1. Measuring and evaluating performance is important to managers. They need to explore how individual and performance measures and other measures can be combined to create a better tool for measuring past performance and driving the future achievement of strategic goals. The different methods of performance measures include:
ZZ Tire Company started as retail installer of tires on cars 10 years ago. They now have 400 retail stores, installing about 10,000 tires per store per year and selling a total of 4 million tires. 5 years ago, they decided to start manufacturing their own tires to sell in their retail locations. They now have 4 manufacturing
Respond to following statements. 1. Outsourcing is any task, operation, job or process that could be performed by employees within an organization, but is instead contracted to a third party for a significant period of time. In addition, the functions that are performed by the third party can be performed on-site or off-site. P
ZYZ Tire Company has the following standard costs when producing a tire: Direct Materials: $17 per tire. Direct Labor: $15 per tire. Variable Overhead: $10 per tire. Retail Price per tire: $50 per tire. They have gotten a special order for 30,000 custom tires that increase direct materials by $5 per tire and direct labo
1. Briefly describe what outsourcing is and then decide whether you agree or disagree with companies outsourcing jobs. Explain why you chose agree or disagree as well. 2. Valuation of a firm's financial assets is said to be based on what is expected in the future, in terms of the future performance of the firm, the industry, an
Respond to the following statements. 1. If I had just started the manufacturing business I would use a flexible budget. I would use a flexible budget because I wouldn't have solid sales history to create an accurate static budget. The static budget identifies the income that would be earned at a predetermined level of sales
Herrestad Company does produce and sell two products. Please see the attachment and use ABC to allocate all fixed costs to the two products. Show computations, discuss the results in 2 to 4 pages. Please include answers to all the questions.
Question 1 XYZ Tire Company has gotten an order for its manufacturing business segment of 30,000 tires. Below is the standard cost and quantity of materials needed to make one tire. Rubber in one tire: 8 pounds of rubber Cost per pound of rubber: $1.50 Steel used in tire: 2 pounds of steel Cost per pound of steel:
1. In any type of manufacturing business, there are many cost concerns—some are immediately obvious while others are hidden. If you started a manufacturing business, what type of budget would you choose, static or flexible? Explain why, and include the advantages and drawbacks of your choice. 2. The process of using activi
Search on the internet for pro-forma financial statements of any large public company from last year (e.g. Coca-cola, Home Depot, etc). Compare these to the results by looking at the actual financial statements. Many times, the companies will list how they performed compared to their estimates. Write a paragraph about the expect
Go to the following website (see below) and read the article about budgeting in a small business. The article talks about six basic steps to a better business budget. Write a paragraph about whether you agree or disagree with these steps. Be sure to address each individual step in your response. http://www.investopedia.com/
XYZ Tire Company has gotten an order for its manufacturing business segment of 25,000 tires. Using job order costing, figure out the total unit cost of manufacturing a tire and the total order. Rubber in one tire: 8 pounds of rubber Cost per pound of rubber: $1.50 Steel used in tire: 2 pounds of steel Cost per pound
1. Why do managers need to understand product and period costs? In your explanation, please also briefly describe product and period costs, along with their differences. 2. As a manager in a business, you have to make many decisions on how budgeting takes place. If you had a choice in a company where you are a manager, would yo
1. Can you think of any direct examples of where contribution margin can be used in a business? 2. The main purpose of managerial accounting is to guide management in future decisions with their company. There are many aspects of managerial accounting but if a business follows all of these aspects it will help them maximize t
1. What are the similarities between contribution margin and gross profit. 2. Steven started ZZ Tire Company 10 years ago. The company started as an installer and seller of tires. The company has now expanded to the point where they now manufacture tires in China to supply the retail stores. They have retail sales of over $10 M
Contribution margin is a very important metric that looks at the profitability of a company. When looking at contribution margin, how is it comparable to gross profit? Also explain the importance of contribution margin.
Explain how the allocation process can make a fixed cost appear variable, leading to a poor decision.
1. What is managerial accounting and what are the differences between managerial accounting and financial accounting? 2. What are the main functions of managerial accounting? 3. Why do management accountants should understand their company strategy? 4. Why is managerial accounting relevant to business majors and their f
What are the rules concerning contingencies if they are discovered during the first period of the year? Should they be disclosed on the first quarter's financial statements?
Franklin Mint and Candy Shop can open a new store that will do an annual sales volume of $750,000. It will turn over its assets 2.5 times per year. The profit margin on sales will be 6 percent. What would net income and return on assets (investment) be for the year?
You are a recently-hired accountant at Greenwood Company, a small corporation that does a seasonal business of selling snow removal equipment, with most of its sales to retailers occurring in the last two quarters of the calendar year. Production is particularly heavy during the second quarter, in preparation for these sales.
John Young is a new assistant controller at Richmond Electronics, a large regional consumer electronics chain. Before John's recruitment, he was aware of Richmond's long trend of moderate profitability. The reports on his desk confirm the slight, but steady, improvements in net income in recent years. The issue he is facing as h
1. "Will IFRS Become the Global Accounting Standard?" 2. "Should U.S. Companies Be Allowed to Close the GAAP?"
I need help with answering these questions. If five donors have pledged $1 million each over the next 4 years to Lucky Duck University: - At what point should these pledges be recognized as revenue? - How should the revenue be valued? - How should these pledges be reported as change in net assets, and in which net assets
1. Acme Company manufactures a variety of industrial products sold throughout the United States. Jim Beam has been manager of Central Division for the past three years. In years 2 and 3, he was able to qualify for an annual bonus of $100,000 by meeting a target growth rate of 10% of gross sales. Income statements for the divisio
Durham Division of ABC Corporation has average operating assets of $12,000,000. It expects to earn $1,800,000 for the coming year. The manager has the opportunity to acquire a successful existing business at the start of the year for $3,000,000. The new business is expected to earn $330,000. The earnings of both divisions are ex
Compared to a comprehensive analysis, incremental analysis is considered to be more economical, but is equally as efficient. Do you agree or disagree? Why? Explain your reasoning and refer to the concepts of cost effectiveness and business risk.
See the attached file. Laramie Company has the following inventory balances, in dollars, for the current year: Beginning Ending Raw Materials 820,000 812,000 WIP 135,000 146,000 Finished Goods 491,000 516,000 Materials purchases were $2,544,000 and direct labor was $3,200,000.
Should ROI be the only gauge a company uses to evaluate investments? Also, is it wise for a company to lose money on one product if that product is vital to the sale of another extremely profitable product? List one example for each question.
Locate an article from a financial periodical from the past 2 years about a company that restated its financial statements due to an error in accounting principal. Examples of periodicals are CFO and Journal of Accountancy. Write a paper of no more than 700 words with references discussing the restatement of the company, the