The numbers of meals
served each week over the last seven weeks, along with the total costs of operating the
cafeteria are given below:
Assume that the relevant range includes all of the activity levels mentioned in this problem.
A. Use the high low method to establish the fixed and variable component of cafeteria
B. Express the fixed and variable components of cafeteria costs as a cost formula in the
linear form Y= a + Bx.
C. Using the cost formula you derived above, what cafeteria costs you would expect to
be incurred at the number of meals served are 2000 and 3500.
D. What is the major limitation of the high-low method?
EAB10603_Management Accounting 1
Genesis Wheels manufactures spoked and solid bicycle wheels. The company relies on an
activity based costing system. The following information has been provided for the cost
assembly / Polish
What is the difference between a fixed and a variable cost?
Variable costs can change their original price for a product. Fixed costs are constantly the same, no matter how much output a company produces. A variable cost is a company 's cost that is associated with the amount of goods or services it produces. A company 's variable cost increases and decreases with the production volume.
7. Why would you research the cost of a product before you purchase it?
I am defiantly the kind of person to…
Without it, there would be a large amount of pollution in local water streams, causing ecological and economic damage across the region. The plant is likely to last for a very long time, as beyond its current utility, projects are in progress to further lower costs and increase the effectiveness of the plant. In addition to the reservoirs being added to prevent overflow, plans being made for using excess methane gas from the decomposition of sludge as fuel for electric generators. Once…
Module: Branding and Positioning
Minor Assessment Academic Year 2014/2015
Lecturer: Manuela Sacco
Deadline date: 24th of November
Joanna Boneva ID #120 59 05
Table of contents:
1. Executive summery……………………3
3. Brand Analysis………………………...4
a) Brand resonance model
4. Brand Personality & Identity……….….6
5. Brand Target Segment………………….6
6. Brand Positioning………………………7
a) Competition & Analysis of points of parity and points of…
What is the unit product cost for the month under absorption costing?
15. What is the net income for the month under variable costing?
16. What is the net income for the month under absorption costing?
17. Orion Corporation is preparing a cash budget for the six months beginning January 1. Shown below…
Concepts of CVP (Cost Behaviour Analysis?)
Contribution margin (CM) is a cost accounting concept that allows a company to determine the profitability of individual products (Investopedia, 2015). In short, it is equivalent to the revenue less the total variable cost (Horngren, Datar, & Rajan). The CM per unit measures the amount of each unit sold contributes to cover fixed costs and increasing profit and also considers what happens when sales and production increase by one…
Cost-volume-profit (CVP) analysis is a strategic decision made by the management of the company. The cost-volume-profit analysis is very helpful for the managers to make product decisions by estimating the expected profitability of the choices because different choices will affect the selling price, variable costs per unit, fixed costs, units sold and operating income. According to Alvis (2016), CVP analysis expands the use of information provided by breakeven analysis. Therefore, this paper is…
breaking down the variable and fixed cost structure, and
understanding the special order, I believe that going to a fixed cost structure would be in the best
interest of the company. Outlined are the risk associated with this change, the probability of
reaching the projected net income, and the results of the special order.
Comparison of Cost Structure
As suggested, Wall Street Burger Shoppe used the fixed cost structure in the months June
to October. I found that while using the fixed cost…
engaged as the low-cost company, which is produced the TV by the low price. Why has TV become such a product that is produced by developing company?
Firstly, I will suggest the aspect of TV on the market. It is an elastic product on the market because it is a necessary…
great service. I noticed the cost pools involved with Rosemary Café were operating expenses, sales, customers and labor.
Rosemary Café is a Greek owned family restaurant. When I first walked into Rosemary Café I immediately saw a hostess standing behind a cash register counter with a huge display of desserts. There were cinnamon rolls, baklava, Greek custard, carrot cake, cheesecake, chocolate cake and tiramisu. They all looked amazing and do delicious! The hostess greeted me and asked me how…