CHAPTER 2 AN INTRODUCTION TO COST TERMS AND PURPOSES 2-20 (15–20 min.) Classification of costs‚ manufacturing sector. Cost object: Type of car assembled (Corolla or Geo Prism) Cost variability: With respect to changes in the number of cars assembled There may be some debate over classifications of individual items‚ especially with regard to cost variability. |Cost Item |D or I |V or F | |A
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Exercise 2-1 (10 minutes) 1. The wages of employees who build the sailboats: direct labor cost. 2. The cost of advertising in the local newspapers: marketing and selling cost. 3. The cost of an aluminum mast installed in a sailboat: direct materials cost. 4. The wages of the assembly shop’s supervisor: manufacturing overhead cost. 5. Rent on the boathouse: a combination of manufacturing overhead‚ administrative‚ and marketing and selling cost. The rent would most likely be prorated
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Fin 4910/6990 Further Questions Problem 7.19 (a) Company A has been offered the rates shown in Table 7.3. It can borrow for three years at 6.45%. What floating rate can it swap this fixed rate into? (b) Company B has been offered the rates shown in Table 7.3. It can borrow for 5 years at LIBOR plus 75 basis points. What fixed rate can it swap this floating rate into? (a) Company A can pay LIBOR and receive 6.21% for three years. It can therefore exchange a loan at 6.45% into a loan at LIBOR plus
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Chapter 2 1. (a) Using Medtronic as an example‚ explain how a mission statement gives a strategic direction. (b) Create a mission statement for your own career. Answer: (a) A mission statement gives strategic direction by stating the “what” and “how” of a business in a clear‚ concise‚ meaningful‚ inspirational‚ statement that will continue to be relevant in the long-term. Medtronic’s mission statement identifies its customers‚ market‚ products and technology. They stated the business
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CHAPTER 5: ACCOUNTING FOR GENERAL CAPITAL ASSETS AND CAPITAL PROJECTS OUTLINE Number Topic Type/Task Status (re: 13/e) Questions: 5-1 Distinguishing general capital assets from fund capital assets Describe New 5-2 Capital asset disclosures Explain New 5-3 Modified approach for infrastructure Describe New 5-4 Capital lease accounting Describe 5-8 revised 5-5 Asset impairment Explain New 5-6 Use of capital projects funds Explain 5-4 revised 5-7 Encumbrances Explain Same 5-8 Construction
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Taxation‚ 2010-2011 Ed. CHAPTER 10 INDIVIDUALS: DETERMINATION OF TAXABLE INCOME AND TAXES PAYABLE Review Questions 1. Briefly explain the difference‚ for individuals‚ between net income for tax purposes and taxable income. 2. Explain the difference between an allowable capital loss and a net capital loss. 3. Describe the tax treatment of net capital losses. 4. Explain how a non-capital loss is created and how it is treated for tax purposes. 5. Is it always worthwhile
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CHAPTER 2 The Financial Statements BRIEF EXERCISES BE2–1 2008 2008 2008 Beginning Ending Retained 2008 2008 2008 Retained Earnings + Revenues – Expenses – Dividends = Earnings $28.2 + $43.3 – $38.2 – X = $30.6 X = $2.7 2008 Dividends as a percentage of 2008 net income: 2008 Dividends = $ 2.7 = 52.9% 2008 Net income ($43.3-$38.2) $ 5.1 BE2–2 1) Current Liabilities financed $32 billion of the
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Tha eiink fivod nar rirel nnini b) If we wish to fly the airpiane at a veiocity of 125 ft/sec‚ then what would be the trln iift coefficient and what would be the elevator angle for trim? u. t3 = 2‚750 tb S = ’180 fi2 \4‚/ 0.10 0.0 5 C n"q 0.0 -0.05 -0. 1i) -u. t3 Figure P2.2. Scilution: Given: W = 2‚750 lb‚ S = 180 i12‚ c.g. = 0.25Find: The neutrai point‚ trim lift coeificient and 125 itlsec. ttn ^cg -lr^NP v --_- = v ccdC‚ measure dcm I CC; f
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Strategic Planning It is the process of developing and maintaining a strategic fit between the organization’s goal and capabilities and its changing marketing opportunities. Steps in Strategic Planning Defining a Market-Oriented Mission Mission Statement A statement of the organization’s purpose-what it wants to accomplish in the larger environment. Market-oriented mission statement Defines the business in terms of satisfying basic customer needs. Companywide Strategic Planning
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access to distribution channels‚ and build relationships with suppliers. The only possible advantage of entering the market late would be to pick up the pieces of an early entry failure. This way there is a chance the late entrants outperform them. 2.) Can you think of an example of a successful a) first mover‚ b) early follower‚ and c) late entrant? Can you think of unsuccessful examples of each? Successful First Mover – Xerox copiers‚ still the standard. Early Follower – Sony’s Blu-Ray
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