ADM 3346A COST ACCOUNTING Solution Fall 2010 Midterm Examination STUDENT NAME: _________________________________________________ STUDENT NUMBER: ________________________________________________ 90 minutes INSTRUCTIONS 1. 2. 3. 4. Books and notes are not permitted‚ except language dictionaries. Non programmable calculators are permitted. Put all answers in the question booklet Questions concerning possible errors in the exam only will be answered. Questions Max Points
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Explainthe relationship between the average cost and marginal cost curve? Answer: We usually assume that the Average Cost curve is U shaped The MC curve will intercept the AC curves at its minimum point. When AC is decreasing‚ MC lies below AC - because when MC is below AC‚ producing an extra unit of output will pull down average cots When AC is increasing‚ MC lies above AC - because when MC is above AC‚ producing an extra unit of output will raise average costs Therefore MC will intercept the AC curve
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FRANGOR SPA: STRATEGIC COST ANALYSIS FOR PROFIT RECOVERY by Riccardo Silvi Preliminary draft A) Overview and Strategic Financial Analysis Mr. Paolo Frangor was standing in front of the big window of his office. From there‚ he could see the wide square and the part of the building where the products -- machines for agriculture (rotary tillers‚ spading machines‚ harrows‚ …) -- were produced. He was satisfied with this new location. The bigger dimension‚ indeed‚ could help his employees do a better
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80000 | Cost of oxygen etc. | 30000 | Diagnostic Services | 50000 | Medicines Supplied | 200000 | Depreciation | 38500 | Insurance | 15000 | Power‚ Fuel & Water | 20000 | The profit expected is 30% on cost. 1) Calculate the price per patient day. 2) Calculate P/L per patient day. Solution: No of Patient days is as below: 30 beds * 150 days = 4500 Patient days 10 beds * 50 days = 500 Patient days Total patient days = 5000 Patient days Operating Cost Sheet
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Cost and Revenue Curves J Bara ECO/533 Economics for Managerial Decision Making PA04MBA10 April 7‚ 2005 1. Total profit is the product of profit per unit and the quantity. To maximize profit‚ quantity is chosen at the point where marginal cost (MR) is equal to marginal revenue (MR) which is where the two graphs intersect. This is the ideal situation to a profit seeking company. Since price is greater than the Average Total Cost (ATC)‚ for each unit sold the profit per unit is simply the
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goal to achieve in order to determine if the company is actually making money with their customers. With future growth imminent due to the success of their products‚ it was important that effort was taken to ensure that variable selling‚ general‚ and administrative (SG & A) costs did not increase faster than sales revenue. As Kanthal expanded operations and increased their market share‚ they captured business by meeting their customers ’ expectations for increased service. Increased demands were
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is a part of: B. Conversion cost. Labor that cannot be physically traced to particular product is treated as indirect labor and as manufacturing overhead. Conversion cost is the sum of direct labor and manufacturing overhead. These costs are incurred to convert materials into the finished product. Indirect labor is treated as part of manufacturing overhead. 2. Prime cost and conversion cost share what common element of total cost? B. Direct labor. Prime cost is the sum of direct materials
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COSTING 4-1 Cost pool––a grouping of individual indirect cost items. Cost tracing––the assigning of direct costs to the chosen cost object. Cost allocation––the assigning of indirect costs to the chosen cost object. Cost-allocation base––a factor that links in a systematic way an indirect cost or group of indirect costs to cost objects. 4-2 In a job-costing system‚ costs are assigned to a distinct unit‚ batch‚ or lot of a product or service. In a process-costing system‚ the cost of a product
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manufacturing overhead cost divided by estimated which of manufacturing overhead -it can‚ it must be a manufacturing‚ indirect labor costs that are easily traced to a job -direct which of indirect labor cost examples -maintenance into which of the companies classify manufacturing cost -direct labor‚ manufacturing‚ direct‚ materials a factor that causes overhead costs is called -cost driver what kinds of costs are assigned to units of product in absorption costing -variable manufacturing
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Cost Reduction in the Automobile Industry—Case Studies of the Chinese Market University of Halmstad School of Business and Engineering Master ’s Programme Master’ Cost Reduction in the Automobile Industry —— Case Studies of the Chinese market Studies October 25‚ 2012 Authors: Xu Zhiran ------ 890212-T253 Zhou Mengxiao------ 890315-T432 Supervisor: Nataliya Galan Examiner: Jonas.Gabrielsson i Cost Reduction in the Automobile Industry—Case Studies of the Chinese Market
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