contribution margin‚ to just cover short-term variable costs‚ what consequences could it experience? (5 marks) Several break-even-point assumptions are made in calculation: 1) Total fixed costs do not change with volume‚ and will exist regardless if the products are sold or not. 2) Sales mix will be constant. The contribution-margin percentage is 66.1%‚ which means 66.1 percent of each sales dollar is available for covering fixed costs and making income: $1‚365‚650/66.1%=$2‚065‚387 sales are
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borrow any fund from bank as well. Based on this circumstances‚ since Yummy Sdn Bhd can’t find the fund in any external wayfinding‚ so the company can attempt to find fund through internal wayfinding. The first way suggest to the company is do the cost saving project. Yummy Sdn Bhd can try to suggest and provide a scheme to the supplier which can be get the win win solution. In this solution‚ Yummy Sdn Bhd and supplier should reach a consensus which is supplier should promise to supply a good quality
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China 6 1.3 research contents 8 2. Related theories 9 2.1concept of ABC 9 2.2 rationales 10 2.3 difference between ABC and traditional costing 12 2.3.1. Different calculating targets 12 2.3.2 Different calculation 12 2.3.3. Different Finished goods costs term 13 3. Research methodology 13 3.1 case study 13 3.2 The survey method 13 3.3 Literature 14 4. Research Results 14 4.1 problems of traditional costing method in oil refining enterprise 14 4.2suggestions for Chinese enterprises’ application ABC
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MANAGEMENT 5-16 (20 min.) Cost hierarchy. 1. a. Indirect manufacturing labor costs of $1‚450‚000 support direct manufacturing labor and are output unit-level costs. Direct manufacturing labor generally increases with output units‚ and so will the indirect costs to support it. b. Batch-level costs are costs of activities that are related to a group of units of a product rather than each individual unit of a product. Purchase order-related costs (including costs of receiving materials and
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database to assign costs to specific customers and to their outsourced contractors provided service to the customers. The cons for the ABC were the matrix design of figuring out specific cost drivers‚ it also was an expensive system to implement. The pros to ABC seemed to outweigh the cons. ABC allowed Super Bakery to track profitability of each individual customer and track the performance of the outsourced contractors. Management was able to identify that the key cost driver was not the dollar
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market. Wilkerson is a quality leader although his competitor also have a best match with him. Butt there is no competition in price facing by wilkerson‚ and there is no chances in future. So wilkerson should compete in price by analyze its overhead cost. Pumps are commodity products‚ produced in high volumes for a market with high price competition - price cutting by competitors led to a drop of Wilkerson’s pre-tax margin to under 3%‚ gross margin on sales for pump sales has fallen below 20%. Flow
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(Spring 2003). The assignment of indirect costs in a volume-based costing system can lead to product-cost subsidization—overcost high-volume products and undercost low-volume products. Undercosted products can lead to the appearance of predatory pricing where it actually does not exist. This article focuses on a lawsuit brought against a major chain of retail motor fuel (gasoline) service centers for allegedly selling regular-grade gasoline below cost‚ as defined by state statutes. The defendant
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Cost Accounting - I Dakota Office Products PGP1 – Section B Group 6 Submitted By:- AMOL DHAIGUDE KHAGESH KAUSHAL MOHAMMAD AMIR POONAM VERMA R. ANAND SUBINAY BEDI Dakota Office Products Q.1) Why was Dakota’s existing pricing system inadequate for its current operating environment? The Account receivable policy is very liberal causing
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Activity-Based Systems: Measuring the Costs of Resource Usage Robin Cooper and Robert S. Kaplan Robin Cooper is a Professor at the Claremont Graduate School and Robert S. Kaplan is a Professor at the Harvard Business School. This paper describes the conceptual basis for the design and use of newly emerging activity-based cost (ABC) systems. TVaditional cost systems use volume-driven allocation bases‚ such as direct labor dollars‚ machine hours‚ and sales dollars‚ to assign organizational expenses
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recessionary trend of the market‚ Lehigh Steel reported record losses in 1991 after posting record profits in 1988. This had led to an increasing need to rationalizing Lehigh Steel’s product mix. Traditionally‚ Lehigh Steel has followed Standard Cost Method for cost accounting. Jack Clark‚ CFO of Lehigh Steel has given Bob Hall the task of implementing Activity Based Costing at Lehigh Steel. Mark Edwards‚ Director of Operations and MIS explored the implementation of Theory of Constrains (TOC) accounting
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