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You are the vice president of operations for a small manufacturing company that uses the absorptive method of accounting for fixed manufacturing overhead, and you are approaching the end of the year. The accounting manager just visited some of your supervisors and said that the profitability of the company can appear better if more products were produced, even if they are not all sold right away. Many of the supervisors do not understand how this makes sense and asked you to explain it. You decide to meet with all the production supervisors to explain this.
Explain how the profitability of the company can be made to look better if they were to produce more products, even if they are not all sold right away.
Explain how variable costing differs from absorption costing and compute unit product costs under each method, and Identify relevant and irrelevant costs and benefits in a decision situation.
Jonas, the sole shareholder of Emerald Corporation, wants to better understand the implications of this adjustment for E & P purposes, as he anticipates a distribution from Emerald in the current year. Prepare a memo for your firm's client files ..
The department actually completed 5,000 hours of production. Find out the budget for the department assuming that it uses flexible budgeting?
To the nearest whole dollar, illustrate what should be the total property taxes at a sales volume of 30,900 units? (Assume that this sales volume is within the relevant range.)
the company had outstanding all year a 10%, 3-year, $4,000,000 note payable and an 11%, 4-year, $7,500,000 note payable. What is the actual interest for Arlington Company?
A company pays an 11.5% state income tax and is in the 34% federal income tax bracket level. Calculate the combined incremental tax rate to be used for project analysis.
Evaluate what is the purpose of the debt service fund? Find what is inter-period equity? How does inter-period equity affect capital project and debt services funds?
The PV of $1 at 10% for 3 periods is 0.75. What is the amount of interest revenue that should be included in Abel’s 2013 income statement?
You told the panel that you read the IBM book in our class. A memeber of the panel asked you to give one application of cost accounting that would have helped Lou. How would you respond? Use a simple example in your response.
Wise Company had the following transactions - Issued 5,000 shares of common stock with a stated value of $10 for $130,000 - Prepare the journal entries to record the above stock transactions
Calculation of payback period of the project and comment on its liquidity and Use the payback method to calculate how many years it will take for each project to recoup the initial investment, Which project would you consider most liquid?
ABC INC purchased new machinery in order to improve its production process - Give the value of the new machinery, and list the financial statement in which it will be shown at fiscal year
Illustrate what amount of cash disbursements for insurance would be reported in Walsh's 2008 net cash provided by operating activities presen ted on a direct basis?
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