Conversion Cost NO. Prime Cost NO.....Conversion Cost YES. Instructor Explanation: Chapter 2 Points Received: 0 of 6 Comments: 2. Question : (TCO A) A cost incurred in the past that is not relevant to any current decision is classified as a(n) Student Answer: period cost. incremental cost. opportunity cost. None of the above Instructor Explanation: Chapter 2 Points Received: 6 of 6 Comments: 3. Question
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Galilee College Managerial Accounting Final Exam Overview for Saturday June 8th Instructions A. Complete the budgeting questions and any one of the others. 1. Service Cost Allocations CLASS: Teck Tecky Water Services provides water for Departments A‚B and C and has prepared its total budget using the following information for the next year:- Fixed Costs $300‚000 Budgeted Gallon Usage:- Variable Costs $0.10 per gallon Dept. A 2‚500‚000 gallons Available capacity 10‚000
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flash drives for computers‚ which it sells for $20 each. Each flash drive costs $12 of variable costs to make. During April‚ 1‚000 drives were sold. Fixed costs for March were $2 per unit for a total of $1‚000 for the month. How much is the contribution margin ratio? A) 30% B) 40% C) 60% D) 70% 6. Dunbar Manufacturing ’s variable costs are 30% of sales. The company is contemplating an
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Prestige Telephone Company I. Case Background Prestige Data Services (PDS)‚ a subsidiary of Prestige Telephone Company (PTC)‚ has been experiencing bottom line losses for the two years it has been operating since 1995. The subsidiary has been performing all the data processing for the telephone company and selling computer services to other companies and organizations. Susan Bradley‚ the subsidiary manager was preparing for a meeting with Daniel Rowe‚ president of Prestige Telephone
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Manufacturing overhead $0.40 Selling costs $2.00 Annual fixed costs $96‚000 1. Calculate the contribution margin per unit. CM= $20 - $4 - $1.60 - $0.40 - $2 = $12 Contribution Margin Ratio = CM/Selling Price =12/20=0.6 Thus‚ the breakeven point in total sales dollars is: Fixed Costs = 96000/0.6 = $160‚000 Contribution Margin Ratio 2. Calculate the number of units Northenscold’s must sell each year to break even. FC/CM
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30 tons at a retail price of Cr. 8.2 is the Contribution Margin Contribution margin = revenue - variable costs Price to Dansk Minox 5.26 Incremental Cost 3.23 Less: Transportation‚ storage (.20) Labor (.50) 2.53 Profit Contribution 2.73 Volume 30 tons (30‚000 Kg) Contribution Margin( 2.73×30‚000) 81‚900 Question
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Harvard Business School 9-198-048 Rev. October 14‚ 1999 Citibank: Performance Evaluation Frits Seegers‚ President of Citibank California‚ was meeting with his management team to review the performance evaluation and bonus decisions for the California branch managers. James McGaran’s performance evaluation was next. Frits felt uneasy about this one. McGaran was manager of the most important branch in the Los Angeles area‚ and his financials were impressive. A year ago he would have
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4) fixed costs per unit stay the same. Question 17 0 / 1 point A firm has revenues of $120‚000‚ a contribution margin ratio of 30%‚ and fixed expenses that total $56‚000. If revenues increase by $20‚000‚ then: 1) operating income will increase by $6‚000. 2) operating income will be 0. 3) fixed expenses will increase $8‚000. 4) the contribution margin ratio will increase by 1/8. Question 18 0 / 1 point Direct costs pertain to costs that: 1) are traceable
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JanMar Case Study Case Analysis United States Paint Industry The US paint industry is divided into three broad segments: architectural coatings‚ original equipment manufacturing (OEM) coatings‚ and special-purpose lacquers. The paint industry is a maturing industry. In 2004‚ sales were estimated to be slightly over $16billion and an average growth of 1-2% per year. Architectural Paint Coatings Industry The industry estimates that architectural coatings and sundries (brushes‚ paint removers
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variance had been generated to offset gross margin Explanation Required On the Income Statements under Full costing and Variable costing some line items indicate differences. LANDAU COMPANY Income Statements June and July in US Dollars June July Full Variable Full Variable Costing Costing Costing Costing Sales Revenue 865‚428 865‚428 931‚710 931‚710 Cost of sales at standard 484‚640 337‚517 521‚758 363‚367 Standard gross margin 380‚788 527‚911 409‚952 568‚343 Production
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