A3XX | Developing the World’s Largest Commercial Jet | | 1. Airbus’ Interests & Objectives First of all‚ the large and cost-efficient A3XX would be popular with significant growth in the air transportation industry. Worldwide passenger traffic would almost triple in volume by 2019‚ with fuel price rising in the future. Creating large and cost-efficient aircrafts‚ rather than increasing frequencies and building new routes‚ would be the long-term solutions to the problem of growing
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Figuring “fixed costs‚ variable costs‚ and” (Oppapers.com‚ 2012) BEP Week 4 Tina Whittington HSM/260 May 11‚ 2014 Laura Huffaker Figuring fixed costs‚ variable costs‚ and BEP Week 4 10.1 The highest number of meals served was 4‚900 in December‚ with the lowest of meals being 3‚500 in July making a difference of 1‚400 of meals served‚ between the two months. The cost per meal variable is 1400÷$5500.00 for a total of $3.93 (WHDM’s) fixed cost is computed as follows $20‚500.00-(3‚500*$3.93)
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items ONLY. The company’s calculation is WRONG‚ as it takes into concern of irrelevant fixed cost. By double-counting depreciation‚ other Mfg. overheads‚ SG&A in Sunday’s cost; it distorts the P&L sheet. To correctly show cost structure for decision making‚ there are two different approaches‚ yet each should reach same conclusion. Approach 1: Differential Cost Approach As suggested in case‚ by producing 4 unites on Sunday‚ total depreciation‚ total Mfg. overhead and SG&A will not change
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Receivable 4‚150 Increase in Inventories 5‚900 Decrease in Salaries Payable 1‚130 11‚180 Net Cash Flows from Operating Activities P153‚850 COST VOLUME PROFIT 1. Melanie Company produces a merchandise that has the following data: Unit Sales price P80 per unit Unit vairiable costs P48 per unit Total fixes costs P640‚000 per annum Units sold during the current year P25‚000 units
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CHAPTER 12 PRICING DECISIONS AND COST MANAGEMENT 12-1 The three major influences on pricing decisions are 1. Customers 2. Competitors 3. Costs 12-2 Not necessarily. For a one-time-only special order‚ the relevant costs are only those costs that will change as a result of accepting the order. In this case‚ full product costs will rarely be relevant. It is more likely that full product costs will be relevant costs for long-run pricing decisions. 12-3 Two examples of pricing decisions with
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Training guide to break even analysis. What is breakeven analysis? Break even analysis is a calculation to show at what point you are making no profit or loss‚ so it is when a businesses total revenue covers total costs so it is to show how much output you will have to produce to cover your total costs‚ within a business. Break even is usually shown in the form of a graph. To work out the break even point of a business you need 3 important components which are: 1. Fixed costs‚ which are not usually
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term manufacturing overhead? | A) | Factory overhead | B) | Pervasive costs | C) | Burden | D) | Indirect manufacturing costs | 2. | Which one of the following is an example of a period cost? | A) | A change in benefits for the union workers who work in the New York plant of a Fortune 1000 manufacturer. | B) | Workers’ compensation insurance on factory workers’ wages allocated to the factory. | C) | A box cost associated with computers. | D) | A manager’s salary for work that is
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CHAPTER 1 – COST VOLUME PROFIT- MULTIPLE CHOICE QUESTIONS 1. CVP analysis can be used to study the effect of: A. changes in selling prices on a company ’s profitability. B. changes in variable costs on a company ’s profitability. C. changes in fixed costs on a company ’s profitability. D. changes in product sales mix on a company ’s profitability. E. All of these. 2. The break-even point is that level of activity where: A. total revenue equals total cost. B. variable cost equals fixed cost. C. total
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1. Product costs used for pricing and product-mix decisions generally include: Answer | | manufacturing costs only | | | design costs plus manufacturing costs | | | all costs incurred along the value chain | | | distribution costs only | 0.1 points Question 4 Within the relevant range‚ if there is a change in the level of the cost driver‚ then: Answer | | fixed and variable costs per unit will change | | | fixed and variable costs per unit will remain the
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to add that cost behavior is also identifying the key resources that are performed‚ resources used in performing these activities‚ costs of the resources‚ and what the cost is driven from. 2-2. Two rules of thumb when analyzing cost behavior are to manage what the company manufactures‚ sells‚ and to give advice as to where costs can be reduced. 2-3. Three examples of a variable cost are a 12% increase in the production of dresses‚ which will cause a 12% increase in variable costs. A 10% increase
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