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# Management Accounting

### Standard Costs for Units of Products

Kwikeze Company set the following standard costs for one unit of its product. Direct materials ((4.0 Ibs. @ \$6.0 per Ib.) \$ 24.00 Direct labor (1.8 hrs. @ \$11.0 per hr.) 19.80 Overhead (1.8 hrs. @ \$18.50 per hr.) 33.30 Total standard cost \$ 77.10

### Managerial Economics

Your company has developed a drug called Matrox that is an effective treatment for migraine headaches. You have just discovered that it can also be used for organ transplant patients to reduce the risk of organ rejection. The demand for migraine medications is considerably more elastic than the demand for drugs to reduce the ri

### Managerial Accounting Travis Corporations

Compute ROI per Unit 1. Travis corporation produces high- performance rotors. It expects to produce \$50,000 rotors in the coming year. It has invested \$ 1,000,000 to produce rotors. The company has a required return on investment of 18% what is its ROI per unit? Compute markup percentage 2. Shandling corporation produces mi

### intermediate accounting practice questions

1. The cost of an intangible asset includes all of the following except a. purchase price. b. legal fees. c. other incidental expenses. d. all of these are included. 2. When a patent is amortized, the credit is usually made to a. the Patent account. b. an Accumulated Amortization account. c. a Deferre

### Cost allocation

The following are production and cost data for two products, X and Y. Product X Product Y Contribution margin per unit \$450 \$280 Machine set-ups needed per unit? 25 14 The company can only perform 14,000 set-ups each period yet there is unlimited demand for each product. What is the maximum contribution margin for t

### Costing/Cost Function

Jersey Subs, Inc. wants to find an equation to estimate monthly utility costs. Jersey Subs has been in business for one year and has collected the following cost data for utilities: (see attached table) a. Which of the preceding costs is variable? Fixed? Mixed? Explain. b. Using the high-low method, determine the cost

### Budgets in Managerial Accounting: Santiago's Salsa

Santiago's Salsa is in the process of preparing a production cost budget for May. Actual cost in April were: Santiago's Salsa Production Costs April 2011 25,000 Production Jars of Salsa Ingredients cost

### IT Management Restraints

1.) What are reasonable kinds of restraints imposed on IT projects by management? What unreasonable restraints are sometimes encountered? 2.) Does it matter how much technical expertise top managers have in the area of information technology management in terms of the quality of their supervision of the process? 3.) To what

### Rondell Pharmacy: Managerial Accounting: Break-even and Cost Structure

1.) "Breakeven analysis isn't very useful to a company because companies need to do more than break even to survive in the long run." Explain why you agree or disagree with this statement. 2.) Rondell Pharmacy is considering switching to the use of robots to fill prescriptions that consist of oral solids or medications in pil

### EM, Inc. Kool Clothing: Standard cost variances

1. EM, Inc. private labels mini cupcakes for Starbucks. For April 2012, it budgeted to purchase and use 18,000 pounds of flour at \$0.39 a pound. Actual purchases and usage for April 2012 were 22,000 pounds at \$0.42 a pound. EM budgeted to produce 120,000 mini cupcakes. EM budgets to obtain 4 mini-cupcakes per pound of flour.

### Managerial Accounting: Cost Behavior and Operating Leverage

In regards to managerial accounting, how does cost behaviour and operating leverage help with the planning, operating and monitoring of activity in business?

### Details of Make Versus Buy Decisions

Pepsi Company purchases 8,000 units of a part that it needs for production of its product. Notification has just been received from the supplier that a price increase will take effect shortly, which will bring the price of each part to \$25. Pepsi Company is considering using some idle facilities to produce the part. The producti

### Managerial Accounting Sample Problems

Please see the document. 1. Harrow Inc. produces a single product and has the following cost structure: The absorption costing unit product cost is: 2. Jones Company produces a single product and has provided the following data concerning its most recent month of operations: What is the net operating income for th

### Equivalent Units and Cost per Equivalent Units

Production and cost data for the month of February for process A of the Packer manufacturing Company follow: Units in process, February 1 (100% complete with respect with materials; 25% complete with respect to conversion cost) 2,000 New units started in process

### The repair cost was inappropriately capitalized

During the first month of its current fiscal year, Green Co. incurred repair costs of \$21,000 on a machine that had 5 years of remaining depreciable life. The repair cost was inappropriately capitalized. Green Co. reported operating income of \$165,000 for the current year. Required: (a) Assuming that Green Co. took a f

### Explain how three internal governance mechanisms -ownership concentration, the board of directors, and executive compensation--are used to monitor and control managerial decisions. Explain why ownership has been largely separated from managerial control in the modern corporation.

Explain how three internal governance mechanisms -ownership concentration, the board of directors, and executive compensation--are used to monitor and control managerial decisions. Explain why ownership has been largely separated from managerial control in the modern corporation.

### Activity-based costing system.

Murri Corporation has an activity-based costing system with three activity cost pools-Processing, Setting Up, and Other. The company's overhead costs, which consist of factory utilities and indirect labor, are allocated to the cost pools in proportion to the activity cost pools' consumption of resources. Costs in the Processing

### Explain the importance of sampling from a managerial perspective. Provide examples.

Explain the importance of sampling from a managerial perspective. Provide examples.

### Management Accounting Practice Exam

1. When an organization involves its many employees in the budgeting process in a meaningful way, the organization is said to be using an approach most commonly known as: a. participative budgeting. b. budget padding. c. imposed budgeting. d. employee-based budgeting. 2. A budget serves as a benchmark against which: a. a

### Explicit opportunity cost

Oliver Kamp has just made the final payment on his mortgage. He could continue to live in the home; cash expenses for repairs and maintenance (after any tax effect) would be \$500 monthly. Alternatively, he could sell the home for \$200,000 (net of taxes), invest the proceeds in 5% municipal tax-free bonds, and rent an apartment f

### Managerial Accounting for Waller Inc - FIFO method

Waller Inc. uses the FIFO method in its process costing system. Data concerning the first processing department for the most recent month are listed below: Beginning work in process inventory: Units in the beginning work in process inventory 600 Materials costs \$ 4,200 Conversion costs \$ 7,800 Percent complete with resp

### What is the equivalent annual cost of a precision lathe that costs \$21,000 and \$31,000 a year to operate and maintain?

A precision lathe costs \$21,000 and will cost \$31,000 a year to operate and maintain. If the discount rate is 15% and the lathe will last for 4 years, what is the equivalent annual cost of the tool? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Equivalent annual cost= \$___________

### Managerial accounting for Blaster Corporation, Precision Systems

Please see attached problem set for tables, and a separate template file. Problem 20.2A Blaster Corporation manufacturers hiking boots. For the coming year, the company has budgeted the following costs for the production and sale of 30,000 pairs of boots: Budgeted Costs Budgeted Costs per Pair Percentage of Costs Consid

### Managerial Accounting

The management of Sharrar Corporation would like to investigate the possibility of basing its predetermined overhead rate on activity at capacity rather than on the estimated amount of activity for the year. The company's controller has provided an example to illustrate how this new system would work. In this example, the a

### Heritage Company: classifications, average product cost per bookcase

Heritage Company manufactures a beautiful bookcase that enjoys widespread popularity. The company has a backlog of orders that is large enough to keep production going indefinitely at the plant's full capacity of 3,900 bookcases per year. Annual cost data at full capacity follow: Direct materials used (wood and glass) \$

### Managerial Accounting: Did Clear-View increase unit sales by cutting prices or by using some other strategy?

a. Did Clear-View increase unit sales by cutting prices or by using some other strategy? b. Is Mr. Radeka correct in his conclusion that something is wrong with the company's performance evaluation process? If so, what do you suggest be done to improve the system? c. Prepare a flexible budget and recompute the budget variance

### Describe customer perceived value, total customer benefit, and total customer cost. How do the total customer benefit and the total customer cost affect the consumer's perception? Explain. 2. What are some of the ways that a business can attract and retain customers? 3. What are the five stages in the buying decision process? Briefly describe each. 4. What is a niche market? What does an attractive niche market look like? 5. What is a market segment? What are some of the factors that may be used to narrow the market down into segments? 6. How would you describe a brand? What roles do brands play in the market? 7. What is brand equity? Provide an example. 8. When you analyze your competitors, what are the areas of greatest concern? Using the soft drink industry, provide examples of the type of information required.

1. Describe customer perceived value, total customer benefit, and total customer cost. How do the total customer benefit and the total customer cost affect the consumer's perception? Explain. 2. What are some of the ways that a business can attract and retain customers? 3. What are the five stages in the buying decision

### Management Accounting question # 3: Bourbon coffee - target profit, sales mix

Please see attached file. Bourbon coffee is one of the most popular Arabica coffees sold in the world. It was first produced on the French island of Ã?le Bourbon and was later taken by the French to Africa and Latin America. The president wants to introduce a new premium line of Bourbon coffee beans and has sourced premium g