Answer Key for Test Your Skills 1. Tutti’s Sandwich Shop has the following information regarding costs at various levels of monthly sales. Help Tutti separate her costs into fixed costs and variable costs so that she can predict and evaluate costs at varying levels of guests served. January February March Monthly Sales in Guests Served 10‚000 16‚000 20‚000 Cost of Sales (Food Cost ) 10‚500 16‚800 21‚000 Salaries‚ Wages‚ and Benefits 15‚000 15‚600 16‚000 Telephone 12‚750 16‚350 18‚750 Rent on
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Business Ethics in Managerial Accounting When companies don’t see the importance of business ethics in managerial accounting they usually end up down the same road as Enron: bankrupt. And while that isn’t always true‚ the importance of business ethics in managerial accounting cannot be understated if you want your company to be a success. Why Ethics Is Important in Managerial Accounting The Enron scandal is probably the most well-known example of improper accounting ethics on the part
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Final Paper Ashford University Managerial Marketing BUS620 Dr. Sharif Muhammad August 09‚ 2010 Table of Contents Abstract……………………………………………………………………………………….…...3 Market Plan………………………………………………………………………………….….....4 Executive Summary of Marketing Plan…………………………………………………….……..5 Analysis of current Situation……………………………………………………………….……..5 Company Overview……………………………………………………………….………5 Customer Analysis……………………………………………………………….………..7 Competitor Analysis……………………………………………………………….……...7 Microenvironment
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Chapter 2 1. Which of the following would be considered a product cost for external financial reporting purposes? a. Cost of a warehouse used to store finished goods. b. Cost of guided public tours through the company’s facilities. c. Cost of travel necessary to sell the manufactured product. d. Cost of sand spread on the factory floor to absorb oil from manufacturing machines. 1. Which of the following would be considered a product cost for external financial reporting purposes
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1.) A company is considering the following alternatives: Alternative 1 Alternative 2 Revenues $120‚000 $120‚000 Variable Costs $60‚000 $60‚000 Fixed Costs $35‚000 $35‚000 Which of the following are relevant in choosing between the alternatives? 2.) Adler Company manufactures a product with the following costs: Unit Variable Cost $50 Unit Fixed Cost $24 Total Cost Per unit $74 The company normally sells 10‚000 units at a price of $88 each. Adler has a one-time opportunity to sell
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Cheryl Montoya picked up the phone and called her boss‚ Wes Chan‚ the vice president of marketing at Piedmont Fasteners Corporation: “Wes‚ I’m not sure how to go about answering the questions that came up at the meeting with the president yesterday:’ “What’s the problem?” “The president wanted to know the break-even point for each of the company’s products‚ but I am having trouble figuring them out:’ “I’m sure you can handle it‚ Cheryl. And‚ by the way‚ I need your analysis on my desk tomorrow
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iv. Analyzing Company Accounts v. Ratio Analysis II. MANAGEMENT ACCOUNTING 3 i. The Objectives of Management Accounting: ii. Scope of Management Accounting: iii. Functions of Management Accounting: iv. Advantages of Management Accounting: v. Limitations of Management Accounting: vi. Tools and Techniques: III. INTRODUCTION TO FINANCIAL RATIOS 8 i. Financial Ratio Analysis: ii. Users of Accounting Information: IV. DESCRIPTION AND DETAIL OF THE COMPANY – SRI LANKA
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Current Ratio 1.90 to 1 2.53 to 1 (c.assets / c.liabilities) C.) Quick Assets * Cash + Marketable Securities + Accts. Recievable $ 550‚000 $ 468‚000 Current Liabilities $ 800‚000 $ 430‚000 Acid-test Ratio 0.69 to 1 1.09 to 1 (quick assets / c.liabilities) D.) Sales on Account $ 5‚000‚000 $ 4‚350‚00 Average Recievable $ 390‚000 $ 275‚000 Turnover of Recievables 12.8 times 15.8 times * sales on account
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Managerial Accounting‚ 3e (Braun/Tietz) Chapter 2 Building Blocks of Managerial Accounting 1) Service companies must carry a large amount of inventory to meet consumer demand. Answer: FALSE Diff: 1 LO: 2-1 EOC: E2-1 AACSB: Reflective Thinking Learning Outcome: Define and use cost-volume-profit analysis to analyze the effects of changes in costs and volume on a company’s profits 2) Manufacturing companies usually have three types of inventory. Answer: TRUE Diff: 1 LO: 2-1
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involves: 1. Planning to undertake only those variable overhead activities 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
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