item. The planned operating results showed a net loss of $1.94 while the actual results showed a loss of $2.10. Mark Dibbs‚ Vice president of Financial Analysis for EntertainmentNow.com is expected to explain what caused the company’s increased shortfall. Based on his analysis‚ he will explain this variance fully and make recommendations to senior management. Analysis of Loss The rates and the number of units sold determine planned and actual result differences‚ representing the variance. Variances
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cost vs revaluation How does the cost model differ from the revaluation model? In your opinion‚ which of the two models would company managers prefer adopting (i.e. the cost model or the revaluation model) in accounting for property‚ plant and equipment? Discuss. (2.5 marks) To explain how the cost model and revaluation model differ‚ we first have to examine closely what each of these models need. Under the rules of AAS B116 The cost model after an asset has been recognised as an asset
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CONTROLLING LABOR COST The timekeeping and payroll departments have the responsibility of maintaining labor records. The timekeeping and payroll functions may be established as separate departments or organized as subdivisions of a single department. Increasingly‚ automated timekeeping technology has replaced ‘‘timekeeping’’ as a separate department. For example‚ many companies issue magnetic cards to direct laborers who use them to ‘‘log on’’ and ‘‘log off’’ to specific job assignments. They
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The Cost of Something Mankiw’s Ten Principles of Economics Opportunity cost is the value of the next best alternative in a decision. Imagine that you have $150 to see a concert. You can either see "Hot Stuff" or you can see "Good Times Band." Assume that you value Hot Stuff’s concert at $225 and Good Times’ concert at $150. Both concerts cost $150 per ticket‚ but it would take you a couple of hours to drive to Hot Stuff’s concert and you have to be in school (the next) morning for an exam. Good
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Relevant Costs Defined Relevant costs possess two characteristics: (1) They are future costs and (2) They differ across alternatives. All pending decisions relate to the future; accordingly‚ only future costs can be relevant to decisions. However‚ to be relevant‚ a cost must not only be a future cost but must also differ from one alternative to another. If a future cost is the same for more than one alternative‚ then it has no effect on the decision. Such a cost is irrelevant. The
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Which bosses are best? Women are more efficient and trustworthy‚ have a better understanding of their workforce and are more generous with their praise. In short they make the best managers‚ and if men are to keep up they will have to start learning from their female counterparts‚ a report claims today. The survey of 1000 male and female middle senior managers from across the UK is an indictment of the ability of men to function as leaders in the modern workplace. A majority of those questioned
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market 2. List the opportunity costs of the following: a. going to college - the money you would have earned if you worked instead. b. missing a lecture – takes away from your knowledge of that lesson. c. withdrawing and spending $100 from your savings account‚ which earns 5 percent interest annually – you would lose $5 if you take out $100. d. going snowboarding on the weekend before final examinations - A chance you will not do as well on your exams. 3. Farmer Fred could grow wheat and
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Section B Attempt Any Six Questions (6*5= 30) 1. Company A’s costs are mostly variable‚ whereas Company B’s costs are mostly fixed. When sales increase‚ which company will tend to realize the greatest increase in profits? Explain. 2. Crystal Telecom has budgeted the sales of its innovative mobile phone over the next four months as follows: Sales in Units July. . . . . . . . . . . . . . 30‚000 August . . . . . . . . . . . 45‚000 September . . . . . . . . 60‚000 October . . . .
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TYPES OF COST AUDIT * Cost Audit to assist Management : The main object of this type of cost audit is to make available accurate‚ relevant and prompt information to management to assist it in taking important managerial decisions. * Cost Audit on behalf of the Government: The government may appoint a cost auditor to conduct cost audit where it is necessary(a) to do so in the opinion of the government under section 233-B of the companies Act‚ 1956; (b) to ascertain correct cost of certain
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multiple-choice questions‚ please explain why the answer chosen is correct‚ and why the other choices would not be correct. Please support your response. Let’s begin with the questions on Page 1. Page 1 1. Indirect labor is a part of: B. Conversion cost. Labor that cannot be physically traced to particular product is treated as indirect labor and as manufacturing overhead. Conversion cost is the sum of direct labor and manufacturing overhead. These costs are incurred to convert materials into
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