Chapter 6 Cost-Volume-Profit Relationships Solutions to Questions 6-1 The contribution margin (CM) ratio is the ratio of the total contribution margin to total sales revenue. It can be used in a variety of ways. For example‚ the change in total contribution margin from a given change in total sales revenue can be estimated by multiplying the change in total sales revenue by the CM ratio. If fixed costs do not change‚ then a dollar increase in contribution margin will result in a dollar
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inventory‚ salaries‚ and material‚ and revenue is generated through sales. When revenue are higher than the expenses‚ the company has an operating profit‚ and the company has an operating loss when the expenses exceed the operating revenue. 2) The accounting equation (A=L+SE) is a fundamental business concept. Explain what this equation reveals about a company’s sources and uses of funds and the claims on company resources. The equation reveals how heavily dependent a company is on debt versus owner
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Chapter 1 Managerial Accounting‚ the Business Organization‚ and Professional Ethics Management accounting produces information for managers within an organization. Financial accounting produces information for external parties‚ such as stockholders‚ suppliers‚ banks‚ and government regulatory agencies. What kind of accounting information do managers need to achieve their goals and objectives? Good accounting information helps answer three types of questions: 1. Scorecard questions 2. Attention-directing
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CELL DIVISION REVIEW 1. Name the phase of interphase in which cells copy their DNA. G-2 2. Anaphase 3. Name the phase in which spindle fibers disappear. telephase 4. Put the following cells in the correct order. A interphase B telephase C anaphase D prophase E metaphase 5. centromere 6. DNA that is spread out in the nucleus of a non-dividing cell is called chromatin. 7. Name the phase this cell is in. 8. Name
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Bibliography: Handy‚C (1993)‚ Understanding Orfanizations‚ 4 edition‚ Penguin Business Egan‚G (1990)‚ The Skilled Helper‚ 4 edition‚ Brooks/Cole Reddin‚W(1970)‚ Managerial Effectiveness‚McGraw Hill Taylor‚ F.W.(1947)‚ scientific Management‚ Harper&Row Lewin‚ K (1951‚ field Theory in Social Science‚ Harper Jaques‚ E(1961)‚ Equitable Payment‚ Heinman Urwick‚L‚ F(1952)‚ Principle of Management‚ Pitman
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Questions 1. Which of the following statements about managerial accountants is false? A. Managerial accountants more and more are considered "business partners." B. Managerial accountants often are part of cross-functional teams. C. An increasing number of organizations are segregating managerial accountants in separate managerial-accounting departments. D. In a number of companies‚ managerial accountants make significant business decisions and resolve
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| | Note payable — unsecured | | 40‚000 | | Revenue received in advance | | 1‚000 | | Wages payable | | 3‚000 | | Mortgage payable | | 80‚000 | | Estate equity | | 20‚000 | To record custody of Scott Corporation in liquidation. March 2011 | Cash | $ 7‚200 | | | Estate equity | 800 | | | Accounts receivable — net | | $ 8‚000 | To record collection of receivables and recognize loss. | Cash | $ 19‚400 | | | Estate equity
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Not-for-profit organizations also provide financial information to external users such as citizen groups and donors. As an individual‚ you provide financial information to the internal revenue service and to creditors when you seek a loan. 2. Accounting is often thought of as the “language” used to communicate financial information about a business. The primary method that profit-oriented companies use to provide financial information to investors‚ creditors‚ and other external parties is through
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1. Because adjusting entries assure that the balance sheet and income statement are up to date based on the accrual base of accounting and need to balance out the accounts based on when things are actually earned‚ Starbucks might record adjusting entries for asset accounts including: Cash and cash equivalents Accounts receivable Inventories Prepaid expenses/current assets Deferred income taxes Plant and equipment Other assets Goodwill 2. Starbucks might record adjusting entries for liability
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CA 1-4: (a) Differentiate between Financial Accounting and Managerial Accounting. While financial accounting is the process that culminates in the preparation of financial reports on the enterprise for use by both internal (as managers) and external parties (as investors‚ creditors‚ unions‚ and government agencies)‚ managerial accounting is the process of identifying‚ measuring‚ analyzing‚ and communicating financial information needed by management to plan‚ control‚ and evaluate a company’s operations
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