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Activity-Based Costing (ABC)

Many companies recognize that their cost systems are inadequate for today's global market. Managers in companies selling multiple products are making important product decisions based on distorted cost information because many cost systems are designed to focus on inventory valuation. If management should decide to implement a

Short term Financial Risk Concepts

Examine the concept of financial risk by answering the following questions: (a) How does the risk of a portfolio change as the number of assets in the portfolio increases? (b) Provide an example of a unique risk that can be reduced by portfolio diversification. (c) Provide an example of a market risk that cannot be reduced by po

This post addresses tax yields and related issues.

1. Do investors in high tax brackets or those in low tax brackets benefit more from tax-exempt securities? 2. Do municipal bonds or corporate bonds offer a higher before-tax yield at a given point in time? Which has the higher after-tax yield? 3. If taxes did not exist, would Treasury bonds offer a higher or lower yield than

This post addresses issues in general ledger coding.

Do I need to code the "parts used" to repair a company forklift to a "parts" GL account or should I code it all together (with the labor expense) under equipment repair and maintenance account? Also, is sales tax supposed to be charged to labor when repairing the forklift?

Bruno Company Exercise for Expanding Operations

Bruno Company has decided to expand its operations. The bookkeeper recently completed the balance sheet presented below in order to obtain additional funds for expansion. Prepare a revised balance sheet given the available information. Assume that the accumulated depreciation balance for the buildings is $160,000 and for the

Engagement Planning

What is the purpose of engagement planning? What critical information should the auditor consider during engagement planning? How will this information affect the scope of the audit?

Addressing Current Ratios and High A/R Turnover

Discuss what high current ratios indicate and why are businesses with extremely high current ratios (example: 25.0) at risk? Explain what a high accounts receivable turnover indicates to a business?

This post addresses a distribution practice question.

A corporation that has both preferred and common stock has a deficit in accuulated earnings and profit at the beginning of the year. The current earnings and profits are $25,000. the corporation makes a divided distribution of $20,000 to the preferred shareholders and $10,000 to the common shareholders. How will the preferred

Price variance and quantity variance.

Explain why the quantity purchased is used in computing the direct materials price variance, but the actual quantity consumed is used in computing the direct materials quantity variance. Why does an analogous question not arise in the context of the direct labor variance?

Jernigan Ltd. Quality cost problem report

Managerial Accounting problems 1. Jernigan Ltd. Is a textile manufacturer in the southeastern United States, with annual sales of $15 million. Jennigan is a weaver of high end upholstery fabric. Until just a few years ago, the US textile industry was the leading producer of such high-end fabric, but recent imp0rovement s in

costs assigned to the units transferred out

FIFO Aluminum processes a single type of aluminum. During the current period the following information was given: Units Materials Costs Converstion Costs Beginning Inventory 3,000 $4,500

B&B Electric Corporation: Two-variance overhead analysis

B&B Electric Corporation: Standard cost: Materials (2lb x $ per lb)...................................$10.00 Labor (4 hr x $6 per hr)....................................$24.00 Factory overhead (4 hr x #3.38* per hr............$13.52 total standard cost...........................................$47.52 * $1.00 variable +

Addressing Other Comprehensive Income (OCI)

Can you assist me with this question? Other Comprehensive Income (OCI) appears on income statements but what is the term for unrealized gains (losses) that are shown in the equity section of the balance sheet? Is this part of OCI as well?

Career Plan after Graduations

I need some help in answering the following: - Share your career plans after graduation and the specific steps you have taken to prepare for your career during college, including meeting with career services, attending workshops, job fairs, internships, networking events and other relevant career-related activity. If you have

Costs, Expenses and Performance

Please match the following items with the correct descriptions. Answer _____Activity-based costing _____Indirect Expenses _____Controllable Costs _____Joint Costs _____Transfer Price Answers A. Costs incurred to produce or purchase two or more products at the same time. B. Costs that are incurred for the joint bene

type of cost

In the Mattel factory they are spending hours upon hours making the new action figures for the upcoming film MATRIX IV-THE RISE OF NEO. In this process they are using tons of raw plastic to make the many different action figures needed to coincide with the film's anticipated debut. The cost of this raw plastic is not considered

Preferred shares for common shares at a specified rate?

1. Which of the following gives holders the option to exchange their preferred shares for common shares at a specified rate? Answer A. Convertible Preferred Stock B. Participating Preferred Stock C. Nonparticipating Preferred Stock D. Callable Preferred Stock 2. Carrie Funston was reviewing the bond ratings of

One-Time Tax and Tax Revenue

Please help with the following business-related problem. Real estate magnate Donald Trump once proposed a one-time tax of 14.25 percent on the net wealth of every American with more than $10 million. Would this be an efficient way to raise tax revenue? Why or why not?

Federal taxation 2012

Search the Internet for at least four (4) stories about major charitable contributions by individuals, including Bill Gates, Warren Buffett, Steve Jobs, and at least one (1) other individual. Be mindful that you are not researching foundations, such as the Bill and Melinda Gates Foundation for this assignment. Write a 3-4 page

Calculate and report the mean, median, and mode of the data

State again the type of data you have been collecting. Calculate and report the mean, median, and mode of the data (at lease 20 observations, preferably more). Now calculate the standard deviation of the data. For this calculation compute the difference between each one of the observations and the mean, (this number may be po

Osage Inc. - Production and purchases budgets

Osage Inc.. has actual sales for June and July and forecast sales for August, September, October, and November as follows: Actual: June 4,150 units July 4,350 units Forecasted: August 4,200 units September 4,950 units October 3,900 units November 3,700 units Requ

Describe fee-for service and activity based costing (ABC)

1. Consider a health care organization with which you are familiar and discuss how do provider incentives differ when the provider moves from a fee-for-service to a capitated environment? 2. Discuss briefly the activity-based costing (ABC) and explain how ABC can differ from traditional costing approaches? Consider a health c

Kudler Fine Foods Automated Process of Accounting Information Systems

Similar to any business, Kudler Fine Foods uses payroll, accounts payable, accounts receivable, and inventory processes. All four of these processes might be improved by the use of accounting information systems. Your accounting firm has assigned you to the team that will recommend systems to improve automation of these processe

multiple-step form or the single-step form

The accountant of Weatherspoon Shoe Co. has compiled the following information from the company's records as a basis for an income statement for the year ended December 31, 2010. Rental revenue $29,000 Interest expense 18,000 Market appreciation on