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    Management Accounting

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    Lock Box, Cash Conversion Cycle, Interest rate

    1. What are the expected annual savings form a lock-box system that collects 300 checks per day averaging $800 each, and reduces mailing and processing times by 3.0 and 1.5 days respectively, if the annual interest rate is 7 %? 2. What is the receivables period for a firm with annual sales of $100 million, $8.4 million in ave

    Activity Based Cost Drivers: EyeGuard Equipment Inc

    Resource and Activity-Based Cost Drivers EyeGuard Equipment Inc (EEI) manufactures protective eyewear for use in commercial and home applications. The product is also used by hunters, home woodworking hobbyists, and in other applications. The firms has two main product lines?the highest-quality product is called Safe-T, and a

    Advance, Inc: Calculate the cost of debt, pretax and aftertax

    Calculate the Cost of Debt for Advance, Inc. The firm has a debt issue outstanding with 12 years to maturity that is quoted at 105 percent of face value. The issue makes semi-annual payments and has a coupon rate of 8 percent annually. What is Advance's pretax cost of debt? If the tax rate is 35 percent, what is the afterta

    Fixed Cost Examined

    1) If fixed costs suddenly increase, how will that change the graph of fixed costs if activity, units or volume is on the x-axis and dollars are on the y-axis? 2) Indicate whether the following statement is true or false, then support your view. If we graphed fixed costs per unit, it would appear as a straight, horizontal

    Multiple Choice

    1. Accrued liabilities are disclosed in financial statements by: a. Showing the amoutn among the liabilities but not extending it to the liability total b. Appropriately classifying them as regular liabilities in the balance sheet c. A footnote to the statements d. An appropriation of retained earnings 2. An imp

    Relevant cost of making versus buying

    James Co. has two divisions,A and B,each operate as a profit center.A charges B $35 per unit for each unit transferred to B. Other data for A are below: Variable cost per unit $30 Fixed costs $10,000 Annual sales to B 5,000 units Annual sales to outsiders

    Discussion questions Management

    1. The divisional structure enables firms to pursue complex corporate diversification strategies by delegating different management responsibilities to different individuals and groups within a firm. Will there come a time when a firm becomes too large and too complex to be managed even through a divisional structure? In other w

    Quantitative Reasoning for Business

    a. Manchester Foundry produced 45,000 tons of steel in March at a cost of £1,150,000. In April, the foundry produced 35,000 tons at a cost of £950,000. Using only these two data points, determine the cost function for Manchester following the instruction in my post in Materials. b. Use Excel's "scatter plot" graphing func

    With the information given, compute the cost of direct materials

    1. A company's overhead rate is 60% of direct labor cost. Using the following incomplete accounts, determine the cost of direct materials used Goods in Process Inventory Beginning Balance. 100,800 D.M. ? D.L. ? O.H. ? F.G. ? End Balance 131,040 Factory Overhead 93,24

    Schafer Company: Calculate year 1 annual net cash inflow

    Schafer Company is considering an investment in equipment costing $30,000 with a five-year life and no salvage value. Schafer uses straight-line depreciation and is subject to a 34 percent tax rate. The expected net cash inflow before depreciation and taxes is projected to be $15,000 per year. The year 1 annual net cash inflow i

    Anaconda Mining Company: Estimate shipping costs for May

    Anaconda Mining Company shipped 9,000 tons of copper concentrate for $450,000 in March and 11,000 tons for $549,000 in April. Shipping costs for 12,000 tons to be shipped in May would be expected to be: $548,780 $549,020 $594,000 $598,500

    Common Cost Allocation at Wal-Mart

    Retrieve any report in Wal-Mart that allocates common costs to a division, product, or service. Recast that report with unallocated costs and comment on the usefulness of that revised report. If you cannot identify specific actual amounts, make a reasonable estimate and apply the tool as if the data were factual. If you

    Benefits of risk management..

    1. What are the benefits of risk management? What is the difference between hard and soft risk management benefits? Why would an organization choose one risk management benefit over another?

    How to calcuate the selling cost is shown.

    Lim Clothing Company manufactures its own designed and labeled sports attire and sells its products through catalog sales and retail outlets. While Lim has for years used activity-based costing in its manufacturing activities, it has always used traditional costing in assigning its selling costs to its product lines. Selling cos

    Managerial accounting: 25 MCQ

    1. The Euro Company sells two kinds of luggage. The company projected the following cost information for the two products: The company's total fixed costs are expected to be $280,000. Based this information, what is the combined number of units of the two products that would be required to breakeven (round your answer to th

    Capacity Costs: K's Cornerspot. Recompute costs and choose a cost driver

    Capacity costs K's Cornerspot, a popular university eatery in a competitive market, has seating & staff capacity to serve about 600 lunch customers every day. For the past 2 months, demand has fallen from its previous near-capacity level. Concerned about his declining profit, K decided to take a closer look at its costs. He c

    Managerial Accounting E10-1: preparing a standard cost card for Alpha SR40

    Exercise 10-1 Setting Standards; Preparing a Standard Cost Card [LO1] Svenska Pharmicia, a Swedish pharmaceutical company, makes an anticoagulant drug. The main ingredient in the drug is a raw material called Alpha SR40. Information concerning the purchase and use of Alpha SR40 follows: Purchase of Alpha SR40: The raw

    variable cost per unit.

    PLEASE SEE ATTACHMENTS 7. From PE 21-1A what is the variable cost per unit? $28 per unit $50 per unit $72 per unit $36 per unit 8. From PE 21-2A what is the contribution margin ratio? 20% 18% 10% 9% 9. From PE 21-3A what is the break-ev

    Managerial accounting

    A company has two divisions, the Selling Division and the Buying Division. The Selling Division manufactures an intermediate product and then "sells" them to the Buying Division, which completes the product and sells the final product to retailers. The market price for the Buying Division to purchase one unit of the intermediate