Variable cost

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…

Rent is a fixed, committed cost because it does not change due to differences in activity levels. In other words, rent is always a cost that will be due regardless of business activity level. It is generally considered a committed cost because once you sign the lease you are committed to paying rent for the life of the lease (Walther, 2012). Property taxes on land and building are fixed committed cost due to the fact that it does not change as per stipulated tax period. This tax does not affect…

Extra transport cost: For one price to prevail throughout the market, it is essential that there is no extra transport cost for the consumers while buying a commodity while buying commodity…

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…

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…

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…

(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. …

Written Assignment Unit 3 Please note: Wikipedia, wiki’s, Answers.com, Ask.com, online dictionaries, or online encyclopedias may not be used as research sources for this project. As a senior level student you are responsible for independent research and for veracity of source. A search engine is not a source but a tool used to find the resource. For any internet article or information an APA reference must include the full and complete web address that will take the reader directly 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…

Question 1. The operating budget includes the revenues and expenses during the fiscal year, while the cash budget focuses on the coming year. The operating budget is usually more in depth. The cash budget would let the people know if they have enough money on hand or will there be able to collect the money needed during the upcoming year. The focus of a cash budget would be to estimate the incoming revenues the company has coming in the upcoming year of the budget. It would allow…