Explain the role of variable costing and full costing in evaluating profitcenters

Q: Sylvestor Systems borrows $185,000 cash on May 15 by signing a 150-day, 7%, $185,000 note. 1. On wha...

A: Journal: Recording of a business transactions in a chronological order.

Q: How does the fixed cost per unit change as the level of activity (or cost driver) increases? Why?

A: Fixed cost refers to such overheads that are not directly related to the business and which do not v...

Q: 1. Prepare the journal entry to record Tamas Company's issuance of 6,100 shares of $100 par value, 9...

A: Cumulative preferred stock (likewise called cumulative preference shares) is a class of favored stoc...

Q: Your new client, Ms. X, had her 2018 tax return audited last year and found the whole experience so ...

A: According to SSTS 5 and 1, a different tax position can be assumed, then the position determined by ...

Q: Journalize each of the payroll transactions listed below. Post all entries except the last two to th...

A: Payroll Journal Entries Payroll journal entries are used to keep a track record of compensation paid...

Q: 1. State five (5) functions of the store keeper 2. State three advantages and two disadvantages of t...

A: Store Keeper:  A storekeeper is a person who is responsible for all stock and staff management in th...

Q: Part A - A corporation reacquires 60,000 shares of its own $10 par common stock for $3,000,000, reco...

A: Treasury Stock:   Treasury stock refers to the stock that a company repurchases its own issued stock...

Q: Prepare the issuer's journal entry for each of the following separate transactions. a. On March 1, A...

A: a. Paid in capital in excess of par value, Common stock = Total cash received - Face value of shares...

Q: What is meant by the term activity analysis? Give three criteria for determining whether an activity...

A: Activity analysis: It is the complete classification and description of the activities performed in ...

Q: Give examples of how each of the objectives of managerial accounting activity would be important in ...

A: Objectives of Managerial Accounting include: 1. Providing information for decision making 2. Assista...

Q: What is meant by the term operational budgets? List three operational budgets that would be prepared...

A:

Q: On January 1, a company issued and sold a $410,000, 4%, 10-year bond payable, and received proceeds ...

A: Discount = Face value - Issue price Discount = $410,000 - $405,000 Discount = $5,000

Q: A company issued 7%, 15-year bonds with a par value of $510,000 that pay interest semiannually. The ...

A: Formulas: Interest payment = Face value * Interest rate

Q: “As a practical matter, planning and control mean exactly the same thing.” Do you agree? Explain.

A: Planning: A process of steps that are taken by a company in which a company develops its future goal...

Q: Sudoku Company issues 22,000 shares of $9 par value common stock in exchange for land and a building...

A: Face value of common stock issue = No. of common stock issued x Par value per share = 22,000 share x...

Q: In what fundamental ways does activity-based costing differ from traditional costing methods?

A: Activity based costing and job order costing are two methods of assigning the cost to the product ma...

Q: Accounting Question

A: Formula: Predetermined manufacturing overhead rate = Total manufacturing overheads / Total machine h...

Q: Adjustment for Uncollectible Accounts Kirchhoff Industries has computed that the proper balance for ...

A: Definition: Bad debt expense: Bad debt expense is an expense account. The amounts of loss incurred f...

Q: When Bunyan Corporation was formed on January 1, the corporate charter provided for 90,000 shares of...

A: Journal entry: Journal entry is a set of economic events that can be measured in monetary terms. The...

Q: Accounting Question

A: Notes payable are the promissory notes that are issued by the company in order to raise the debt. It...

Q: Why is the cost of idle time treated as manufacturing overhead?

A:

Q: Are variable costs always relevant costs? Explain.

A: Variable cost is a cost which varies with the level of activity and normally incremental cost which ...

Q: What effect does an increase in the activity level have on—a. Unit fixed costs?b. Unit variable cost...

A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts f...

Q: Accounting Question

A: Semiannual Interest = Par value of bonds x Interest rate x 6/12

Q: Morgan Company issues 10%, 20-year bonds with a par value of $760,000 that pay interest semiannually...

A: Answer:   Option 3.

Q: Bonds Payable has a balance of $987,000 and Premium on Bonds Payable has a balance of $10,857. If th...

A: If the bond is redeemed at 102, then its redeemed at a premium of 2% from its face value.  

Q: What is the contribution margin?

A:

Q: 1A company estimated 100,000 direct labor hours and $800,000 in overhead. The actual overhead was $8...

A: Formulas: Predetermined Overhead Rate = Estimated overheads/Estimated direct labor hours -----------...

Q: Explain the relationship between customer profitability analysis and activity-based costing.

A:

Q: Two companies have identical fixed expenses, unit variable expenses, and profits. Yet one company ha...

A:

Q: The totals from the first payroll of the year are shown below. TotalEarnings   FICAOASDI   FICAHI ...

A: Payroll: Payroll refers to the total amount that is required to be paid by the company to its emplo...

Q: How does a flexible budget based on two cost drivers differ from a flexible budget based on one cost...

A: Flexible Budget: The budget that flexes or adjusts as per the changes in activity or volume. The fle...

Q: Joint Products Northwest Building Products (NBP) manufactures two lumber products from ajoint millin...

A: 1) Hence $270,000 of the joint costs allocated to CBL.

Q: What is the current ratio? I got 7.2:1

A: Current ratio is the financial measure of liquidity , it shows the capability of company to pay its ...

Q: Meredith Company gathered the following reconciling information in preparing its May bank reconcilia...

A: Bank Reconciliation Bank Reconciliation Statement is a document which shows that the cash balance in...

Q: What are the arguments in favor of treating fixed manufacturing overhead costs as product costs?

A: Product costs: Product costs are the costs which are incurred in the production of the goods. These ...

Q: Consider the following cost items:1. Salaries of players on the Boston Red Sox.2. Year-end completed...

A: Income statement:   Income statement is a financial statement that shows the net income or net loss ...

Q: Explain the four-step process used to compute a predetermined overhead rate.

A: Predetermined overhead allocation rate:   Predetermined overhead allocation rate is a measure used t...

Q: Watkins Trophies, Inc., produces thousands of medallions made of bronze, silver, and gold. The medal...

A: Process costing:   Process costing may be thought of as the accounting method used to account for a ...

Q: 1. What is the differences between restricted and unrestricted investment account?   (A) Right t...

A: Islamic  Accounting Islamic accounting can be defined as the process of accounting based on  Islamic...

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.