Assessment of cost function estimation methods by using the attached Netflix and Blockbuster Financial Data spreadsheet (attached) to develop cost function estimates for both Netflix and Blockbuster using the following methods: - Account classification - High-low - Regression analysis methods In regards to account class
Please define the cost allocation keys in sea transport business. Think about owning a ship, but are not operating it efficiently and effectively so that your costs are always much more than your revenues. What will be your solution? What if you decide to charter your vessel? Please consider chartering types as well. No
Why is cost allocation such a major issue that multiple accounting methods exist? Why isn't it more straightforward? Explain in detail an approach that you believe is generalizable to numerous contexts. Cost Allocation--From the Simple to the Sublime. Management Accounting Quarterly. Fall 2002. Available online @ http
Determine the unit product cost of each product for the current period using the activity-based costing approach.
Please see attached questions. The company is considering using an activity-based costing system to compute unit product costs for external financial reports instead of its traditional system based on direct labor hours. The activity-based costing system would use three activity cost pools. Data relating to these activitie
Netflix Inc., Form 10-K, YE 12/31/2006 Retrieved from http://www.secinfo.com/d14D5a.u19Me.htm This website provides Netflix's annual report for 2006. Specifically, focus on the section entitled, â??Managementâ??s Discussion and Analysis of Financial Condition and Results of Operations.â? Use the information in this repo
The Telemarketing Louisianan Company generates leads for a major credit card company using over-the-phone solicitations. Each lead generated brings TLC $10 in fees, and these fees are stable given the competitive nature of the telemarketing business. TLC's relies upon independent contractors (sales associates) who work on a comm
Please see attached file for the problem FIRST CORPORATION IS CONTEMPLATING INTRODUCING A NEW LINE OF WIDGETS. THE WIDGETS WILL SELL FOR $28 EACH. THE VARIABLE COSTS ASSOCIATED WITH EACH WIDGET ARE $22. IF THE WIDGETS ARE TO BE INTRODUCED NATIONWIDE, THE COMPANY WILL HAVE TO OBTAIN ACCEPTABLE PROFIT ON A TEST MARKET BASIS.
Attached you will find the practice exercises (2 pgs). Becton Labs, Inc., produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an elaborate distilling process. The company has developed standard costs for one unit of Fludex, as follows: Standard Quantity Standard Price o
See attached file for clarity. Victoria Chocolates, Ltd., makes premium handcrafted chocolate confections in London. The owner of the company is setting up a standard cost system and has collected the following data for one of the company's products, the Empire Truffle. This product is made with the finest white chocolate and
Essay Questions 1. Describe the four steps in the control process. Which step is the most important and why do you take that position? Where have you seen this step used improperly, or where could this step, if mishandled, be disastrous. What industry or field? Explain. 2. Discuss the three primary types of controls, the pur
See attached file for additional data. Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared monthly for each department. The planning budget and flexible budget for the Production Department are based on the following formulas, where q is the number of
1. The term "cost" means: a. the price paid for a raw material. b. the wage paid to a worker. c. the price charged by an entity for its services. d. all of the above. 2. Direct costing may be used for: a. internal reporting purposes. b. external financial reporting purposes. c. income tax reporting purposes. d
1. Demand Analysis. Aspen, Colorado is engaging in a bumper-sticker advertising campaign. Monthly sales data from ski shops selling the "Don't Worry-Be Happy (in Aspen)" bumper-stickers indicate that: Q = 6,000 - 2,000P where Q is bumper-sticker sales and P is price. A. How many bumper-stickers could Aspen sell at
On May 31, 2007, Dell Inc. announced it was making several changes to the way it did business in order to restore competitiveness to the core business, re-ignite growth, and build solutions critical to customer needs. As one of the changes the company: Initiated a comprehensive review of costs across all processes and organiz
Coffee Mill Inc. has calculated its inventory conversion period as 53 days, its accounts receivable collection period as 40 days, and its accounts payable deferral period as 20 days. Coffee Mill's working capital financing needs average $50,000 per day. (a) Calculate Coffee Mill's Cash Conversion Cycle. (b) If Coffee Mi
Gridiron Merchandising anticipated selling 27,000 units of a major product and paying sales commissions of $6 per unit. Actual sales and sales commissions totaled 27,500 units and $171,400, respectively. If the company used a flexible budget for performance evaluations, Gridiron would report a cost variance of _________?
OmniSport Inc is a wholesale distributor supplying a wide range of moderately priced sporting equipment to large chain stores. OminSport has an enviable reputation for quality of its products. In fact, the demand for its products is so great that at times OmniSport cannot satisfy the demand and must delay or refuse some orders,
One way to own your own fitness business is to buy a franchise. Snap Fitness is a Minnesota-based business that offers franchise opportunities. For a very low monthly fee ($26, without an annual contract) customers can access a Snap Fitness center 24 hours a day. The Snap Fitness website (www.snapfitness.com) indicates that star
Control systems in nonprofit organizations will never be as highly developed as in profit-seeking organizations. Do you agree or disagree? Give three reasons why. Define economic value added (EVA) and describe three ways a company can improve its EVA. Is EVA beneficial, if so, why? If not, why not? What is the major be
See the attached file. Allocations for estimating capacity costs (LOI). Color Graphics (CG) specializes in printing glossy magazines. CG currently has orders for four magazines, with each magazine being issued on its own cycle. With the four magazines, CG's capacity is 100% utilized from Thursday through Sunday, every week. The
See the attached file. Tami Tyler opened Tami's Creations, Inc., a small manufacturing company, at the beginning of the year. Getting the company through its first quarter of operations placed a considerable strain on Ms. Tyler's personal finances. The following income statement for the first quarter was prepared by a friend wh
Whitman Company has just completed its first year of operations. The company's absorption costing income statement for the year appears below: Please see the attachment for better layout. Whitman Company Income Statement Sales (39,000 units Ã? $44.6 per unit) $1,739,400 Cost of goods sold (39,000 units Ã? $21 p
Beta Company produces two products, A and B, each of which uses materials X and Y. The following unit standard costs apply: Product A: Material X = 4 lbs @ $13, Material Y = 1 lb. @ $8.50, Direct Labor = 1/5 hr. @ $14 Product B: Material X =6 lbs @ $13, Material Y = 2 lbs @ $8.50, Direct Labor = 1/3 hr. @ $14 During N
Select the correct answer and explain in one sentence: 1. One inventory cost flow assumption will result in different cost of goods sold from another inventory cost flow assumption only if: a). price levels do not change during the year. b). a new product is added to inventory during the year. c). the cost of inventory
Question 18 Which of the following statements is CORRECT? a. Other things held constant, it is better to have a relatively short than a relatively long cash conversion cycle. b. Other things held constant, it is better to have a relatively long than a relatively short cash conversion cycle. c. Other things held constant,
What is the accounting concept to explain how a 3% decline in sales could cause a 21% decline in profits. Also, discuss the effect of declining sales on an organization's margin of safety.
The Hershey Corporation: http://library.corporate-ir.net/library/11/115/115590/items/283950/10K_Hershey.pdf In Hershey's 2007 annual report, the management made this claim: a decrease in inventories in 2007 reflecting lower raw material and goods in process inventories resulting from reduced manufacturing requirement
Sunshine Oil Company buys crude vegetable oil. Processing this oil results in four products at the split off points: A, B, C, and D. Product C is fully processed at the split off point. Products A, B, and D can be individually further processed into A Plus, B Plus, and D Plus. In the company's most recent month (November),
Activity Based Costing. Identify activity cost drivers. Compute overhead rates and assign overhead using ABC. Write a memorandum explaining the benefits of ABC.
E4-10 Anna Bellatorre, Inc. manufactures five models of kitchen appliances at its Mesa plant. The company is installing activity-based costing and has identified the following activities performed at its Mesa plant. 1. Designing new models. 2. Purchasing raw materials and parts. 3. St
1). The manager of the company's pension fund is compensated based entirely on fund performance; he earned $1.2 million last year. As a result, the fund is contemplating a proposal to cap the compensation of fund managers at $100,000. Provide an argument against the proposal. 2). Donut Ville caters to its retirement populat