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Question - A special contract had been offered to a company to supply it's products on a monthly basis for a period of 36 months to a sport complex in Rwanda. The volume of transaction is estimated to be about $10,500,000 per month. The gross profit margin is however very low at 4% and it involve logistic costs of about $ 400,000 per month.
a) Should the company take up the contract? If the answer is yes, which plastics factory should be signing the contract?
b) What are the qualitative considerations that must be taken into account in the decision?
Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.
Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.
Prepare a master budget for the three-month period.
Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.
Evaluate the Predetermined Overhead Rate
Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.
Complete the schedule to compute the pool rates for the different activities.
Prepare Company financial statements
This individual assignment is based on the TerraCycle Inc.
Discuss the ethical issues
Calculate the GDP in Income Approach and Expenditure Approach
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.
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