EMBA 2011-12 MERTON TRUCK COMPANY CASE SOLUTION HARSHID DESAI AMRUT MODY SCHOOL OF MANAGEMEMNT ROLL NO. 03 Merton Truck Company Calculating contribution for each truck‚ Contribution for model 101 = selling price (direct mat. + direct labour + variable o/h) = 39000 (24000 + 4000 + 8000) = Rs. 3000/Contribution for model 102 = selling price (direct mat. + direct labour + variable o/h) = 38000 (20000 + 4500 + 8500) = Rs. 5000/- Decisions variables: x1 = number of model 101 trucks produced
Premium 5th millennium Best Products Mathematics
Telephone Company‚ Salem Data Services Accounting Analysis Salem Telephone Company recently established Salem Date Services‚ a computer service subsidiary of the telephone company. The new subsidiary was established in efforts to earn the company increased revenues in order to relieve pressure to increase rates for the regulated telephone company. Salem Data Services accounting has shown profit loss for the subsidiary over the past three months. Peter Flores‚ president of Salem Telephone Company‚ is
Premium Variable cost Income statement Costs
Solution to Case 1 Cash Flow Analysis Signal Cable Company* * Note to Instructors: When assigning this case‚ inform the students that the firm’s stock price has recently dropped from $7 per share to $5.50 per share. Case objective: The objective of this case is to cover financial statement analysis and cash flow analysis‚ with a particular emphasis on liquidity and net working capital. Student Preparation time: Approximately 2 hours. Answers to questions: 1. Why has the stock price fallen
Premium Generally Accepted Accounting Principles Balance sheet Inventory
Exercise 2-2 | | |Product |Period Cost | | | |(Inventoriable) Cost | | |1. |Depreciation on salespersons’ cars | |X | |2.
Premium USB flash drive Flash memory Inventory
Control Systems Solutions to Review Questions Accounting assigns costs and revenues to “responsibility centers” that correspond to the decision authority of managers. This allows the firm to measure performance based on the results of decisions by the manager. An effective corporate cost allocation system separates the results of decisions by corporate managers from those of business unit managers. Although there are well-developed standards for many accounting transactions‚ accounting decisions
Premium Management Revenue Variable cost
Course Subject: Accounting for Decision-making Course Code : GSM5301 Group : 8 Case Study : Prestige Telephone Company Background of Case Study In April 1997‚ president of Prestige Telephone Company (PTC)‚ Daniel Rowe‚ was making arrangements to meet with its computer data service subsidiary Prestige Data Services’ (henceforth PDS) manager Susan Bradley. This subsidiary performs data processing for the telephone company and sells computer services to other companies. In 1994‚ Rowe suggested
Premium Variable cost Costs Management accounting
SREERAM COACHING POINT COST Management Test Questions & Suggested Solutions by L. Muralidharan‚ FCA.‚ Grad. CWA.‚ COST MANAGEMENT - TEST QUESTIONS & SOLUTIONS Question: 1 Bharata Ltd is considering proposals for design changes in one of a range of soft toys. The proposals are as follows: (a) Eliminate some of the decorative stitching from the toy. (b) Use plastic eyes instead of glass eyes in the toys (two eyes per toy). (c) Change the filling material used. It is proposed that scrap fabric
Premium Variable cost Costs Total cost
Chapter 1 Managerial Accounting: Tools for Decision Making Discussion QUESTIONS Q1-1. Financial accounting is oriented toward external users and is concerned with general-purpose financial statements. These financial accounting statements are highly aggregated‚ report on relatively long time periods‚ are oriented toward the past‚ and must conform to external standards. These standards emphasize the use of objective data. Management accounting is oriented toward internal users and is
Premium Management accounting Costs Cost
000 Factory insurance 500 Materials handling 1‚500 5‚000 Manufacturing cost P80‚000 2. (a) Decrease in finished goods inventory P35‚000 Add: Raw materials purchased P430‚000 Direct labor payroll 200‚000 Factory overhead 300‚000 930‚000 Total P965‚000 Less: Increase in raw materials inventory 15‚000 Cost of goods sold P950‚000 3. (d) Direct labor- Wages of machine operations
Premium 1966 1986 1970
ACCOUNTING FOR BUSINESS II CHAPTER 1 COST SHEET Meaning And Scope of Cost Accountancy The term cost accountancy is wider than the term cost accounting. According to the Terminology of Management and Financial Accountancy Published by the Chartered Institute of Management Accountants‚ London‚ cost accountancy means‚ “the application of costing and cost accounting principles‚ methods and techniques to the science‚ art and practice of cost control. It includes the presentation of information derived
Premium Management accounting Cost accounting Cost