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Management Accounting

Cost Drivers at Netflix, Inc

Netflix Inc., Form 10-K, YE 12/31/2006 Retrieved from 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

Managerial Economics

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



Managerial Accounting: Becton Labs

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

Managerial Accounting for Victoria Chocolates, Ltd.

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

Principles of Management

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

Managerial Accounting for Packaging Solutions Corporation

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

direct costing, allocation of costs, period cost

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

Managerial Economics

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

Dell Cost Reductions Analysis

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

Cash Conversion Cycle Problem

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

Determination of Cost Variances

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 _________?

Advance Managerial Accounting

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,

Providing 5 Examples of Variable Cost for a Fitness Center

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 ( indicates that star

Control Systems, Economic Value Added, ROI Techniques

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

Cost Allocations: Theory and Applications

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

Managerial Accounting-Unit Product Cost Under Absorption Costing

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

Managerial Accounting (Absorption Costing & Variable Costing)

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

Production Cost Variances

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

Business finance

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,

Unit Product Cost Analysis

The Hershey Corporation:[1].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

Alternative methods of joint-cost allocation, products-mix decisions

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),

Senge: Six Learning Challenges to truly become a learning organization

Senge says organizations have six learning challenges (all of which, of course, hinder their ability to truly become "learning organizations"): (1) Identity with individual jobs. 'I am a secretary'. 'I am a financial aid officer.' 'I am a human resource specialist.' Employees understand their tasks and duties; what the

Management Accounting for Sweditrak Corporation: Proposed ABC system

See the attached file. Sweditrak Corporation manufactures two models of its exercise equipment: regular (REG) and deluxe (DLX). Its plant has two production departments, fabrication (FAB) and assembly (ASM), and two service departments, maintenance (MNT) and quality control (QLC). The parts for each model are manufactured in

Internal Auditor Staff: Importance of Function and Costs

In a latest seminar on internal audit wherein a group of corporate representatives of corporations (privately and publicly held corporations), several issues were raised by the attendees, a number of which are listed below: 1. Establishing an internal audit function/department is not a legal requirement. Consequently, it is a

5 Managerial Accounting Problems

See attached file for clarity. 1. The manager of MN Company give you the following data to prepare the required purchases for the coming three months (January, February and March) Estimated sales for January $ 100,000 Sales increase by 5% for the coming three months Cost of goods sold (CGS) 60% of sales Beginning i