Internal Cost & Controlling Finances Summary Report In response to a request from the Vice President of Competition Bikes for an analysis and recommendation regarding Activity Base Costing, as well as a request for a break-even analysis with projections of the company’s target profit, I have developed the following report. 1. Costing Method Evaluation Traditional Costing and Activity Based Costing (ABC) are the two systems we will evaluate in relation to Competition
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marginal contribution, break-even, the equation method, the marginal contribution method, graphical method The cost-volume-profit is a necessary tool for forecasting also for management control. The method includes a number of techniques and methods of solving problems based on understanding patterns of evolution characteristics of business costs. The techniques express the relationship between incomes, sales structure, costs, production volume and profits and include break-even analysis and profit
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A presentation report on Cost–volume–profit analysis (CVP) Prepared for: Ms. Wahida Akther Lecturer Department of Business Administration Course code: ACC- 324 Course title: Taxation Prepared by: Group name: Exclusive NAME | ID | Omar Faruk | 1001010169 | Mirza Atiqul Hoque | 1001010182 | Minhaj Sultana | 1001010184 | Mushfiqur Rahman | 1001010186 | khairul Anam Choudhury | 1001010199 | Section:(D) 8th
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Questions: 1. What is the maximum sales loss (in % and units) that Healthy Spring could tolerate before a 20% price increase would fail to make a positive contribution to its profitability? (That is, what is the basic break-even sales change?) Answer: 25% sales loss (1500 break-even sales change) -.20 divided .8 = .25 (12/20+.20=.8) __________________________________________________________________________________________________________________ 2. By how much would Healthy Spring's contribution
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prospective financial performance of the company and to critique its liberal credit and inventory policies. The objectives of the case are to: • Introduce and exercise tools and concepts of financial-statement analysis (including financial ratios, break-even analysis, and cash-flow statements). • Explore possible definitions of the “financial health” of a company. • Illustrate the linkage between operating policies and financial performance. • Consider the interdependence among corporate objectives
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Analysis…………………………………………………………. 3 • Environmental Forces…………………………………………………… 3 • Consumer Analysis……………………………………………………… 4 6. Market product Grid ………………………………………………………… 5 • Service Offering………………………………………………………... 6 • Service Strategy………………………………………………………… 6 7. Break-Even Point …………………………………………………………….. 6 8. Marketing Program ………………………………………………………….. 10 • Promotion Strategy…………………………………………………….. 10 • Promotion Schedule……………………………………………………. 11 • Promotion Strategy (cont.)……………………………………………… 12 9. Implementation
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#1 Why does the manufacturing industry use job order cost system? A Job order Why do some professional firms use job order cost system? Give 2 professional firms to use job order cost system for example. A job order is a cost accounting method that focuses in quantity of product known as a job or lot. The costs of direct materials, direct labor, and manufacturing overhead applicable to each job are compiled to arrive at average unit cost, (p.778, Williams, 2012). Characteristics | Job Order
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| Hamburgers | 20% | $5,920 | Popcorn | 10% | $2,960 | Misc. snacks | 5% | $1,480 | | | $29,600 | 3. The break-even points for each item are calculated by computing the allocated fixed cost for each item divided by the profit margin of each item. These are shown in the table below: | Selling | Variable | Profit | Percent | Allocated | Break even | Item | price | cost/ unit | margin | revenue | fixed cost | volume | Soft drink | $2.50 | $0.65 | $1.85 | 25% | $7,400
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Chapters 3 & 4 01. How will the contribution margin and the break-even point change as a result of a change in the selling price, variable costs, or fixed costs? 02. Which of the following variables will not have an impact on a company’s break-even point? Change in variable costs, sale price, number of units sold, or fixed costs? 03. What factors would cause the margin of safety to decrease? A change in fixed costs, total revenue, break-even point, or variable costs? 04. What is the breakeven point
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This is a simple “How to Report” to show you what it is you will need to know when starting your new business. In this passage we are going to be reviewing 4 different business models to help you make better decision when starting your new business. Let’s start with Porters five forces model. Figure 1 Figure 1 Porter’s five forces model (Figure 1) is a business strategy tool that helps a person analyze all the different strengths, weaknesses, pros and cons of the industry and your business. Let’s
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