Variable

delivery of goods. Cost accounting is also considered as cost volume profit analysis. This model is useful elementary instruction and for making short run decisions. Cost accounting is process of finding cost for the production of fixed cost and variable cost. By making an attempt to deal with the relationship between costs, sales and net income, management would become more efficient to cope with planning decisions and forecasting techniques. Cost volume profit analysis…

their employee’s work. As the variable cost remains at $50 ($10,000/200 hours) constantly. Therefore, the most effective way to release this tension is to seek for alternative methods, which is able to meet the needs by the decrease in the fixed cost. According to Table 2.1 and 2.2, obviously, the ABC method is slightly better than the single rate method, because it allocates the type of costs. It is easy for managers to know how much they have paid for variable and fixed cost (Horngren et al…

Transfer price has been defined as an amount charged on a product or service when supplying division transfers the good or service to receiving division. In this situation, Electrical Division is the supplying division, while Brake Division is the receiving division. During the process of setting transfer price, W Industries should ensure the goal congruence between Electrical Division and Brake Division. In other words, both divisions should not strive to maximize their own divisions’ profits…

However, the case study excludes one important component for Saski to win the $5,000, she either needs the total number of cars they dealership has sold that year or at the very least the estimated amount they are projected to sell. Overhead and Variable Costs Overhead costs “are based entirely on estimated data, the overhead cost applied to work in process will generally differ from the amount of overhead cost actually incurred” (Garrison, Noreen, & Brewer, 2014 p. 104). The case study states…

7) Services that Walmart provides its customers include financial services (money orders, prepaid cards, credit cards, money transfers, check cashing, and bill payment), clinical services (medical and vision services), VUDU movie streaming service (online movie and television streaming), automotive services (automotive maintenance and repair services), and health insurance services (Walmart, 2016). 8) Walmart also collects fees from its Sam’s Club members, which contributes to its total revenue.…

income from another established farm. The income, variable costs, and fixed costs are shown for each of the 10 establishment years. It is assumes production in high density orchards begin in year three with 15 bins of HoneyCrisp Apples and increases to 50 bins at full production. The full production and yearly amounts are low averages, things like frost and poor growing season can easily destroy crop for a year wiping out all income. Total variable costs for the high density planting system is…

evaluating credit derivatives, the copula function has gradually become the main approach in pricing CDO (Burtschell & George, 2005). In Li (2000) paper, a new random variable named ‘time-until-default’ was created to demonstrate survival time of each defaultable entity. And the copula function approach is based on this random variable to evaluate the default probability of financial instruments. Specifically, copula function specify the joint distribution of the survival times after using the…

ASSIGN 1- Explain what conditions are necessary for a market to be perfectly competitive. How does a firm operating in a perfectly copetitive marketset its price and output? What happens in such a market if firms are able to achieve high level of profitabilty. Necessary conditions for perfect competition are – 1. Large number of buyers and sellers of a commodity: The number of buyers is so large that the demand by an individual buyer remains only a small fragment of the market demand for a…

being much lower than budgeted. Other factors could be discussed here––for example, it seems that the PalmKid did not achieve much success with a three digit price point––selling price was budgeted at $149 but dropped to $102. At the same time, variable costs increased. This could have been due to a marketing push that did not succeed. 14-33 (20 min.) Market-share and market-size variances (continuation of 14-32). 1. Worldwide Aussie Info. Market share Actual Budgeted 500,000 400,000…

the company will not reach their sales quota (200,000 units) • CEO requires the contribution margin to be $2.00 per unit in order to achieve a pre-tax profit of $85,000 • Due to the variable costs of $4.00 per unit, the selling price must be $6.00 o Competitors are selling similar products o at lower prices • Variable costs must decrease in order to sell products at a competitive price • Ryan believes that they cannot change their cost structure in the short-run • Maintenance and quality…