CHAPTER 8 FLEXIBLE BUDGETS‚ OVERHEAD COST VARIANCES‚ AND MANAGEMENT CONTROL 8-1 Effective planning of variable overhead costs involves: 1. Planning to undertake only those variable overhead activities that add value for customers using the product or service‚ and 2. Planning to use the drivers of costs in those activities in the most efficient way. 8-2 At the start of an accounting period‚ a larger percentage of fixed overhead costs are locked-in than is the case with variable overhead
Premium Variable cost Costs
administrative cost. 1. The wages of employees who build the sailboats. 2. The cost of advertising in the local newspapers. 3. The cost of an aluminum mast installed in a sailboat. 4. The wages of the assembly shop’s supervisor. 5. Rent on the boathouse. 6. The wages of the company’s bookkeeper. 7. Sales commissions paid to the company’s salespeople. 8. Depreciation on power tools. EXERCISE 2–3 Fixed and Variable Cost Behavior [LO3] Koffee Express
Premium Variable cost Costs Fixed cost
Chapter 1 THE PROBLEM AND ITS BACKGROUND Introduction Juvenile Delinquency has long been a problem of the Philippine society. The deviant behavior of today’s children was greatly disapprove and has become a great concern of the public. Long ago‚ adults committed crimes. They were charged and convicted accordingly but with the changing world come the change in nature of the crime and the doer of the crime. We know children as innocent. They are vulnerable and they need someone to guide
Premium Crime Juvenile delinquency Criminology
special equipment is a sunk cost and is not relevant to the decision. The common costs are allocated and will continue regardless of whether or not the racing bikes are discontinued; thus‚ they are not relevant to the decision. Alternative Solution: |
Premium Variable cost Cost Costs
Chapter 1: The Accounting Environment – What is Accounting and Why is it Done? Accounting is a system for gathering data about an entity’s economic activity‚ processing and organizing the data and in turn‚ communicating that information to people who want to use it to make decisions. Data are unprocessed facts about an entity’s economic activity that is entered into an accounting system whereas information results from organizing and presenting the data in ways that make it useful for decision
Premium International Financial Reporting Standards Tax Business
Summary 1 Introduction 2 Theories of Accounting 2 Public Interest Theory 2 Private Interest Theory 2 Regulatory Capture Theory 3 Is accounting Needed (GPFR)? 3 What does the financial department (accounts) do? 3 Why public disclosure became so serious? 4 Principal Agent Outlook 4 Agency Cost- Critical Reason for accounting frauds 6 Three Essential Accounting Areas 7 Capital Budgeting 7 Investments 9 Capital Structure 11 Trade off theory 12 Conclusion 13 References:
Premium Finance Corporate finance Investment
CHAPTER 2 The Financial Statements BRIEF EXERCISES BE2–1 2008 2008 2008 Beginning Ending Retained 2008 2008 2008 Retained Earnings + Revenues – Expenses – Dividends = Earnings $28.2 + $43.3 – $38.2 – X = $30.6 X = $2.7 2008 Dividends as a percentage of 2008 net income: 2008 Dividends = $ 2.7 = 52.9% 2008 Net income ($43.3-$38.2) $ 5.1 BE2–2 1) Current Liabilities financed $32 billion of the
Premium Generally Accepted Accounting Principles Balance sheet
What is Positive Accounting Theory? Positive Accounting Theory is the branch of academic research in accounting that tries to make good predictions of real world events and translate them to accounting transactions. This contrasts with normative accounting theory‚ which that tries to recommend what should be done. Positive Theories try to explain and predicts actions such as which accounting policies firms will choose and how firms will react to newly proposed accounting standards. Positive
Free Scientific method Hypothesis Theory
Chapter 4 Systems Design: Process Costing Solutions to Questions 4-1 A process costing system should be used in situations where a homogeneous product is produced on a continuous basis. ished goods) during the period plus the equivalent units in the department’s ending work in process inventory. 4-2 1. Job-order costing and process costing have the same basic purposes—to assign materials‚ labor‚ and overhead cost to products and to provide a mechanism for computing unit product costs. 2. Both systems
Premium Costs Variable cost Management accounting
ASSIGNMENT- 2 1. Identify an unjust [or seemingly unjust] international corporate practice that has made news in regards to your country. Ans.:- After doing through research on the Cuba’s history and trade relations. The Identified unjust by the international corporate practice is the US’s exploitations and interventions in the Cuba’ affair even they represent the republic nation. In 1959‚ US officially recognized the New Cuban government lead by Fidel de Castro overthrowing the Batista government
Free Fidel Castro Cuba