Fixed cost

1.1 Purpose The purpose is to analyse an issue regarding the cost allocation among divisions and how to better allocate the maintenance service cost internally and enhance the efficiency and motivation of their performance. 1.2 The issue The method provided by Johnson leads issue to the Delta Division because it cannot be implemented in an optimal manner. Additionally, Johnson promised that the Delta Division only needed to pay $10,000 monthly after the conversion of its maintenance service…

density apple orchard is contained in Table 6. A cash flow analysis shows the cash costs required to establish the orchard (Mowen, Hansen & Heitger, 2014). Cash costs include labor, trees, the irrigation system, chemicals, bee hives, equipment repairs and property taxes. The cost of the land is not included, since the orchard is paid off from income from another established farm. The income, variable costs, and fixed costs are shown for each of the 10 establishment years. It is assumes…

Materials, labor, and overhead were his responsibility. This was done to provide incentive to control all costs whether caused by use waste, damage, theft, or inefficiencies. The Apple iPhone 4 The iPhone 4 contained more than 100 components manufactured in plants located in Europe, Asia, and the United States. For examples, Samsung supplied flash memories and application processors, and Infineon (a German chip maker) supplied chips that send and receive phone calls and data. A gyroscope, new…

through his parents business. The gift baskets will contain fruit, nuts and confectionary that will be supplied by the business. To see if this is a profitable business venture, there are a few things Tony should consider. These include, fixed and variable costs, location, competition and the number of baskets that need to be sold for Tony to breakeven. Once Tony has decided he wanted to pursue the gift basket venture, he must negotiate terms with his parents. They have agreed to let Tony to…

accounting to evaluate the cost behavior, cost allocation, and activity-based costing in their organizations. In management accounting, “cost behavior refers to how a cost reacts to changes in…

Costs of Production Netflix operating income for 2104 was over $5.5M, which was in part due to the increase to the monthly service fee for subscribers and the increase in domestic and international streaming memberships. The company has a plethora of expenses, streaming content rights, licensing, acquisition of streaming content, streaming delivery expenses customer service, payment processing fees, and advertising. Fixed costs are costs that do not change no matter how much product the…

(included £ 48,000 of factory and £ 160,000 of unused land).  Weaknesses   Cyclermate has very few current assets and more non-current asset. This reduces the liquidity of money. There is a great liability that is in the form of bank overdrafts. Costs are rising while price per unit decrease to encourage customers resulting in reduce in revenue. …

• C- total cost of Milk Runs given per day • S1- the cost per small truck (407) per day • S2- the cost per large truck (909) per day • S3- the fixed administrative cost charged per day • X1- number of small trucks used every day • X2- number of large trucks used every day • Pj- trips of the small trucks • Qj- trips of the large trucks • jth- supplier for every day • Mj- the mass to be transported • Kj and Lj- the round-trip times to the jth supplier Let S1 be the cost per small truck (407)…

and total costs for $32,000 units shows that the Midwest Division should purchase the parts from Marley Company for saving of $15,440. Because the costs of purchase is less than the costs of make. So, the Midwest Company should purchase the equipment. i. Cost per unit Make Purchase Difference Bid price from Marley $ 17.30 Direct material ($195,000/30,000)*1.08 $7.02 Direct labor ($120,000/30,000)*1.05 $4.20 Factory space rental ($84,000/32,000) $2.625 Equipment leasing costs…

Tofino truck business on Douglas College New Westminster campus The Tacofino food truck initially started in Tofino (Mearns, 2012). After two years of success, the food truck business was started at different locations, including Vancouver. The main goal of this food truck is to provide health and fresh food to people at reasonable prices. Building around this core goal, the menu has expanded with consumer demand to include cookies and drinks. Tacos and burritos offer a tasty blend of healthy…