hour for power is $4.70‚ and the cost per revenue hour for operations hourly personnel is $24.00. Continuing with the analysis a contribution margin income statement has been created to determine the potential profits Salem Data Services could earn assuming the intracompany usage was 205 hours. Examining this income statement‚ operating income is a net loss of $30‚014 (see Exhibit 1). This shows a 5% decrease in revenue hours‚ as related to intracompany hour’s reduction‚ will result in a 27%
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five months of negotiation. In this report we will examine why it made strategic sense for the two companies to combine and evaluate the performance of the combined companies since its merger. In particular we will analyze the post-merger financial statements and highlight a few points regarding the accounting. INTRODUCTION OF KRAFT AND CADBURY Kraft Foods Inc. (KFT) is the world’s largest food processing company with revenues of $40 billion (fiscal year 2009) which sells its products in more
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Absorption costing are two different methods and ways that many organizations use to determine and calculate product cost. The income statements formats of both methods include period and product costs. However‚ each one has a different cost classification definition. Both have the same direct material and direct labor allocation‚ the differences is how they report the income‚ product‚ and pricing One of the main differences between the two methods is the accounting for the fixed manufacturing
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Discussion paper‚ research‚ exposure draft‚ standard. (c) Research‚ preliminary views‚ discussion paper‚ standard. (d) Research‚ discussion paper‚ exposure draft‚ standard. 3. GAAP is comprised of: (a) FASB standards‚ interpretations‚ and concepts statements. (b) FASB financial standards. (c) FASB standards‚ interpretations‚ EITF consensuses‚ and accounting rules issued by FASB predecessor organizations. (d) any accounting guidance included in the FASB Codification. 4. The authoritative status of
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months to complete. Professional Services The newest of the three divisions‚ had been added to Enager by acquiring a large firm that provided land planning‚ landscape architecture‚ structural architecture‚ and consulting engineering services. STATEMENT OF THE PROBLEM: The problem occurred when the president was unsatisfied with the ROA (Return of Assets) of Industrial Products Division and tried to put pressure on the General Manager of the Division. To develop and understanding of process
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No late submissions will be accepted. Assignment-1 The Procter & Gamble Company (P&G) The financial statements of P&G are Posted in BlackBoard‚ under “Handouts” Instructions Refer to P&G’s financial statements and the accompanying notes to answer the following questions. (a) What type of income statement format does P&G use? Indicate why this format might be used to present income statement information. (b) What are P&G’s primary revenue sources? (c) Compute P&G’s gross profit for each of
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would be an example of the application of: a.|going concern| b.|cost| c.|matching| d.|materiality| e.|realization| ANS: D 2. The going concern assumption: a.|is applicable to all financial statements| b.|primarily involves periodic income measurement| c.|allows for the statements to be prepared under generally accepted accounting principles| d.|requires that accounting procedures be the same from period to period| e.|none of the answers are correct| ANS: C 3. Understating
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Why would users rely on financial statements? What is an example of a financial measure that an external user might use? What is an example of a financial measure that an internal user might use? Users rely on financial statements to gauge the strength and outlook of companies. Others understand that. One would want that company to make money for them when they invest. If companies didn’t make money for you there would be no reason to buy stocks and no reason the price of a stock would ever
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| 4 | TOPIC 4CH 5 Balance Sheet | | 4.4‚ 4.6 | 4.16‚ 4‚18‚ 4.20‚ 4.21 | 4.24‚ 4.35 | | | | | | | | | | | | | | | | 5 | TOPIC 5CH 6 Income Statement and Statement of Changes in Equity | | 5.4‚ 5.5‚ 5.6‚ 5.9‚ 5.10 | 5.15‚ 5.24‚ 5.25 | 5.33 | 5.52 | 6 | TOPIC 6CH 8 Analysis and Interpretation of Financial Statements (Part 1) | Pages 312-338. | 6‚3 6.4‚ 6.8 | 6.16‚ 6.17‚ 6.20‚ 6.21‚ 6.23‚ 6.25‚ 6.26 | 6.37 | | WEEK | LECTURE | NOTES | RECOMMENDED TUTORIAL/HOME WORK |
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Activity-Based Costing in the Service Sector: The East Penn Bank ABSTRACT: This case illustrates why a major segment of the service sector banks - needs accurate cost information to make strategic decisions‚ and how more refined accounting systems help fulfill this need. East Penn Bank is a hypothetical bank that has suffered falling profits despite a shift in customer base toward retail customers‚ which the current information system reports are more profitable than business customers. Following
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