Select a potential capital project example for your company and
explain how you would decide if the project should be
pursued. Include comments about how the time value of money
would influence your decision.
For example, if I am now operating a restauran
Whenever CVP analysis is performed, a number of assumptions are made that
affect the validity of the analysis. A primary assumption is that costs can be
accurately separated into fixed and variable components. In some companies this
is a very difficult an
Think about the organization in which you work. Provide examples of the following
types of costs in your organization: variable, fixed, direct, indirect, controllable,
non-controllable. Why is it important for a manager to have an understanding of
Is job-order costing as applicable to service companies as it is to manufacturing
companies? If so, give an example of a service company that might use job-order
costing and explain how the company uses this costing method.
The job-order costing is also a
Lets assume that you just reviewed a business plan presentation from an
entrepreneur in your town. She is asking for significant investment from
you to get the business off the ground. Her financial forecast looks very
promising, with expected profits in
What are the three most important concepts you have learned in this course? How
will you apply these in your job?
Firstly, I learned how to read the accounting report from learning this course.
Including the income statement, balance sheet and cash flow a
a. Michael currently flying: 6x52 = 312 round trip / year.
In order to break even, Michael need: 441,197/ 360 /5 = 245.11 round trips/ year.
b. If Michael want a salary of $110,000 & still not s
Tax saving related to interest (0.4 x interest )
Noninterest-bearing current liabilities
a. Standard cost per unit = (1.2 x 6 ) +( 1.5 x 9 ) + 7.75 = $28.45
b. Material Price Variance = [(250,000/30,000) 6 )] x 35,000 = $81,666.67
Material Quantity Variance = [30,000 (1.2 x 23,000)] x 6 = $14,400
Labor Rate Variance = (8.25 9 )
Santiago's Salsa Production Costs May 2014
30,000 jars of Salsa
The sales of Santiagos Salsa in May 2014 will increase as well as t
Present Value Factor
204,000 per year
for 10 years
Sonnetson should invest in the paint shop
b. Present value factor = 800,000/204,000 = 3.
a. The opportunity cost of producing a Model 350 motor is simply the incremental cost of
Variable overhead ($1.2 x direct labor )*
* Variable overhead rate is equal to $6,000,000 of v
Terra Cotta Designs
Schedule of Cost of Goods Manufactured
For the Year Ended December,31 2014
Beginning balance in work in process inventory
Plus current manufacturing costs:
The book says that pricing decisions are often the most difficult
decisions managers face. Why is this so? What can managers do to
ease this burden and arrive at an appropriate price for the company
and the customers?
Because price has relationships with