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1-What is direct cost? What criteria are used to determine whether a cost is a direct cost?
To calculate the total cost of the production department or to calculate each product's total cost, it is necessary to allocate some of the rent (and other indirect costs) to the department and to the product.
2-In manufacturing environment, which cost are direct and which are indirect in product costing?
3-What is the objective of allocating indirect manufacturing overhead cost of product?
Some firms have a lot of fixed costs and a few variable costs, while other firms are configured the other way around. What effect do you think the existence of a high proportion of fixed costs has on the desirability of using ABC methods?
Calculate Coffee Mill's Cash Conversion Cycle. If Coffee Mill were to shorten its inventory conversion period by 10 days, what effect would this have on the Cash Conversion Cycle? What effect (in dollars) would (b) have on Coffee Mill's total worki..
A lawnmower manufacturing company built 1000 ToughEnuf engines driving the post year incurring the following direct cost
Why might managers find out a flexible budget analysis more informative than the strategic-budget analysis? Describe your rationale. How might a manager gain insight in the causes of the flexible-budget variance for direct materials?
ABC Company pays for purchases 40% in the month of purchase, and the balance in the following month. Recent purchases have been:
Bello Corp. has annual sales of $50,735,000, an average inventory level of $15,012,000, and average accounts receivable of $10,008,000. The company makes all purchases on credit and has always paid on the 30th day.
The allowance for uncollectible accounts currently has a credit balance of $900. After analyzing the accounts in the accounts receivable subsidiary ledger, the company's management estimates that uncollectible accounts will be $15,000.
A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.
Make an income statement for Packer, Inc. for 2013, and the balance sheet as of December 31, 2013. Case study is given below:
Do the pension worksheet and create the journal entries needed to reflect the above activity.
One way to own your own fitness business is to buy a franchise. Snap Fitness is a Minnesota-based business that offers franchise opportunities. For a very low monthly fee ($26, without an annual contract) customers can access a Snap Fitness center..
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?
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