Reference no: EM131035637 , Length: word count:2000
Instructions
Read the CMA Accounting Services case study and address the requirements that follow in your case analysis report.
CMA Accounting Services: Case study
CMA Accounting Services, based in Christchurch, provides three accounting services: financial accounting services (FAS), management accounting services (MAS), and tax accounting services (TAS). The firm, which bills $250 per hour for services performed, is in a very tight local labour market and is having difficulty finding quality staff. The staff labour cost per hour paid by CMA for professional staff time is $120. Selected information about the company follows.
(a) Billable hours to clients for the year totalled 10,000 hours, consisting of: FAS 4000 hours, MAS 3500 hours, and TAS 2500 hours.
(b) Administration costs of $684,000 were (and continues to be) allocated to all three services based on billable hours. These costs consist of staff support ($360,000), information systems ($272,800), and general office expenses ($51,200).
A recent analysis of staff support costs found a correlation with the number of clients served. Information services and general office expenses varied directly in line with the number of computer hours logged and number of client transactions, respectively. The following table shows the number of clients, computer hours and client transactions for the three services:
|
FAS |
MAS |
TAS |
Total |
| Number of clients |
150 |
250 |
100 |
500 |
| Number of computer hours |
3000 |
3500 |
2300 |
8800 |
| Number of client transaction |
900 |
700 |
400 |
2000 |
You have recently been appointed as a management accountant of the firm and Jenny Mars, the firm's managing partner, has asked you to review and recommend whether the application of activity-based costing (ABC) concepts would be useful for the company. She has asked you to write a report for her to present to her board that addresses the following:
Question - Based on your work in (2) above: (a) Would you recommend the adoption of ABC? Explain your answer. (b) What does the ‘income per billing' percentage calculated under the ABC approach tell you about these three accounting services?
|
What are two severe and pervasive types of sexual harassment
: What are the two severe and pervasive types of Sexual Harassment? What laws prevent Sexual Harassment in the workplace? Why are Sexual Harassment laws necessary? What should an employer do when an employee complaints of Sexual Harassment? What happen..
|
|
Discuss risks and benefits of inventory size and location
: Discuss the risks and benefits of inventory size and location. Explain what companies can to minimize their risks associated with inventory.
|
|
Recursive function to print the arrangements
: Warm-up Assignment You are given R red marbles and B blue marbles. Your task is to arrange the R + B marbles in a line such that certain restrictions are satisfied (see below).
|
|
Inventory management for special units at business
: You have just taken over inventory management for special units at a business. Currently there are 120 units in stock, it takes between 1 and 3 weeks to receive an order of 100 new units, and demand runs between 0 and 25units per week. What additiona..
|
|
What does the income per billing percentage calculated
: Question - Based on your work in (2) above: (a) Would you recommend the adoption of ABC? Explain your answer. (b) What does the ‘income per billing' percentage calculated under the ABC approach tell you about these three accounting services
|
|
Operating leverage and break-even analysis
: OPERATING LEVERAGE AND BREAK-EVEN ANALYSIS Olinde Electronics Inc. produces stereo components that sell at P = $100 per unit. Olinde's fixed costs are $200,000, variable costs are $50 per unit, 5,000 components are produced and sold each year, EBI..
|
|
The arraylist class
: Create a class to represent a term in an algebraic expression. As defined here, a term consists of an integer coefficient and a nonnegative integer exponent. E.g.
|
|
Charge of developing system to perform high-volume
: You are in charge of developing a system to perform high-volume, repetitive processing of HMO group health insurance claims. Each claim must undergo 4 separate processing steps. Step 1 takes on average 85 seconds to complete. Step 2 takes on average ..
|
|
Calculate the break-even point in pizzas per month
: Calculate the break-even point in pizzas per month and print your results using the online break-even analysis tools - Calculate the break-even point in pizzas per month and print your results using the break-even chart analysis spreadsheet.
|