Accounting

|b. |attempts to satisfy the costing objectives of both financial accounting and management accounting. |

Owens & Minor is a distributor of surgical and medical supplies to hospitals and other health care facilities. Due to changing demand from customers, the company is facing increased operating costs, which has resulted in lower profit margins and even losses. In 1993, O&M recorded an $18 million profit, which was reduced to a loss of $11 million in 1995. The entire industry is experiencing similar difficulties. In an effort to resume profitability, O&M is evaluating alternatives to “cost-plus pricing”. Cost-plus pricing does not reflect the true cost of the services provided by O&M. Customers are demanding more of O&M while

Margin of Safety: “Safety Net ” – tells the amount by which sales can be reduced before you reach break -even point. Formulae: Margin of Safety (units) = amount by which total sales can fall before losses are incurred Total Sales – Break-Even Sales Margin of Safety % = % total sales can fall before losses are incurred (Total Sales – Break-Even Sales) / Total Sales

He argues that idle capacity is worse since it has no contribution to overheads whereas a lower price above variable costs would have some positive contribution to the fixed costs and therefore improve profitability for the division. He believes a price of $40 is insufficient to cover the total costs and that the systems division does not want to subsidize the overheads of outside buyers.

Xilinx, Inc. designs, develops, and markets complete programmable logic solutions, including advanced integrated circuits, software design tools, predefined system functions delivered as intellectual property cores, customer training, field engineering and technical support. Customers are electronic equipment manufacturers primarily in the telecommunications, networking, computing, industrial, and consumer markets. Products are sold globally through a direct sales management organization and through franchised domestic and foreign distributors. (Source: Company 2007 Form 10-K)

Because he never wanted to lay off an employee, the MOV was always large in months when business was slow. (Lambeth assigned idle workers to general cleanup and repair work, and charged their wages to indirect labor.) Of course, Lambeth realized why the MOV was so large. What he was worried about, however, was Mrs. Carter. Mrs. Carter, a neighbor, had stopped by the shop one day in early September to get a price on some cabinets she wanted built. Lambeth’s son, Jack Jr., spoke with her. Jack Jr. was working in the shop while on summer vacation between his first and second year of graduate business school. He studied Mrs. Carter’s plans, and estimated the cost of building her cabinets to be $1,625. His job-estimation sheet showed the following: Lumber Finishing materials Direct-labor cost Overhead $590 75 640 __320 $1,625

3. What was the balance of Walmart’s allowance for doubtful accounts (ADA) as of January 31, 2012?

347 U.S. 483 Argued December 9, 1952 Reargued December 8, 1953 Decided May 17, 1954 APPEAL FROM THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF KANSAS* Syllabus Segregation of white and Negro children in the public schools of a State solely on the basis of race, pursuant to state laws permitting or requiring such segregation, denies to Negro children the equal protection of the laws guaranteed by the Fourteenth Amendment -- even though the physical facilities and other "tangible" factors of white and Negro schools may be equal. (a) The history of the Fourteenth Amendment is inconclusive as to its intended effect on public education. (b) The

2. If the department that produces Item 345 was a profit center and if you were the manager of that department, would it be to your financial advantage to lower the price?

Thompson Division tota Costs to Birch Paper = $288, being $400 made up of $280 for materials (linerboard and corrugating medium) and $120 for other costs. However because Thompson sources its materials from Southern division who make a $112 profit on materials, the total Cost to Birch Paper Company is materials $168 + other cost $120 = $288

Because Harrington Collection thinks that sales people are the most important factor in the consumer decision-making process, they spend significant resources training their personnel and offering them attractive commissions. Their expenses are understandable, and didn’t change for the fiscal year of 2007. What did change were the Manufacturing Group’s expenses. The Manufacturing Group’s SG&A increased 4.63% in 2007, meaning that the cost of maintaining the current manufacturing set up is increasing.

First, we have identified if there is really an insufficiency in the amount of selling prices set by the Sales Department, in reference to Exhibit 1 of the case. We did this through identifying the maximum amount of overhead costs that the company can incur for the three products and comparing it with the total overhead costs. See Table 1 for details.

The break-even point in number of sales in 2003 was 7,012 units sold. In 2004 the break-even point was 7,727 units sold, and in 2006, the break-even point was 11,902 units sold. In respect to the break-even point in sales dollars, the break-even point for 2003 was $7,131,204. In 2004 this value was $7,456,555, and in 2006, the break-even point rose incrementally to $11,556,842. During 2003 and 2004, Hallstead resided in their previous location which held 10,230 square feet. Between these years, there is an increase in their break-even point, but this change can be associated with a down year in sales. Their sales decreased by approximately $481,000. Along with that, we can see that Hallstead’s fixed costs remained stable, only

The Thompson bid is in the best interest of the Birch Paper Company. The out of pocket costs are much lower for Birch when keeping the bid internal. When evaluating the out of pocket costs associated with the different bids, it’s clear Birch cuts costs drastically when accepting the Thompson bid.

Finally when John got back to M. Bernard with the price of £1.1 million, he was told that a key competitor had quoted less than £1 million. This was a key indication that Commercial SA’s choice criteria was a functional (economic) criteria (Jobber & Lancaster, 2012). The company was focusing mainly on the cost. John should have taken note of this and came up with a strategic sales promotion to attract and convince them into purchasing from Cloverleaf plc.