additional expenditure the company can afford for advertisingg- Ounte
Q: Discuss the Cost- Volume- Profit assumptions and its importance to the business organization in…
A: Cost Volume Analysis is a process of study of the relation between the costs of the product, volume,…
Q: Prepare a contribution format income statement segmented by product lines.
A: Income statement:- Income statement is the statement that shows the company a clarity in how much…
Q: Which of the following is NOT one of the definitions of "Cost" concept? Select one: a. Cost means…
A: Cost is very broad term used in accounting. It denotes amount and level of expenses that can be…
Q: Explain whether the organization would produce the information when the expected costs is higher…
A:
Q: Discuss the role of conversion cycle for service and retailing entities
A: Transaction Cycles: The similar transactions of an organization are grouped together to form a…
Q: Suggest a reasonable basis for allocating thefollowing indirect expenses to departments: advertising
A: An indirect cost is the cost which is indirectly involved in the process of production.
Q: Which of statements about the contribution income statement is correct? Group of answer choices
A: A contribution income statement is defined as the statement in which all the variable costs and all…
Q: a) Use activity-based costing to estimate the cost of preparing: i A wage and salary tax return. ii…
A: Activity-based costing (ABC): Activity based costing (ABC) framework was created to manage the…
Q: From the choices presented in parentheses, choose the appropriate term for completing each of the…
A: Period Cost: These are the costs other than the product costs. These costs are not incurred in…
Q: From the choices presented in parentheses, choose the appropriate term for completing each of the…
A: Period costs: Period costs are the costs other than the product costs. These costs are not incurred…
Q: Information in a company’s first IFRS statements must: a. have a cost that does not exceed the…
A: Definition: International Financial Reporting Standards (IFRS): IFRS is a set of international…
Q: describe the factors that drive sales and revenue: Income Advertising Preferences Pricing
A: Income : Income is the money received by a person or a company in exchange for labour, the…
Q: Which one of the following reports are produced for External use: Select one: O a. Inventory reports…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: How cost accounting is useful for external user as Government ,and customer etc.support your answer…
A: Cost accounting system is a framework that guides the firm to calculate their cost and helps in…
Q: Explain the term return on advertising investment?
A: Advertising means promoting the products of the company for increasing the sales revenues and profit…
Q: Compute It can use ABC information for what decisions? a. Cost cutting b. Pricing c. Product mix d.…
A:
Q: Compute Total fixed expenses for Waymire.
A: Particulars Division A Working Division B Working Total Sales 1,20,000.00 60% of Total…
Q: e joint cost allocated to Reta
A: Joint costs are the combined costs incurred in the production of two or more products produced…
Q: Required: a) Use activity-based costing to estimate the cost of preparing: i A wage and salary tax…
A: ABC (Activity based costing) framework was created to manage the drawbacks of customary costing…
Q: revenue-generating and pricing mechanisms for a new traveling business site
A: The ways by which one can generate revenue for a new travelling business site are as follows:…
Q: Identify and discuss arguments that individual product managers may put forward to support their…
A: Preferred Revenue Allocation method is a revenue allocation method in which managers in charge of…
Q: Explain cost concepts it is relevant for the company to be aware of in decision situations such as.…
A: Here discuss about the details of the various costs which are incurred to the business entity which…
Q: From the choices presented in parentheses, choose the appropriate term for completing each of the…
A: Definition: Period Cost: These are the costs other than the product costs. These costs are not…
Q: How cost accounting is useful for external user as Government ,and customer etc,support your answer…
A: Cost accounting gives complete details of the cost incurred in the manufacturing of the product and…
Q: O Prepare statement of cost production O Prepare statement of comprehensive Prepare statement of…
A: Statement of cost of production for the year ended 31st December 2020 Particulars Amount Raw…
Q: ncepts and lerminology om the choices presented in parentheses, choose the appropriate term for…
A: solution Number Sentence Appropriate term A Advertising costs are usually viewed as…
Q: Please classify the following cost: advertising expenses, by choosing one of the options below. O…
A: Advertising expense is a revenue expense incurred on the selling and distribution of goods and…
Q: Define value chain and classification of costs for “Payment to business magazine for running Dell…
A: Value chain:
Q: Choose the most appropriate answer(s): Calculation of product cost, gathering information for…
A: SOLUTION- EXPLANATION- COST ACCOUNTING IS AN ACCOUNTING METHOD THAT AIMS TO CAPTURE A COMPANY'S…
Q: Responsibility Centers include the following except: A) Profit B) Revenue C) Process D) Cost
A: These are the type of responsibility center i.e. expense center, profit center, investment and…
Q: Which type of income statements, Contribution Format or Traditional Format should be used to…
A: Contribution Format income statemnets should be used to identify relevant costs. A traditional…
Q: et cost = Selling price - ______________. a. Cost b. Profit margin c. Revenue d. Expenses
A: Solution: Target cost = Selling price - profit margin. This is because target cost is the estimated…
Q: Differentiate between a cost center and a profit center.
A: An activity center, also known as a responsibility center, is a business organization unit that is…
Q: components of the Contribution Margin Income Statement, how does management use this in the decision…
A:
Q: Google has many types of costs. What is an out-of-pocket cost? What is an opportunity cost? Are…
A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…
Q: Distinguish between a profit center and an investment center. Draw a diagram illustrating the…
A:
Q: Define cost pool, cost object and cost driver and explain. Thank you in advance!
A: Cost pool: Cost pool is simply the group of cost according to a particular criteria for example…
Q: Explain the concept of a product family and its relationship to value stream accounting.
A: Product family is the grouping of same kind of product and services which go through the same…
Q: Management accounting focus on the benefits of users. Select one: O True O False
A: Managerial accounting seems to be the act of “identifying, assessment, research, and presentation of…
Step by step
Solved in 3 steps
- Deuce Sporting Goods manufactures a high-end model tennis racket. The company’s forecasted income statement for the year, before any special orders, is as follows: Fixed costs included in the forecasted income statement are $400,000 in manufacturing cost of goods sold and $200,000 in selling expenses. A new client placed a special order with Deuce, offering to buy 1,000 tennis rackets for $100.00 each. The company will incur no additional selling expenses if it accepts the special order. Assuming that Deuce has sufficient capacity to manufacture 1,000 more tennis rackets, by what amount would differential income increase (decrease) as a result of accepting the special order? (Hint: First compute the variable cost per unit relevant to this decision.)Faldo Company produces a single product. The projected income statement for the coming year, based on sales of 200,000 units, is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. Suppose that 30,000 units are sold above the break-even point. What is the profit? 2. Compute the contribution margin ratio and the break-even point in dollars. Suppose that revenues are 200,000 greater than expected. What would the total profit be? 3. Compute the margin of safety in sales revenue. 4. Compute the operating leverage. Compute the new profit level if sales are 20 percent higher than expected. 5. How many units must be sold to earn a profit equal to 10 percent of sales? 6. Assume the income tax rate is 40 percent. How many units must be sold to earn an after-tax profit of 180,000?Olivian Company wants to earn 420,000 in net (after-tax) income next year. Its product is priced at 275 per unit. Product costs include: Variable selling expense is 14 per unit; fixed selling and administrative expense totals 290,000. Olivian has a tax rate of 40 percent. Required: 1. Calculate the before-tax profit needed to achieve an after-tax target of 420,000. 2. Calculate the number of units that will yield operating income calculated in Requirement 1 above. (Round to the nearest unit.) 3. Prepare an income statement for Olivian Company for the coming year based on the number of units computed in Requirement 2. 4. What if Olivian had a 35 percent tax rate? Would the units sold to reach a 420,000 target net income be higher or lower than the units calculated in Requirement 3? Calculate the number of units needed at the new tax rate. (Round dollar amounts to the nearest dollar and unit amounts to the nearest unit.)
- Using the information in the previous exercises about Marleys Manufacturing, determine the operating income for department B, assuming department A sold department B 1,000 units during the month and department A reduces the selling price to the market price.ABC Company manufactures the product XE-17. The product is sold at a unit price of $70.Variable expenses are $13.50 per unit and fixed expenses are $220,000 per year.Required :a. What should be the product’s CM ratio? b. Calculate the BEP is sales dollars and in units for ABC Company. c. The manager of ABC company estimates that in the coming year, the company’s sales willincrease by $80,000 (from the current sales). How much should the net profit / loss increase/decrease if the fixed costs remain constant? d. The manager of ABC company predicts that by spending an additional $80,000 per year onadvertising and using higher quality raw material (which will in turn increase the raw materialcost per unit by $3), and increasing selling price per unit by 2% (to compensate for theincreased costs), unit sales will increase by two- thirds of the current sales units. Should thecompany go with the manager’s proposed plan? Explain your answer. (Assume that in thecurrent year, the company sold…ABC Company manufactures the product XE-17. The product is sold at a unit price of $70.Variable expenses are $13.50 per unit and fixed expenses are $220,000 per year.Required :a. What should be the product’s CM ratio? b. Calculate the BEP is sales dollars and in units for ABC Company. c. The manager of ABC company estimates that in the coming year, the company’s sales willincrease by $80,000 (from the current sales). How much should the net profit / loss increase/decrease if the fixed costs remain constant? d. The manager of ABC company predicts that by spending an additional $80,000 per year onadvertising and using higher quality raw material (which will in turn increase the raw materialcost per unit by $3), and increasing selling price per unit by 2% (to compensate for theincreased costs), unit sales will increase by two- thirds of the current sales units. Should thecompany go with the manager’s proposed plan? Explain your answer. (Assume that in thecurrent year, the company sold…
- Agta Enterprises manufactures a product that sells for R180 each. The company presently produces and sells 50 000 units per year. Unit variable manufacturing and selling expenses are R90 and R18 respectively. Annual fixed costs are R2 200 000 for manufacturing overheads and R1 040 000 for selling and administrative activities Suppose the marketing manager proposes that the selling price be increased to R198 per unit. Calculate the amount by which fixed costs must decrease in order to achieve the company’s profit objective of R1 800 000, if 50 000 units are sold.The Titan Company provides you with the following information for the current year: Revenues = $2,000,000Cost of goods sold = $750,000 (2/3 of this amount varies with the number of units produced)S&A costs = $200,000 (1/2 of this amount is fixed)Selling price = $40 per unit The company sold 50,000 units of their product in the current year. The company expects unit sales of their product to increase 20% in the next year. Based on the information above, what would be the expected increase to profit before taxes in the coming year?KLM Company produces a single product. The selling price is OMR 40 a unit and the variable costs is OMR 25 a unit. The annual fixed costs of the business are OMR 4000. The business aims to make OMR 16625 profit during the forthcoming year. How much sales (OMR) required to achieve this target profit? Select one: a. OMR 60000 b. OMR 44000 c. OMR 48700 d. OMR 55000
- Agta Enterprises manufactures a product that sells for R180 each. The company presently produces and sells 50 000 units per year. Unit variable manufacturing and selling expenses are R90 and R18 respectively. Annual fixed costs are R2 200 000 for manufacturing overheads and R1 040 000 for selling and administrative activities. Determine the sales quantity required in order to achieve the company’s profit objective of R1 800 000.This year, Lambert Company will ship 1,500,000 pounds of goods to customers at a cost of $1,200,000. If a customer orders 10,000 pounds and produces $200,000 of revenue( total revenue is $20million), The amount of shipping cost assigned to the customer by using ABC would be a. Unable to be determined. b.$8,000($0.80per pound shipped) c.$24, 000(2% of the shipping cost) d. $12,000(1% of the shipping cost) e. None of theseAbu Industries developed the following information for the product it sells: Sales price Variable cost of goods sold RM50 per unit RM28 per unit Fixed cost of goods sold Variable selling expense Variable administrative expense Fixed selling expense Fixed administrative expense RM650,000 10% of sales price RM2.00 per unit RM400,000 RM300,000 For the year ended 31 December 2020, Hasanah produced and sold 100,000 units of product. Required: (a) Illustrate a CVP income statement using the contribution margin format for Abu Industries for 2020. (b) Give the FIVE (5) basic components of CVP Analysis.