Kevin company has been operating for just 2 years, producing specialty golf equipment for women golfers. To date, the company has been able to finance its successful operations with investments from its principal owner, Michelle Kevin, and cash flows from operations. However, current expansion plans will require some borrowi
How do I calculate the Return on Investment or rate of return on a piece of medical equipment costing $70,000. How long will it take to break-even on the purchase?
Clearly the employees in the operations department of a company would benefit from feedback on the quality and process times of the work they were doing to suggest where they could make improvements. Identify the role, if any, for sharing financial information with these employees to help them in their efforts to improve qua
Congress uses the Tax Code to influence our behavior. Examples include deductions for mortgage interest and property taxes to steer people to home ownership instead of renting. Or, tax credits for purchasing products that use alternative energy are another incentive. Likewise, deductions for charitable contributions encourage ch
Develop a company and determine what it will produce and sell. The requirement for this company is that it be a high-end, special-order type of manufactured product. Develop a list of inputs along with their associated costs, such as labor, materials, and overhead. You can research this information, make it up, or do a combin
What is meant by the term "residual claim to income", as applied to common stockholders?
1. Q: Compare and contrast descriptive and injunctive norms, and give an example of each. A: 2. Q: Explain why, in even informally organized groups, role differentiation still occurs. A: 3. Q: Edwina is the only woman in a work group. She has many good ideas, but the group members ignore them. How would expectation
1. Classify each of the following manufacturing costs as direct or indirect for automobiles: a. insurance on manufacturing equipment b. cost of steel plates used in making an automobile body c. wages of assembly workers d. salaries of plant personnel e. cost of tires f. overtime premiums paid to assembly workers g. depr
Which of the following trade or business expenditures of Arrow Inc. are deductible on its current year tax return? If an expenditure is not deductible, explain why it is not a valid deduction Expenditures Salaries and wages to employees $400,000 Purchase of new office building
For the current month, Johansen Rubber Cement Co. incurred payroll expenses as follows: Gross salaries and wages $675,000 Payroll Taxes: OASDI (Social Security Tax) employer's share $41,850 HI (Medicare tax)--employer's share $9,788
1. If the sale of ice cream and pizza are independent, then ice cream sales decrease by 60% during the winter months and pizza sales will a. increase by 60% b. increase by 40% c. decrease by 60% d. cannot tell from information 2. Suppose that we determine the probability of a warm winter based on the number of warm winter
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
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?
Explain how analytical and inferential tools can aid in the evaluation of accounting evidence. Provide at least one example from current or past events.
Explain the conceptual framework, and discuss why it is important to the accounting profession. In your opinion, do all professional accountants use the conceptual framework in their daily work activities, and if so, how?
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
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.
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
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.
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
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
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
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 FASB.org. Answer the following questions: 1. What are the characteristics that define internal-use software? 2. Provide three examples of when computer softwa
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
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
Forensic accountants are often hired to determine the value of a business or other intangible assets. This could be needed for tax purposes, estate planning, business dissolution, adding or buying out partners, business acquisitions, etc. What might interest you in becoming a valuation practitioner?
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
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
Milano Corporation has three operating divisions and requires a 12% return on all investments. Selected information is presented here: Calculate the missing amounts for each division. See attachment for details.
What irregularities should a fraud examiner look for in the accounts payable area of a firm?