Managerial accounting chapter 13 garison Question 13-11 Project A Initial Cost = $15‚000 Life of the project = 10 years Annual net cash inflow = $4‚000 Salvage Value = $0 Required rate of return = 16% Item Years Amount of cash flow 16% factor Present Value of Cash flow Annual net cash flow 1 to 10 $4‚000 4.833 $19‚332 Intial Investment Now $15‚000 1 $15‚000 Net Present Value (a-b) $4‚332 Project B Initial
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that add value for customers using the product or service‚ and 2. Planning to use the drivers of costs in those activities in the most efficient way. 8-2 At the start of an accounting period‚ a larger percentage of fixed overhead costs are locked-in than is the case with variable overhead costs. When planning fixed overhead costs‚ a company must choose the appropriate level of capacity or investment that will benefit the company over a long time. This is a strategic decision. 8-3 The key
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This report is case study of Par‚ Inc. Par‚ Inc.‚ is a manufacturer of golf equipment. The company wants to check whether this new type of golf ball is comparable to the old ones. Therefore they did a test with 40 samples of both new balls and old ones. The testing was performed with a mechanical hitting machine so that any difference between the mean distances for the two models could be measure to evaluate the difference in the two models‚ presented with the sample size of 40 and confidence level
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making across the various functional areas of an organization Managerial accounting: the form of accounting concerned with providing information to managers for use in planning and controlling operations and for decision making Financial accounting: the form of accounting concerned with providing information to shareholders‚ creditors‚ and others outside the organization The work of managers and their need for managerial accounting information Every organization has managers – someone must be
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Prime cost = Direct materials + Direct labor = $39‚000 + $23‚000 = $62‚000 | (1) | 4. | The following costs were incurred in September: Conversion costs during the month totaled: | $50‚000 | | $59‚000 | | $137‚000 | | $67‚000 | Conversion cost = Direct labor + Manufacturing overhead = $29‚000 + $21‚000 = $50‚000 | (1) | 5. | Which of the following statements regarding fixed costs is incorrect? | Expressing fixed costs on a per unit basis usually is the
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Problems with Wildlife It is blatantly obvious that the level of wildlife has been decreasing amazingly over the years. Species of animals and plants are rapidly becoming endangered or even extinct. There are many factors that are making this problem a reality. Habitat destruction‚ hunting‚ and pollution are the three major factors that are destroying our wildlife. The destruction of habitat is the greatest of all threats to wildlife‚ whether they’re rich tropical forests‚ mangroves‚
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April 12‚ 1999‚ Government Recognition No. S-004‚ S‚ 1999 for the complete four-year Secondary Course was granted to the school. Presently‚ the school is located within the parish church lot of Macabebe‚ Pampanga. The parish church is in front of the town’s municipal hall. Statement of the Problems Time consuming process of payroll preparation The St. Nichols Academy still using the manual method of payroll process. A lot of jobs are assigned to the payroll maker and accounting clerk
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CHAPTER 9 ALTERNATE PROBLEMS Problem 9.1A Determining the Cost of Plant Assets Podunk College recently purchased new exercise equipment for its gym. The following information refers to the purchase and installation of this equipment: 1. The list price of the equipment was $180‚000; however‚ Podunk College qualified for an “educational discount” of $30‚000. It paid $20‚000 cash for the equipment‚ and issued a 3-month‚ 12% note payable for the remaining balance. The note‚ plus accrued
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Exercises and Problems - Week 6 XACC/291 12/21/2014 Exercises and Problems - Week 6 Before After After Action Dividend Stock Split Stock holders’ equity Paid in capital Common stock‚ $10 par $ 600‚000 $630‚000 $600‚000 Paid in capital in excess par value $0. $12‚000 0 Total paid in capital $600‚000 $642‚000 $600‚000 Return earnings $900‚000 $858‚000 $900‚000 Total stock holders’ equity
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Thomas Edison State College Principles of Managerial Accounting (ACC-102) Final Project 1. Cost-volume-profit relationships (15 points) The following data are available for a product manufactured and sold by Logan Company: Compute the following: (a) Contribution margin per unit: $_______________ Solution: Computation of the Contribution margin per unit Contribution margin per unit = Selling price per unit – Variable Cost per unit Where as Selling price per unit = 212 Variable Cost per
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