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Management Accounting

Cost Classifications, Behaviors & Drivers

Compare and contrast various cost classifications, behaviors, and drivers. You may want to consider what types of financial and nonfinancial performance metrics you will be recommending to be sure we are collecting appropriate costs.

Cost accounting managerial emphasis

Transfer pricing, general guideline, goal congruence (CMA, adapted) Nogo Motors, Inc, operates as decentralized multi division company. The Igo Division of Nogo Motors purchases most of its airbags from the Airbag Division. The Airbag Divisions incremental costs for manufacturing the airbags are $110 per unit. The Airba

Cost accounting managerial emphasis

Transfer-pricing methods, goal congruence British Columbia Lumber has a Raw Lumber Division and a Finished Lumber Division. The variable costs are: *Raw Lumber Division: $100 per 100 board-feet of raw lumber *Finished lumber Division: $125 per 100 board-feet of finished lumber Assume that there is no board-feet loss in

Cost Accounting - Managerial Emphasis

ABC wholesale, customer profitability. Villeagas Wholesalers sell furniture items to four department-store chains. Mr. Villeagas commented, We apply ABC to determine product-line profitability. The same ideas apply to customer profitability, and we should find out our customer profitability a well." Villeagas Wholesalers sen

What considerations go into choosing a cost allocation plan?

What considerations go into choosing a cost allocation plan? Companies can choose among a few allocation methods. Do some methods make more sense in certain situations than others? What are some applications of cost estimation? How would this method influence a company's business process? What considerations go into decid

Cost accounting - Managerial emphasis

Shaheen Plaastics, Inc.'s selected data for the month of August 2004 are presented below (in millions): Work-in-process inventory 8/1/2004 $ 200 Direct materials inventory 8/1/2004 90 Direct materials purchased 360 Direct materials used 375 Variable manuf

Cost accounting managerial emphasis

The Doral Company manufactures and sells pens. Currently, 5,000,000 units are sold per year at $0.50 per unit. Fixed costs are $900,000 per year. Variable costs are $0.30 per unit. a)What is the present operating income for a year? b)What is the present breakeven point in revenues?

What is the cash flow/conversion cycle?

What is the cash flow/conversion cycle? How is it possible for an organization to be profitable but out of cash? What are some ways that an organization can speed up its collection of cash?

Managerial Accounting

Mary Walker, president of Rusco Products, considers $14,000 to be the minimum cash balance for operating purposes. As can be seen from the statement below, only $8,000 in cash was available at the end of 2005. Since the company reported a large net income for the year and also issued both bonds and common stock, the sharp decli

Cost Allocation :Activity Based Costing

25-1 Spacely Company's Fabrication Department incurred $125,000 of factory overhead cost in producing gears and sprockets. The two products consumed a total od 4,000 direct machine hours. Of that amount, sprockets consumed 1,800 direct machine hours. Determine the total amount of factory overhead that should be allocated to

Break-Even Sales, Margin of Safety & Unit Sales

1.) For the current year ending January 31, Bell Company expects fixed costs of $178,500 and a unit variable cost of $41.50. For the coming year, a new wage contract will increase the unit variable cost to $45. The selling price of $50 per unit is expected to remain the same. a. Compute the break-even sales (units) for the c


Assume that Hillcrest placed purchase orders for $475,000 in January, $540,000 in February, $525,000 in March and $550,000 in April. Payment terms followed by Hillcrest are: When purchases are paid % paid within this time Discount Received Within month of purchase 50% 2% Month following purchase 40% 1% 60 days following


THESE ARE SOME MULTIPLY CHOICE QUESTION FROM MANAGEMENT ACCOUNTING. 1) Which of the following production situations would not benefit from ABC? a) A manufacturing process that manufacturers large volumes of homogenous circuit boards. b) A hospital that has many specialty departments performing complex and simp

Cost of Trade Credit, Cash Conversion Cycle

Cost of Trade Credit Calculate the nominal annual cost of nonfree trade credit under each of the following terms. Assume payment is made either on the due date or on the discount date. A. 1/15, net 20. B. 2/10, net 60. C. 3/10, net 45 D. 2/10, net 45 E. 2/15, net 40 Cash Conversion Cycle The Zocco Corporation has a

Aftertax Cost of Debt Questions

How does the cost of a source of capital relate to the valuation concepts presented previously in Chapter 10 (Foundations of Financial Management. Published by McGraw-Hill/ Irwin, 11th ed.)? Why do we use the overall cost of capital for investment decisions even when only one source of capital will be used? In computing t

Managerial Accounting - Jefferson Company

Jefferson Company has two divisions: Jefferson Bottles and Jefferson Juice. Jefferson Bottles makes glass containers, which it sells to Jefferson Juice and other companies. It has a capacity of 10 million bottles a year. Jefferson Juice currently has a capacity of 3 million bottles per year. Jefferson Bottles has a fixed co

Clarification of Managerial Accounting

A. Imperial Jewelers is considering a SPECIAL ORDER for 20 handcrafted gold bracelets to be given as gifts to members of a wedding party. The normal selling price of a gold bracelet is $189.95 and the unit product cost is as follows: Direct materials $ 84.00 Direct labor 45.00 Manufacturing overhead

PROBLEM 13-24 Relevant Cost Analysis in a Variety of Situations

PROBLEM 13-24 Relevant Cost Analysis in a Variety of Situations Ovation Company has a single product called a Bit. The company normally produces and sells 60,000 Bits each year at a selling price of $32 per unit. The company's unit costs at this level of activity are given below: Direct materials

Managerial Accounting Problems of Miller Toy Company and Valley View Hospital

Introduction to Managerial Accounting 3rd edition Brewer, Garrison, Noreen Chapter 8 Could please provide a step-by step formula how these examples were solved 12A Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been experiencing problems as shown by its June contribution for

Managerial Account/Cost Accounting

Exe 9-3) Direct Materials Budget Three grams of musk oil are required for each bottle of Mink Caress, a very popular perfume made by a small company in western Siberia. The cost of the musk oil is 150 roubles per kilogram. (Siberia is located in Russia, whose currency is the rouble.) Budgeted production of Mink Caress is given

Managerial/Cost Accounting

Exe 8-11) Second -Stage Allocation to an Order Durban Metal Products, Ltd., of the Republic of South Africa makes specialty metal parts used in applications ranging from the cutting edges of bulldozer blades to replacement parts for Land Rovers. The company uses an activity-based costing system for internal decision-making purp

Financial management (security risk return and rate)

1- Security A has an expected return of 7 percent a standard deviation of returns of 35 percent, a correlation coefficient with the market of -0.3, and a beta coefficient of -1.5. Security B has an expected return of 12 percent, a standard deviation of returns of 10 percent, a correlation with the market of 0.7, and a beta coef

Variable and Absorption Costings

6-5) A 10% decease in the selling price of a product will have the same impact on net income as a 10% increase in the variable expenses. I need help understanding these questions. It's asking if I agree or disagree. 7-5) Variable and Absorption Costing Unit Product Costs and Income Statements. Lynch Company manufactures and

Present Value, Economic Cost Determination

1. A firm is expected to earn $10,000, $25,000, $48,000, and $75,000 during the next four years, after which it will be dissolved. What is the present value of the firm if the discount rate is 8%? 2. Jane has compiled the following list of expenses after completing one year of college. Assume that Jane would be living with he

Figuring Operating Cost and Capital

I need help filling in the blanks and what formulas are used to arrive at those conclusions. Year 0 1 2 3 4 Investment outlay Equipment cost ($200,000) Installation (40,000) Increase in inventory (25,000) Increase in A/P 5,000

Managerial Accounting - Multiple Choice Questions

Question 1: What is the biggest disadvantage of ABC? a. It does not provide costing information needed for GAAP purposes. b. It causes management to make frivolous decisions. c. It often causes managers to argue about the best activity measure. d. It is expensive. Question 2:

Explain to your friend why accounting is a much broader role and the type of positions available to accountants. Use the Library and the internet as necessary to explain to her the positions and responsibilities of managerial accountants.

****You have been hired by Claire's Antiques as its new accountant. Since Claire's Antiques is a small company, you will responsible for all of its accounting functions related to financial and managerial accounting. You are explaining your new role to your friend. After explaining what you do, she expressed surprise about y