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H & R Block is a service company that prepares tax returns; Borders is a retail company that sells books and CDs; Indian Motorcycle Corporation is a manufacturing company that makes motorcycles. Show that you understand how these companies differ by giving for each one an example of a direct and an indirect cost, a variable and a fixed cost, a value-adding and a nonvalue-adding cost, and a product and a period cost. Discuss the use of cost classifications in these three types of organizations.
Suppose one predetermined rate per copy was used to allocate all photocopy costs. What rate would be used and how much cost would be allocated to the Public Works Department in August?
Williams Inc. estimated overhead to be $440000 and direct labor hours to be 100,000 for the year. Actual direct labor ended up being 120,000. Actual overhead for the year amounted for $500,000. What is the predetermined overhead rate?
Define and describe activity based costing. Also employ some real-life examples of how companies implement this management tool. Offer some comparisons and contrasts and pros and cons from different stand points on this topic.
Determine the equivalent units of conversion. What is the conversion costs assigned to completed calendars? What amount of conversion is assigned to the ending work-in-process inventory?
Kiel Center sells only on credit (no cash sales). Prior collection patterns describe that 28% of month's sales are gathered in the month of sale, 51% are collected in month after the sale, and 19% are collected in second month after the sale.
Collect and examine two newspaper or magazine articles relation to management accounting issues. The analysis must include:
Prepare the journal entry to transfer the cost of job #JK150 out of the work-in-process account at the end of November, What was the under-or over recovered overhead for the year?
There're four primary techniques of examining capital decisions - two are discounting techniques and two aren't. Please pick one of them, describe the method and the pros and cons.
Funding budget shortfalls As part of your personal budgeting process, you have determined that in each of the next 5 years you will have budget shortfalls.
Wriglee, Inc. went to court this year and successfully defended its patent from infringement by the competitor. The cost of this defense must be charged to:
Recognize which costing system? Job order or processcost? The following companies would primarily employ: (a) Quaker Oats, (b) Ford Motor Company, (c) Kinko's Print Shop, and (d) Warner Bros. Motion Pictures
CP has decided to introduce the new product which can be manufactured by either a computer assisted manufacturing system or labor intensive production system. The manufacturing technique will not affect the quality of product. The estimated manufa..
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