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1. What other examples of cost drivers can you think of?
2. It would seem to me that payroll would be considered as variable when it is subject to change. One example that comes to mind is seasonal hires. Local retailers often beef up their workforce during the holidays. To me this would be an example of when payroll might be considered to be a variable expense. Another example that comes to mind would be pay based on performance. I once had a job where I was paid piece rate. The faster I worked the more money I made. I'm not sure if this would be a variable cost, but it makes sense to me that it would. My pay was dependent upon my productivity. Does anyone have any thoughts on this?
3. 'Budgeting is an unnecessary burden on many mangers. It takes time away from important day-to-day problems'. Do you agree? Explain.
4. 'We want a flexible budget because costs are difficult to predict. We need the flexibility to change budgeted costs as input prices change.' Does a flexible budget serve this purpose? Explain.
Cash and investments of a bond sinking fund established to service general government long-term debt.
Every day we all have decisions to make that depend on us doing the right or wrong thing. It's not always easy to do the right thing. Assume that you accept the following ethical rule
Hannon Company has 1,600 pounds of raw materials in its December 31, 2011, ending inventory. Needed production for January and February of 2012 are 4,000 and 5,500 units, respectively.
Browning, which employs a process-costing system, adds all material at the beginning of production and incurs conversion cost evenly during manufacturing. The information which follows relates to the period just ended:
Roehler Industrial has estimated that production for the next five quarters will be: Make quarterly direct materials purchases budgets for Roehler Industrial for 2011.
Procter & Gamble Company is a Cincinnati-based company that produces household products under brand names such as Gillette, Bounty, Crest, Folgers, and Tide. The company's 2006 income statement showed the following (in millions):
Alaina's customer service department follows up on customer complaints by telephone inquiry. Costs allocated to the wholesale operation under activity-based costing system should amount to what?
Describe how a job analysis increases productivity, aids in job description creation, and guides employee team formation.
Discuss the factors that a company must consider when deciding whether to use a job order or a process cost system. What might be the consequences to a company if they make the wrong choice?
Determine the break even point in units. The company has a capacity of 150,000 units and is currently at two thirds of its capacity. The sales manager believes the company could increase sales by 8,000 units if advertising expenditures are increa..
Calculate the number of gizmos required to break even under present price and cost conditions. Calculate how many units would have to be sold to meet the profit target for each of the suggested options
This question is on variance analysis in managerial or cost accounting. More specifically, it asks for computations of direct material price variance, direct material efficiency or usage variance, the flexible budget variance, and determining whet..
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