Chapter 5: Cost Behavior: Analysis and Use As we shall see in later chapters‚ the ability to predict how costs respond to changes in activity is critical for making decisions‚ controlling operations‚ and evaluating performance. Three major classifications of costs were discussed in this chapter—variable‚ fixed‚ and mixed. Mixed costs consist of variable and fixed elements and can be expressed in equation form as Y = a + bX‚ where X is the activity‚ Y is the cost‚ a is the fixed cost element‚ and
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Exercise 11-1 (10 minutes) 1. 2. 3. Exercise 11-2 (10 minutes) Average operating assets £2‚200‚000 Net operating income £400‚000 Minimum required return: 16% × £2‚200‚000 352‚000 Residual income £ 48‚000 Exercise 11-3 (20 minutes) 1. Throughput time = Process time + Inspection time + Move time + Queue time = 2.8 days + 0.5 days + 0.7 days + 4.0 days = 8.0 days 2. Only process time is value-added time; therefore the manufacturing cycle efficiency
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Law Assignment One Busy Bee v. Simon et al. Part One: What steps should Gabrielle take in these circumstances to make the loan and also minimize the risk of loss to Busy Bee? What advice would you give Simon with respect to this franchise opportunity? Simon was recommended by his father to arrange financing through a company named the Busy Bee Trust Company in order to pay for the franchise opportunity. Two possibilities may occur if the loan is issued and the business is established. The hot
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On July 1‚ 2010‚ Rossillon Company issued $4‚000‚000 face value‚ 8%‚ 10-year bonds at $3‚501‚514.This price resulted in an effective-interest rate of 10% on the bonds Rossill on uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest July 1 and January 1. Instructions (Round all computations to the nearest dollar.) (a) Prepare the journal entries to record the following transactions. (1) The issuance of the bonds on July 1‚ 2010. (2) The accrual
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Q1. Show the effect of each of the seven listed transactions on the balance sheet items of Carpet Center Plus. Indicate the new balances after the transaction of May 2 and each subsequent transaction. The effects of the May 1 transaction are already filled in to provide you with an example. May | 1 | Issued capital stock for $75‚000. | | 2 | Purchased a small office building at a price of $58‚000 for the land and $65‚000 for the building. Paid $43‚000 cash and signed a note payable for the
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3.8.2 Instrument reliability Saunders et al (2009) contend that although for a questionnaire to be valid it must be reliable‚ this on its own is not sufficient. They note that a situation may arise where respondents may consistently interpret a question in a questionnaire in one way‚ when the researcher meant something else. Therefore‚ even though the question may be reliable‚ it does not really matter as it has no internal validity and hence will not enable the research question to be answered.
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Jordan Company Solution Jordan Company has two departments‚ X and Y. Overhead is applied based on direct labor cost in Department X and machine-hours in Department Y. The following additional information is available: Budgeted Amounts Direct labor cost Factory overhead Machine-hours Actual data for Job #10 Direct materials requisitioned Direct labor cost Machine-hours Department X $180‚000 $225‚000 51‚000 mh Department X $10‚000 $11‚000 5‚000 mh Department Y $165‚000 $180‚000 40‚000 mh Department
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ACCOUNTING: COMPANY REPORT ON SNAGS LTD Prepared for: Management of Snags Ltd Table of Contents Executive Summary 3 Introduction 4 Ratio Analysis 5 Return on Equity Ratio 6 Return on Assets Ratio 6 Asset Turnover Ratio 7 Inventory Turnover Ratio 7 Account Receivables Turnover Ratio 8 Gross Profit Margin 9 Net Profit Margin 9 Current Ratio 10 Gearing Ratio (Debt to Equity Ratio) 11 Profitability 11 Liquidity 11 Efficiency 12 Capital Structure
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purchasing plays in a firm’s overall logistics system including product design and selection‚ procurement of transportation and third-party logistics services‚ supplier selection‚ and the management of inventory and supplier relationships (Bowersox et al. 1992; Cavinato 1992; Gentry and Farris 1992; Lambert and Stock 1993). Purchasing managers span the boundary between the firm’s internal functions and its external stakeholders‚ including suppliers and third parties (Cavinato 1992; Webster 1992). These
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Technology is today’s tool just like textbooks and dictionaries were the past’s tools. The way we use‚ it is an easy access. it is just faster than a textbook. Also using Technology‚ a new world opens up for us to use. In Mizuko Ito Et Al’s article “new media allow for a degree of freedom and autonomy for youth that is less apparent in a classroom setting” I believe that with the use of technology we can do anything we put our minds to. The technology allows for people who can not go to school
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