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Pacific Airlines has three service departments; ticketing, baggage handling, and aircraft maintenance. Costs of these departments are allocated to two revenue producing departments, domestic and international flights. Costs for the service departments are not separated into fixed and variable and the totals areas follows:
As the chief executive officer of a large corporation, you have decided after discussion with production and accounting personnel to implement activity based management concepts. What alternatives might you have that could accomplish the goal of r..
Explain how a shift in the sales mix among 3 products (even if the total sales remain the same,as planned, say $500,000 ) could result in both a higher break-even point and a lower net operating income.
What are the differences between a direct cost and an indirect cost? Which is the more difficult cost to track? Why? How do indirect costs affect the cost of a product? Should indirect costs be included in product cost?
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?
Provide calculations and reasons to support your answer. b. If Maximus Company has excess machine capacity but a limited amount of labour time available, to which product or products should the excess production capacity be devoted? Provide calculati..
Write down the main components of cost-volume-profit (CVP) analysis. How does a CVP income statement aid management make decisions?
Cintas Company produces a line of cleaning products for both industrial and household use. While most of the company's products are processed independently, a few are related, such as Pearl and Satin Polish.
Show what makes a contribution income statement unique and discuss how a contribution income statement could be used to improve planning in a company.
Write down the strengths and weaknesses of current costing model.
What is the unit product cost for the month under variable costing and what is the unit product cost for the month under absorption costing?
How much cash should Skyline expect to receive from its customers in Jan 10 and how much cash should Skyline expect to receive from its cusotmers in Feb 10?
Develop all of your managerial accounting reports. Examples of a few of those reports are the horizontal analyzes, vertical analyzes, and ratios.
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