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Karen's Cookie Company is considering replacing its giant cookie mixer with the new one. The following data has been compiled to measure the function:
EXISTING NEWOriginal Cost $8,000 $10,000Annual Operating Cost $4,000 $2,200Remaining Life 5 years 5 yearsDisposal value now $3,000
a. What costs are relevant?
b. What costs are sunk?
c. What are the net cash flows, assuming Karen's Cookie Company purchases the new cookie mixer?
What is a service or product in McDonald's which can employ activity based costing? What are three activities for activity based costing and the correct cost drivers for them? Give an estimate for application rates of these drivers.
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?
Advise managers whether or not this contract is profitable. Evaluate any additional information that managers need to consider before accepting or rejecting this contract
To assist in providing new revenues to the federal government, some have proposed a value added tax (VAT) similar to those employed in the United Kingdom and Canada. What are the pros and cons of introducing this kind of national sales tax? Explai..
What would be some particular examples of advantages and disadvantages of job order costing?
You've been appointed as an executive director of small nonprofit organization. Among your many duties are to estimate an annual budget and develop a fiscal plan for organization.
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.
Explain how the budget constraint of househould in two-period model is affected by each of the following changes. In each case, do you think the household is better off or worst off or is the answer ambiguous?
Recognize which costing system? Job order or processcost? The following companies would primarily employ: (a) Quaker Oats, (b) Ford Motor Company, (c) Kinko's Print Shop, and (d) Warner Bros. Motion Pictures
Which costing system would be more efficient when direct labor costs and direct materials are low, and overhead is high and why? Explain how the supply chain and the macroeconomic environment of the health care business fit in with your calculations?
Write down the strengths and weaknesses of current costing model.
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.
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