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Question #1
a) List and describe four potential problems with a "traditional" overhead allocation system.
b) List and describe four "red flags" that may indicate you should consider revising your overhead allocation system.
Question #2
a) Describe the differences between unit-related, batch-related, and product-sustaining activities. Give one example of each type of activity.
b) Describe the difference between transaction drivers and duration drivers. When would one type be preferred over the other?
Determine the total cost allocation and departmental overhead rate for the producing departments using the direct method. Show your work.
Pick a costing method: process, job, or activity based. Explain the nature of your chosen method. What types of organizations should choose that method?
Using solver derive the optimal solutions for how many meals should be prepared to maximise profit - state the optimum meal mix and the resulting profit
A master budget is the compilation of forecasts for coming year or operating cycle made of many departments or function in an organization. What is the most significant forecast made in the master budget? Mention the reasons for your answer.
polycorp is considering an investment in new plant of 3 million. the project will be financed with a loan of 2000000
Explain why Green made this comment. What is wrong with her analysis - Sascha Green reanalyzes the data, this time comparing quarterly machinehours with quarterly maintenance expenditures.
Formulate a linear program to determine the expected mix of conference rooms to ensure the maximum profit for CRSL. Show all supporting calculations and derive the optimum solution using a computer package.
garden depot is a retailer that is preparing its budget for the upcoming fiscal year. management has prepared the
Establishing an internal audit function/department is not a legal requirement. Consequently, it is an optional function.
Vintech Company is planning to produce 1,800 units of product in 2011. Each unit requires 4 pounds of materials at $6 per pound and a half hour of labor at $17 per hour. The overhead rate is 70% of direct labor
What is the shadow price for Electronic Components? Explain to management how they might use this to increase profits? Calculate the upper limit for which this shadow price is valid. What happens when the upper limit is breached?
Make a cash budget for Sharpe covering the first seven months of 2004. Sharpe has $200,000 in notes payable due in July that must be repaid or renegotiated for an extension. Will the firm have ample cash to repay the notes?
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