MANAGERIAL ACCOUNTING F/MGRS.
5th Edition
ISBN: 9781259969485
Author: Noreen
Publisher: RENT MCG
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Chapter 2A, Problem 2A.6P
1.
To determine
Introduction: The difference in costs between the variable alternative is used to calculate financial advantage and disadvantage.
To calculate: The markup that company needs on the pads to achieve 24% return on investment. Prepare quotation sheet for a single sleeping pad and income statement for the first year of activity
2.
To determine
Introduction: The difference in costs between the variable alternative is used to calculate financial advantage and disadvantage.
To compute: The minimum acceptable price for the special order.
3.
To determine
Introduction: The difference in costs between the variable alternative is used to calculate financial advantage and disadvantage.
To compute: The minimum acceptable price for the special order.
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The Hard Rock Mining Company is developing cost formulas for management planning and decision-making purposes. The company’s cost analyst has concluded that utilities cost is a mixed cost, and he is attempting to find a base that correlates with the cost. The controller has suggested that tons mined might be a good base to use in developing a cost formula. The production superintendent disagrees; she thinks that direct labor-hours would be a better base. The cost analyst has decided to try both bases and has assembled the following information:
Required:
1. Using tons mined as the independent variable, prepare a scattergraph that plots tons mined on the horizontal axis and utilities cast on the vertical axis. Using the least-squares regression method, estimate the variable utilities cost per ton mined and the total fixed utilities cost per quarter. Express these estimates in the form Y = a + bX.
2. Using direct…
1.A: TRUE FALSE
The suitable cost unit for electricity is Kilowatt Hours
Cost centers are a quantitative unit of product or services to which cost can be related.
Variable cost is the cost that changes as the level of output changes.
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Q4 a. Do you agree from the following statements- Explain in details with examples(i) Variable costs are controllable but fixed costs are not. (ii) Sunk costs are irrelevant cost while making any decision. Q4 b. Cost Control and Cost Reduction are the two important factors by which Manufacturing companies may increase their Profits. One of the most important tool is the installation of Standard Costing system. But companies have to be very careful while deciding the Proper interpretation of variances from standard is very important for the success of standard costing system as a tool for Cost Control. Mention some important factors that must be born in your mind while interpreting variances.
Chapter 2A Solutions
MANAGERIAL ACCOUNTING F/MGRS.
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