Cost elements determine the cost classification

Assignment Help Financial Accounting

Reference no: EM13790139

Fran McPhair Dance Studios is a chain of 45 wholly owned dance studios that offer private lessons in ballroom dancing. The studios are located in various cities throughout the southern and southeastern states. McPhair offers a set of 12 private lessons; students may pay for the lessons one at a time, but each student is required to enroll for at least a 12-lesson plan. The 20-, 40-, and 100-lesson plans offer savings. Each dance instructor is paid a small salary plus a commission based on the number of dance lessons provided.

Required

1. McPhair’s owner is interested in a strategic analysis of the business. The owner wants to understand why overall profitability has declined slightly in the most recent year while other studios in the area seem to be doing well. What is the proper cost object to begin this analysis? Explain your choice.

2. For each of the cost elements determine the cost classification from the following list for the cost object you chose in requirement 1. (In some cases, two or more classifications may apply.)

Reference no: EM13790139

Questions Cloud

Calculate amounts for conversion costs using FIFO method : Taxes R Us (TRU), an income tax preparation firm, uses the FIFO method of process costing for the monthly reports. TRU has no materials cost in the preparation of the returns. Calculate the following amounts for conversion costs using the FIFO metho..

Explain what is innovation : What does Steve Jobs mean by connect the dots. What is innovation.

Discuss fundamental actions that leadership of a country : Discuss the fundamental actions that the leadership of the selected country is - or is not - taking to improve the living standards of its people.

Evaluation of arguments : 1. Reaching a valid decision is based on the evaluation of arguments. If we know that a valid argument has true premises, then a decision based on the argument______________.

Cost elements determine the cost classification : Fran McPhair Dance Studios is a chain of 45 wholly owned dance studios that offer private lessons in ballroom dancing. The studios are located in various cities throughout the southern and southeastern states. For each of the cost elements determine ..

Write paper on terrorism tactics : Write paper on terrorism tactics

Uses a periodic inventory system-particular transaction : James Company began the month of October with inventory of $34,000. The following inventory transactions occurred during the month: Assuming that the James Company uses a periodic inventory system, prepare journal entries for the above transactions i..

Essay about augustine and aquinas regarding ethics : about Augustine and Aquinas regarding ethics

Discuss the operating and cash cycles : Discuss the operating and cash cycles and why they it is important for a financial manager to have a good understanding of how cash and operating cycles impact business operations.

User Account

All Pages