Computer based process solutions for accounts, Accounting Basics

Process Solutions provides a computer-based document processing service. The accountant has produced the following analysis.

 

Standard

Modified

Advanced

Sales quantity

1,000

1,100

1,200

Selling price

£5

£5

£6

Sales revenue

5,000

5,500

7,200

Labour hours

100

120

160

Labour cost @ £20 / hour

2,000

2,400

3,200

Contribution

3,000

3,100

4,000

Contribution per unit sold

£3

£2.82

£3.33

The Sales Manager, whose team is paid a commission on sales revenue, prefers to sell the higher priced Advanced service. This is also the preferred service for the Accountant, although not for the same reason, as her argument is that the advanced service is better because of the higher contribution per unit sold. The Operations Manager argues that the Advanced Service consumes more labour hours than the Standard or Modified services and as labour availability limits his ability to process work; this should also be taken into account. The Operations Manager prefers the Standard or Modified service as this provides greater ability to use his capacity more flexibly.

The General Manager has asked for your advice in relation to this disagreement within the management team.

Posted Date: 2/18/2013 8:17:06 AM | Location : United States





I need homework help.
Posted by Shan | Posted Date: 7/7/2013 4:52:00 PM


Related Discussions:- Computer based process solutions for accounts, Assignment Help, Ask Question on Computer based process solutions for accounts, Get Answer, Expert's Help, Computer based process solutions for accounts Discussions

Write discussion on Computer based process solutions for accounts
Your posts are moderated
Related Questions
Declared semiannual dividends of $1.20 on 75,000 shares of preferred stock and $0.08 on the 600,000 shares of $20 par common stock to stockholders of record on March 31, payable

1) A) Suppose Jean Splicer, an investor, buys $300,000 of shares of stock in a diversified bundle of Bio-tech firms and exactly one year later sells those shares for $315,000. Assu

Q. In between FIFO and lifo which one is the correct method? The differences for the four methods take place because the company paid different prices for goods purchased. No d

A Use the CPS data to calculate mean log(wage) for women and men. log(wage) is coded as the variable LNWAGE and the variable FE is coded 1 for female and 0 for male.) First use the

determine how the disallowance of LIFO will impact U.S. multinational firms that report under IFRS

Goods purchased from ranu p5000

Company A has only been in existence for two full years as a public company. Prior to this, it was a segment of large multinational and was spun off as stand-alone, public company.

Q. Example of work sheet for a merchandising company? Lyons Company is a tiny sporting goods firm. The illustration for Lyons Company focuses on merchandise-related accounts. T

What is uses of Purchases journal Purchases journal (SPECIAL JOURNAL) Used to record only credit purchases of merchandise-may be only one column which is posted to two accou

The two fundamental sources of equity in a company are stockholders and creditors their combined interests are called total equities. To discover the equity ratio divide stockholde