CHAPTER 9 PROFIT PLANNING AND BUDGETING Questions‚ Exercises‚ Problems‚ and Cases: Answers and Solutions 9.1 See text or glossary at the end of the book. 9.2 A cost center is a responsibility center in which management is responsible only for costs. In a profit center‚ management is responsible for both costs and revenues. 9.3 An investment center is a responsibility center in which management is responsible for managing costs‚ revenues‚ and assets. A profit center is not responsible
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Session 2 : Principles of Accounting and Financial Reporting - Chapter Two Quiz 1. Which of the following is a difference between financial reporting for internal service and enterprise funds? (Points : 10) Internal service funds are reported in the governmental fund financial statements. Internal service funds are reported in the proprietary fund financial statements. Internal service funds are generally
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Introduction Financial ratio analysis is important to a business’s success. A financial ratio analysis is an indicator of a company’s financial performance. It helps a business compare company financials with previous periods and also allows a business to contrast its financials to similar companies. A financial ratio can provide a clear image of a company ’s state and identify trends that are emerging. Use of ratios in analyzing financial statements Ratio analysis is a form of financial
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Receivables Turnover According to the table that shows Gamma turnover is 5.8 times and it’s mean Gamma collect his receivables about 5.8 times each year but alpha turnover is 1.4 times and it’s mean that alpha collect his receivables about 1.4 times each year. So‚ Gamma Corporation has higher proportion than Alpha Corporation and it shows that gamma corporation operates more efficiently with smoother cash flow and collects the money from the creditor easily and on the time. Also‚ that probably gathered
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February 26th‚ 2012 English 50 Response to Ian Frazier’s “In Praise of Margins” In Ian Frazier’s essay‚ “In Praise of Margins”‚ according to Frazier “Marginal” activates and places are valuable when you’re a child. Frazer defines marginal people‚ places‚ and activates as the ones that don’t quite work out‚ don’t sufficiently account for themselves in the economic world. Frazier gives example in his essay to that idea‚ showing his disconnection to his childhood now that he’s an adult. His first
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income statement for last month: Sales $1‚000‚000 Less: Variable Expenses $ 700‚000 Contribution Margin $ 300‚000 Less: Fixed Expenses $ 180‚000 Operating Income $ 120‚000 The company has no beginning or ending inventories. A total of 20‚000 units were produced and sold last month. What is the company’s margin of safety in dollars? $400 000 10 points Question 2 1. The following is Addison Corporation’s contribution
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Running Head: RATIO ANALYSIS Starbucks Corporation & McDonalds Corporation McDonald’s Corporation McDonald’s Corporation operates in the food service industry. The company has its restaurants in more than 100 countries of the world. McDonald’s‚ the world’s largest food chain is headquartered in U.S. having an employee population of 390000 (About McDonald’s...‚ 2008). Starbucks Corporation Seattle based‚ Starbucks Corporation is the leading coffeehouse chain in the world. The company has
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Section 1: What is radioactivity? Nuclear Radiation During radioactive decay‚ the unstable nuclei of these isotopes emit particles‚ or release energy‚ to become stable isotopes‚ as Figure 1 shows. After radioactive decay‚ the element changes into a different isotope of the same element or into an entirely different element. Recall that isotopes of an element are atoms that have the same number of protons but different numbers of neutrons in their nuclei. Different elements are distinguished
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As the result of the ratio analysis. There are 5 limitations of ratio analysis as well. The first limitation of the ratio analysis is Comparing the ratios between two organizations/firms is a smooth path to do it. This is because‚ different organization/firms might have face unequal figures of earnings‚ losses. In addition‚ fact is the two difference organizations/firms might have different economic environment or production technologies even though they produce the same range of the product. For
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statements to meet their needs ~nd requirements. For example‚ properties may find it useful to expand this ~asic format by adding columns to provide: . . A comparative analysis of the current period results with the amounts budgeted for the period A comparative analysis of the current period results with those of the same period fot the preceding year Cumulative year-to-date information Percentage relationships between revenue and expenses ) . . Comparisons can be made by either horizontal
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