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Land gone bad

Suppose you have inherited a piece of property about two hours from where you live and work, on an undeveloped lot on a lake. It is a beautiful spot, and you intend to build a small summer house on it, so you and your family can vacation there. You've been saving up to do this, but after five years have passed, environmentalists

Job-cost and Process-cost systems

What are the differences between job-cost and process-cost systems? When would it be appropriate to use each type of system? What is the effect of each system on the product cost?

What Constitutes Income?

The Economic Benefit Doctrine, Constructive Receipt Doctrine, and Assignment of Income Doctrine help set the lines of demarcation between what constitutes income, when it must be recognized, and who must pay taxes on it. Which of these three doctrines is easiest to apply? Which is hardest? What does the need for these doctrines

Accounting 3

Choose the correct answer: 9. How is performance evaluated for a profit center? a. Actual costs incurred compared to budgeted costs. b. Actual segment margin compared to budgeted segment margin. c. Comparison of actual and budgeted return on investment (ROI) based on segment margin and assets controlled by the segment.

Accounting: materials, price variance; budget variance, transfer price

5. The purchasing agent of an organization acquired some raw materials at a bargain price, even though she knew that their quality was lower than that of the materials customarily used. This action resulted in a favorable raw materials purchase price variance that might very well have been more than offset by: a. an unfavorable

Accounting questions: net variance, raw materials, and more...

1. If the net variance of a business using standard costing is significant relevant to total production cost, the net variance should be: a. assigned to cost of goods sold. b. allocated between work in process, finished goods, and cost of goods sold. c. carried forward to the next accounting period. d. none of the above.

Full costing and absorption costing

SAC currently uses a basic standard cost system. Management knows very little about other concepts of costing and the benefits of having multiple costing methods. Your superior has asked that you and your team put together a presentation to management explaining various costing concepts as it relates to SAC (explain the usage an

Preparing a Flexible Budget Performance Report

See the attachment. TipTop Flight School offers flying lessons at a small municipal airport. The school's owner and manager has been attempting to evaluate performance and control costs using a variance report that compares the planning budget to actual results. A recent variance report appears below: TipTop Flight School Va

cost accounting

Allentown Products manufactures fishing equipment for recreational uses. The Pittsburgh plant produces the company's two versions of a special reel used for river fishing. The two models are the M-008, a basic reel, and the M-123, a new and improved version. Cost accountants at company headquarters have prepared costs for the tw

Accounting for the Costs of Computer Software Developed

See the attached file. Research the FASB Codification for Accounting for the costs of computer software developed or obtained for internal use using CheckPoint and Answer the following questions: 1. What are the characteristics that define internal-use software? 2. Provide three examples of when computer softwa

Tax Implication: rental income, divorce agreement, OASDI, HI

4-25 Billy Dent, as the owner of an apartment building, receives and makes the following payments during 2010: Received in January 2010 rent that was due in December 2009â?¦ $5,000 Received in December 2010 rent not due until January 2011â?¦ $4,000 Security deposit which is to be refunded when tenant vacates the apar

Managerial Accounting Help

Attached you will find the practice exercises Prepare the Production Department's flexible budget performance report for March, including both the activity and spending variances. (Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for un

Eldon Engine: Make or buy decision, maximum amount of contribution

1. Eldon Engine, Inc., produces engines for the watercraft industry. An outside manufacturer has offered to supply several component parts used in the engine assemblies, which are currently being produced by Eldon. The supplier will charge Eldon $620 per engine for the set of parts. Eldon's current costs for those part sets are

Perverse Affects of Performance Measures

There is often more than one way to improve a performance measure. Unfortunately, some of the actions taken by managers to make their performance look better may actually harm the organization. For example, suppose the marketing department is held responsible only for increasing the performance measure "total revenues," Increase

type of Business entity: Which would be best for this Alice and Bill?

Alice and Bill plan to go into business together. They anticipate losses in the first two or three years, which they would like to use to offset income from other sources. They also are concerned about exposing their personal assets to business liabilities. Advise Alice and Bill as to what business form would best meet their

Methods of depreciation, lowest net income, computerized systems, uniformity

1. Why do we have different methods of depreciation that a company can use? 2. Which accounting method provides the lowest net income? 3. Will computerized systems allow you to enter a transaction out of balance? 4. Why is it important to have some uniformity in financial statements? Please include references for the a

Estimating Variable and Fixed Costs

Utility costs at one of Dwayne Corporation's factories are listed below: Machine Hours Utility Cost February 4.221 $ 39.308 March 4.268 39.573 April 4.234 39.392 May

What are fixed costs? Calculate gross margin and total direct manufacturing cost

Highlight the items which are classified as fixed cost? - Depreciation of assembly line facilities at ford - Shipping costs from an Amazon distribution center - The cost of hardware installed on sailboats - Recurring advertising costs by a physician's office - Wages paid to temporary personnel - Insurance on factory assemb

Random Questions

Which of the following statements is not true regarding the goal of financial management? The goal of maximizing the value per share of existing stock is relevant to all organizations. A way of aligning management goals to shareholder's interest is to tie managerial compensation to the market value of the firm

Characteristics of Each Business Entity

1. Prepare a summary of what you consider to be the TOP 5 major characteristics of each type of business entity. 2. Prepare a summary isolating what you think are the TOP 5 differences between any of the business entities.

Accounts receivable, inventory, and accounts payable increase

Below is all necessary information needed to answer my following questions. Recently completed 2009 operations. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash

An Examination of the Tax Consequences of Travel Expenses

Marilyn, a business executive who lives and works in Cleveland, accepts a temporary out-of-town assignment in Atlanta for a period of ten months. Marilyn leaves her husband and children in Cleveland and rents an apartment in Atlanta during the ten-month period. Marilyn incurs the following expenses, none of which are reimburs


4. Mercer has three product lines in its retail stores: books, videos, and music. Results of the fourth quarter are presented below: Books Music Videos Total Units sold 1,000 2,000 2,000 5,000 Revenue $22,000 $40,000 $23,000 $85,000 Variable departmental costs 17,000 22,000 12,000 51,000 Direct fixed c

Coyle Comp.: Make or Buy the Component Part

See the attached file. 3. Coyle Company manufactured 6,000 units of a component part that is used in its product and incurred the following costs: Direct materials $35,000 Direct labor 15,000 Variable manufacturing overhead 10,000 Fixed manufacturing overhead 20,000 $80,000 Another company has offered to sell


2. Badden Company needs a cash budget for the month of April, 2006. The company's controller has provided you with the following information and assumptions: a. The April 1, 2006 cash balance is expected to be $11,000. b. All sales are on account. Credit sales are collected over a three-month period--50 percent in the month of

Tax Questions

1. Tom and Linda are married taxpayers who file a joint return. They have itemized deductions of $11,750 and four exemptions. Assuming an adjusted gross income of $40,000, what is their taxable income for 2010? 2. Compute Marie's taxable income for 2010, assuming she is single and claims two dependent children. Her adjuste

Detailed Managerial Accounting Equations

Please help with questions in the following attachment. 1. Company A begins business this year making airplane propellers. At the end of 2005, 750,000 lbs. of raw materials has been with 400,000 propellers produced. The total value of these propellers was $450,000. The material costs were $200,000 with the rest being co

Cost Accounting: Split off Point and Estimated net realizable value

see attached Split off Point and Estimated net realizable value Raw materials are put into production in Department X, and at the end of processing in this department, 3 products appear. Product A is sold at the split-off point with no further processing. Products B and C require further proces