...Anderson, Olds, & Watershed Certified Public Accountants 615 Big City National Bank Building Main at Michigan Avenue Chicago, Illinois 60612 Phone: (312) 555-4452 Fax: (312) 555- 9991 www.aowcpa.com December 18, 2009 Peach Blossom Cologne Company 1308 Bee Hive Blvd Chicago, Illinois 60615 Dear Mr. Kevin Chen, You have requested that we audit the financial statements of Peach Blossom Cologne Company for 2009, which consist of the balance sheet, income statement, statement change in equity, and cash flow statement for the year. Also, the summary of significant accounting policies and other explanation notes. We are pleased to confirm our acceptance and our understanding by means of this engagement letter. We are responsible for the objectivity...
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...CVP And Break-Even Analysis Paper CVP And Break-Even Analysis Paper Looking into opening a small business can be a daunting task but, with various opportunities for buying into a franchise, becoming a small business owner seems to be a reality for some. Each franchise provides various information pieces about their franchise to attract new owners. When someone is looking to invest in a franchise, doing your own analysis to validate the information provided by the franchise is critical in understanding whether or not the franchise is going to be as profitable as you would like. One such franchise is Snap fitness out of Minnesota and knowing the fixed cost of operating the franchise we can determine how many members are needed to break even. Also included is an analysis of achieving a $10,000 net income for a month of operations. To be a valid analysis we have included five examples of variable cost associated with a fitness center. Variable Cost As the owners of a new business, our ultimate goal is to make a profit. Profit can be measured in many ways and there are many complex techniques that can be used to calculate how much of a product or service must be sold to produce a profit. Cost Volume Profit analysis or CVP is one of the most useful ways for managers to understand the relationship between cost, volume, and profits and make competent management decisions. CVP analysis focuses on five areas: • Unit selling prices • Variable cost per unit ...
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...1. Question : (TCO A) Managerial accounting provides all of the following EXCEPT _____. Student Answer: future-oriented information a balance sheet prepared in accordance with GAAP internal reports that don't follow GAAP financial and nonfinancial reports on departments Instructor Explanation: Chapter 1, page 4 Points Received: 6 of 6 Comments: 2. Question : (TCO A) Borders Books is an example of a Student Answer: manufacturing-sector company. merchandising-sector company. service-sector company. client-focused company. Instructor Explanation: Chapter 1, page 36 Points Received: 6 of 6 Comments: 3. Question : (TCO A) Which of the following issues is NOT addressed by the Sarbanes-Oxley legislation? Student Answer: Improving internal control Corporate governance Monitoring of managers Disclosure practices of private companies Instructor Explanation: Chapter 1, page 14 Points Received: 0 of 6 Comments: 4. Question : (TCO A) Within the relevant range for a car manufacturer, if there is a change in the level of cars produced, then Student Answer: fixed and variable costs per unit will change. fixed and variable costs per unit will remain the same. fixed costs per unit will remain the same and variable costs per unit will change. fixed costs per unit will change and variable...
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...2suggestions for Chinese enterprises’ application ABC 15 Bibliography 15 1. Introduction 1.1 Research background With the rapid development of the national economy, enterprises’ competition is increasingly fierce; many companies are using advanced science and technology to achieve competitive advantage in the market. Market competition and technological progress are the two fundamental economic factors which generate activity-based costing. Since The beginning of 1980s of the 20th century, the activity based cost method is paid a wide range of attention; the developed countries gradually adopt it in a number of advanced enterprises, and it continuously develops in the practice. Traditional Costing emphasizes on the accounting and control of the direct materials and direct labor and other direct costs, while for indirect costs it uses the single number standard as the basis for the allocation. In the case that products variety is single, the proportion of indirect costs is smaller, and it still can provide...
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...case 2 Q1) Do you agree with Walters decision to keep product 103? 3 Analysis of Profit and loss statement 4 Sensitivity analysis 6 Strategic scenarios 8 Q2) Should superior lower as of January 1, 2006 its prices of product 101? To what price? 10 Q3) why did Supreme improve profitability during the period of January 1 to June 30, 2005? 13 Analysis 14 Q4) why is it important that Superior has an effective cost system? 17 What is your overall appraisal of the company’s cost system and its use in report to management 18 List the strengths and weaknesses of the system and its related reports for the purpose management uses the system’s output 18 What recommendations, if any, would you make to waters regarding the company’s cost accounting system and its related reports? 19 Initial Analysis of Superior Manufacturing Company Case :- 1) After death of Richard Harvey (2004), founder and president of Superior Manufacturing Company (SMC), Paul Harvey took over. Paul Harvey had only 4 years of experience. Soon followed serious management problems because of some bad decisions made by Paul Harvey. The income statement of 2004 reflected net loss of $0.68million in a good business year. To solve this problem Herbert Waters was brought over as General Manager of SMC. 2) SMC manufactured 3 different products namely 101, 102, 103 and was among the top 8 companies in the industry. Samra Company was market leader and announced price annually and other follow. Due to no product...
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...Handbook of Management Accounting Research Volume 3 Edited by CHRISTOPHER S. CHAPMAN Imperial College London, UK ANTHONY G. HOPWOOD University of Oxford, UK MICHAEL D. SHIELDS Michigan State University, USA AMSTERDAM – BOSTON – HEIDELBERG – LONDON – NEW YORK – OXFORD PARIS – SAN DIEGO – SAN FRANCISCO – SINGAPORE – SYDNEY – TOKYO Elsevier The Boulevard, Langford Lane, Kidlington, Oxford OX5 1GB, UK First edition 2009 Copyright © 2009 Elsevier Ltd. All rights reserved No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means electronic, mechanical, photocopying, recording or otherwise without the prior written permission of the publisher Permissions may be sought directly from Elsevier’s Science & Technology Rights Department in Oxford, UK: phone ( 44) (0) 1865 843830; fax ( 44) (0) 1865 853333; email: permissions@elsevier.com. Alternatively visit the Science and Technology Books website at www.elsevierdirect.com/rights for further information Notice No responsibility is assumed by the publisher for any injury and/or damage to persons or property as a matter of products liability, negligence or otherwise, or from any use or operation of any methods, products, instructions or ideas contained in the material herein. British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging-in-Publication Data A catalog record for...
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...大家网会计英语论坛 A (40)available hours 可用小时 A (41)avoidable costs 可避免成本 B (42)back-to-back loan 易币贷款 B (43)backflush accounting 倒退成本计算 B (44)bad debts 坏帐 B (45)bad debts ratio 坏帐比率 B (46)bank charges 银行手续费 B (47)bank overdraft 银行透支 B (48)bank reconciliation 银行存款调节表 B (49)bank statement 银行对账单 B (50)bankruptcy 破产 B (51)basis of apportionment 分摊基础 B (52)batch 批量 B (53)batch costing 分批成本计算 B (54)beta factor B (市场)风险因素 B B (55)bill 账单 B (56)bill of exchange 汇票 B (57)bill of lading 提单 B (58)bill of materials 用料预计单 A (16)accrual concept 应计概念 A (17)accrual expenses 应计费用 A (18)acid test ratio 速动比率(酸性测试比率) A (19)acquisition 收购 A (20)acquisition accounting 收购会计 A (21)adjusting events 调整事项 A (22)administrative expenses 行政管理费 A (23)amortization 摊销 A (24)analytical review 分析性复核 A (25)annual equivalent cost 年度等量成本法 A (26)annual report and accounts 年度报告和报 表 A (27)appraisal cost 检验成本 A (28)appropriation account 盈余分配账户 A (29)articles of association 公司章程细则 A (30)assets 资产 A (31)assets cover 资产担保 A (32)asset value per share 每股资产价值 A (33)associated company 联营公司 A (34)attainable standard 可达标准 A (35)attributable profit 可归属利润 A (36)audit 审计 A (37)audit report 审计报告 A (38)auditing standards 审计准则 A (39)authorized share capital 额定股本 B (59)bill payable 应付票据 B (60)bill receivable 应收票据 B (61)bin card 存货记录卡 B (62)bonus 红利 B (63)book-keeping 薄记 B (64)Boston classification 波士顿分类 B (65)breakeven chart 保本图 B (66)breakeven point 保本点 B (67)breaking-down time 复位时间 B (68)budget 预算 B (69)budget center 预算中心 B (70)budget cost...
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...fundamentals of cost accounting fourth edition William N. Lanen Shannon W. anderson Michael W. Maher ® accounting The integrated solutions for Lanen/Anderson/Maher’s Fundamentals of Cost Accounting, 4e have been proven to help you achieve your course goals of improving student readiness, enhancing student engagement, and increasing their comprehension of content. Known for its clear and engaging style, the Lanen solution employs the use of real-world scenarios, LearnSmart, and instant feedback on practice problems to help students engage with course materials, comprehend the content, and achieve higher outcomes in the course. Our new Intelligent Response Technology-based content offers students an intelligent homework experience that helps them stay focused on learning instead of navigating the technology. Finally, McGraw-Hill’s adaptive learning component, LearnSmart, provides assignable modules that help students master core concepts and come to class more prepared. LearnSmart with Lanen is an introductory managerial accounting review, providing students with a refresher on these topics for their cost accounting course. PROVEN EFFECTIVE Get Connected. FEATURES Intelligent Response Technology Intelligent Response Technology (IRT) is Connect Accounting’s new student interface for end-of-chapter assessment content. Intelligent Response Technology provides a general journal application that looks and feels more like what you would find in a general ledger...
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...Name: Melissa Morgan Course: Managerial Accounting * Exercises (E) * Chapter 3 – 3.12, and 3.16 3.12 ROI analysis using the Dupont model a. Firm D has a net income of $66, 640, sales of $2, 380, 000 and average total assets of $680, 000. Calculate the firm’s margin, turnover and ROI. ROI = Margin x Turnover ROI = net income/sales x sales/average total assets ROI = $66, 640/$2, 380, 000 x $2, 380, 000/($680, 000 ROI = 2.8% X 3.5 ROI = 9.8% Firm’s margin = 2.8% Turnover = 3.5 ROI = 9.8% b. Firm E has net income of $300, 000, sales of $5, 000, 000, and ROI of 12%. Calculate the firm’s turnover and average total assets. ROI = Margin x Turnover ROI = net income/sales x sales/average total assets 12% = $300, 000/$5, 000, 000 x $5, 000, 000/$2, 500, 000 12% = 6% X 2 Firm’s Turnover = 2 Average total assets = $2, 500, 000 c. Firm F has ROI of 17.4%, average total assets of $2, 700, 000, and turnover of 1.2. Calculate the firm’s sales, margin and net income. Round your answers to the nearest whole numbers. ROI = Margin x Turnover ROI = net income/sales x sales/average total assets 17.4% = $469, 800/3, 240, 000 x 3, 240, 000/$2, 700, 000 17.4% = 14.5 % x 1.2 Firm’s sales = $3, 240, 000 Margin = 14.5% Net income = $469, 000 3.16 Effect of transactions on working capital and current ratio Evans, Inc., had current liabilities at April 30 of $120, 500. The firm’s current ratio at that date was 1,8. a. Calculate the firm’s current assets...
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...MANAGEMENT ACCOUNTING Study Material Prepared By INSTITUTE OF COST AND WORKS ACCOUNTANTS OF INDIA for Junior Accounts Officer(Civil) Examination Conducted By CONTROLLER GENERAL OF ACCOUNTS 1 BASICS OF COST ACCOUNTING 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 ♦ ♦ Evolution of Cost Accounting, Cost Concepts and Cost Classification Introduction Evolution of Cost Accounting Financial Accounting and Cost Accounting Management Accounting Financial, Cost and Management Accounting Cost Concept and Cost Object Cost Management Cost Classification Methods of Costing Techniques of Costing Specific Cost Systems Cost Department and its relationship with other Departments Installation of Costing System Specimen Questions with Answers Test Yourself Page . No 1 1 2 3 4 .5 6 7 10 12 13 14 16 17 18 20 1.0 EVOLUTION OF COST ACCOUNTING, COST CONCEPTS AND COST CLASSIFICATION 1.1 INTRODUCTION Traditionally, cost accounting is considered as the technique and process of ascertaining costs of a given thing. In sixties, the definition of cost accounting was modified as ‘the application of costing and cost accounting principles, methods and techniques to the science, art and practice of cost control and ascertainment of profitability of goods, or services’. It includes the presentation of information derived therefrom for the purpose of managerial decision making. It clearly emphasises the importance of cost accountancy achieved during the period by using cost concepts in...
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...MANAGEMENT ACCOUNTING Study Material Prepared By INSTITUTE OF COST AND WORKS ACCOUNTANTS OF INDIA for Junior Accounts Officer(Civil) Examination Conducted By CONTROLLER GENERAL OF ACCOUNTS 1 BASICS OF COST ACCOUNTING 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 Evolution of Cost Accounting, Cost Concepts and Cost Classification Introduction Evolution of Cost Accounting Financial Accounting and Cost Accounting Management Accounting Financial, Cost and Management Accounting Cost Concept and Cost Object Cost Management Cost Classification Methods of Costing Techniques of Costing Specific Cost Systems Cost Department and its relationship with other Departments Installation of Costing System Specimen Questions with Answers Test Yourself Page . No 1 1 2 3 4 .5 6 7 10 12 13 14 16 17 18 20 ♦ ♦ 1.0 1.1 EVOLUTION OF COST ACCOUNTING, COST CONCEPTS AND COST CLASSIFICATION INTRODUCTION Traditionally, cost accounting is considered as the technique and process of ascertaining costs of a given thing. In sixties, the definition of cost accounting was modified as ‘the application of costing and cost accounting principles, methods and techniques to the science, art and practice of cost control and ascertainment of profitability of goods, or services’. It includes the presentation of information derived therefrom for the purpose of managerial decision making. It clearly emphasises the importance of cost accountancy achieved during the period by using...
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...i MANAGERIAL ACCOUNTING QCF Level 5 Unit Contents Chapter Title Introduction to the Study Manual Unit Specification (Syllabus) Coverage of the Syllabus by the Manual 1 Management Accounting and Information Introduction Management Accounting Information Collection and Measurement of Information Information for Strategic, Operational and Management Control Information for Decision Making Cost Categorisation and Classification Introduction Some Introductory Definitions Categorising Cost to Aid Decision Making and Control Management Responsibility Levels Cost Units Cost Codes Patterns of Cost Behaviour Influences on Activity Levels Numerical Example of Cost Behaviour Direct and Indirect Costs Introduction Material Costs Labour Costs Decision Making and Direct Costs Overhead and Overhead C Absorption Costing Introduction Definition and Mechanics of Absorption Costing Cost Allocation Cost Apportionment Overhead Absorption (OAR) Under and Over Absorption of Overheads Treatment of Administration and Selling and Distribution Overhead Uses of Absorption Costing Page v vii ix 1 2 2 4 6 11 14 17 18 19 21 26 27 28 29 30 30 33 34 34 38 43 43 45 46 46 47 48 52 57 59 60 2 3 4 © ABE ii Chapter Title 5 Marginal Costing Introduction Definitions of Marginal Costing and Contribution Marginal Versus Absorption Costing Effect of Absorption Costing and Marginal Costing on Profit Application of Marginal and Absorption Costing Activity-Based and Other Modern Costing Methods Introduction...
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...Financial Scandals and the Role of Private Enforcement: The Parmalat Case Law Working Paper N° 40/2005 May 2005 Guido Ferrarini University of Genoa, Centre for Law and Finance and ECGI Paolo Giudici Free University of Bozen and Centre for Law and Finance © Guido Ferrarini and Paolo Giudici 2005. All rights reserved. Short sections of text, not to exceed two paragraphs, may be quoted without explicit permission provided that full credit, including © notice, is given to the source. This paper can be downloaded without charge from: http://ssrn.com/abstract=730403 www.ecgi.org/wp ECGI Working Paper Series in Law Financial Scandals and the Role of Private Enforcement: The Parmalat Case Working Paper N° 40/2005 May 2005 Guido Ferrarini Paolo Giudici This Working Paper is based upon a draft prepared for the EU Corporate Law Making Conference (Cambridge, October 29-30, 2004) organized by Harvard Law School and the Swiss Federal Institute of Technology (ETH Zurich). The authors are grateful to Gerard Hertig, Mark Roe, Donald Langevoort, and other conference participants for helpful comments. Drafts of this paper were also presented at the Yale Law School Alumni Meeting on October 8-10, 2004; at a meeting of the Associazione Via Isonzo held in Milan on October 10, 2004; and at a seminar at the Institute of Law and Finance (ILF), University of Frankfurt, on January 18, 2005. The authors are grateful to Theodore Baums, Andreas Cahn, Carmine Di Noia, Jon Macey,...
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...A. Davis, Jr. ACC/542 October 21, 2013 Irene Branum Preface In the last few weeks the accounting firm, Team D has looked into characteristics of Kudler Fine Foods and provided recommendations to update and replace existing components of the IT system. These recommendations made can yield in the company’s increased productivity, profitability, and remove potential threats. Team D determined that industry specific software is useful in comparison to customized software. Four main modules such as payroll, account payable, accounts receivable, and inventory were developed as well as enhancement of each flowchart based on the appropriate system. Team D examined the database completeness at Kudler’s intranet and developed a pivot table; therefore, making the decision-making process easy. External and internal risks were analyzed and internal control points were developed by incorporating both risks and controls into a flowchart. Team D also showed why findings and recommendations are more useful to the company in comparison to SAS70 and SAS94 audits. The team identified events that will lessen the dependence on auditing through computer and showed a brief description how the audit should be conducted. System Integrity and Validation Kudler Finer Foods has looked for recommendations regarding the company, to include computer information system, automated process of an accounting information system, data table analysis, internal control and risk evaluation, and auditing procedures...
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...I. Introduction The Royal Mint has a unique manufacturing operation in the United Kingdom and also designated as an executive agency responsible to the treasury to the “Her Majesty's” Government. Its objective is to provide the government with coinage at a competitive price and its manufacturing requirement ranges from high volumes of standard coinage to individual service medals or commemorative coins. In the case of the Royal Mint, they follow a unique cost ceiling that their cost base must always be less than the face value of the coins being produced. In order to follow that unique cost ceiling, the researchers follow the concept of simultaneous design by being involved in initiatives to improve materials being used in both coins and dies. Then due to high inflation rate, the face value of the coin is exceeding the cost base of the raw material and with the help of using the concept of simultaneous design, the Royal Mint quickly mitigated the risk by changing the composition of the 2 Pound and 1 Pound coins to a steal core with an electroplated copper outer layer and has significantly reduced the unit cost and it added expected lifetime by using a less expensive metal base. II. Background The Royal Mint has a cost ceiling that the cost base of the material must be less than the face value of the coin being produced. In order to follow that unique cost ceiling, the Royal Mint implemented the Concept of Simultaneous Design to research on how to further improve...
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