Capital Management And Relevant costing and decision making Student Name Course : APC 309: Strategic Management Accounting Instructor : Term : Table of Contents 1. Introduction 3 2. Part A: Working capital management of XYZ 3 2.1. Improving the elements of working capital 5 i. Inventories 5 ii. Trade receivables 6 iii. Trade Payables 7 iv. Cash and cash equivalent 7 3. Part B: Strategic Management Accounting for Decision making 8 3.1. Shutting down
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1. Explain fully how auto manufacturers should choose among substitutable inputs and production processes. Discuss in detail and apply the related concepts According to the textbook, the production process is the process used by an organizations to produce a good. It begins with the production function, which is a descriptive relation that links inputs with output. It (production function) specifies the maximum feasible output that can be produced for given amounts of inputs. Production functions
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Chapter 13 1. A corporation issued shares of its $10 par value common stock in exchange for land that has a market value of $84,000. The entry to record this transaction would include: A credit to paid- in Capital in excess of par value, common stock for $24,000. 2. A corporation issued 300 shares of its $5 par value common stock in payment of a $1,800 charge from its accountant for assistance in filing its charger with the state. The entry to record this transaction will include: A $300
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COST MEASUREMENT CONCEPTS 457 QUESTIONS [1] Source: CMA 0690 5-27 Costs that arise from periodic budgeting decisions that have no strong input-output relationship are commonly called A. Committed costs. B. Discretionary costs. C. Opportunity costs. D. Differential costs. [Fact Pattern #1] The estimated unit costs for a company using absorption (full) costing and planning to produce and sell at a level of 12,000 units per month are as follows.
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Chapter 17 Process Costing ➢ Process Costing – the method of assigning total cost to many identical or similar units. Each unit receives the same or similar amounts of direct material costs, direct labor costs, and indirect manufacturing costs. Unit costs are computed by dividing total costs incurred by the number of units of output from the production process. The main difference between process costing and job costing is the extend of averaging used to compute unit costs of products
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1-1 Firms Using Cost Management. Here are some examples; there are many possible answers. 1. Wal-Mart: to keep costs low by streamlining restocking and sales 2. Dell: to keep costs low by improving manufacturing performance and by using target costing and other management techniques 3. Citicorp: to keep costs low by using activity analysis (see exercise1-31) to identify key operations and to find those that add little or no value 4. A local school district or public agency: to keep costs low
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directly to Mr Edwards. As a project manager, Mary was responsible to oversee project implementation as well as the project’s pricing and costing.Mr Edwards was the Water Purification Group Vice President. He was responsible to all projects under the group and therefore need to ensure the profitability of the group. 2. What is the main issue faced by Mary? What decision Mary need to make?Project ORG7, which is under Mary’s management showed cost overruns. The actual costs of completing the project
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determining the cost of goods sold per unit . Lee High was able to develop decision rules for use by the companyЎ¦s owner for management decision-making purposes. Based upon Lee HighЎ¦s data, Charlton Blackheath, the owner, dictated a management decision that sales could not be less than a $7.00 per unit order. The case then introduces a series of sales possibilities that are accepted or declined based essentially on these decision rules. However, a young file clerk decided to take an under-bid proposal
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payback period for an investment? * How to compute NPV & IRR? * What are the decision criteria of NPV & IRR? * How to apply them in decision making? * Case studies. Case Studies: 1. Dwyer Company plans to develop a new product. Sales manager believes that the firm could sell 5000 units per year at $14 each for 5 years. Production manager has determined that machinery costing $60000 and having a 5-year life with $5000 salvage value would be required. The machinery
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Lecture 4: Cost system refinement: Activity‐based costing; Process Costing Reading: Horngren Chapter 7 (Ch 5 in 14th edition); and Ch 8 to p 276 and pp281‐283 (Ch 17 14th edition) Note: the FIFO method will not be examined in this course and nor will Hybrid (Operation) Costing , therefore you do not need to read the pages that relate to these topics. 1 Salters Pty Ltd, a specialised equipment manufacturer, uses a job order costing system. The overhead is allocated to jobs on the basis of direct labour hours
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