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

What is credit balance, Q. What is credit balance? If on the other side...

Q. What is credit balance? If on the other side the sum of the credits exceeds the sum of the debits the account has a credit balance. For example assume that a company has an

Accounting standards, The fundamental concepts, discussed in the previous p...

The fundamental concepts, discussed in the previous paragraphs, are the core components in the theory of accounting. Such concepts as postulates or conventions, although, permit a

What is passage of title in transpotation, Q. What is Passage of title in t...

Q. What is Passage of title in transpotation? Passage of title is a term that point to the transfer of the legal ownership of goods. Title to the goods usually passes from sell

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

I submitted an assignment this morning and have heard nothing back

Explain about financial statement, Q. Explain about financial statement? ...

Q. Explain about financial statement? The income statement is the statement of retained earnings the balance sheet and the statement of cash flows of Metro Courier Inc demonstr

Financial accounting versus managerial accounting, Q. Financial accounting ...

Q. Financial accounting versus managerial accounting An accounting information system offers data to help decision makers both outside and inside the business. Decision makers

Explain the dual aspect concept and materiality concept, Illustrate the sub...

Illustrate the subsequent Accounting Concepts: a) Dual Aspect concept b) Materiality concept c) Matching concept d) Conservatism concept

What is difference between super stockist and distributor, Super stockist i...

Super stockist is one who supply product to n no. of distributor in area. Distributor is one who supply to dealers in the area

Cash flow statement vs funds flow statement, Cash Flow Statement Vs Funds F...

Cash Flow Statement Vs Funds Flow Statement:   together the Cash Flow Statement and Funds Flow Statement give approximately comparable picture of the firm. They don't be different

Explain is curve and ad curve graph, Taxes are affected by the level of eco...

Taxes are affected by the level of economic activity: When output increases, tax revenues typically increase, when output falls, tax revenues fall. Suppose a balanced- budget amend

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