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Management Accounting

Calculating income elasticity of demand advertising elasticity

Suppose you have the following hypothetical demand or sales function. Qx= -4Px+2Py+0.20I+0.04A and PX = $200, (price of good X) PY =$230, (price of good Y) I = $1,500 (disposable per capita income) A =$12,000 (advertizing expenditures) 1. Calculate the income elasticity of demand for product X when I= $1,500. How c

Managerial Accounting

Assume that a commercial airplane manufacturing company's annual fixed costs for the widebody passenger jet are $1,425 million, and its variable cost per airplane is $90 million. The price for a 240-passenger plane with a range up to 4,010 miles is about $105 million per plane. Compute the company's break-even point in numb

Managerial Accounting: Importance of Price and Volume

1. Why is it important to investigate both price (rate) and volume (efficiency) variances when rewarding employees for satisfactory work when performance evaluations are based on meeting budgets? 2. What are some qualitative considerations that might be helpful in employee performance evaluations?

Managerial accounting

Allocation of support center costs is an important topic for product costing. In recent years, the issue of accurate product costing has assumed considerable importance. Managers need to be fully aware of how products are costed and the limitations associated with those assignments. Why did traditional costing systems base a

HR Management Benefits

Discuss the various types of health benefits usually offered by employers to their employees. Explain the difference among traditional health plans versus managed health care plans. What are the costs and benefits associated with each plan for both the employers and the employees? What can HR do to best manage the costs while pr

Managerial Accounting: Peter Catalano's Verde Vineyards, Doc Gibbs

Doc Gibbs has prepared the following list of statements about process cost accounting. Identify each statement as true or false. 1. Process cost systems are used to apply costs to similar products that are mass-produced in a continuous fashion. 2. A process cost system is used when each finished unit is indistinguishab

Managerial Accounting practice multiple choice questions

1. Which of the following is not considered to be a unit-level cost? a. Cost of the condenser put in the air conditioner. b. Cost of assembling the air conditioner. c. Cost of moving the box of condensers to be assembled in the air conditioner. d. Cost of inspecting the air conditioner. 2.

Managerial Accounting: Cost of goods manufactured and sold

Using the information in the table below, complete in proper form a schedule of cost of goods manufactured and sold for Pandey Manufacturing Company as of March 31, 2012. Cost of goods manufactured and sold The following information pertains to pandey manufacturing company for March 2012. Assume actual overhead equaled ap

Lesinski Snow Removal's vehicle Operating Cost

Lesinski Snow Removal's cost formula for its vehicle operating cost is $1,770 per month plus $483 per snow-day. For the month of February, the company planned for activity of 19 snow-days, but the actual level of activity was 24 snow-days. The actual vehicle operating cost for the month was $13,070. The spending variance for veh

Young Manufacturing Company (YMC) Managerial Accounting

Managerial Accounting Problem Young Manufacturing Company (YMC) was started when it acquired $40.000 by issuing common stock. During the first year of operations, the company incurred specifically identifiable product cost (materials, labor, and overhead) amounting to $24,000. YMC also incurred $16,000 of engineering design a

Cost Accumulation to get a Project Started

Can you help me get started with this project? When are companies likely to use a job costing system or process costing system? Describe the specific characteristics of each system and provide several examples (i.e. at least two) from companies in your community for each system (i.e. at least four companies should be des

Managerial Analysis - Banner Company

Banner Company produces three products: A, B, and C. The selling price, variable costs, and contribution margin for one unit of each product follow: Product A B C Selling price $ 60 $ 90 $ 80 ________________________________________ ________________________________________ ____________________________ Corporation ROI Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below: Sales $ 14,040,000 Net operating income $ 1,193,400 Average operating assets $ 5,200,000 The entrepreneur who founded the company is convinced that sales will increas

Managerial Analysis

Midlands Design Ltd. of Manchester, England, is a company specializing in providing design services to residential developers. Last year the company had net operating income of £410,000 on sales of £1,800,000. The companyâ??s average operating assets for the year were £2,000,000 and its minimum required rate of return was 12

Weimar, Inc. Managerial Analysis

The management of Weimar, Inc., a civil engineering design company, is considering an investment in a high-quality blueprint printer with the following cash flows: Year Investment Cash Inflow 1 $60,000 $2,000 2 $4,000 $4,000 3 $8,000 4 $9,000 5 $12,000 6 $10,

Managerial accounting - excess of cash available, absorption costing, and more

Can you help me understand these problems?? 1. Last year, Perry Company reported profits of $13,320. Its variable expenses totaled $82,490 or $7.3 per unit. The unit contribution margin was $3.7. The break-even point in unit sales for Perry Company is: a.49,284 b.11,300 c.7,700 d.15,400 2. Last year, Wardrup Corp

Cash Convesion Cycle for DiCiolla Company

The DiCiolla Co has sales of $12 million, CGS of $9 MM, and has $2.5 MM of inventory. Receivables are $750,000, payables are $666,667 and the company pays its payables in 30 days. What is the cash conversion cycle?

Classifying Costs as Variable, Fixed or Mixed

With respect to the production and sale of these toy helicopters, classify each cost as either variable, fixed, or mixed. 1. Oil used in manufacturing equipment 2. Hourly wages of inspectors 3. Electricity costs, $.20 per kilowatt-hour 4. Property insurance premiums, $1500 per month plus 0.006 for each dollar of property

Compute costs of Steve's salmon fishing trip: relevant cost, cost of third salmon

See attached file for proper format. Steve has just returned from salmon fishing. He was lucky on this trip and brought home two salmon. Steve's wife, Wendy, disapproves of fishing, and to discourage Steve from further fishing trips, she has presented him with the following cost data. The cost per fishing trip is based on an

Managerial economics - Why do you think the CEO's plan backfired?

A well-known conglomerate that manufacturers a multitude of noncompeting consumer products instituted a corporate-wide initiative to encourage the managers of its many divisions to share consumer demographic information. However, since the initiative was implemented, the CEO has noticed that less information is available than ev

Cost and performance reports for Shipley Corporation

Several years ago, Shipley Corporation developed a comprehensive budgeting system for profit planning and control purposes. While departmental supervisors have been happy with the system, the factory manager has expressed considerable dissatisfaction with the information being generated by the system. A typical departmental cos

Calculate Total Product Cost

Frost Pane a manufacturing company of windows and doors shows the following information as of 12/31/07 Advertising expense -------------------------------- $7,200 Assemblers wages -------------------------------- $30,120 Depreciation of machinery --------------------------1,840 Factory utilities ---------------------------

Cost Drivers; budgeting as a burden on managers; flexible budgets

1. What other examples of cost drivers can you think of? 2. It would seem to me that payroll would be considered as variable when it is subject to change. One example that comes to mind is seasonal hires. Local retailers often beef up their workforce during the holidays. To me this would be an example of when payroll might

Managerial economics for Anheuser Busch

ANHEUSER BUSCH AND MANAGERIAL ECONOMICS In 2008, the Board of Directors and shareholders of Anheuser Busch agreed to be acquired by a Belgian Brewer (InBev). Prior to the merger, InBev made many pledges to AB regarding how the company would operate after the merger, how its employees would be treated, and so on. With some st

What is the amount of direct materials cost incurred by LP P

What is the amount of direct materials cost incurred by LP Production: Cost Amount Advertising-------------------------- $7,500 Assembly line workers wages--- $33,800 Depreciation-Machinery---------- $2,800 Factory utilities--------------------- $9,120 Machinery repairs &