SOLUTION - WEEK 2 HOMEWORK
Sales ($72/unit X 540,000 units)
Variable Costs ($54/unit X 540,000 units)
Contribution Margin from above
This is the minimum acceptable. The
Week 4 Practice Quiz
1. Budgeting is the common accounting tool companies use for planning and controlling. Budgets
a. provide a measure of planned financial results.
b. focus managers energies on exploiting opportunities.
c. help managers anticipate pote
CHAPTER 10: STANDARD COSTS AND VARIANCES
LO1: Compute the direct materials quantity and price variances and explain their significance.
Materials quantity variance = (AQ SQ) x SP
AQ: actual quantity used. SQ: standard quantity allowed for actual output. S
CHAPTER 6: VARIABLE COSTING AND SEGMENT REPORTING
LO1: Explain difference variable costing & absorption costing. Compute unit product costs under each method.
Pay very close attention to the two different ways that variable costing and absorption costing
CHAPTER 8: PROFIT PLANNING
LO2: Prepare a sales budget, including a schedule of expected cash collections.
Ex: 70% of sales are collected in the quarter in which the sale is made and the remaining 30% are collected in the
LO3: Prepare a
CHAPTER12 PRICINGDECISIONSANDCOSTMANAGEMENT 121 Thethreemajor influencesonpricingdecisio nsare 1. Customers 2. Compet itors 3. Costs 122 Not necessarily. For aonetimeonly special order,therelevant costs areonly thosecosts that will change as a result of a
CHAPTER 7: ACTIVITY BASED COSTING
Activity-based costing differs from traditional cost accounting in three ways. In activity-based costing:
1. Nonmanufacturing as well as manufacturing costs may be assigned to products, but only on a cause-and-
CHAPTER 12: DIFFERENTIAL ANALYSIS: THE KEY TO DECISION MAKING
LO1: Identify relevant and irrelevant costs and benefits in a decision.
Costs that differ between alternatives are called relevant costs. Benefits that differ between alternatives are relevant
CHAPTER 13: CAPITAL BUDGETING DECISIONS
LO1: Evaluate the acceptability of an investment project using the net present value method.
Exhibit 13 1: NPV analysis of proposed project
According to the analysis, Harper Company should purchase the new machine.
CHAPTER 5: COST VOLUME PROFIT RELATIONSHIPS
Cost-volume-profit (CVP) analysis is a powerful tool that helps managers understand the relationships among cost,
volume, and profit. CVP analysis focuses on how profits are affected by the following five factor
CHAPTER 11: PERFORMANCE MEASUREMENT IN DECENTRALIZED ORGANIZATIONS
LO1: Compute return on investment (ROI) and show how changes in sales, expenses, and assets affect ROI.
ROI = net operating income (EBIT) / average operating assets (cash, AR, inventory, P
CHAPTER 4: PROCESS COSTING
Process costing is used most commonly in industries that convert raw materials into homogeneous (i.e., uniform)
products, such as bricks, soda, or paper, on a continuous basis. Examples of companies that would use process costin
CHAPTER 3: JOB ORDER COSTING
Job-order costing is also used extensively in service industries. For example, hospitals, law firms, movie studios,
accounting firms, advertising agencies, and repair shops all use a variation of job-order costing to accumulat
CHAPTER 2: MANEGERIAL ACCOUNTING AND COST CONCEPTS
LO 1 LO 8: my notebook
LO 9: 4 types of quality costs
1/ Prevention costs support activities whose purpose is to reduce the number of defects.
Quality circles consist of small groups of employees that mee
Martin & Sons
White six-panel doors
Unfinished six-panel doors
Martin & Sons Sales Budget
For the Year Ended December 31, 201
Flow of Production
Work in process, beginning (given)
Started during the current period (given)
To account for
Completed and transferred out during current
Work in process, ending (given)
4,500* 100%; 4,500 * 70%
COST-VOLUME-PROFIT ANALYSIS PROBLEM
H.M.Alger has just become product manager for Brand K. Brand K is a consumer product with
a retail price of $1.00. Retail margins on the product are 23%, while wholesalers have a 10%
markup. Variable manufacturing costs
Week 1 Homework Assignment
Please complete the below problems and submit your answers in the Week 1 Dropbox. See
"Syllabus/Due Dates for Assignments & Exams" for due date information.
1. You are on a tight budget and need to decide