss is lost cost. The term ‘loss’ is used to describe mainly two accounting events. In traditional financial accounting it is used to denote a...

9-913-525 SEPTEMBER 28, 2012 WILLIAM BRUNS JULIE H. HERTENSTEIN KELVIN LIU Danshui Plant No. 2 In August 2010, Wentao Chen, manager of Danshui Plant No. 2 in southern China, was anxious. The plant was in the third month of a 12-month contract to assemble the Apple iPhone 4. The contract called for Danshui to assemble 2.4 million iPhones in the period between June 1, 2010, and May 31, 2011, but now in the third month of the contract, production was only 180,000 units per month. Chen...

 4/15/2013 BBUS 373 Cost Accounting Vermont Teddy Bear Case Study 1. Summary After analyzing Vermont Teddy Bear’s existing and new strategies, we highly encourage the company to adopt the new strategy. As we compute and compare the sales, profit, contribution margin, and operating leverage of existing strategy with those of the new strategy, we found that the new strategy enables the company generate more sales profit and lower the operating risk, despite having to spend an additional...

Algebra I Cost-Revenue Business Project This project is designed for you to demonstrate your understanding of systems of linear equations. Before starting, read the entire project outline and requirements. During this project you are to do the following: 1) Pair up with a partner and create a business that sells one commodity of your choice (points for creativity). 2) Create a Market Research Survey that will be used to survey 50 students to help you discover what potential customers are...

------------------------------------------------- Chapter 9—Break-Even Point and Cost-Volume-Profit Analysis MULTIPLE CHOICE 1. CVP analysis requires costs to be categorized as a. | either fixed or variable. | b. | direct or indirect. | c. | product or period. | d. | standard or actual. | ANS: A PTS: 1 DIF: Easy OBJ: 9-1 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Decision Modeling 2. With respect to fixed costs, CVP...

ISSN 1940-204X SEWMEX: Short-Term Profit Planning in an International Setting Gus Gordon University of Texas at Tyler David E. Stout Youngstown State University Sarah Hartzog, Student Former Student, Milsaps College Matt Lusty, Student Former Student, University of Texas at Tyler In addition to SEWMEX, SEW has several other factories located in the southeastern part of the U.S. One of the factories (located in southeastern Mississippi) also serves as a distribution center and central...

ECO2IQA 2010 Chapter 2 Solutions Note: The page numbers are the page numbers of the original Wisniewski text. 1. Co-ordinate system. Determine which quadrant the following points are in: a. b. c. d. (x, y) = (-2, 2) (x, y) = (2, -2) (x, y) = ((-1)2, 2) = (1, 2) (x, y) = (2-1, 2) = (1/2, 2) y 2.5 Coordinates (x, y) (2-1, 2) ((-1)2, 2) (-2, 2) 2 1.5 1 0.5 x -2.5 -2 -1.5 -1 -0.5 -0.5 -1 -1.5 0.5 1 1.5 2 2.5 (2, -2) -2 -2.5 2. Functions a. Graph y = |x|. (The bar symbols...

aCost Management Assignment Semester 1 2011 Table of content Detail: Pages Introduction 1 Q.NO.1 2 Q.No.2 3 Q.No.3 4 Q.No.4 5 Q.No.5 6 Q.No.6 7 Summary: 8 Introduction Cost Management delivers concise articles, experienced-based columns and case studies to evaluate how your present investment justification criteria and methods compare with those of other organizations, Learn about changing cost management methods and techniques and how they can be used to improve...

How good is the product? The product in theory has great potential able to save costs in two major industries, ceramics in paints. Looking at both individually: 1) Paints: Potentially 12 – 18 cents of savings to original estimations, however research with client has shown great difficulty. Was not working well due to suspension problems, was unable to have the right shine for use in white paints. Furthermore, once quality of end product was acceptable, savings was found to be 3cents per a...

COST CLASSIFICATION ASSIGNMENT To classify the various costs would first of all require a definition between the two types of accounting that practically all businesses have to face and a number of key terms which are equally important. These are management accounting and financial accounting. 1. THE DIFFERENCE BETWEEN MANAGEMENT & FINANCIAL ACCOUNTING: Management accounting is concerned with decision making, cost apportionment, planning and control. It is based within the...