------------------------------------------------- Chapter 9—Break-Even Point and Cost-Volume-Profit Analysis MULTIPLE CHOICE 1. CVP analysis requires costs to be categorized as a. | either fixed or variable. | b. | direct or indirect. | c. | product or period. | d. | standard or actual. | ANS: A PTS: 1 DIF: Easy OBJ: 9-1 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Decision Modeling 2. With respect to fixed costs‚ CVP analysis
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CHAPTER 20 INVENTORY MANAGEMENT‚ JUST-IN-TIME‚ AND SIMPLIFIED COSTING METHODS 20-1 Cost of goods sold (in retail organizations) or direct materials costs (in organizations with a manufacturing function) as a percentage of sales frequently exceeds net income as a percentage of sales by many orders of magnitude. In the Kroger grocery store example cited in the text‚ cost of goods sold to sales is 76.8%‚ and net income to sales is 0.1%. Thus‚ a 10% reduction in the ratio of cost of goods sold to sales
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can this statement relateto accounting? A syntactic theory is one that is capable of testing on the basis that it is valid in terms of itslogical consistency. Thus the calculation of accounting profit and determination of assetvaluation can be valid in relation to their conformity with rules prescribing the measurementof accounting profit and asset valuations. This can be described as sterile as it does notnecessarily relate to the real world. Historical cost accounting has been represented as being purely
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ACCT2201 CORPORATE ACCOUNTING Tutorial 8 – Week beginning 5th of May REVIEW QUESTIONS Chapter 15 8. When are potential voting rights considered when deciding if one entity controls another? Potential voting rights are rights to obtain voting rights of an investee‚ such as within an option or convertible instrument. Potential voting rights are only considered if the rights are substantive ie practical or utilitarian. This depends on the terms and conditions associated with the options.
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CHAPTER 12 STATEMENT OF CASH FLOWS SUMMARY OF QUESTIONS BY OBJECTIVES AND BLOOM’S TAXONOMY |Item | |1. | |42.
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Chapter 9 Profit Planning and Activity-Based Budgeting McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies‚ Inc. All rights reserved. Learning Objective 1 9-2 Learning objective 1 • List and explain five purposes of budgeting systems. Purposes of Budgeting Systems Budget Budget a detailed plan‚ expressed in quantitative terms‚ that specifies how resources will be acquired and used during a specified period of time. 1. Planning 2. Facilitating Communication and Coordination 3
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QUESTION 9.2 NARRABRI LTD The carrying amount of the assets of the Toy Train Division is $500 000. If the value in use is $423 000‚ then there is an impairment loss of $77 000. The impairment loss is firstly used to write off the goodwill - $50 000. The balance of the loss - $27 000 – is allocated across the other assets‚ except for inventory assuming it is recorded at the lower of cost and net realisable value: Carrying Proportion Allocation Net Carrying Amount of Loss Amount
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Chapter 7 Homework Solutions Q7-1 Absorption and variable costing differ in how they handle fixed manufacturing overhead. Under absorption costing‚ fixed manufacturing overhead is treated as a product cost and hence is an asset until products are sold. Under variable costing‚ fixed manufacturing overhead is treated as a period cost and is expensed on the current period’s income statement. Q7-2 Selling and administrative expenses are treated as period costs under both variable costing and absorption
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CHAPTER 17 PROCESS COSTING 17-16 (25 min.) Equivalent units‚ zero beginning inventory. 1. Direct materials cost per unit ($750‚000 ÷ 10‚000) $ 75.00 Conversion cost per unit ($798‚000 ÷ 10‚000) 79.80 Assembly Department cost per unit $154.80 2a. Solution Exhibit 17-16A calculates the equivalent units of direct materials and conversion costs in the Assembly Department of Nihon‚ Inc. in February 2009. Solution Exhibit 17-16B computes equivalent unit costs. 2b. Direct materials cost
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Individual Assignment Problems MBAO287-ADM-471P-A: Essentials of Accounting I have read and understand the plagiarism policy as outlined in the syllabus and the sections in the Student Bulletin relating to the IWU Honesty/Cheating Policy. By affixing this statement to the title page of my paper‚ I certify that I have not cheated or plagiarized in the process of completing this assignment. If it is found that cheating and/or plagiarism did take place in the writing of this paper‚ I understand
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