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
Premium Budget Balance sheet Inventory
Q1: There are two different types of cost accounting systems: Job order cost systems and process cost systems. How does management decide whether to use a job order cost system or a process cost system in any given manufacturing situation? Explain. Job order cost system is used in situations where many different products are produced each period. For example‚ a Levi Strauss clothing factory would typically make many different types of jeans for both men and women during a month. A particular order
Premium Costs Management accounting Manufacturing
certain that the marriage wouldn’t last‚ and expected Chris would be back any day. But time is passing quickly‚ and there is still no word from the desert. The President‚ desperately needing the budget completed‚ has approached you‚ a management accounting student‚ for help in preparing the budget for the coming fiscal year. Your conversations with the President and your investigations of the company’s records have revealed the following information: 1. Peak months for sales correspond with gift-giving
Premium 2008 Balance sheet 2009
Managerial Accounting and Control Decision Making: Relevant Costs and Benefits Case 14-62 Submited to: Prof. Virgilio c. Avila Submitted by: Roy Kondoy Shella Faye Background of the Study Sportway Corporation Sportway is a wholesale distributor supplying a wide range of moderately priced sports equipment to large chain stores Products: 60% purchased‚ 40% manufactured The company has a Plastics Department that is currently manufacturing molded fishing tackle boxes Sportway
Premium Contribution margin Cost Manufacturing
Time Value of Money Q1. Mr. Sundaram is planning to retire this year. His company can pay him a lump sum retirement payments of Rs 2‚ 00‚000 or Rs 25‚000 life time annuity whichever he chooses. Mr. Sundaram is in good health and estimates to live for at least 20 more years. If his interest rate is 12%‚ which alternative should he choose? Ans Present Value of Annuity 25000*7.469*1.12 = 2‚09‚132 Which is greater than lump sum value of Rs. 2‚00‚000. So Annuity option is better
Premium Time value of money Money Retirement
Not everything that can be counted counts‚ and not everything that counts can be counted. Albert Einstein LG Electronics‚ Inc established in 1958 and has its headquarter in Seoul‚ South Korea is one of the leading companies in the world which produces electronic and communication devices‚ IT productions. LG which stands for “Life’s Good” determines what the company is striving for. One of the main aim of LG Electronics is ensuring to make the dgigtal life better for its customers. Eco- Friendly
Premium South Korea Innovation Company
CHAPTER 10 QUIZ 1. A mixed cost function has a constant component of $20‚000. If the total cost is $60‚000 and the independent variable has the value 200‚ what is the value of the slope coefficient? a. $200 b. $400 c. $600 d. $40‚000 2. [CMA Adapted] Of the following methods‚ the one that would not be appropriate for analyzing how a specific cost behaves is a. the scattergraph method. b. the industrial engineering approach. c. linear programming. d. statistical regression analysis.
Premium Costs Cost Economics
Exercise 2-2 | | |Product |Period Cost | | | |(Inventoriable) Cost | | |1. |Depreciation on salespersons’ cars | |X | |2.
Premium USB flash drive Flash memory Inventory
CHAPTER 14 – Test Bank Multiple-Choice Questions 1. The Tempietto was a a. martyrium. b. little temple. c. baptistery. d. mausoleum. Answer: a 2. Which is NOT a feature of the Tempietto? a. a Doric peristyle b. a balustrade c. a dome d. an Ionic frieze e. a cella Answer: d 3. The painting of An Ideal City (artist anonymous) featured in the chapter illustrates what key aspect of Renaissance urban architecture? a. fixed spatial relationships between topiary and structures
Premium Sistine Chapel ceiling Raphael Michelangelo
5-5 Production Report‚ No Beginning Inventory Wantler Company Mixing Department ------------------------------------------------- Production Report for 2001 Unit Information Units to account for: Units in beginning WIP 0 Units started 75‚000 Units to account for 75‚000 Units accounted for: Equivalent Units Physical Direct Conversion Flow Materials Costs Units completed 75‚000 75‚000 75‚000 Units in ending WIP 12‚000
Premium Costs Total cost Units of measurement