study focuses on the concept of standard costing, variance analysis and the reconciliation of budget to actual profit through an analysis of the main cost variances. The scenario assumes that you work as an assistant in the SME business services unit of Dunn and Musgrave a firm of accountants and consultants. You have recently introduced, at Coverdrive Ltd a system of standard costing and budgetary control. The objective of the system is to generate a monthly report to show the following: Budget
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unless it covers the fixed costs as well. 3. The level of operation at which total costs are just covered is the break-even volume. 4. This should be the lower limit in the planning. ACCOUNTING RECORDS * The accounting records had provided the following information that French used in constructing his chart: 1. Plant Capacity -2 million units per year. 2. Past year’s level of operations - 1.5 million units. 3. Average unit selling price - $7.20. 4. Total fixed costs
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calculating depreciation are straight-line, units-of-production, sum-of-years digits, and double-declining balance, and accelerated depreciation method. Straight-line depreciation is known to be the most widely used method for depreciation for many years largely due to its simplicity and is easily understood. The method of straight-line depreciation is easy, basic lyrics a company charges an equal amount of the asset’s original cost to each accounting period. The straight-line formula used to calculate
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Accg100 Accounting 1A Lecture Notes Semester 2, 2012 1 Table of Contents Lecture Notes Week 1: Introduction to Accounting, Ethics, Business Entities, Financial Statements Week 2: Accounting for Transactions –Part 1 Week 3: Accounting for Transactions –Part 2 Week 4: Accounting for Adjustments- Part 1 Week 5: Accounting for Adjustments- Part 2 Week 6: Completion of Accounting Cycle Accounting Systems Revision Chapters 1 – 4 Week 8: Accounting for Retailers Week 9: Accounting for Inventories
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Truck Locator’s installs a dedicated hardware unit on the truck and the trailer before the Truck Finder service can be used. Customers generally sign two contracts, one governing the dale of the hardware (devices) and the other providing the provision of the service. Service contracts generally have a duration of 12 months and are billed monthly. Service and devices are sold at standard rates, but discounts are offered depending on the number of units purchased and placed in service. The discounts
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depreciation. F 2. Nature of depreciation. T 3. Depreciation, depletion, and amortization. T 4. Definition of depreciation base. F 5. Factors involved in depreciation process. F 6. Definition of inadequacy. T 7. Objection to straight-line method. F 8. Units-of-production approach. F 9. Accelerated depreciation method. T 10. Declining-balance method. T 11. Group or composite approach. F 12. Use of the composite approach. T 13. Accounting for changes in estimates. F 14. Computation
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COST ACCOUNTING Cost accounting means the process of collection of data, analyzing the data, summarizing and evaluating various alternative courses of action. Basically, the cost accounting information are commonly used in the financial accounting information. Also the accounting system and financial reports are not subjected to the rules and standards of accounts, like the general accepted accounting principal. Which leads to different application of cost accounting system in different
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Unit 4.9 Level 4 Finance for Managers 15 Credits Sample Assignments You are employed in a financial consultancy and one of your clients is a relatively new company that is facing rapid growth. As they began as a small family business, they have not had the level of financial control that would be expected in a business of their current size. The management team are looking to employ an accountant. Before taking this step they need to understand the reasons for recording and reporting financial
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the ASC 605-25, the activation card should be treated as a separate deliverable and a separate unit of accounting. As mentioned in the case, each Power Starterpack prepaid phone service plan includes an activation card and an airtime voucher. As addressed in the ASC 605-25-25-5, in an arrangement with multiple deliverables, the delivered item or items shall be considered a separate unit of accounting if both of the following criteria are met: a. The delivered item or items have value to the customer
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Differentiate our product and service (JetBlue, 2005) Due to the strategies, JetBlue has been able to grow largely as a company and become one of the leading airlines which focus on customer satisfaction at a low operating cost. JETBLUE AIRWAYS 3 What business risks does JetBlue face that may threaten the company’s ability to satisfy stockholder expectations? What are some examples of control activities that the company could use to reduce these risks? (Hint: Focus on pages 17-23 of the 10-K/A
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