COST DEFINITIONS Fixed Cost – expenses that remain constant over a wide range of output volumes Variable Costs – expenses that vary proportionately with changes in output. Sunk Costs – expenses already incurred that have no salvage value Opportunity Costs – profits lost when one alternative is chosen over another that would have provided greater financial benefits. Avoidable Costs – expenses resulting from poor productivity incurred if an investment is not made. Out-of-Pocket Costs – actual
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Waterways Continuing Problem 1 Waterways Continuing Problem WCP1 Waterways Corporation is a private corporation formed for the purpose of providing the products and the services needed to irrigate farms‚ parks‚ commercial projects‚ and private homes. It has a centrally located factory in a U.S. city that manufactures the products it markets to retail outlets across the nation. It also maintains a division that provides installation and warranty servicing in six metropolitan areas. The mission
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difficult to combat. There is also a decreasing interest rate in the market which means that Harnischfeger corporation will have to deal with high interest rate in the future. The change in the depreciation policies will improve the profitability of the firm now but in the long run there would be higher depreciation costs which lead to greater operating costs. As the plant and equipment age‚ there would be higher maintenance costs which would further cause higher operating
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Tangible Fixed Assets OBJECTIVE SCOPE DEFINITIONS RECOGNITION Initial Costs Subsequent Costs MEASUREMENT AT RECOGNITION Elements of Cost Measurement of Cost MEASUREMENT AFTER RECOGNITION Cost Model Revaluation Model Depreciation Depreciable amount and depreciation period Depreciation method Impairment Paragraphs 1 2-5 6 7-15 11-12 13-15 16-30 17-23 24-30 31-66 32 33-43 44-63 49-60 61-63 64 2 Compensation for Impairment DERECOGNITION DISCLOSURE TRANSITIONAL PROVISIONS APPENDICES A. B. Comparison
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To: CFO of Athina Building Supplies Ltd. From: IV Consulting Group’s consultants- Purpose: Recommendations for the CFO of Athina Building Supplies Ltd. We are writing to you on behalf of IV Consulting Group after closely examining the financial statements of your national retail and commercial building supplier chain‚ Athina Building Supplies Ltd.’s. We have stumbled upon several issues‚ which will be discussed in detail below. We have prepared an insightful report on our findings and recommendations
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ACT 202: INTRODUCTION TO MANAGERIAL ACCOUNTING INSTRUCTOR: MR. RAKIBUL HASAN LECTURER‚ SCHOOL OF BUSINESS NORTH SOUTH UNIVERSITY PREPARED BY: NAME SAJEDUL HAQUE NAZIA NADVY CHOUDHRY ANIKA SULTANA ID# 1120359030 1111087030 1120416030 SECTION 11 11 11 Page | 1 ASSIGNMENT TOPIC: A MASTER BUDGET FOR A MANUFACTURING LOCAL STORE SELECTED STORE NAME: SHOJIB TEA STALL LOCATION: GANDARIA‚ GANDARIA RAILWAY STATION DATE OF SUBMISSION: 21ST DECEMBER‚ 2012 Page | 2 Letter of Transmittal
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In brief‚ the complaint says the company’s revenues were not growing fast enough to meet its earnings targets‚ so the defendants instead resorted to improperly eliminating and deferring current period expenses. Specific tactics: * Avoiding depreciation expenses on their garbage trucks by both assigning unsupported and inflated salvage values and extending their useful lives. * Assigning arbitrary salvage values to other assets that previously had no salvage value. * Failing to record
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expected to improve gross margin (before depreciation and energy saving) from 11.5% to 12.5%. The engineering group at Merseyside was highly confident that efficiencies would be realized. Merseyside currently produced 250000meteric tons of polypropylene averaged Pound 541 per ton. The tax rate required is 30%. Morris discovered that any plant facilities which are to be replaced had been completely depreciated. New asset could expect to have life of 15years. Depreciation can be charged on the basis of straight-line
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Case Questions: 1. Option #3 suggests Stryker Corporation to build its own facility to manufacture its own PBCs. Under the current situation that some contract manufacturers have weak performance in quality and delivery‚ the benefits of this option are obvious as following: First of all‚ option #3 promised the highest degree of control over quality and delivery‚ which can solve the major problem that Stryker has faced with recently. On the other hand‚ self-manufacturing offers an opportunity
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or as a noncash (NC) transaction reported in a separate schedule‚ and (2) represents a cash inflow or cash outflow or has no cash flow effect. Assume use of the indirect approach. Transaction Where Reported Cash Inflow‚ Outflow‚ or No Effect? Depreciation expense on the plant assets Noncash (NC) Inflow Paid interest expense. Investing (I) Outflow Cash from a sale of plant assets. Investing (I) Inflow Acquired land by issuing common stock. Noncash (NC) No Effect Paid a cash dividend
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