QUESTIONS 5-1 Product costs are likely distorted when a firm uses a volume-based rate if the plant has more than one activity in its operations and not all activities consume overhead in the same proportion. The more diverse the product mixes of the plant are in volume, sizes, manufacturing processes, or product complexities, the greater the cost distortions are likely to be in using a volume-based rate. Undercosting a product may appear to have increased the reported profit the product earned (assuming
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Representatives that is able to move their merchandise without the need of funding store fronts which helps them cut cost by removing rent and personnel from their operating cost because the need for those services are gone. This will simultaneously increase their sales because now they have more representatives out there pushing their merchandise without boundaries and all the overhead cost. With compensation in mind because you're in business to make money as a Sales Representatives you have a decision
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Global Corporate Relations | August2014 March 2013 Content 2 3 HEINEKEN | Proud, Independent, Responsible Global Brewer The world’s most international brewer No 1 in Europe and No 2 in the world by revenue Operations in over 70 countries globally Brewing great beers, building great brands Committed to surprising and exciting consumers everywhere Long and proud history and heritage 4 HEINEKEN | Our Values Enjoyment we bring enjoyment to life Respect for individuals
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costing. Flow of product costs through the inventory accounts and intocost of goods sold. Each production department has a unique Production Report and separate workin-process inventory account. Journal entries required in a Process Cost system. Concept of "Equivalent Units" and how to calculate equivalent units Prepare a Production Report consisting of: Quantity Schedule Equivalent Units Cost per Equivalent Unit Cost Reconciliation/Assignment Chapter 5 - Cost Behavior: Analysis And Use
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1) Inventory Management - Inventory Turnover Ratio = Costs of Goods Sold/ Inventory If inventory turns over 6 times, how many days does it stay on the shelves or in the warehouse? These are annual figures: 365/7 = 60 days on the shelves. Need a better specific Mission Statement. 2) Costs that do no change with volume of output are called -Fixed Costs Costs that change when volume changes are called -Variable Costs 3) Fishbone Analysis 4) Low Urg/Low Impt – Low Urg/High
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down the costs of remolding their building to meet the United States environmental ethic laws. Question One Based on the information presented in the scenario/case study discuss Albatross Anchor’s competitiveness in relation to (please address all items in the below list and provide support for your conclusions): 1. Cost a) Cost of Production: Since Albatross Anchor keeps all departments in one building; this keeps the fixed cost down, and lowers expenses in term of variable cost. The cost
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Most modern organizations have knowledge on how to tap on diversity to get a competitive business advantage. Managing of diversity is now put alongside issues such as corporate social responsibility and ethics as an appeal to many consumers and to win a large share of the market. This discussion will explore what diversity is, what a diversity program is and the importance of diversity management to an organization. Firstly, there is a need to discuss what diversity is. Most people think of diversity
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TUTORIAL 1- BUDGETING 1 Question 1 (a) Overhead costs for the 2010 budget: Property cost = $120,000 x 1·05 = $126,000 Central wages = ($150,000 x 1·03) + $12,000 = $166,500 Stationery = $25,000 x 0·6 = $15,000 (b) The road repair budget will be based on 2,200 metres of road repairs; it is common to include a contingency in case roads unexpectedly need repair (see part (c)). The weather conditions could add an extra cost to the budget if poor or bad conditions exist.
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in which all expenses must be justified for each new period. It requires managers to justify all budgeted expenditures, not just changes in the budget from the prior year. 4. Muster Budget: A set of interconnected budgets of sales, production costs, purchases, incomes etc. is called Master Budget. It also includes pro-forma financial statements. It serves as a planning and control tool of the organization. 5. Cash Budget: Estimation of cash inflows and out flows for a business or individual
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competitive environment and high costs. Its largest group, Electric Motor Works (EMW) has been focusing on producing standard as well as customized motors and found out that Siemens has great profitability in producing low volume customized A/C motors. To successful implement this new strategy, not only has EMW renovated the shop floors for process improvement, but also redesigned the components of motors. However, as the strategy implementing, the traditional cost system seemed to be inappropriate
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