The Fixed Period

ACC2131 Cost Information for Decision Making Week 3 (Chapter 2) Tutorial Solutions Semester 1, 2015 Note to students: Beware! These solutions are not necessarily model answers. In exams, you will not have demonstrated your understanding of the answers to these exercises if you seek only to memorise them. You are encouraged to use tutorial time to discuss issues that will test and clarify your understanding of these exercises, as well as expanding your analytical and critical-thinking skills. 2.5

compensation or incentives. Both public and private companies follow this practice. The options give the executives the right but not the obligation to buy the company’s shares at a fixed price before the expiration date is reached. If the company does well, its shares prices rise. But the employee can buy the shares at a lower price fixed at the beginning. This will give the employee instant profit. Knowing that he/she will make a profit when the company’s share prices go up, the employee is motivated to work

add two additional loads per week. Which costs are not relevant? Why? Acceptance of FHP’s request with existing equipment 90 trucks and 180 trailers in the short time variable costs are relevant and fixed costs are irrelevant. In the short run Over-land can avoid fixed costs but in the long run fixed costs are unavoidable. FHP’s request 1500 miles Per Load x2= 3000 miles extra in week. Relevant Costs, Insurance, Fuel, Oil Lubricants, Tolls, Parts and Small Tools, Hourly wages: Drivers, Trailer Pool

Absorption costing: A) expenses marketing costs as cost of goods sold B) treats direct manufacturing costs as a period cost C) includes fixed manufacturing overhead as an inventoriable cost D) is required for internal reports to managers 2) Variable costing: A) expenses administrative costs as cost of goods sold B) treats direct manufacturing costs as a product cost C) includes fixed manufacturing overhead as an inventoriable cost D) is required for external reporting to shareholders

short amount of period. There is undeniable that short term investment includes a lot of advantages that will bring to investors. Here are some of the benefits: 1. High liquidity Short term investment usually provides a high liquidity or flexibility. Basically, short term will be between 3 months to 1 year. This can be considered a biggest advantages of short term investment as the framework is short, which mean investors do not need to tie up with their money up to an extended period of time with this

the new method of planning and controlling selling cost. The old method was unsatisfactory in the new president 's point of view. The old way of planning and controlling the selling expenses was as follows: 1. Selling expenses were budgeted on a "fixed" or "appropriation" basis. Each October, the accounting department sent to the branch managers and to other managers who were in charge of selling departments a detailed record of the actual expenses of their department for the preceding year and for

Introduction This report will evaluate the various alternatives sources of finance available to fund the new project for Best city hotel; it will explain the various types, methods and classification of costs and their effect on pricing policies, within the tourism industry; Furthermore, the report will include a discussion on the role of management accountants within the context of a travel and tourism industry. In Management accounting, managers are provided with accounting information so that

The Fixed-Price Contracts is a type of the contract regularly used by the Federal Government for the procurement of various supplies. This type of contract provides prices for a firm, which is often adjustable depending on the issues specified under the contract. According to Engelbeck (2002) the Fixed Price Contract provides for various acquisitions as described below: a) Price determination: In this case, the prospective firm provides a fixed price at the initial stage for determination or adjustment

labor. C) Variable overhead. D) Fixed overhead. 3. Wages paid to a timekeeper in a factory are a: Prime cost Conversion cost A) Yes

statements can of coursebe designed to provide only ODeamount column to record figures für the time period covered by the statement. While the primary purpose of any of these statements is to present the revenue and expenses für the most recent accounting period, the true significance of such amounts can only be fully understood when compared with budgets and/or the corresponding amounts für preceding periods. Accordingly, individual properties should modify the format of these statements to meet their