Detailed explanation and steps
Q: Define Prior service cost.
A:
Q: Requirements:
A: The percentage of completion method is a revenue recognition accounting concept that evaluates how…
Q: Define specific identification
A: Method of Inventory: Inventory refers to the current assets that a company expects to sell during…
Q: Define construction in progress.
A:
Q: How to choose a Benchmark?
A: Investors select a market index (or a mix of indices) as the portfolio's benchmark. An index…
Q: Define roadshow
A: Roadshow: Roadshow is a sequence of conferences across diverse towns in which topmost managers from…
Q: Describe about the intuitive approach?
A: Supervisors regularly depend on models and intuition to make fast decisions. Intuitive decision…
Q: Explain the purpose of the conceptual framework.
A:
Q: Define Reconciliation method
A: Bank reconciliation: Bank statement is prepared by bank. The company maintains its own records from…
Q: analytical procedures
A: First option is correct because analytical procedures assist to identify the risk by comparing the…
Q: Describe the usefulness of a conceptual framework.
A: A conceptual framework can be defined as a system of ideas and objectives that lead to the creation…
Q: Define association.
A: Accounting Information System (AIS): The system which helps to gather, store and process the…
Q: Define going-concern assumption
A: Definition: Accounting: Accounting is a system, or a process of collecting and organizing economic…
Q: Define Recognition.
A:
Q: Please define the factors affecting the duration of planning
A: Economic coming up with, the method by that key economic selections square measure created or…
Q: examine the image provided and give the analysis and interpretation.
A: A cash flow statement shows the actual amount of cash available at the end of each period. This…
Q: explain the specific identification approach
A: Introduction: Inventory valuation is an accounting practice used by businesses to determine the…
Q: Define attainable set
A: Attainable SetA set of all the portfolios that are possible to be formed by the group of the number…
Q: Define the term realization principle.
A: Accounting: Accounting refers to the information system, where the economic activities of a…
Q: Define and explain the significance of the term CMA.
A: Certified Management Accountant (CMA): CMA stands for certified management accountant. CMA…
Q: Describe the steps required to apply the APV approach.
A: Adjusted present value is used for estimating the value of projects and the worth of the firms. It…
Q: pls answer and provide solution and explanation
A: OPTION B P 417,000 is the correct answer
Q: ptual Framewor
A: A conceptual framework is a written or visual representation of how variables should interact.…
Q: Discus the elements of GAAS, how does it relate to GAAP?
A: GAAS(Generally Accepted Auditing Standards) :- provides standards by which the prepared financial…
Q: Explain the purpose and identify the building blocks of analysis.
A: Financial analysis is the analysis of the financial statements to analyse a entity’s performance and…
Q: Define useful life
A: Depreciation is the systematic allocation of the depreciable amount of an asset over its useful…
Q: List and describe the components of a SWOT analysis.
A: When an organization aims to study and understand the environment in which it operates, it performs…
Q: EXPLAIN THE RESULT OF EACH ITEMS
A: Balance sheet is the statement of assets, liabilities and equity which means the value of the these…
Q: Differentiate essential and non essential activities.
A: There are various types of activities that are performed in an organization in order to achieve the…
Q: more description on key strategies
A: The period from the start of the production process to the collecting of money from the sale of the…
Q: ability of the given information to provide a meaningful and useful result.
A: Second option is wrong because objectivity means the ability of the information to be impartial.…
Q: What steps would be involved?
A: Arbitrage is the strategy applied by the investor to take the benefit of mispricing, at various…
Q: Steps involved in classification of ABC analysis.
A: ABC analysis is the technique of inventory management. Under this analysis, inventory items are…
Q: Distinguish between technical analysis and fundamental analysis, highlighting assumption in each…
A: Technical analysis is a widely used concept in finance. It uses various charts and graphs to analyze…
Q: Define structured note
A: A structured note is a debt obliged derivative that helps portfolio managers to provide their…
Q: Define benchmarking
A: Definition : Benchmarking can be understood as the method of contrasting company procedures and…
Q: Recommend wl decisions.
A: Profitability index is a calculation that divides the current value of expected anticipated cash…
Q: Define Direct method
A: The Direct Method is Described Below -
Q: Define Prepayments.
A: Step 1 The outflow of money to reduce the liabilities occurred in the current accounting period…
Q: Define the term analysis period?
A: The analysis begins with the initial venture expenses and extends through the useful life of the…
Q: Explain an example of external events.
A: Accounting event is a transaction that is recorded in the books of accounts of the company. There…
Q: what is the summary of this topic?
A: Here ask about the summary of the product which is the important aspect of the packing for the…
Q: Explain planning decisions.
A: Planning is the process of selecting a future course of action by seeing what is to be done, when is…
Q: Define specific identification method
A: Define specific identification method?
Q: Questions: Based on this information, complete the following working paper:
A: Given in the question: During the year 2021 A new equipment has been purchased in early 2021 for…
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- Abernathy, Inc., produces two different generators and is concerned about their quality. The company has identified the following quality activities and costs associated with the two products: Required: 1. Calculate the quality cost per unit for each product, and break this unit cost into quality cost categories. Which of the two seems to have the lowest quality? 2. How might a manager use the unit quality cost information?The Chocolate Baker specializes in chocolate baked goods. The firm has long assessed the profitability of a product line by comparing revenues to the cost of goods sold. However, Barry White, the firms new accountant, wants to use an activity-based costing system that takes into consideration the cost of the delivery person. Following are activity and cost information relating to two of Chocolate Bakers major products: Using activity-based costing, which of the following statements is correct? a. The muffins are 2,000 more profitable. b. The cheesecakes are 75 more profitable. c. The muffins are 1,925 more profitable. d. The muffins have a higher profitability as a percentage of sales and, therefore, are more advantageous.Southward Company has implemented a JIT flexible manufacturing system. John Richins, controller of the company, has decided to reduce the accounting requirements given the expectation of lower inventories. For one thing, he has decided to treat direct labor cost as a part of overhead and to discontinue the detailed direct labor accounting of the past. The company has created two manufacturing cells, each capable of producing a family of products: the radiator cell and the water pump cell. The output of both cells is sold to a sister division and to customers who use the radiators and water pumps for repair activity. Product-level overhead costs outside the cells are assigned to each cell using appropriate drivers. Facility-level costs are allocated to each cell on the basis of square footage. The budgeted direct labor and overhead costs are as follows: The predetermined conversion cost rate is based on available production hours in each cell. The radiator cell has 45,000 hours available for production, and the water pump cell has 27,000 hours. Conversion costs are applied to the units produced by multiplying the conversion rate by the actual time required to produce the units. The radiator cell produced 81,000 units, taking 0.5 hour to produce one unit of product (on average). The water pump cell produced 90,000 units, taking 0.25 hour to produce one unit of product (on average). Other actual results for the year are as follows: All units produced were sold. Any conversion cost variance is closed to Cost of Goods Sold. Required: 1. Calculate the predetermined conversion cost rates for each cell. 2. Prepare journal entries using backflush accounting. Assume two trigger points, with completion of goods as the second trigger point. 3. Repeat Requirement 2, assuming that the second trigger point is the sale of the goods. 4. Explain why there is no need to have a work-in-process inventory account. 5. Two variants of backflush costing were presented in which each used two trigger points, with the second trigger point differing. Suppose that the only trigger point for recognizing manufacturing costs occurs when the goods are sold. How would the entries be listed here? When would this backflush variant be considered appropriate?
- Good Scent, Inc., produces two colognes: Rose and Violet. Of the two, Rose is more popular. Data concerning the two products follow: The company uses a conventional costing system and assigns overhead costs to products using direct labor hours. Annual overhead costs follow. They are classified as fixed or variable with respect to direct labor hours. Required: 1. Using the conventional approach, compute the number of cases of Rose and the number of cases of Violet that must be sold for the company to break even. 2. Using an activity-based approach, compute the number of cases of each product that must be sold for the company to break even.The management of Hartman Company is trying to determine the amount of each of two products to produce over the coming planning period. The following information concerns labor availability, labor utilization, and product profitability: a. Develop a linear programming model of the Hartman Company problem. Solve the model to determine the optimal production quantities of products 1 and 2. b. In computing the profit contribution per unit, management does not deduct labor costs because they are considered fixed for the upcoming planning period. However, suppose that overtime can be scheduled in some of the departments. Which departments would you recommend scheduling for overtime? How much would you be willing to pay per hour of overtime in each department? c. Suppose that 10, 6, and 8 hours of overtime may be scheduled in departments A, B, and C, respectively. The cost per hour of overtime is 18 in department A, 22.50 in department B, and 12 in department C. Formulate a linear programming model that can be used to determine the optimal production quantities if overtime is made available. What are the optimal production quantities, and what is the revised total contribution to profit? How much overtime do you recommend using in each department? What is the increase in the total contribution to profit if overtime is used?A company is considering a special order for 1,000 units to be priced at 8.90 (the normal price would be 11.50). The order would require specialized materials costing 4.00 per unit. Direct labor and variable factory overhead would cost 2.15 per unit. Fixed factory overhead is 1.20 per unit. However, the company has excess capacity, and acceptance of the order would not raise total fixed factory overhead. The warehouse, however, would have to add capacity costing 1,300. Which of the following is relevant to the special order? a. 11.50 b. 1.20 c. 7.35 d. 8.90
- Submarine Company produces only one product and sells that product for $150 per unit. Cost information for the product is as follows: Selling expenses are $2 per unit and are all variable. Administrative expenses of $15,000 are all fixed, Submarine produced 2.000 units and sold 1.800. Grainger had no beginning inventory. A. Compute net income under absorption costing variable costing B. Reconcile the difference between the income under absorption and variable costing.Evans, Inc., has a unit-based costing system. Evanss Miami plant produces 10 different electronic products. The demand for each product is about the same. Although they differ in complexity, each product uses about the same labor time and materials. The plant has used direct labor hours for years to assign overhead to products. To help design engineers understand the assumed cost relationships, the Cost Accounting Department developed the following cost equation. (The equation describes the relationship between total manufacturing costs and direct labor hours; the equation is supported by a coefficient of determination of 60 percent.) Y=5,000,000+30X,whereX=directlaborhours The variable rate of 30 is broken down as follows: Because of competitive pressures, product engineering was given the charge to redesign products to reduce the total cost of manufacturing. Using the above cost relationships, product engineering adopted the strategy of redesigning to reduce direct labor content. As each design was completed, an engineering change order was cut, triggering a series of events such as design approval, vendor selection, bill of materials update, redrawing of schematic, test runs, changes in setup procedures, development of new inspection procedures, and so on. After one year of design changes, the normal volume of direct labor was reduced from 250,000 hours to 200,000 hours, with the same number of products being produced. Although each product differs in its labor content, the redesign efforts reduced the labor content for all products. On average, the labor content per unit of product dropped from 1.25 hours per unit to one hour per unit. Fixed overhead, however, increased from 5,000,000 to 6,600,000 per year. Suppose that a consultant was hired to explain the increase in fixed overhead costs. The consultants study revealed that the 30 per hour rate captured the unit-level variable costs; however, the cost behavior of other activities was quite different. For example, setting up equipment is a step-fixed cost, where each step is 2,000 setup hours, costing 90,000. The study also revealed that the cost of receiving goods is a function of the number of different components. This activity has a variable cost of 2,000 per component type and a fixed cost that follows a step-cost pattern. The step is defined by 20 components with a cost of 50,000 per step. Assume also that the consultant indicated that the design adopted by the engineers increased the demand for setups from 20,000 setup hours to 40,000 setup hours and the number of different components from 100 to 250. The demand for other non-unit-level activities remained unchanged. The consultant also recommended that management take a look at a rejected design for its products. This rejected design increased direct labor content from 250,000 hours to 260,000 hours, decreased the demand for setups from 20,000 hours to 10,000 hours, and decreased the demand for purchasing from 100 component types to 75 component types, while the demand for all other activities remained unchanged. Required: 1. Using normal volume, compute the manufacturing cost per labor hour before the year of design changes. What is the cost per unit of an average product? 2. Using normal volume after the one year of design changes, compute the manufacturing cost per hour. What is the cost per unit of an average product? 3. Before considering the consultants study, what do you think is the most likely explanation for the failure of the design changes to reduce manufacturing costs? Now use the information from the consultants study to explain the increase in the average cost per unit of product. What changes would you suggest to improve Evanss efforts to reduce costs? 4. Explain why the consultant recommended a second look at a rejected design. Provide computational support. What does this tell you about the strategic importance of cost management?Patz Company produces two types of machine parts: Part A and Part B, with unit contribution margins of 300 and 600, respectively. Assume initially that Patz can sell all that is produced of either component. Part A requires two hours of assembly, and B requires five hours of assembly. The firm has 300 assembly hours per week. Required: 1. Express the objective of maximizing the total contribution margin subject to the assembly-hour constraint. 2. Identify the optimal amount that should be produced of each machine part and the total contribution margin associated with this mix. 3. What if market conditions are such that Patz can sell at most 75 units of Part A and 60 units of Part B? Express the objective function with its associated constraints for this case and identify the optimal mix and its associated total contribution margin.
- The chief executive officer of Acadia, Inc. attended a conference in which one of the sessions was devoted to variable costing. The CEO was impressed by the presentation and has asked that the following data of Acadia, Inc. be used to prepare comparative statements using variable costing and the companys absorption costing. The data follow: The factory produced 80,000 units during the period, and 70,000 units were sold for 700,000. 1. Prepare an income statement using variable costing. 2. Prepare an income statement using absorption costing. (Round unit costs to three decimal places.)Busy-Bee Baking Company produces a variety of breads. The average price of a loaf of bread is 1. Costs are as follows: Other data: Required: 1. Compute the break-even point in units using conventional analysis. 2. Compute the break-even point in units using activity-based analysis. 3. Suppose that Busy-Bee could reduce the setup cost by 100 per setup and could reduce the number of maintenance hours needed to 1,000. How many units must be sold to break even in this case? (Round answer up to whole units.)Baxter Company has a relevant range of production between 15,000 and 30,000 units. The following cost data represents average variable costs per unit for 25,000 units of production. Using the costs data from Rose Company, answer the following questions: A. If 15,000 units are produced, what is the variable cost per unit? B. If 28,000 units are produced, what is the variable cost per unit? C. If 21,000 units are produced, what are the total variable costs? D. If 29,000 units are produced, what are the total variable costs? E. If 17,000 units are produced, what are the total manufacturing overhead costs incurred? F. If 23,000 units are produced, what are the total manufacturing overhead costs incurred? G. If 30,000 units are produced, what are the per unit manufacturing overhead costs incurred? H. If 15,000 units are produced, what are the per unit manufacturing overhead costs incurred?