Oldsmobile‚ Cadillac‚ and Oakland‚ today known as Pontiac" (General Motors‚ 2012). In this paper GM ’s income statement will be reviewed to figure out the following calculations: the number of cars sold each quarter‚ the elasticities‚ marginal cost‚ variable cost‚ and fixed costs. After figuring out these calculations‚ there will be a clear answer to what the future options are for General Motors if they decide to expand. Using the revenue figures from the income statement and the prices per car calculate
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application of fixed costs‚ variable costs‚ the least-squares method‚ and the high-low method. Your assignment is to complete the requirements identified for Case 6-49: 1-4. 1. High-low method: Variable administrative cost per patient = Total cost at 1‚500 patients=$16‚100 Variable cost at 1‚500 patients=15‚000 Fixed cost per month=$1‚100 Cost formula: Total monthly administrative cost = $1‚100 + $10X‚ where X is the number of patients for the month. The variable cost per patient is $10.
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Costing Methods Paper Variable and absorption costing methods are two different costing methods. Almost all successful companies in the world use both methods. Variable costing and absorption costing cannot be substituted for one another because both the systems have their own benefits and limitations (Accounting for management). This paper will complete and discuss exercise 19-17 in Wiley Plus: it will discuss the following questions: In this case‚ would it be better to use the variable or absorption costing
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per worker is $80‚ and the price of the firm’s output is $25. The cost of other variable inputs is $400‚000 per day. Assume that total fixed cost equals $1‚000‚000. Calculate the values for the following four formulas: • Total Variable Cost = (Number of Workers * Worker’s Daily Wage) + Other Variable Costs • Average Variable Cost = Total Variable Cost / Units of Output per Day • Average Total Cost = (Total Variable Cost +Total Fixed Cost) / Units of Output per Day • Worker Productivity = Units
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Competition Bikes Inc. Storyline Managing Capital & Financial Assets 04/12/2014 WGU JET2 Financial Analysis Task 4 - PASSED To: Vice President The following is a summary report to recommend whether Competition Bikes should change its traditional costing method to activity based costing‚ and an analysis of the breakeven point with regards to sales units and dollars for both CarbonLite and Titanium bikes. It also discusses the impacts to the breakeven point. The cost-volume-profit evaluation
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mathematical model that defines a functional relationship between various input variables (or independent variables) and one or more bottom-line performance measures (or dependent variables). The following equation expresses this relationship: Y = f(X1‚ X2‚ ...‚ Xk) In many spreadsheets‚ the values of various input cells are determined by the person using the spreadsheet. These input cells correspond to the independent variables X1‚ X2‚ ...‚ Xk in the previous equation. Various formulas (represented
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This number cannot exceed the 40 hours available. Since hours per ton is the reciprocal of the tons per hour given above‚ we have a constraint on the variables: (1/200) XB + (1/140) XC ≤ 40. There are also production limits: 0 ≤ XB ≤ 6000 0 ≤ XC ≤ 4000 In the statement of the problem above‚ the upper limits were specified‚ but the lower limits were assumed — it was obvious that a negative production
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Accounting II Final Exam Review Chapter 18 Direct and Indirect Costs -Cost – a payment of cash or a commitment to pay cash in the future for the purpose of generating revenues. A. Cost object – costs that are often classified by their relationship to a segment of operations. Ex. Product‚ sales territory‚ a department‚ or an activity‚ such as research and development 1. Direct Cost = identified with and can be traced to a cost object Ex. The wood for a guitar is a direct cost of the
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price is the sum of cost and profit. Therefore the forecast of the price depends on the price comparison of competition‚ considering that this company offers a similar service like mine. All business involves two types of costs: fixed costs and variable costs‚ so it is important to distinguish between reasonable‚ allowable‚ and allocable costs. Cost reasonableness is a matter of common sense. In the case of Sky Fighters Inc which mainly deals with the government in contracting for special products
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If direct materials are $8.00 per unit‚ direct labor is $4.00 per unit‚ variable manufacturing overhead is $6.00 per unit‚ and fixed costs are $12‚000 for the units produced‚ then what would be the cost assigned to 2‚000 of units in ending inventory? If direct materials are $8.00 per unit‚ direct labor is $4.00 per unit‚ variable manufacturing overhead is $6.00 per unit‚ and fixed costs are $12‚000 for 6‚000 units produced‚ what is the total cost per unit under throughput costing? Under throughput
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