external users on a periodic basis. Management accounting Management accounting is the process of identifying‚ measuring‚ analyzing‚ interpreting‚ and communicating information for the pursuit of an organization ’s goals. This is also known as "cost accounting." The differences between management accounting and financial accounting include: 1. Management accounting provides information to people within an organisation while financial accounting is mainly for those outside it‚ such as
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such things as an established sales force or access to existing channels‚ reducing barriers to entry (Porter‚ 2001) - Economies of scale: In some industries‚ economies of scale are extremely important. However‚ startup costs for e commerce retail operation are a fraction of the costs of starting a traditional brick and mortar company. - Access to industry distribution channels: In many industries manufacturers have had control over supply and/or distribution channels. In the online retain
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This case study will look at Jokkmok Industries and one of its managers‚ Mr. Rosen‚ who is bucking for a promotion to CEO. His division uses absorption costing and has the ability to produce 50‚000 units a quarter with a fixed overhead amount of $600‚000. While the sales forecast shows that the company will only sell 25‚000 units during each of the next two quarters‚ Mr. Rosen wants to double his budgeted production for the second quarter from 25‚000 to 50‚000 units. We will look at Mr. Rosen’s
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Services’ main problem is that they have too many available hours that are not generating any revenue. In the first quarter of 2003‚ they have an average of 176 available hours per month of available hours. Its operations exact a huge amount of fixed costs to cover. If they could find more commercial customers for the available capacity‚ they could increase their commercial sales revenue by as much as $140‚880 (176*800). In addition‚ they are also creating unnecessary expenses by having to pay all
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HSM/260: Fixed Costs‚ Variable Costs‚ and Break Fixed Costs‚ Variable Costs‚ and Break Exercise 10.1 During the sixth month of the fiscal year‚ the program director of the Westchester Home-Delivered Meals (WHDM) program decides to again recompute fixed costs‚ variable costs‚ and the BEP using the high–low method. Here are the number of meals served and the total costs of the program for each of the first six months: Month Meals Served Total Costs July 3‚500
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‚ purchases pianos from a well-known manufacturer and sells them at the retail level. The pianos sell‚ on the average‚ for $3‚300 each. The average cost of an piano from the manufacturer is $1‚492. The costs that the company incurs in a typical month are presented below: |Costs |Cost Formula | |Selling: |
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What is Cost? Cost is a resource sacrificed or forgone to achieve a specific objective (i.e.‚ not necessarily for profit). General Cost Classifications Classification on the financial statements UNEXPIRED Balance Sheet EXPIRED Income statement PRODUCT Inventoriable PERIOD Expensed General Cost Classifications Classification on the financial statements PRODUCT Inventoriable DIRECT MATERIALS Prime Cost DIRECT LABOR MFG OVERHEAD Conversion Cost General Cost Classifications
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CHAPTER 1 Introduction to Quantitative Analysis TRUE/FALSE 1.1 Interviews‚ statistical sampling‚ and company reports provide input data for quantitative analysis models. ANSWER: TRUE {moderate‚ THE QUANTITATIVE ANALYSIS APPROACH} 1.2 In the early 1900s‚ Henry Ford pioneered the principles of the scientific approach to management. ANSWER: FALSE {moderate‚ WHAT IS QUANTITATIVE ANALYSIS?} 1.3 Managers do not need to be familiar with the limitations
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1. award: 5 out of 5.00 points Manufacturing overhead consists of: indirect materials but not indirect labor. all manufacturing costs‚ except direct materials and direct labor. all manufacturing costs. indirect labor but not indirect materials. 2. award: 6 out of 6.00 points Salvadore Inc.‚ a local retailer‚ has provided the following data for the month of September: Merchandise inventory‚ beginning balance $ 87‚480 Merchandise inventory‚ ending balance $ 86‚400 Sales $ 540
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– Introduction to Marketing Tactics Pricing Questions 1. Cat Harbour Fly Fishing Supplies makes a very high quality fly fishing rod and reel. Their fixed costs for the coming year are estimated at $200‚000. They sell the rod/reel combination for $250 directly to retailers throughout North America and Europe. The company’s variable cost to produce each rod/reel combination is $200. Sales for the coming year are expected to reach $1‚250‚000. a. What is the break-even point in units?
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