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Parrish Plumbing provides plumbing services to residential customers from Monday through Friday Ken Parrish, the owner, believes that it is important for his employees to have Saturday and Sunday off to spend with their families. However, he also recognizes that this policy has implications for profitability and he is considering staying open on Saturday.Ken estimates that if his company stays open on Saturday, it can generate $2,500 of daily revenue each day for 52 days per year. The incremental daily costs will be $100 for labor, $500 for parts, $100 for transportation, and $200 for office staff. These costs do not include a share of monthly rent or a share of depreciation related to office equipment.Ken is determined not to have employees work on Sunday, but he would like to know the opportunity cost of not working on Saturday. Provide Ken with an estimate of the opportunity cost, and explain why you do not have to consider rent or depreciation of office equipment in your estimate.
Calculate the total projected sales for the quarter and At the local ice cream shop, there's a sign posted that reads, "If you don't receive a receipt, your next ice cream is free!" Is this an internal control procedure? If so, how does it work?
As the chief executive officer of a large corporation, you have decided after discussion with production and accounting personnel to implement activity based management concepts. What alternatives might you have that could accomplish the goal of r..
Janel Co acquired a building valued at $120,000 for property tax purpose in exchange for$8,000 shares of its 5 par common stock. The stock is selling for $15 per share. At what amount should the building be recorded by Janel Co.?
Prepare a table that decomposes the total purchase price of the zinc ($5,530) into its various components as calculated by the standard cost system.
Write a short essay on how management accounting can help the managers of an organization to run their business efficiently and prepare a report for Johnson explaining the errorshe made in his income statement
What kind of system makes sense for your company, given that you plan to start with only one version of your product but at some point in the future may offer a variety of options?
webb corp. sponsors a described benefit pension plan for its employees. on 1st january 2012 the subsequent balances
Calculate the target cost for maintaining current market share and profitability.
For any kind of companies it is important to choose and use the right types of costing system. Costing system is an accounting system uses by companies and organizations to monitor the company's expenditures and overheads
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 empl..
Should the product be marketed? Why? What is the expected value of perfect information about the success or failure of the product?
Read Using Shareholder Value to Evaluate Strategic Choices - The basic principle of the article is that performance evaluation based on accounting measures alone is not sufficient.
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