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Management Accounting

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

Managerial Accounting.

Differential analysis involves knowing which costs are relevant, i.e. future costs that vary among alternatives. It is important to know what information to use and not just how to execute the analysis. Lewis Company (accounting information provided in the prior module) receives an offer to make a new product, called C, for a

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


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 Accounting - Differential analysis

Differential analysis involves knowing which costs are relevant, i.e. future costs that vary among alternatives. It is important to know what information to use and not just how to execute the analysis. Lewis Company (accounting information provided in the prior module) receives an offer to make a new product, called C, for a

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

Thoughput costing, Great Outdoze Inc.

Great Outdoze, Inc. manufactures high-quality sleeping bags, which sell for $130 each. The variable costs of production are as follows: Direct material ........................................................................................................................................ $40 Direct labor .....................

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:

Facility Level Costs

Titan Snow Shovel Company (TSSC) has a pricing policy of cost plus 40% to cover all costs. They base their costing on the expectation that they will sell 50,000 shovels at $98 each. Unit level costs are $40 per unit. Product and batch level costs together equal $500,000. Facility level costs are a $20.00 per unit b

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

Calculating Cost of Supplies Purchased

The suppliers account had a balance of $1,460 at the beginning of the month and $1,940 t the end of the month. The cost of supplies used during the month was $6,320. How would one calculate the cost of supplies purchased during the month?

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

Computing the Cash Conversion Cycle

An analyst has gathered the following data about a company: Average receivables collection period of 37 days. Average payables payment period of 30 days. Average inventory processing period of 46 days. What is their cash conversion cycle? A) 113 days. B) 53 days. C) 45 days.

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