Total cost

Questions for Review 1. Give an example of an opportunity cost that an accountant might not count as a cost. Why would the accountant ignore this cost? Opportunity cost is where money does not change hands does not count as a cost. An example of this is the owner's opportunity cost for an alternate employment, since money does not change hands. The accountant would ignore this cost as no cash flow has occurred to cause an effect in the balance sheet. 2. Draw a production function that

there has to be a product that is sold whether it is a tangible or an intangible product. There has to be something that the business is selling in order to make that profit. The amount of profit that is attained is the outcome of the total revenue minus the total cost. This will then show the business what the remaining profit is. Business is like a puzzle, all the pieces have to fit and work together to have the puzzle complete. In business things have to work together or it won’t work and all

2.5 Project Budget The budget for the initial corporate franchise location is approximately $500,000. This includes securing a lease, conducting lease improvements, business licenses, signs, equipment and fixtures, costs of advertising, opening inventory and to cover miscellaneous expenses. There will also be funds available for working capital in the initial 3 months or until profitability. Eventually any corporately owned restaurants established will be sold to a

direct materials units required for production plus desired ending direct materials units less beginning direct materials units. (T/F) | | Definition True | | | Term The manufacturing overhead budget shows the expected manufacturing overhead costs. (T/F) | | Definition True | | | Term In order to develop a budgeted balance sheet, the previous year 's balance sheet is needed. (T/F) | | Definition True | | | Term In service enterprises, the critical factor in budgeting is coordinating

CYCLERMATE COMPANY PERFORMANCE REPORT Word count: 3099 words The INCREDIBLES – FB2A Ngo Mai Anh Hoang My Hanh Dinh Ngoc Huyen Nguyen Hai Ly Nguyen Ha Thu Nguyen Son Tung Content 1. Introduction 2. Liquidity and Capital structure 2.2. 2.3. 2.4. 2.5. 3.1. 3.2. SWOT Analysis Liquidity Matters Capital Structure Matters Short-term options Page 3 4 3. Production Methods SWOT Analysis Short-term Options 8 4. Human Relations 5. Investigation for Lone-term Survival and Profitability

CVP Analysis What is a CVP analysis? Cost-volume-profit (CVP) analysis is the study of the effects of changes in cost and volume on a company’s profits.”(Kimmel, Weyandt & Kieso, 2003, p.263) Cost Volume Profit analysis (CVP) is one of the most hallowed, and yet one of the simplest, analytical tools in management accounting. In a general sense, it provides a sweeping financial overview of the planning process (Horngren et al., 1994). Cost Volume Profit analysis is vital tool for making financial

CHAPTER 2 AN INTRODUCTION TO COST TERMS AND PURPOSES 2-20 (15–20 min.) Classification of costs, manufacturing sector. Cost object: Type of car assembled (Corolla or Geo Prism) Cost variability: With respect to changes in the number of cars assembled There may be some debate over classifications of individual items, especially with regard to cost variability. |Cost Item |D or I |V or F | |A

Flexible Budgets, and Absorption/Variable Costing Questions 1. Although both variable and mixed costs change in total with activity measure changes, the difference is that variable costs change in direct proportion to such activity changes and mixed costs do not. Since a mixed cost has both a fixed and variable component, the cost per unit at different activity levels is not constant as it is with a variable cost. 2. No, these are not always the best points of observation. First, the points must be within

ch01 Student: 1. Direct material costs are generally variable costs. True False 2. Property taxes and insurance premiums paid on a factory building are examples of manufacturing overhead. True False 3. Manufacturing overhead combined with direct materials is known as conversion cost. True False 4. All costs incurred in a merchandising firm are considered to be period costs. True False 5. Depreciation is always considered a product cost for external financial reporting purposes

a. Graph total fixed cost, total variable cost, and total cost. Explain how the law of diminishing returns influences the shapes of the variable-cost and total-cost curves. [pic] b. Graph AFC, AVC, ATC, and MC. Explain the derivation and shape of each of these four curves and their relationships to one another. Specifically, explain in non-technical terms why the MC curve intersects both the AVC and the ATC curves at their minimum points. [pic] Marginal cost is the constant.