over cost‚ but not revenue or the use of investment funds. A profit center manager has control over both cost and revenue. An investment center manager has control over cost and revenue and the use of investment funds. 12-4 A segment is any part or activity of an organization about which a manager seeks cost‚ revenue‚ or profit data. Examples of segments include departments‚ operations‚ sales territories‚ divisions‚ and product lines. 12-5 Under the contribution approach‚ costs are assigned to a segment
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They also made some changes in product offerings and offered more sales potential at the cost of minor reductions in margins. During the year it took to complete the Hallstead’s renovation the industry started showing major changes toward internet based jewelry sales. Tiffany & Company‚ a business with an origin much like Hallstead Jewelers‚ grew into an international powerhouse. At the same time‚ a start-up internet seller‚ Blue Nile‚ became the second largest diamond seller in the U.S. While
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President Starr‚ Here are the calculations for the five areas of concern that you mentioned to me earlier. 1. Total fixed cost that must be covered at each of the games: Fixed costs per game include $20‚000 food service salaries‚ $4‚800 to cover costs of 6 booths $1‚260 hourly wages for 36 booth employees Total fixed costs per game: 20‚000 + 4‚800 + 1‚260 = $26‚060 2. The portion of the fixed cost allocated to each of the items: Soft drink sales need to cover 25% of fixed costs‚ or $6
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Week 4 Assignment 1) How might you use the strategies for applying creativity to problems and issues in addressing this topic? In the article that I wrote about it discusses the issue of how Essex County Executive‚ Joe DiVincenzo‚ was using his campaign funds to pay for personal expenses. According to the article the laws concerning this matter requires disclosure of all expenses‚ including those incurred on a credit card. It also states that from 2002 to 2011 DiVincenzo had approximately $250
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Compare and contrast job order costing to process costing methods. Comparison: These systems are to determine the manufacturing costs of products. Both costing systems combine direct materials‚ direct labor and overhead which is indirect costs or could be considered a direct cost in the process costing method nonetheless both systems use this in the process of producing products. The manufacturing accountants assign cost objectives to raw materials inventory‚ work in process inventory and finished
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Chapter 7 Notes Page 1 Variable Costing Absorption As we have seen in previous chapters‚ when you manufacture your own inventory‚ the cost of that inventory includes all of the costs associated with running the factory that produces the inventory. Generally‚ no part of the factory cost is expensed. Instead‚ it is capitalized as the cost of the inventory produced. It is only expensed when the inventory is sold. At that point the cost of the inventory becomes Cost of Goods Sold. This system is
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Activity Based Costing Analysis for Band-aid Introduction Band-aid (BA) is a worldwide renowned wound care brand which has been produced in two manufacturing plants—Brazil and China. This analysis is for the factory in Shanghai‚ China‚ which mainly supports the sales in Japan‚ North America‚ Australia and China. On July‚ 2009‚ the operation team was asked to do the business plan for 2010‚ including the annual volume‚ the total production hours and the overall operation cost. Based on the unique
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Marginal Costing vs Absorption Costing Marginal Costing and Absorption Costing are methods which are often used to prepare profit statements‚ value inventory and assist in pricing decisions. The methods have some notable differences‚ which can be reconciled though. Absorption Costing absorbs all manufacturing/production costs into inventory valuation. These costs include direct material‚ direct labour‚ direct expenses‚variable production overheads‚ as well as fixed production overheads. On the
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plagiarism. Activity Based Costing and the Theory of Constraints are‚ respectively‚ Overhead Absorption Costing and Marginal Costing in a different guise Introduction In this assignment I will be investigating the assertion that Activity Based Costing and the Theory of Constraints are‚ respectively‚ Overhead Absorption Costing and Marginal Costing in a different guise. To analyse this statement I will
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Cost Allocations & Activity Based Costing (ABC) Abstract The cost allocation is a process of assigning costs to different activities. There is several methodology of cost allocation. The cost driver allocates costs into different activities and locations. Health organizations use different allocation methods according to their needs to attain organization and profitability. The purpose of allocation is to make the understanding
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