MANAGERIAL ACCOUNTING-ACCESS
17th Edition
ISBN: 9781259727795
Author: HILTON
Publisher: MCG
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Textbook Question
Chapter 8, Problem 25E
Refer to the data given in the preceding exercise for Bianca Bicycle Company.
Required:
- 1. Prepare a cost-volume-profit graph for the company. (Scale the vertical axis in millions of dollars.)
- 2. Calculate Bianca Bicycle Company’s break-even point in units, and show the break-even point on the CVP graph.
- 3. Explain why variable costing is more compatible with your CVP graph than absorption costing would be.
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PLEASE USE THIS TIME TO ANSWER THIS. AYAW NA PAGHULAT UG DEADLINE, TOMORROW IS ANOTHER DAY.
PLEASE DEFINE AND GIVE THE FORMULA OF THE FOLLOWING (IF THERE IS ANY): PLEASE ANSWER HERE DIRECTLY
1. absorption costing
2. activity bases (drivers)
3. break-even polnt
4. contributlon margin
5. contributlon margin ratlo
6. cost behavlor
7. cost-volume-profit analysls
8. cost-volume-profit chart
Please define and give formula of the following (if there is any):
1. Absorption costing
2. Activity bases (drivers)
3. Break-even point
4. Contribution margin
5. Contribution margin ratio
6. Cost behavior
7. Cost- volume- profit analysis
8. Cost - volume -profit chart
9. Fixed cost
10. High-low method
11. Margin of safety
12. Mixed costs
13. Operating leverage
14. Profit-volume chart
15. Relevant range
16. Sales mix
17. Unit contribution margin
18. Variable costing
19. Variable costs
company
You are a management accountant of EON and Brothers Ltd., a
manufacturing
that produces two products
simultaneously in one of their production plants. You are asked to
produce a management report on costing techniques. This
company follows a traditional approach to costing and absorbs
production overhead using machine hours. The company's policy
is to add a 50% markup on the unit cost to obtain the selling
price.
The relevant information is given below:
EON and Brothers Ltd. produces two similar products called Alfa
and Beta.
Total Overheads = £155,000
Machine Hours = 58980 hrs
Product
Alfa Beta
Production Units
2,580 5,100
Material Cost per unit £31 £51
Labour Cost per unit £21 £17
Machine Hours per unit 11 16
After discussing with all the important people of the production
plant you have allocated the overhead costs as mentioned below:
% Overheads
Set up Costs
30
Inspections
40
Materials Handling 30
Cost Pools are as mentioned below:
Alfa Beta Total
Setups
400 65 465…
Chapter 8 Solutions
MANAGERIAL ACCOUNTING-ACCESS
Ch. 8 - Briefly explain the difference between absorption...Ch. 8 - Timing is the key in distinguishing between...Ch. 8 - The term direct costing is a misnomer. Variable...Ch. 8 - When inventory increases, will absorption-costing...Ch. 8 - Why do many managers prefer variable costing over...Ch. 8 - Explain why some management accountants believe...Ch. 8 - Prob. 7RQCh. 8 - Why do proponents of absorption costing argue that...Ch. 8 - Why do proponents of variable costing prefer...Ch. 8 - Which is more consistent with cost-volume-profit...
Ch. 8 - Explain how the accounting definition of an asset...Ch. 8 - List and define four types of product quality...Ch. 8 - Explain the difference between observable and...Ch. 8 - Prob. 14RQCh. 8 - What is meant by a products grade, as a...Ch. 8 - Prob. 16RQCh. 8 - Prob. 17RQCh. 8 - Define the following types of environmental costs:...Ch. 8 - Explain three strategies of environmental cost...Ch. 8 - Manta Ray Company manufactures diving masks with a...Ch. 8 - Information taken from Tuscarora Paper Companys...Ch. 8 - Easton Pump Companys planned production for the...Ch. 8 - Pandora Pillow Companys planned production for the...Ch. 8 - Bianca Bicycle Company manufactures mountain bikes...Ch. 8 - Refer to the data given in the preceding exercise...Ch. 8 - Prob. 26ECh. 8 - Prob. 27ECh. 8 - The following costs were incurred by Osaka Metals...Ch. 8 - San Mateo Circuitry manufactures electrical...Ch. 8 - List three observable and three hidden quality...Ch. 8 - Prob. 31ECh. 8 - Skinny Dippers, Inc. produces nonfat frozen...Ch. 8 - Yellowstone Company began operations on January 1...Ch. 8 - Outback Corporation manufactures tactical LED...Ch. 8 - Great Outdoze Company manufactures sleeping bags,...Ch. 8 - Dayton Lighting Company had operating income for...Ch. 8 - Prob. 37PCh. 8 - Chataqua Can Company manufactures metal cans used...Ch. 8 - Advanced Technologies (AT) produces two...Ch. 8 - Laser News Technology, Inc. manufactures...Ch. 8 - Prob. 42CCh. 8 - Refer to the information given in the preceding...Ch. 8 - Prob. 44C
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