CHAPTER 10 Budgetary Control and Responsibility Accounting ASSIGNMENT CLASSIFICATION TABLE Learning Objectives 1. Describe the concept of budgetary control. Evaluate the usefulness of static budget reports. Explain the development of flexible budgets and the usefulness of flexible budget reports. Describe the concept of responsibility accounting. Indicate the features of responsibility reports for cost centers. Identify the content of responsibility reports for profit centers. Explain the basis
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Calibrated Manufacturing Calibrated Manufacturing makes an electronic component that is in great demand. The component sells for $20 each. Calibrated's current capacity is 10,000 units per week. For the last few months, however, the company has been receiving new orders at a rate of 14,000 units per week, and now has a substantial backlog. The company expects this order rate to continue, if it maintains its price. Calibrated's current operating data follows: Sales Revenue $200,000 Variable
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Maxfield and Betty has identified that the problem is the bottleneck in the third process of production The second step is optimizing use of restraint, which means finding the product with the highest margin per unit of constraint which according to the data is model C210 because it has a higher profit margin of $420 per unit of constraint. The third step of Goldratt’s theory is subordinates everything else to the constraint, which mean to focus on trying to loosen the constraint, this can be achieved
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Financial District Branch James McGaran was manager of the most important of the 31 branches in the Los Angeles area. Located in Los Angeles’s financial district, James’s branch had a staff of 15 people, revenues of $6 million, and $4.3 million in profit margin. The customer base was very diverse. Individual customers ranged from people who worked in the financial district with sophisticated retail banking needs to less informed individuals banking for convenience. Business customers were sophisticated buyers
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University of the West Indies Cave Hill Mid-Summer Examination ACC 2017 Management Accounting 1) Anything for which a separate measurement of costs is desired is a a. cost item. b. cost object c. fixed cost item. d. variable cost object. 2) Using information obtained for a cost object , a manager maybe able to determine all of the following EXCEPT a. the direct manufacturing labor cost of a job. b. the direct manufacturing labor of a work station
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S. Truett Cathy was a successful entrepreneur almost from birth. He started by selling Coca-Cola door to door, then magazines and newspapers, before finally entering the restaurant business. Several successful years later, he began working on a chicken sandwich for his restaurants and customer response was so great that Cathy knew he was on to something special. Cathy initially wanted to license the sales of the product to other restaurants, but saw that it could created quality control issues and
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Table of Contents Executive Summary 2 Introduction 3 Issues 3 Budgeting 3 Analysis 3 Sales 3 Recommendations 4 Market Trends 4 Cutting Cost 4 Appendix 5 Budgeting 5 Actual Sales Numbers 5 Memo 6 Executive Summary Marlin Company has been in operation for only a few months. As a whole sale distributor that sells products at a cheaper price than stores it as an advantage when coming to bottom line pricing. Currently the company only sells three products which are; sinks
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In deciding whether to continue, discontinue or sell a subsidiary company, we should consider the benefits and disadvantages of each option. We gauge the contribution of a subsidiary not only by looking at its profitability but also the advantage it can give to the parent company particularly in reducing its costs. Having a low profitability or even a net loss does not necessarily mean that the decision of retaining the subsidiary is wrong. Separating the relevant costs from the irrelevant costs
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The Problem. Zoecon needs to decide whether or not to distribute Strike ROACH ENDER to all 19 cities that represent 80% of insecticide sales. Recommendation. Zoecon should not pursue expanding distribution of Strike ROACH ENDER to all 19 cities. The test market analysis and the market forecast data project that Zoecon would sustain losses. The company should make a decision to pursue other alternatives before April. Test Market Analysis. The test market sustained losses of $ 1,204,149.80
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proportionately. variable costs, such as direct materials, will change proportionately. Question 5.5. (TCO B) The break-even point is (Points : 6) fixed costs divided by contribution margin per unit. the sum of fixed and variable costs divided by contribution margin per unit. contribution margin per unit divided by revenue per unit. total costs divided by variable costs per unit. Question 6.6. (TCO B) Answer the following question using the information below
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