Assignment (SPA) #2 Understanding Key Cost Relationships 1. Read Chapter 2 of SN‚ Key meanings in the Chapter. Understanding key cost in a firm is the most important issue in management accounting. That is because business survives on value exchange. Customers and business are willing to exchange money and services (products) based on the costs. How products cost can effect a firm’s financial health is very important for managers. Cost objects are the different aspects of a firm’s
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JULIE HENNESSY AND EVAN MEAGHER KEL692 Pepita Disco PPM: Margins and Elasticity One morning in January 2012 Carolina Araujo walked across the factory floor‚ through the curing room‚ and into the executive offices at Pepita Disco PPM (Productos Para Mascotas) SRL‚1 Uruguay’s second-largest producer of beef-based dog food‚ treats‚ and toys. She had recently taken over the family business after her father’s retirement‚ and while she respected the company’s nearly eighty-year history‚ she
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team to achieve a participative cross functional budget that will have all his departments focus on the same goal exceeding his budgeted sales. With the support of his finance and accounting team Rodolfo’s has been able to analysis his variable and fixed cost challenging each of them. The intent of Rodolfo is to adapt to the competition‚ evolving his business while improving his profitability. Rodolfo has gone in detail within his number in search for the opportunities of the budget and
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company. This is likely because the recommendation has not taken into consideration the range of costs affecting Bridgeton industries. Through our analysis it becomes clear that the decision to retain the manifold production line will be more financially beneficial to the company. We will begin with some of the assumptions of our analysis‚ and the conclusions from our various analyses of Bridgeton Industries Costs. Please refer to the attached excel file for detailed analysis of the numbers. We know
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Achieving a market share consistent with the Coors Inc. national average would make Mr. Brownlow’s return on investment equal 38.2% 3. The Sensitivity Analysis explored the overall increase of fixed costs‚ the need to increase/decrease the cost of a six-pack and an increase in the interest rate. Overall fixed costs could be increased by 33.77%‚ the price of a six-pack of beer could be reduced to
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General Electric Medical Systems 1. Q 1. What is the underlying logic behind the global product idea? What are the costs and the benefits that are expected? Global Products Company(GPC) strategy is based on the following underlying logical premises: a. Markets for medical equipment are systems are becoming increasingly global in nature. They are no more restricted to only the developed First and Second World countries having advanced healthcare
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those consumers are very interested in attaining nice but affordable products. American consumer culture is concerned with seeking out the lowest-cost‚ highest-quality product regardless of its country of manufacture. Due to of the decreased emphasis Americans place on purchasing only domestic products‚ American consumers will be open to a high-quality‚ low-cost Canadian product. A third pro to launching in the U.S is having the ability to infiltrate fashion hubs; cities like New York and Los Angeles
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bedridden patients. The costs of manufacturing and marketing hydraulic hoists at the company’s normal volume of 3‚000 units per month are shown in Exhibit 1. EXHIBIT 1: Cost per unit for hydraulic hoists Unit manufacturing costs: Variable materials $550 Variable labor 825 Variable overhead 420 Fixed overhead 660 Total unit manufacturing costs $2‚455 Unit marketing costs: Variable
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variable and fixed costs associated with utilities and maintenance using the high-low method for each. Hi-Lo Maintenance September January Difference Cost/unit Units 8‚000 2‚000 6‚000 Cost $1‚914.00 $1‚716.00 $198.00 $0.03 Hi-Lo Utilities September January Difference Cost/Unit Units 8‚000 2000 6‚000 Cost $1‚400.00 $1‚100.00 $300.00 $0.05 January Sales January /unit cost January Units 12000 16 750 Maintenance Cost January Utilities Cost January
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Standard cost: $9.00 per meter. Total actual cost: $5‚985. Standard cost allowed for units produced was $5‚400. Materials efficiency variance was $270 unfavourable. 1) The flexible budget amount expressed in number of input units per output unit is: a) 0.20 meters b) 0.21 meters c) 0.19 meters d) 600.00 meters e) None of the above 2) The materials price variance is: a) $855 favorable b) $315 favorable c) $855 unfavorable d) $315 unfavorable e) None of the above 3) The actual cost per meter
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