Accounting 3200 Midterm Exam Essay

a. Credit will only be given if you clearly show your work, and clearly indicate the final answer.

Gabe's Auto produces and sells an auto part for $30.00 per unit. In 2010, 100,000 parts were

    2.  Based on HEV sales to date, how would you describe U.S. buyers of electric passenger cars?

Since the Competition Bike Company projected overly optimistic sales, there are several areas in the budget that will be affected. The areas affected are Sales Commission, Transportation Out, Advertising, Research and Development, Raw Materials, and Labor.

Part I. Each question is worth 3 points. For multiple choice questions, use highlight or bold to mark your answers.

net operating income will tend to move up and down in response to changes in levels of production.

Question #1 is worth 5 points – all others are worth 1 point each. Either type your answers directly onto THIS sheet OR create a new file and number your answers 1, 2, 3, etc.

Assess the degree to which the firm’s accounting reflects the underlying business reality. Identify accounting distortions and evaluate their impact on profits and the sustainability of profits.

To determine the causes of the variances, price variances and quantity variances can be calculated separately for each aspect of bicycle construction. Price variance and quantity variance are the two parts that make up the total variance between the flexible budget and the actual budget, which we found to be $259,187. To find price variance, the actual quantity of each part used must be held constant while price per part varies. This will show how the total cost is impacted by the difference in part price. Therefore this

only business activity is to sell pod racers imported from PD. ID pays a 20% import duty based on

1. A brief history of the two organisations, and their objectives, in as far as they

3. Managerial Accounting deals with procuring of data for the organisation's management i.e. to serve the internal users with necessary accounting information to carry out the management tasks of planning, organising, actualising and controlling. " Management Accounting is the presentation of accounting Information in such a way as to assist management in creation of policy and in the day to day operations of an undertaking". 4. Financial Management deals with the process adopted by an organisation for taking financial decisions through analysing and interpretation of financial data for meeting the organisations objectives.

4.1 Break-Even Analysis: Bridgestone/Resilient Technologies manufactures of non-pneumatic tires recently have been experiencing financial difficulties in its operation. As a matter of fact, for the past three years, tire companies have been struggling to reach its break-even point. The companies especially Michelin tire company has experienced losses last year although they have projected a profit of $7,000.

Corporations are often the victims of the most common white-collar crimes that occur in corporate America. According to the Association of Certified Fraud Examiners (cfenet.com), “abuse and fraud by employees cost U.S. organizations more than $400 billion annually…[which equals] $9 per employee per day.”

Management in business and human organization activity, in simple terms means the act of getting people together to accomplish desired goals. Management comprises planning, organizing, ->resourcing, leading or directing, and controlling an organization (a group of one or more people or entities) or effort for the purpose of accomplishing a goal. Resourcing encompasses the deployment and manipulation of human resources, financial resources, technological resources, and natural resources.