problems with Sippican’s cost system‚ should executives abandon overhead assignment to products entirely and adopt a contribution margin approach in which manufacturing overhead is treated as a period expense? Why or why not? Answer: Consider Sippican is a manufacturer company with multiple products‚ using simple cost accounting system that directly allocate factory overhead to unit of product entirely through one single allocation base (i.e. 185 % of production run direct labor cost in this case) is although
Premium Management Organization Education
CHAPTER 6 PRODUCTION EXERCISES 4. A political campaign manager must decide whether to emphasize television advertisements or letters to potential voters in a reelection campaign. Describe the production function for campaign votes. How might information about this function (such as the shape of the isoquants) help the campaign manager to plan strategy? The output of concern to the campaign manager is the number of votes. The production function has two inputs‚ television advertising and
Premium Costs Cost Marginal cost
for years three and four‚ 10% for years five and six‚ and 5% thereafter. What is the expected dividend for year 10 if the required return is 18 percent? 4. The stock of SuperGrowth‚ Inc. just paid a dividend of $0.78. What is the expected capital gains yield if the stock is selling for $28.25 today and the required rate of return is 15 percent? 5. You purchase 500
Premium Stock Bond Time value of money
Strategy AES distinguishes itself through developing new products and applications at a low cost. It is committed to social responsibility and empowering its employees through its four main principles which include integrity‚ fairness‚ social responsibility and fun. It is "different" from other corporations because AES is focused on retaining its core values and culture as the corporation expands in size. The company ’s sources of sustainable competitive advantage include technical leadership
Premium Human resources Human resource management
Hundreds of millions of dollars were committed to ideas concerning technology that had not been developed yet. Aerospace and defense contractors were growing without bounds‚ thanks to cost-plus-percentage-of-cost contract awards. Speed and technological capability were judged to be significantly more important than cost. To make matters worse‚ contracts were often awarded to the second or third most qualified bidder for the sole purpose of maintaining competition and maximizing the total number of defense
Premium Management Project management Risk management
Research Note on the Stocks of CALATA CORPORATION Submitted by: Shaira Marie Bual Aries Kathleen Cambarijan Napoleon Fortis Cristel Mercado Debbie May Poblacion Nova Angelique Ramos Janica Bianca Talisayan Submitted to: Mr. Rolan Literatus CPA‚ MBA Date: May 25‚ 2015 I. Corporate Background CALATA CORPORATION fully owns and operates its own chain of retail stores named AGRI - the largest retailer of the country’s choice brands such as AGRI Crop Protection‚ Heisenberg veterinary
Premium Technical analysis
STATISTICS AND CALCULATION: 1. Summary statistics: Accroding to the collected data: There is one non- callable bond issues of FedEx Corporation (FDX) in the ten-year maturity which is FDX.GD‚ use its yield of maturity as the pre-tax cost of debt. * Market value of
Premium United States Postal Service United Parcel Service Courier
Capital Budgeting Assignment #2 Breana N. Rainge 23. Bauer Industries is an automobile manufacturer. Management is currently evaluating a proposal to build a plan that will manufacture lightweight trucks. Bauer plans to use a cost of capital of 12% to evaluate this project. Based on extensive research‚ it has prepared the following incremental free cash flow projections (in millions of dollars): | Year 0 | Year 1-9 | Year 10 | Revenues | | 100.0 | 100.0 | -Manufacturing expenses (other
Premium Net present value Discounted cash flow
development process which helped Xerox managed its worldwide services (including product design‚ manufacturing‚ distribution‚ component suppliers and customer service). Through the reduction in development cycle of its products‚ the firm was able to saved costs. Lastly‚ Xerox monitored its inventory management as the firm formed its Central Logistics and Assets Management which facilitated the reduction of excess inventory versus customer demand. These developmental changes improved the performance of Xerox
Premium Management Supply chain management Supply chain
3 Cost-Volume-Profit Analysis Learning Objectives 1. Explain the features of cost-volumeprofit (CVP) analysis 2. Determine the breakeven point and output level needed to achieve a target operating income 3. Understand how income taxes affect CVP analysis 4. Explain how managers use CVP analysis in decision making 5. Explain how sensitivity analysis helps managers cope with uncertainty 6. Use CVP analysis to plan variable and fixed costs 7. Apply CVP analysis to a company producing multiple
Premium Contribution margin Management accounting Variable cost