Management Accounting

Q6: How much production fixed expenses should be allocated to 1 kg of "complete meal"? Give a specific number and your logic to support the

cognizant of the fact that the choices he makes can affect the price a buyer pays

Springfield Express has an opportunity to obtain a new route that would be traveled 20 times per month. The company believes it can sell seats at $ 175 on the route, but the load factor would be only 60 percent. Fixed cost would increase by $ 250,000 per month for additional personnel, additional passenger train cars, maintenance, and so on. Variable cost per passenger would remain at $ 70.

15. Murphy Company has two service departments, Maintenance and Personnel, and two production departments, Mixing and Finishing. Maintenance costs are allocated based on square footage while personnel costs are allocated based on number of employees. The following information has been gathered for the current year:

2. Alpha company has 4 departments. A & B are support departments, 1 & 2 are

1. Tutti’s Sandwich Shop has the following information regarding costs at various levels of monthly sales. Help Tutti separate her costs into fixed costs and variable costs so that she can predict and evaluate costs at varying levels of guests served.

2. A cafeteria serves three meals a day and offers one fruit selection at each meal. The manager can select from five different categories of fruit: fresh (raw), fresh (cooked), dried, canned, or juice. How many different fruit menus (arrangements) can be offered on a single day if the same category can be offered at most once each day and cannot be repeated at the same meal two days in a row?

Company operates in the Industrial Sector – Services, and Industry – Regional Airlines. According to the Standard Industrial Classification System (SIC), company belongs to the industry group 451: Air

The rent is considered as $12,000 per unit per month after evaluating the existing lease of the company. McDonald’s operations will be on the campus of the university, so the major approvals will be a mutual understanding under the contract between the university and McDonald’s. Cost of equipment is not considered since company can use the existing equipment collected from the 722 closed restaurants in 2015 (McDonald 's Corporation, 2016), however the transportation and installation cost is included in the infrastructure cost. Employee’s salary is considered on average basis of company’s pay scale of each position (McDonald 's Corporation, 2016). It is assumed that initially the restaurant will be working for 16 hours a day and 25 days a month as shown in calculation above. For the initial year it is considered that average sales per day will be 1500 and for the second year will increase to 1650, which is considered by the growth of the universities and students enrolled. COGS is 1/3rd of the cost of sales and sales is based upon an average consumer spending in a restaurant (McDonald 's Corporation, 2015). Income is also generated from the fees received from the college and universities for the services which is calculated on average of $240,000 annually, however the fees income will vary with every college depending on the contract. 1% commission on sales to universities is consider as expenditure for the company.

A: Take Order – Food – Deliver – Bill → 4 + 18 + 12 + 2 = 36 mins

Case 1: Case 2: Bal Seal Engineering Robin Cooper Bill’s Custom Planters William Stammerjohan Deborah Seifert Dublin Shirt Company Peter Clarke in assoc. with in assoc. with Paul Juras Wayne Bremser ECN.W William Lawler Endesa Gary M. Cunningham Scott Ericksen Francisco J. Lopez Lubian Antonio Pareja Kincaid Manufacturing Jon Yarusso Ram Ramanan Osram.NA John Shank Lawrence Carr William Lawler Pleasant Run Children’s Home Brooke E. Smith Mark A. McFatridge Susan B. Hughes University Bottom Line Enrico Uliana

Case 1: Case 2: Bal Seal Engineering Robin Cooper Bill’s Custom Planters William Stammerjohan Deborah Seifert Dublin Shirt Company Peter Clarke in assoc. with in assoc. with Paul Juras Wayne Bremser ECN.W William Lawler Endesa Gary M. Cunningham Scott Ericksen Francisco J. Lopez Lubian Antonio Pareja Kincaid Manufacturing Jon Yarusso Ram Ramanan Osram.NA John Shank Lawrence Carr William Lawler Pleasant Run Children’s Home Brooke E. Smith Mark A. McFatridge Susan B. Hughes University Bottom Line Enrico Uliana

The Board of Dumbellow Ltd are meeting on the 23rd January to discuss the draft budget for 2000/1, some two months before the start of that year. The company produces three industrial valves which are incorporated into equipment used in the Oil and Gas industry. The draft income statement is as follows: Product X £k Sales 100k units at £15 80k units at £25 120k units at £10 Materials Labour Overheads Profit/(Loss) 300 700 225 1225 275 400 800 360 1560 440 1500 2000 1200 480 750 330 1560 (360) 4700 1180 2250 915 4345 355 Product Y £k Product Z £k Total £k

Variable cost includes only variable cost in cost of finished goods (product cost) and fixed cost in period cost.

1.1 There are several possible answers to the question. QANTAS, the national airline of Australia, has faced a number of changes to the business environment in recent years, including deregulation of the domestic aviation industry. This resulted in increased competition as new firms attempted to enter the industry. The most notable of these was two failed attempts by Compass to succeed in the market and gain market share by savagely cutting prices. Its major competitor, Ansett Australia, collapsed in 2001 resulting in QANTAS having almost a monopoly for a short period. A powerful UK airline, Virgin, has also entered the market,