Determine influence fixed costs of capacity has on pricing

Assignment Help Accounting Basics

Reference no: EM131332367

Accounting Anonymous

Absorption and Variable Costing: Please respond to one of the following:

Option 1

Create a situation for determining performance evaluations and bonuses where absorption-costing operating income is used both to increase income and to influence performance measures in use.

Option 2

Evaluate the benefits of variable costing in eliminating opportunities for adverse incentives that absorption costing can create, indicating how a company may leverage these benefits.

Option 3

Justify the use of practical capacity over theoretical capacity in product costing in a manufacturing company with consistent excess capacity. Determine the influence fixed costs of capacity has on pricing decisions and customer response.

Reference no: EM131332367

Questions Cloud

Capital budgeting project : El Dorado Storage has the following projections for Year 1 of a capital budgeting project.

Sometimes firm will issue an rfp with no intention : Now to switch things up just a bit; sometimes things aren't always what they seem. Sometimes a firm will issue an RFP with no intention of actually having a contractor complete the work.If you are a potential seller, how can you effectively respond t..

Shopping for new tires for your car : You are shopping for new tires for your car and find the following choices: a Dunlop tire costs $40 but will last only a 1 year; a Pirelli tire costs $6 and will last 2 years: a Goodyear tire costs $80 and will last 3 years; and a Michelin tire costs..

Calculate stricklers cash conversion cycle : Strickler Technology is considering changes in its working capital policies to improve its cash flow cycle. Strickler sales last year were $3,250,000 (all on credit), and its net profit margin was 7%. Its inventory turnover was 9.0 times during the y..

Determine influence fixed costs of capacity has on pricing : Justify the use of practical capacity over theoretical capacity in product costing in a manufacturing company with consistent excess capacity. Determine the influence fixed costs of capacity has on pricing decisions and customer response.

What is the connection of a stock to market risk : What is the connection of a stock to market risk? Define and provide the formula to determine a stock’s market risk. What's the difference between simple interest and discount method? Write in table format. What's the difference between effective and..

Why did the federal reserve agree to this policy : In World War II the Federal Reserve engaged in a rudimentary form of Open Market Operations and purchased large amounts of Liberty Bonds directly from the US Treasury. Why did the Federal Reserve agree to this policy? Under today’s conditions, this..

Does the game have another nash equilibrium : Exercise shows that an extensive-form perfect equilibrium is not necessarily a strategic-form perfect equilibrium.- Does the game have another Nash equilibrium? Does it have another subgame perfect equilibrium?

Effective annual cost of trade credit under terms : Pets Store Inc. sells on terms of 3/20, net 75. What is the effective annual cost of trade credit under these terms? Use a 365-day year.

User Account

All Pages