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Management Accounting

Cash Conversion Cycle

I found this posting from the solution libray: Cash conversion cycle= Inventory conversion period + Receivables conversion period - Payables deferred period = 120000/(600000/365) + 160000/(600000/365) -25000/(600000/365) =155 days=Answer 1. What does the CCC value mean? 2. Is this an adequate cash conversion cycle? 3.

Cash conversion cycle

Primrose Corp has $15 million of sales, $2 million of inventories, $3 million of receivables, and $1 million of payables. Its cost of goods sold is 80 percent of sales, and it finances working capital with bank loans at an 8 percent rate. 1. What is Primrose's cash conversion cycle (CCC)? 2. If Primrose could lower its

Melville Company Unit Cost Problem for product Pong.

The Melville Company produces a single product called a pong. Melville has the capacity to produce 60,000 pongs each year. If Melville produces at capacity, the per unit cost to produce and sell one pong as follows: Direct Materials $15 Direct Labor $12 Variable Manufacturing Overh

Management Accounting (decision making)

I am looking to try and understand the decision making process regarding the example below. I am hoping that based on my values I can make a better suggestion to management. Estimated Activity Overhead Cost pool Costs Product C Product D Total Machine set-up $13,630 130 160

Managerial Accounting

Web-books.com is an internet company that sells books on the World Wide Web. The president of the company authorized an activity-based costing study to understand the cost of various activities that are driving overhead at Web-books.com. Selected activites include: - website maintenance - costs do not vary as a function of

Managerial Accounting

Dynamic Products, Inc. manufactures a wide variety of products in its plant in Macon, Georgia. Management has identified the following manufacturing and administrative activities: 1. Special equipment is used to add a protective finish to various products. 2. Purchase orders are issued to acquire raw materials. 3. Facto

Managerial Accounting

Mallory Corporation produces two products: A and B. The company's expected factory overhead costs for the coming year are as follows: Overhead Category Estimated Costs Utilities $300,000 Indirect Materials 150,000 Indirect Labor 50,000 De

Clean Machine target profit; how many car washes

John is president of Clean Machines, a new car washing service that makes house calls. John has decided that his goal for the coming year is to earn a profit of $40,000. Clean Machines reported the following sales and cost information for the year just ended: Sales revenue $60,000 Less all variable 20,000

Managerial Accounting

Randazzo may produce 80,000 components per year for various vehicles and 5,000 per year for the corvette. Selling prices vary greatly across the product line as a result of market supply and demand. The machine shop is automated. By changing cutting tools and entering different measurements into the system a variety or produc

The Components of the Cost of Sales

Please help with the following problem. Provide at least 300 words and include a reference. Describe the components of the Cost of Sales (aka, Cost of Goods Sold) section of the income statement. In addition, include an example from the annual report of a publicly traded company.

Management Policy and strategy: Facebook

I need help in preparing a case analysis for "Facebook Faces Up." Prepare a case analysis of Case 3, "Facebook Faces Up." (PDF) Closely follow the guidelines in "Writing a Case Analysis" provided. The case analysis should be two to three pages long, double spaced. Check for correct spelling, grammar, punctuation, m

Fixed cost & variable cost

Television station hours for university vary. The following is for two different months: Cost Item Cost Behavior Cost Amount Broadcast hours/month Production Crew Variable July $4875 390 September $8000 640 Supe

Cost Drivers and Activity Costs

A VCR manufacturer has the following costs budgeted in January. Raw material and components $2,950,000 Insurance, Plant 600,000 Electricity, machinery 120,000 Electricity, lights 60,000 Engineering design

Managerial Accounting - Profit Planning

1. Jordan Company expects to begin operations on January 1, 2009; it will operate as a specialty sales company that sells laser pointers over the Internet. Jordan expects sales in January 2009 to total $120,000 and to increase 10 percent per month in February and March. All sales are on account. Jordan expects to collect 70 perc

Applying Cost Classifications

For each of the following costs, identify whether the item is a variable or fixed cost, direct or indirect cost, and controllable or uncontrollable cost. (For example: Plant Utilities would be a variable, indirect, and controllable cost.) Not all items will fit into each category. Label items that do not fit a categories as not

Budgeting, cost benefit analysis

Here are some of MNO Company's annual costs relating to quality: * Inspection at the end of the production process: $20,000 * Scrap from the production process: $18,000 * Design work for product improvement: $24,000 * Total costs related to customer complaints: $40,000 * Employee training: $12,000

Motivational input

Relate employee motivation and managerial attitudes and behaviors to employee attitudes and job satisfaction in your organization.

Process Costing Managerial Accounting

Thomas Company process costing for the month of October 2008. The company used the weight-average. Beginning inventory: 24,000 units(60% completed as to materials and 75% completed as to conversion costs) Ending inventory: 30,000 units(30% complete as to materials and 40% complete as to conversion costs) Units started: 60

Managerial Accounting

See attached file. Lavvy Candy Corporation manufactures giant gourmet suckers. The cost standards developed by Lavvy appear below. Manufacturing overhead at Lavvy is applied to production on the basis of standard direct labor-hours: Standard quantity per sucker Standard cost per ounce or hour Standard cos

Cash Conversion Cycles: Sears & JC Penney

Refer to the Financial Statements for Sears (SHLD) and JC Penney's(JCP) on finance.google.com Calculate each company's Cash Conversion Cycle for the two most recent years. Discuss what these metrics tell you about the companies' performance.

Deterrmining Break-Even Sales Volume and Dollars

Hollis Company sells a single product for $20 per unit. The company's fixed expenses total $240,000 per year, and variable expenses are $12 per unit of product. The company's break-even point is: 1. 12,000 units 2. 20,000 units 3. $600,000 4. $400,000 Need this real soon. Thank you.

Managerial Accounting

A company has two major businesses that it operates. One business manufactures and sells unicycles for commercial use in circuses, etc. (total sales of $150M), and the other sells bicycles to the public (total sales of $20M). The unicycle business occupies 75,000 square feet of the manufacturing warehouse and the bicycle busines

Reductions in the Cash Conversion Cycle (CCC)

Foster Inc. carries an average inventory of $1,000,000. Its annual sales are $10 million, and its receivables conversion period is twice as long as its inventory conversion period. The firm buys on terms of net 30 days, and it pays on time. Its new CFO wants to decrease the cash conversion cycle by 10 days, based on a 365-day

Fixed cost and variable cost for companies

The websites of selected companies appear below. Review the information about the operations of each of the companies that is provided on these websites. Biolea (http://www.biolea.gr). Evian at http://www.evian.com). Ircon International Limited (http://www.irconinternational.com). Gulf Craft Inc. (http://www.gul