BUDGETARY CONTROL Budget is a plan which is expressed in terms of definite members: Eg. of a plan – Production has to be increased in the next quarter Eg. of a budget – Production has to improve by 10000 units from the last quarter to the next quarter. Definitions: According to ICMA “budget is a financial & / quantitative statements‚ prepared & approved prior to a defined period of time of the policy to be pursued during that period for the purpose of attaining a given objective. They may
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Accounting 404 Lesson 2 Assignment: Cost Behavior As the FallSafe Parachute Factory continues to set goals for expansion‚ the company needs a more accurate history of their total costs and cost behaviors over the past few months. Unfortunately‚ they have never relied heavily on Managerial Accounting before now‚ so there are large gaps of missing information that need to be calculated in order to move forward. Directions: Each question of this assignment should be prepared as a separate sheet
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Chapter 2 Cost Terms‚ Concepts‚ and Classifications Exercise 2-2 (15 minutes) 1. 2. 3. 4. 5. 6. 7. 8. 9. 10 . 11 . 12 . 13 . 14 . 15 . Depreciation on salespersons’ cars ................ Rent on equipment used in the factory .......... Lubricants used for machine maintenance ..... Salaries of personnel who work in the finished goods warehouse.............................. Soap and paper towels used by factory workers at the end of a shift ...................... Factory supervisors’ salaries
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legendary coach Bo Pitterno‚ has come more fame‚ the need for a bigger stadium‚ and more complaints about seating‚ parking‚ long lines‚ and concession stand prices. Southwestern University s president‚ Dr. Marty Starr‚ was not only concerned about the cost of expanding the existing stadium versus building a new stadium‚ but also about the ancillary activities. He wants to be sure that these various support activities generate revenue adequate to pay for themselves. Consequently‚ he wants the parking
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Guisinger Contribution Margin “is a cost accounting concept that allows a company to determine the profitability of individual products” (Investopedia‚ 2013). In order to determine the contribution margin‚ one must take the revenues and subtract it from the variable cost which would look like this: Revenues – Variable Cost. “Fixed costs are costs that do not vary in total when activity levels (or volume) of operations change. A good example of a fixed cost is rent expense. Rent would not vary
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3. Using the variable costing method‚ which of the following costs are assigned to inventory? a. Variable factory overhead costs and variable selling and admin costs b. Variable factory overhead costs c. Variable selling and admin costs d. Neither 4. Which of the following statements is true? I. When completed units are sold‚ work in process inventory account is credited II. The journal entry required to record indirect labour costs includes a debit to factory overhead account 5. Which of the
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owning a franchise is priceless if ran properly. This paper will show an estimate amount of variable costs and monthly sales in members and dollars for Snap Fitness. Also included are five examples of variable costs and a summary about purchasing a franchise and the decisions that come along with it. Estimate Amount of Variable Costs A Snap Fitness franchise is estimated to incur fixed operating costs of $4‚000 and $2‚000 to lease fitness equipment. A newspaper article providing details about fitness
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To: Chuck Smith From: XXXX Date: June 22‚ 2012 Re: A.1. Steak Sauce: Lawry’s Defense Case Analysis I apologize for missing Friday’s meeting; I heard that we got quite the news! I reached out several members on the cross-functional team to get all caught up. From what I have gathered‚ thus far is that you received an email from Susan Connor regarding the Publix account. She made us aware that Publix is considering promoting Lawry’s new steak sauce in the Memorial Day ad unless we are prepared
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Net present value—the difference between the market value of an investment and its cost. While estimating cost is usually straightforward‚ finding the market value of assets can be tricky. The principle is to find the market price of comparables or substitutes. Perspectives: Using the text example (page 257)‚ the basic idea behind capital budgeting is to ‘add value’. After including all of the costs (cash outflows) and revenues (cash inflows)‚ value is added if the present value of inflows
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Goods‚ 1/1/2004 $7‚000 Conversion Costs $244‚200 Cost of Goods Avail. for sale $386‚000 Conversion costs equal 60% of total mfg. cost during the period. What was the cost of Finished Goods inventory destroyed? What was the cost of Work-in-Process inventory destroyed? How much Direct Materials inventory was destroyed? 2. All of the following are true EXCEPT that indirect costs A. may be included in prime costs. B. are not easily traced to products
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