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1. You're in the job interview and your possible employer asks you to explain the differences between the flexible and static budget and to explain which you would recommend for the small business and why. How would you respond to this potential employer?
2. Consider the three different centers in a company's cost center, profit center, and investment center. Which of these three centers would you prefer to work under if given the choice and why?
Gabby's Wedding Cakes creates elaborate wedding cakes. Calculate the break-even point for a month in units. How many cakes must be sold to earn a monthly profit of $10,000?
Diego Motors is a small car dealership. On average it sells the car for $25,000 which it buys from the manufacturer for $22,000. Each month, Diego Motors pays $50,000 in rent and utilities and $60,000 for salespeople's salaries.
The Jung Corporation's budget calls for following production:Quarter 1 45,000 units Quarter 2 38,000 units Quarter 3 34,000 units Quarter 4 48,000 units. Each unit of production needs three pounds of direct material.
Research the history of procedure costing in the United States. When did it begin to be employed in manufacturing companies? What sort of company would employ a process costing system?
The law firm of Tilton and Henderson accumulates costs associated with individual cases, using a job order cost system. The following transactions occurred during June:
Recognize three key learning points with respect to application of concepts like fixed costs, variable costs, contribution margin, breakeven analysis, indifference point, and operating leverage to organization's overall financial performance.
Evaluate Pursco's foreign tax credit limitation under the subsequent independent assumptions.
Provide guidance relating to typical activities, examples of cost pools and cost drivers, and the overheads for Housebuilding company like Bovis Homes.
Evaluate net purchases at retail and net sales for the month of September
Ocean Waverunners plans to manufacture 20,000 units, 24,000 units, and 30,000 units, respectively, in October, November, and December. Make a direct-material buys budget for October in parts and dollars.
The Houston Armadillos, the minor-league baseball team, play their weekly games in small stadium just outside Houston. The stadium holds 10,000 people and tickets sell for $10 each.
Nashville Corporation allocates administrative costs on the basis of staff hours. Short-run monthly usage and long-run monthly usage of the staff hours for Operating Departments 1 and 2 follow.
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