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Management Accounting

Interactive case 5

In January 2007, Teresa Leal was named treasurer of Casa de Diseño. She decided that she could best orient herself by systematically examining each area of the company's financial operations. She began by studying the firm's short-term financial activities. Casa de Diseño is located in southern California and specializes in

Is a layaway down payment recorded as an unearned revenue

Is a down payment on a layaway recorded on the books as an unearned revenue (liability)? Or is the entire cost of the item recorded as an unearned revenue? I would think it would be the whole item cost. Then if the customer does not come back to buy the item, the whole amount of the item is redistributed back into assets?

Management Accounting: Contribution Margin

Carpenter's Mate, Inc. manufactures electric carpentry tools. The production department has met all production requirements for the current month and has an opportunity to produce additional units of product with its excess capacity. Unit selling prices and unit costs for three different drill models are as follows:

Management Accounting: Special Orders

Jupiter Corporation manufactures skateboards. Several weeks ago, the firm received a special-order inquiry from Venus, Inc. Venus desires to market a skateboard similar to one of Jupiter's and has offered to purchase 11,000 units if the order can be completed in three months. The cost data for Jupiter's model no. 43 skateboards

How would you use financial ratios to make managerial decisions?

You have been given the financial statements and asked to analyze the financial performance of your division. Other managers have suggested you use financial ratios in your analysis. What are financial ratios? Which ratios might you use in your analysis? List them and explain what information they provide. How would you use them

Fixed cost and Mixed Costs

You have been studying 'fixed' costs. You learned that a number of 'fixed' costs are actually mixed costs (variable and fixed). Write a two paragraph memo to your manager explaining some of the cost estimation techniques that can help determine the fixed and variable portion of each mixed cost (such as utility costs and maintena

Cost Variance Analysis

(For the following, positive values are unfavorable variances and negative values are favorable variances) Cost Standards for Product X: Direct Material 3 pounds @ $2.53 per pound $7.59 Direct Labor 5 hours @ $7.53 per hour 37.65 Units produced 7,795 Direct material purchased 2

Calculate the cost

The production processes involved in making maple syrup also can produce maple sugar. Vt. Sugar Enterprises wishes to produce only syrup, but on occasion some sugarging takes place. Production for April produced the following results: Syrup Sugar Total Units produced

Allocating Overhead at Yonkers Cranks, Inc. (Borden's Pillows)

38. The president of Yonkers Cranks, Inc. forecasts the company will incur $6,000,000 of manufacturing overhead in the coming year. The company also expects the following results for its operations in the coming year: Direct labor hours 200,000 Direct labor cost $3,000,000 Machine hours 20,000 Wh

Marginal Cost & Revenue for Company Yes

Can some one help me here?! Provided the following cost and income information for a period of time for the company Yes company selling their product in a market where it even is a heavy market player: Production Interval Difference Unit Cost Difference Unit Revenue 0- 1 000 units $ 2 800 $ 4 00

Relevant Range

A is a fixed cost; B is a variable cost. During the current year the level of activity has decreased but is still within the relevant range. We would expect that the cost per unit of A has remained unchanged the cost per unit of B has decreased The cost per unit of A has decreased The cost per unit of B has rema

Cost Object: Examples in Different Types of Companies

What is the meaning of the term "cost object"? Give an example of a cost object that would be used in a manufacturing company, a merchandising company and a service sector company. I really appreciate your help, thanks a lot.

New Public Management as Dominant Approach

New Public Management is becoming the dominant managerial approach in the United States. As a Council member, I certainly saw a movement towards NPM in some administrative areas of the city, but in others the more traditional approach remained. In general, what do you think instigated this overall shift in management style in

Calculate: Standard Material Cost

Question: Bulkboy Fitness Equipment, Inc. was recently created to produce and sell its "Biception" arm machine. Bulkboy decided to use a standard cost system to record costs related to the production of this product. The material standard for each machine produced is 1.07 pounds of a special aluminum tubing at a standard cost of

Break Even Analysis

1. Assume the following cost information for Marie Company: Selling price per unit $144 Variable costs per unit $80 Total fixed costs $80,000 Tax rate 40% If fixed costs increased by 10% and management wanted to maintain the original break-even point, then the selling price per unit

Acct

1. Clare Company currently sells 19,000 units. Total fixed costs are $84,000, and the contribution margin per unit is $6.00. Clare's tax rate is 40%. The margin of safety in units is: a)3,000 units b)5,000 units c)7,500 units d)14,000 units 2. Number of engineering hours is a likely cost driver f

Acct

1. Burning Company, a producer of salsa, has the following information: Income tax rate 30% Selling price per unit $5.00 Variable cost per unit $3.00 Total fixed costs $90,000.00 The break-even point in dollars is: a)$150,000 b)$180,000 c)$225,000 d)$270,000

Acct

1. As the cost driver activity level decreases within the relevant range: a)total fixed costs increase b)fixed costs per unit decreases c)total variable costs decrease d)variable costs per unit decreases 2. The following information is for Allen Corporation: Total Fixed Cost $313,500 Varia

Acct

1. The level of sales at which revenues equal expenses and net income is zero is called the: a)margin of safety b)contribution margin c)break-even point d)marginal income point 2. The ________ is the change in total results under a new condition, in comparison with some given or known conditio

Managerial accounting

Final Paper: Your final project is to prepare a 6- to 8-page paper on this topic related to managerial changes within an organization. Since an organization's costs are really considered proprietary information and very difficult to find, doing a paper strictly on the cost accounting system and costs of the entity would be almo

Cash Conversion Cycle for Wal-Mart

Please calculate the average inventory period, accounts receivables period, accounts payable period, cash conversion cycle, and the operating cycle for Wal-Mart in 2007 and 2006 based on the attached annual report. See attached Annual Report, PDF format, for details.

Describing Cost Behavior & Cost Drivers

I need help getting started with the attached question regarding cost behavior and cost drivers. **See ATTACHED file for complete question** 1. Refer to Example 1. For the labor wages and depreciation of plant and machinery examples of production costs given in the Example 1, describe their cost behavior in relation to the

Acct

1. "The relevant range pertains to fixed costs, not variable costs." Do you agree? Explain. 2.Describe three ways of lowering a break-even point. 3. "The contribution margin and gross margin are always equal." Do you agree? Explain.

Multiple Changes in Cash Conversion Cycle

Garrett Industries turns over its inventory 6 times each year, it has an average collection period of 45 days and an average payment period of 30 days. The firm's annual sales are $3 million. Assume there is no difference in the investment per dollar of sales in inventory, receivables, and payables, and a 365-day year. a) Cal