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Management Accounting

Managerial Accounting: Marginal Cost of a Special Order

Mazeppa Corporation sells relays at a selling price of $28 per unit. The company's cost per unit, based on full capacity of 160,000 units, is as follows: Direct Materials: $6 Direct labor: $4 Overhead (2/3 OF WHICH IS VARIABLE): $9 Mazeppa has been approached by a distributor in Montana offering to buy a special order co

Cash Conversion Cycle, Currency, Demand Deposits

1. Define cash conversion cycle (CCC), and explain why, holding other things constant, a firm's profitability would increase if it lowered its CCC. 2. How does currency, demand deposits and marketable securities relate in today's society? Provide an example.

Cost Drivers in a Given Situation

Shannon Industries manufactures two products: A and B. A review of the company's accounting records revealed the following per-unit costs and production volumes: Production Volume in units A: 2,500 Prod

Long run versus short run profits, cost drivers, opportunity costs

Describe two long-run effects that may lead to managers' rejecting opportunities to cut prices and obtain increases in short-run profits. What are some advantages of using cost drivers effectively? Can you apply too many cost drivers? Accountants do not ordinarily record opportunity costs in the formal accounting records.

Managerial Accounting Projections

Hi, Thanks for helping me! Any information not given can be made up, because it is a case study and there is wiggle room. Prepare the financial projections for this proposed company. 1) Present a "minimum" level of sales needed to break even for a typical cafe in the first year. Use a conservative market with lower ex

Computing and journalizing standard cost variances

Actual production and sales were 62,900 coffee mugs, actual direct materials usage was 10,000 lbs. at an actual price of $0.17 per lb., actual direct labor usage was 202,000 minutes at a total cost of $30,300, actual overhead cost was $10,000 variable and $30,500 fixed, marketing and administrative costs were $115,000. Comput

Cash Conversion Cycle Examples

Van Den Borsh Corp. has annual sales of $50,735,000, an average inventory level of $15,012,000, and average accounts receivable of $10,008,000. The firm's cost of goods sold is 85% of sales. The company makes all purchases on credit and has always paid on the 30th day. However, it now plans to take full advantage of trade credit

Opportunity Cost Case Study

Susan Ortiz operates a covered parked structured that can accommodate up to 600 cars. Susan charges $6 per hour for parking. Parking attendants cost $12 per hour each to staff the cashier's booth at Susan's Parking. The facility has two parking attendants who each work eight hours per day. Utilities and other fixed costs average

Whalen: reason that the average cost per patient day is misleading.

Insurance companies and the federal government are restricting reimbursements to health care facilities and causing these facilities to seek cost reductions and more accurate tracing of costs without reducing the quality of care. Lisa Whelan, the administrator of Community Hospital, is exploring whether ABC can be applied to her

Managerial Economics- Service market perfectly competitive

1. Give an example of a good or service market that is close to perfectly competitive, and then defend your choice. (Us tobacco for service market) 2. What types of industries does TRA (Tennessee Regulatory Authority) regulate? Choose a company that would fall within one of those industries. Why is this firm (and others wi

Cost Control Articles

Search the Internet for two articles about the methods of cost controls in the health care reimbursement models and how the methods have affected the availability of services. Using the articles as resources, write at least two pages in which you answer the following questions for each article: What methods are reviewed? How

Firm sells a product for $30.50 each and the unit

1) A firm sells a product for $30.50 each and the unit variable cost is $12.20. The fixed costs are $750,000. Required: 1) the break even in units and dollars. 2) Assume the firm sold 50,000 units last year- present a contribution format income statement for that level of activity. 3) If the owners wanted income of $2

The scenario of Mrs. McCarthy and her sewing business

Okay back to Mrs. McCarthy you advise her to invest in bulk purchasing. What you did not know is that is she was working off her savings. Also she was not a well person (common for elderly people). And she decides to die a week later (also common amongst elderly) what do you tell the heirs about their inheritance, which is now b

Cost Tracing

Can you help me get started with the following: Discuss the importance of cost tracing? Cost Allocation? How do they differ and how are them similar? Define a cost driver? Choose a day to day event that you might use these tools to properly budget yourself, and to see where you might be overspending or underspending. Discu

Variances

I need help with a question. Variance between budget projections and budget performance is inevitable. Is a proactive application of cost measurement and corrective actions a realistic approach to minimize variance?

Managerial Economics

During a coffee-room debate among several young MBAs who had recently graduated, one of the young executives flatly stated, "The most this company can lose on its Brazilian division is the amount it has invested (its fixed costs)." Not everyone agreed with this statement. In what sense is this statement correct? Under what circ

Managerial Economics: Direct Methods Used for Demand Estimation

1. Define and discuss the direct methods used for demand estimation 2. Describe and discuss the relationships of the following: production functions, technical and economic efficiency, variable and fixed imputes of production, and fixed and variable proportions 3. Discuss the advantages and disadvantages of Short-Run and Long-

Calculating Cost - Ontario, Inc.

Calculating Cost Ontario, Inc. manufactures two products, Standard and Enhanced, and applies overhead on the basis of direct-labor hours. Anticipated overhead and direct-labor time for the upcoming accounting period is $800,000 and 25,000 hours, respectively. Information about the company's products follows.

Managerial Economics

Can you help me out with the following questions: 1.Thomas Selling, an expert on nuclear strategy and arms control, observed in his book The Strategy of Conflict (Cambridge, MA: Harvard University Press, 1960), " The power to constrain an adversary depends upon the power to bind oneself." Explain this statement using the conc

Competitive Strength and Power

1. What test determines the power of a resources competitive strength? 2. Instead of trying to match the resource strengths of rivals, what option(s) should a company consider to enhance its competitive power in the marketplace?

Marcus Company uses an activity-based costing system

1. Marcus Company uses an activity-based costing system with three activity cost pools: assembly, set up and other. The company has provided the following data concerning its costs and its activity based costing system. Wages and Salaries $260,000; Depreciation $220,000; Utilities $140,000. The costs were consumed as follows:

This post addresses benefits of keeping a plant open.

Rosenblatt Enterprises used decision tree analysis and cost-benefit analysis in their decision to keep open their current plant. The quantitative costs of keeping the plant open were $5,000,000, while the quantitative benefits of keeping the plant open were only $3,000,000. Rosenblatt decides to keep the plant open. The decision

what would the initial cost of the concrete pad be considered as

Beddingfield Machine and Electronic Works (BMEW), spent $85,000 last year pouring a concrete pad adjacent to their central machine shop in order to park 18-wheel trailers that they had hoped to begin repairing last year for Peden Trucking under a new contract. In the fall Peden Trucking declared bankruptcy and closed it's doors

Variable or Fixed Cost?

I need help with classifying weather are not these items are variable or fixed cost, direct or indirect cost, are controllable or uncontrollable cost. 1.Raw materials. 2.Staples used to secure packed boxes of the product. 3.Plant janitor's wages. 4.Order processing clerk's wages. 5.Advertising expenses. 6.Production work

Set-up cost per unit calculations.

14. Corresponds to CLO 4(b) Ferguson Molding Company produces custom bottle caps and jar covers for large cosmetic companies. Each customer owns the custom-made molds that are used for the caps and jar covers, so caps are produced only to customer order. Each order requires the setting of molds in molding machines. Two full time

Determing cost driver, computing cost

Big Al Pizza Inc, a new subsidiary of Big Al's Pizza Emporium has been established to produce partially baked, flash frozen , 16 inch meat pizzas to be sold wholesale to grocery and convenience stores and school cafeterias. As a new entrant to the market, the company's goal is to produce and sell 319,500 pizzas in its first

Barnes Corporation

Barnes Corporation manufactures two models of office chairs, a standard and a deluxe model. The following activity and cost information has been compiled: Product # of Setups # of Components # of Direct Labor Hours Standard 22 8 375 Delu