| 2011 | 2010 | Benchmark | Favorable (F)‚ Unfavorable (U)‚ or Approximate (A)? 2011/2010 | 1. Current ratio | 3.52 | 2.59 | 2.00 | Favorable | 2. Days cash on hand | 27.64 | 18.10 | 15.00 | Favorable | 3. Days in A/R | 69.32 | 76.59 | 45.00 | Favorable | 4. Operating margin | 2.18% | 3.03% | 4% | Unfavorable | 5. Return on total assets | 5.08% | 7.13% | 4% | Unfavorable | 6. Return on net assets | 14.54% | 17.76% | 10% | Unfavorable | 7. Debt to capitalization
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A1. Budget planning is in essence the process of forecasting and determining a company’s financial goals for both the long term and short term. Competition Bike‚ Inc. has come up with a budget schedule for year 9 operations. Based on its previous years and past financial numbers there are several areas of concern. First research and development is a concern because in the years that they invested more money in research and development it seemed sales where at its highest. Research and development
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first impressions. Participants were presented with a list of adjectives that described a hypothetical person. They were to form impressions about that individuals personality based on that list. The presentation order was counterbalanced with favorable‚ unfavorable‚ and neutral descriptors. These lists would be the sole basis of the formation of their impressions. Measurements were based on participant response using a rating scale‚ brief written impressions‚ and descriptive adjective check list. The
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Variance (Recycled material) Materials Price Variance Per ounce price Unfavorable Materials Quantity Variance Ounce per unit Favorable (Non-recycled material) Material Price Variance Price per package Favorable Material Quantity Variance Usage per unit Unfavorable Labor Rate Variance Per hour Favorable Labor Efficiency Variance Time per unit Favorable 1. Explain how the above variances could explain the following: Scrap Material
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CHAPTER 25 STANDARD COSTS AND BALANCED SCORECARD SUMMARY OF QUESTIONS BY STUDY OBJECTIVES AND BLOOM’S TAXONOMY Item SO BT Item SO BT Item SO BT Item SO BT Item SO BT True-False Statements 1. 1 K 9. 3 C 17. 3 C 25. 4 C sg33. 3 K 2. 1 K 10. 3 K 18. 4 K 26. 5 K sg34. 4 K 3. 1 C 11. 3 C 19. 4 C 27. 6 C sg35. 4 C 4. 1 K 12. 3 K 20. 4 K 28. 9 C sg36. 5 K 5. 2 C 13. 3 K 21. 4 K 29. 9 C sg37. 6 K 6. 3 C 14. 3 C 22. 4 K 30. 9 C sg38. 7 K 7. 3 K 15. 3 K 23. 4 C sg31. 1 K 8. 3 C 16. 3 K 24. 4 C
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planning gap and identify how it can fill that gap. The three stages of identifying opportunities are; identifying opportunities to achieve further growth within current businesses‚ identifying opportunities to build or acquire businesses that are related to current businesses and identifying opportunities to add attractive businesses unrelated to current business As seen in the case‚ Cisco has gone through all of these stages growth over the years to achieve its successes. In 1991‚ Cisco opened
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achieved as output is 200 units over budget. Despite the increased output‚ the goal of decreasing cost is failing thus far. There is an unfavorable contribution margin variance to budget of $58‚660. The components that are driving that unfavorable contribution margin variance are in the analysis below. Direct Materials The first component of the unfavorable contribution margin is direct
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CHAPTER 10 Standard Costing and Performance Measures for Today’s Manufacturing Environment ANSWERS TO REVIEW QUESTIONS 10-1 Management by exception is a managerial technique in which only significant deviations from expected performance are investigated. 10-2 Any control system has three basic parts: a predetermined or standard performance level‚ a measure of actual performance‚ and a comparison between standard and actual performance. The system works by making the comparison between
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variance (-$84‚476 Unfavorable) and the sales-volume variance (-$29‚070 Unfavorable). The flexible budget variance is caused by the actual gross margin being less than what the flexible budget predicted it to be. The sales volume variance informs the company that there was a change in the contribution margin since they only sold 47‚000 bird feeders compared to 50‚000 bird feeders‚ which is what they budgeted. The price variance for the direct material cedar was -$22560 Unfavorable‚ and for direct
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per hr | $9.60 per hour | favorable | Labor usage | 61‚000 hrs | 61‚800 hrs | unfavorable | Fixed cost spending | $400‚000 | $390‚000 | favorable | Fixed cost per unit | $3.20 per unit | $3.16 per unit | favorable | Sales volume | 40‚000 units | 42‚000 | unfavorable | Sales price | $3.60 per unit | $3.63 per unit | unfavorable | Materials cost | $2.90 per pound | $3.00 per pound | unfavorable | Materials usage | 91‚000 pounds | 90‚000 pounds | favorable | 15-2. Item | Budget
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