Computer based process solutions for accounts, Accounting Basics

Assignment Help:

Process Solutions provides a computer-based document processing service. The accountant has produced the following analysis.

 

Standard

Modified

Advanced

Sales quantity

1,000

1,100

1,200

Selling price

£5

£5

£6

Sales revenue

5,000

5,500

7,200

Labour hours

100

120

160

Labour cost @ £20 / hour

2,000

2,400

3,200

Contribution

3,000

3,100

4,000

Contribution per unit sold

£3

£2.82

£3.33

The Sales Manager, whose team is paid a commission on sales revenue, prefers to sell the higher priced Advanced service. This is also the preferred service for the Accountant, although not for the same reason, as her argument is that the advanced service is better because of the higher contribution per unit sold. The Operations Manager argues that the Advanced Service consumes more labour hours than the Standard or Modified services and as labour availability limits his ability to process work; this should also be taken into account. The Operations Manager prefers the Standard or Modified service as this provides greater ability to use his capacity more flexibly.

The General Manager has asked for your advice in relation to this disagreement within the management team.


Related Discussions:- Computer based process solutions for accounts

Explain about realization principle, Q. Explain about realization principle...

Q. Explain about realization principle? Realization of revenue Under the realization principle the accountant doesn't recognize (record) revenue until the seller obtains the ri

Submitted assignment, I submitted an assignment this morning and have heard...

I submitted an assignment this morning and have heard nothing back

Taxation law, Ken, a resident, is a handyman who contracts with people to d...

Ken, a resident, is a handyman who contracts with people to do a variety of jobs including repairing fences, fixing household items and small painting jobs. As part of this work, K

Reasonable accuracy, Some the other concepts, as for example: the Matching ...

Some the other concepts, as for example: the Matching concept, the Dual Aspect concept and the Realization concept are discussed in further sections, and as they have not been take

State and local income taxes, State and local income taxes Some states ...

State and local income taxes Some states also withhold state income taxes. Texas doesn't. If state withholds taxes, there will be form similar to the federal one to determine t

How to enter this transaction in books of accounts?, My company has done a ...

My company has done a down payment on inventory ,then manufacturer will ship this order between 30 to 60 days after original payment and the balance is due 60 days once the order g

Explain the term- cash short and over, Explain the term- CASH SHORT AND OVE...

Explain the term- CASH SHORT AND OVER This account is used to record both a shortage and overage of cash in cash drawer. When change is made during a business day, mistakes can

Cost accounting, The industrial revolution in England presented a challenge...

The industrial revolution in England presented a challenge to the development of accounting like a tool of industrial management. Costing techniques were urbanized as guides to man

What is effective collection?, Its depends on the credit period of the comp...

Its depends on the credit period of the company i.e. A company credit period 30 days 85 of the debtors collection should be recovered with in credit period. We can say the Effectiv

Shan

7/7/2013 4:52:00 PM

I need homework help.

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd