1/1.5 / ¼.5= .67%/ 22%= 3.05 Ch 22 #7 1. Key Question A firm has fixed costs of $60 and variable costs as indicated in the table on the following page. Complete the table and check your calculations by referring to question 4 at the end of Chapter 23. 1. Graph total fixed cost‚ total variable cost‚ and total cost. Explain how the law of diminishing returns influences the shapes of the variable-cost and total-cost curves Graph AFC‚ AVC‚ ATC‚ and MC. Explain the derivation and shape of each
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Variable costing vs Absorption costing Variable and Absorption costing are two different methods and ways that many organizations use to determine and calculate product cost. The income statements formats of both methods include period and product costs. However‚ each one has a different cost classification definition. Both have the same direct material and direct labor allocation‚ the differences is how they report the income‚ product‚ and pricing One of the main differences between
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ACC604 Final Exam Practice Questions – Series H 1. The Work in Process inventory account of a manufacturing company shows a balance of $18‚000 at the end of an accounting period. The job cost sheets of the two uncompleted jobs show charges of $6‚000 and $3‚000 for materials‚ and charges of $4‚000 and $2‚000 for direct labor. From this information‚ it appears that the company is using a predetermined overhead rate‚ as a percentage of direct labor costs‚ of: A. 50% B. 200% C. 300% D. 20%
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company ’s profitability. B. changes in variable costs on a company ’s profitability. C. changes in fixed costs on a company ’s profitability. D. changes in product sales mix on a company ’s profitability. E. All of these. 2. The break-even point is that level of activity where: A. total revenue equals total cost. B. variable cost equals fixed cost. C. total contribution margin equals the sum of variable cost plus fixed cost. D. sales revenue equals total variable cost. E. profit is greater than zero
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August 16‚ 2010 NDS 2010-19 New Developments Summary Variable interest entity analysis ASC 810‚ Consolidation‚ as amended by ASU 2009-17 Introduction A reporting entity must assess whether its involvement with another legal entity requires the reporting entity to consolidate that legal entity and / or provide disclosures in accordance with guidance for variable interest entities. This bulletin outlines a reporting entity’s step-by-step approach to the assessment of its involvement with
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The overall condition of meat production and supply today and its future trends Annual consumption of meat in Mongolia is about 6-8 million heads of livestock. We produce 200-250 million tons of meat and fully supply our meat demands through our own domestic production. 30 percent of the net meat sale is comprised of beef‚ 40 percent is of lamb‚ 10 percent is of goat meat‚ and about 15 percent is of horse meat. The production of pork is relatively underdeveloped; we produce about 200 tons of pork
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PEPSICO‚ INC. Custom Supply-Chain Planning Solution Enables PepsiCo to Optimize Manufacturing and Distribution against Seasonal Sales Demand PEPSICO BUSINESS NEEDS AND CHALLENGES PepsiCo approached PCA‚ seeking improvements to how they managed their supply-chain planning and forecasting operations — their ability to optimize manufacturing‚ distribution and warehousing of hundreds of different beverage products and snack foods against seasonal sales projections across European‚ Middle East and
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Agri-environment contract adoption under fixed and variable compliance costs. This report looks at the agri-environment contract adpted by farmers’ to be able to contribute and partake in the enrivonmental schemes through pressure groups and government. It provides disctinct description to the differences in fixed and variable costs. The purpose of explaining the differences were to illustrate how farmers partaking to the project would be different than how much land will be needed to chip in the
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E.E.P Analysis a. Social and Demographic 1) Lifestyle has great influence on the use of Pepsi products‚ and their advertisements are designed accordingly. 2) Most of the US populations are now practicing healthier lifestyle preferences. This has affected the non-alcoholic beverage industry in that many are switching to bottled water and diet colas instead of beer and other alcoholic beverages. 3) In this ever growing “green” global society‚ Pepsi must make it a point to adhere to
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manage what the company manufactures‚ sells‚ and to give advice as to where costs can be reduced. 2-3. Three examples of a variable cost are a 12% increase in the production of dresses‚ which will cause a 12% increase in variable costs. A 10% increase in clothes will cause an 10% increase in variable costs. A 30% increase in labor hours will cause a 30% increase in variable costs. Three examples of a fixed cost are a 12% increase in airline costs but the fixed costs remain unchanged. A 50% increase
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