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.
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
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.
Many accounting writers have emphasized the effect that the allocation of fixed overhead can have on managerial incentives to overproduce. When fixed overhead is allocated to product, the greater the production level, the lower the fixed cost per unit. The lower fixed cost per unit might increase perceived profitability, but is
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
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
When analyzing end of period production cost variances, which of the following product costs components will need flexing? A. direct material B. direct labor C. variable manufacturing overhead D. fixed manufacturing overhead
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
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
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
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
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
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
Could you please elaborate further how a firm's profitability may be affected if a buying division is paying the full cost when buying from the selling division?
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
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
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?
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
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. 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.
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
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
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 .....................
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?
Planning and control in the decision making process. Review this article: Stout, David E and Juras, Paul E., (2009). Instructional Case: Estimating Learning-Curve Functions for Managerial Planning, Control, and Decision-Making. Find another article on a similar topic and discuss how accounting information is used for pl
Slick Corporation is a small producer of synthetic motor oil. During May, the company produced 5,000 cases of lubricant. Each case contains twelve quarts of synthetic oil. To achieve this level of production, Slick purchased and used 16,500 gallons of direct materials at a cost of $20,514. It also incurred average direct labor c
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:
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
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