2.3 Conceptual Framework. The following conceptual framework will be used for this study: Independent Variables Dependent Variable Figure 2.1: Conceptual Framework (Source: Author‚ 2016) 2.3.1 Credit Information Sharing /Symmetry. CRBs are a typical response to information asymmetry problems between lenders and borrowers which is usually there between the lender and the borrower about the
Premium Debt Finance Balance sheet
ABSORPTION AND VARIABLE COSTING Learning Objectives 1. Explain the accounting treatment of fixed manufacturing overhead under absorption and variable costing. 2. Prepare an income statement under absorption costing. 3. Prepare an income statement under variable costing. 4. Reconcile reported income under absorption and variable costing. 5. Explain the implications of absorption and variable costing for cost-volume-profit analysis. 6. Evaluate absorption and variable costing.
Premium Variable cost Inventory
1) When will profits reported under variable and absorption costing differ? How can we reconcile the profits reported under the two approaches? Profits reported under variable and absorption costing will differ when inventory increases or decreases during the year. The difference involves the timing with which fixed manufacturing overhead becomes an expense. Under variable costing‚ fixed overhead is expensed immediately as it is incurred. Under absorption costing‚ fixed overhead is inventoried
Premium Variable cost Costs Economics
Reed’s Supermarket Strategic Positioning What is Reed’s Position in the Columbus Market? Reed’s Regional Supermarkets’ Chain has been considered as high end in the supermarket food retail industry‚ since the past two decades. They have managed to steadily acquire 14-15 % of the intensely competitive Columbus market share throughout the past five years‚ with a good strongly competitive edge‚ yet still a challengeable position with all those new market entries & evolving generations of rivalry
Premium Retailing Supermarket
Variable costing and absorption costing are the two most commonly used methods of inventory costing for manufacturing companies. The inventory method of variable costing takes place when total direct and indirect variable manufacturing costs are included within inventoriable costs. Fixed manufacturing costs however‚ are considered costs of the period under variable costing. The next method of inventory costing‚ absorption costing‚ includes all variable manufacturing costs as well as fixed manufacturing
Premium Variable cost Costs
units during the period. The manufacturing costs and selling and administrative expenses were as follows: Total cost Rs. Beginning inventory: Direct materials Direct labour Variable factory overhead Fixed factory overhead Total Current period costs: Direct materials Direct labour Variable factory overhead Fixed factory overhead Total Selling and administrative expenses: Variable Fixed Total Instructions: 1. 2. 3. Prepare an income statement based on the variable costing concept. Prepare an income statement
Premium Variable cost Costs Fixed cost
Absorption and Variable Costing‚ Inventory Management Absorption and Variable costing are very important tools for cost accounting. Both of these costing methods allow you to see the cost of your inventory‚ in a different way. For example the absorption method allows you to assign all costs to the product‚ while variable costing allows only variable costs to be assigned to the product. Inventory management is extremely important as well because it ties into efficiency and lowering your costs so that
Premium Inventory Costs Balance sheet
Plant overhead $122‚000 D/L rate/hour $30 Youngstown has a traditional cost system. It calculates a plant-wide overhead rate by dividing total overhead costs by total direct labor hours. Assume‚ for the calculations below‚ that plant overhead is a committed (fixed) cost during the year‚ but that direct labor is a variable cost. 1. Calculate the plant-wide overhead rate. Use this rate to assign overhead costs to products and calculate the profitability of the four products. The assignment
Premium Cost Costs Mathematics
have done above is a “full-cost” analysis. This is in contrast to a “direct-cost” analysis that ignores overhead costs. Is full cost the right metric for job profitability and customer profitability? What assumptions are we making about the variability of overhead costs when we do a “full-cost” analysis? By allocating the overhead costs to jobs and customers there is an implicit assumption that these are variable with the cost driver. In reality‚ some of the overhead costs are fixed‚ at least in the
Premium Cost Costs Economics
Fifth Edition Global MarketinG A decision-oriented ApproAch Svend Hollensen GLOBAL MARKETING Visit the Global Marketing‚ fifth edition Companion Website at www.pearsoned.co.uk/hollensen to find valuable student learning material including: Full versions of the video case studies Multiple choice questions to test your learning Annotated links to relevant sites on the web An online glossary to explain key terms Flashcards to test your knowledge of key terms and definitions Classic extra
Premium Marketing