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1. What are equivalent units? Why do we need to calculate equivalent units? Why are they calculated separately for materials and conversion costs? How do they impact the cost of the products?
2. What are the differences between variable and absorption costing? Why is variable costing not allowed for GAAP reporting? Which method is more useful for internal decision-making? Why? As a manager, which would you prefer? Why?
3. For what is cost-volume-profit (CVP) analysis used? What are some of the key underlying assumptions that make CVP analysis useful for decision makers? Why might decision makers use CVP analysis?
Assuming that the amount of rent revenue from Condo 2 is $48,000, what amount of income did it earn? Based on the preceding information, will the company show finished goods inventory
Hampstead company's order entry department has 20 order entry operators. The cost associated with these 20 operators (salaries, fringe benefits, and supervision, as well as occupancy and equipment costs) is $873,600 per year.
Write down the strengths and weaknesses of current costing model.
Pick a costing method: process, job, or activity based. Explain the nature of your chosen method. What types of organizations should choose that method?
Record the preceding events in a horizontal statements model. In the cash flows column, designate the cash flow as operating activities (OA), investing activities (IA), or financing actives (FA)
Give the following cost data Costs /per unit labor . $ 4 Materials .5 Fixed cost . $ 12000 Determine the break even point in units if the selling price is $ 19.00 Determine the break-even point in sales at a selling price of $ 19.00 What would profit..
Petty Petroleum, Inc. uses various chemicals to manufacture its products. Variance data for last month for three primary chemicals used in production are as follows (F indicates a favorable variance; U indicates an unfavorable variance):
Suppose the company decides instead to employ a traditional costing system in which ALL costs are allocated to customers on basis of cleaning hours. Evaluate the margin for the Lazzara family.
Describe how a job analysis increases productivity, aids in job description creation, and guides employee team formation.
What should the Manhattan Company do to improve its profitability? Consider pricing and product-level changes among your suggest. Who should be involved in implementing your recommendations?
ABC currently employs traditional costing procedures, applying $410,000 of overhead to products X and Y on the basis of direct labor hours. The firm is considering the shift to activity-based costing and creation of individual cost pools that will..
Mattresses-A-Million produces Pillow-Top mattresses. They have been using a volume-based costing system to allocate overhead based on direct labor-hours. The Pillow-Top requires two hours of direct labor.
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