Variable Cost
The University of Business and International Studies Geneva, Switzerland.
COURSE TITLE:
ACCOUNTING FOR DECISION MAKING
Student : NGUYEN THANH DAM
COURSE CODE:
Accounting for decision making – final assigment
Lecturer: Pham Quang Huy
Page 1
ACCT 601
UBIS INTAKE 2012 - 2013
The University of Business and International Studies Geneva, Switzerland.
PROBLEM
Part 1: Optional Section In this part, the learners have to choose four of eight questions for answering. If you give the right responses, you will obtain 2.5 marks per one statement (i.e. this part is for 10 marks). 1. Why is adherence to ethical standards important for the smooth functioning of an advanced market economy? 2. Briefly describe what is meant by enterprise risk management. 3. Describe what is meant by a “pull” production system. 4. Describe the schedule of cost goods manufactured. How does it tie into the income statement? 5. Why are product costs sometimes called inventoriable costs? Describe the flow of such costs in a manufacturing company from the point of incurrence until they finally become expenses on the income statement. 6. Is it possible for costs such as salaries or depreciation to end up assets on the balance sheet? Explain. 7. “The variable cost per unit varies with output, whereas the fixed cost per unit is constant.” Do you agree? Explain. 8. Only variable costs can be differential costs. Do you agree? Explain. Part 2: Compulsory Section Problem 1 (15 marks) Richmond, Inc., operates a chain of 44 department stores. Two years ago, the board of directors of Richmond approved a large-scale remodeling of its stores to attract a more upscale clientele. Before finalizing these plans, two stores were remodeled as a test. Linda Perlman, assistant controller, was asked to oversee the financial reporting for there test stores, and she and other management personnel were offered bonuses based on the sales growth and financial of these stores. While completing the
COURSE TITLE:
ACCOUNTING FOR DECISION MAKING
Student : NGUYEN THANH DAM
COURSE CODE:
Accounting for decision making – final assigment
Lecturer: Pham Quang Huy
Page 1
ACCT 601
UBIS INTAKE 2012 - 2013
The University of Business and International Studies Geneva, Switzerland.
PROBLEM
Part 1: Optional Section In this part, the learners have to choose four of eight questions for answering. If you give the right responses, you will obtain 2.5 marks per one statement (i.e. this part is for 10 marks). 1. Why is adherence to ethical standards important for the smooth functioning of an advanced market economy? 2. Briefly describe what is meant by enterprise risk management. 3. Describe what is meant by a “pull” production system. 4. Describe the schedule of cost goods manufactured. How does it tie into the income statement? 5. Why are product costs sometimes called inventoriable costs? Describe the flow of such costs in a manufacturing company from the point of incurrence until they finally become expenses on the income statement. 6. Is it possible for costs such as salaries or depreciation to end up assets on the balance sheet? Explain. 7. “The variable cost per unit varies with output, whereas the fixed cost per unit is constant.” Do you agree? Explain. 8. Only variable costs can be differential costs. Do you agree? Explain. Part 2: Compulsory Section Problem 1 (15 marks) Richmond, Inc., operates a chain of 44 department stores. Two years ago, the board of directors of Richmond approved a large-scale remodeling of its stores to attract a more upscale clientele. Before finalizing these plans, two stores were remodeled as a test. Linda Perlman, assistant controller, was asked to oversee the financial reporting for there test stores, and she and other management personnel were offered bonuses based on the sales growth and financial of these stores. While completing the