only fixed expenses. President Riesman finds this method unsatisfactory for two major reasons: 1. It is difficult to judge how good the estimates made by the department heads really are; and 2. Selling conditions fluctuate over time and there is no way to account for these changes in the selling expenses once the budget is set for that year. Thus a new budgeting method is being researched at this time. The new method‚ if adopted‚ would be based on both fixed and variable costs. The fixed costs
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Initial idea: Offer affordable sports equipment for children Products: − Used (second-hand) products − Surplus equipment from manufacturers and retailers Current situation (December 2007): − Demand has been growing steadily over the last years − The products are distributed to the U.S. customers through a single (and small) warehouse in St. Louis − The warehouse is leased on a year-to-year basis − The current network design‚ in particular the distribution network and warehouse
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would compare the costs and prices of my services‚ taking into account the costs of other offices like mine. We all know that the price is the sum of cost and profit. Therefore the forecast of the price depends on the price comparison of competition‚ considering that this company offers a similar service like mine. All business involves two types of costs: fixed costs and variable costs‚ so it is important to distinguish between reasonable‚ allowable‚ and allocable costs. Cost reasonableness is
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small business owners; it is hard enough to have to worry about the fixed cost‚ variable cost‚ and total cost when starting a business. It is hard to be an entrepreneur but with Obama’s help hopefully it’ll be easier and go far. Fixed cost is any cost that does not depend on the firms’ level of output. Variable cost is a cost that depends on the level of production chosen. Total cost is the total fixed costs plus total variable costs. Obama also wants to cut down the taxes for middle class families
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Chapter 1 - Managerial vs. Financial Accounting: -What are the differences between Financial (Acct 2210 or equivalent) and Managerial accounting? Which discipline seems to be more structured and places more emphasis on precision? Which focuses more on future planning and information relevance? Why? Financial accounting – provides information used primarily by investors‚ creditors‚ and others OUTSIDE a business. --External users (investors and creditors) have greater needs for general
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company must operate in order to break even. As he put it‚ The company must be able at least to sell a sufficient volume of goods so that it will cover all the variable costs of producing and selling the goods. Further‚ it will not make a profit unless it covers the fixed costs as well. The level of operation at which total costs are just covered is the break-even volume. This should be the lower limit in all our planning. The accounting records had provided the following information that French
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operational terms. 2. Control is the process of setting standards‚ receiving feedback on actual performance‚ and taking corrective action whenever actual performance deviates from planned performance. Budgets are standards‚ and they are compared with actual costs and revenues to provide feedback. 3. The planning and control functions of budgeting can benefit all organizations regardless of size. All organizations need to determine what their goals are and how best to attain those goals. This is the planning
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allocates all costs to the stores. Results for 2012 were: Merlin’s $3 ltem Sales revenue Total Compary $700‚000 450‚000 2 50‚000 61‚000 45‚000 60‚000 15‚000 60‚000 Auntie’s $3 50‚000 50‚000 Cost of merchandise soid Gross margin Operating expenses: Salaries and wages Supplies Rent and utilities 225‚000 125‚000 30‚000 225‚000 125‚000 3 3‚000 22‚500 40‚000 7‚000 10‚000 129‚500 22‚500 20‚000 8‚000 30‚000 113‚500 $ 11‚500 Depreciation Allocated staff costs Total
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rooms and 31‚365 postoperative recovery beds in hospitals in US. There were major competitors like Gaymaosworth Air Ltd and Cincinnati Sub Zero. Prices of automatic control unit ranges from $4850 to $5295‚ for manually controllable unit the average cost is around $3000. Reusable blankets range in price from $168 to $375. The prime target of AM should be hospitals having more than 7 (exhibit 1) beds as it will make up for around 80% of surgical operations in US. There is a possibility that this product
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open. He was contacting John to see if FinePrint Company was interested in outsourcing some of their work. Ernest’s offer to John and FinePrint Company was for up to 30‚000 brochures per month for a total cost of $8 per 100 brochures. Later on‚ we will look at and calculate the operating costs as well as operating income for each alternative to decide which is going to be best for FinePrint Company. By doing so‚ it will help to decide which option (alternative) would maximize profitability. Alternative
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