Question no: 01:- Accounting profit and Economic profit. Economic Profit Implicit cost Accounting profit Explicit cost Total opportunity cost Revenue Revenue How an economist views a firm How an accountant views a firm Accounting profit equals sales revenue minus ( - ) all costs except the cost of equity capital‚ while Economic profit is sales revenue minus ( - ) all costs including the opportunity cost of equity capital. Thus economic profit may be lower than the accounting profit. If accounting
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EntertainmentNow.com Prepared for Dr. Lucian Zelazny Department of Accounting McCoy College of Business 601 University Drive San Marcos‚ Texas 78666 Prepared by Veronica Piña Rupinder Singh Ashley Vollmer April 23‚ 2013 EntertainmentNow.com Case Overview EntertainmentNow.com is considered one of the world’s leading Internet retailers of entertainment products that sells an array of books‚ music‚ videos‚ and DVD’s‚ toys‚ and small electronics on the company’s International website
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Matthew Ponzurick Accounting 305-001 Spring 2013 Chapter 21 Summary Leasing Environment Many companies these days choose to lease buildings or certain structures rather than owning them because there is more money involved in leasing a property. In 2010 521 billion dollars were made through leasing properties. The question to answer is what type of equipment may be leased‚ and the answer is any type of equipment is allowed to be leased. For example; railcars‚ helicopters‚ bulldozers‚ barges
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Bibliography: * Fundamentals of Cost and Management Accounting. Niemand‚ AA et al. 5th Edition. LexisNexis Butterworth‚ Durban 2004. * Advanced Cost Accounting. Directorate of Distance Education. Maharshi Dayanand University. 2004. * Managerial Finance. 2nd Edition. 2002. * ACCA Study Texts and Handouts. Kaplan Business Analysis. 2008 – 2010
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Week 4 Practice Quiz 1. Budgeting is the common accounting tool companies use for planning and controlling. Budgets a. provide a measure of planned financial results. b. focus managers’ energies on exploiting opportunities. c. help managers anticipate potential problems. d. enable managers to control through a set of specific activities with defined corrective actions. 2. [AICPA Adapted] Dewitt Co. budgeted its activity for October 2004 from the following information:
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$3.2805 Prime cost per unit Deluxe $160000/20000=$8 Regular $1500000/200000=$7.5 Per unit cost Deluxe $8+$3.195=$11.195 Regular $7.5+$3.2805=$10.7805 B. Plantwide Rate Total overhead cost/Total direct labour hours= $720000/180000=$4 Overhead rate Overhead cost Deluxe $4×20000=$80000 Regular $4×160000=$640000 Overhead per unit Deluxe $80000/20000=$4 Regular $640000/200000=$3.2 Per unit cost Deluxe $8+$4=$12
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Assignment Management Accounting Submitted to: Professor Jeremy Fernando Submitted by: Group E‚ Stream 2 Alaine Sung | Hadrien Jacomino | Mokhtar Ibrahim | Nikhil Gangwani | Ronami Ogulu | Yana Kim Q1 What‚ if anything‚ should John Powell do about Frank Duffy’s reluctance to use KEA-priced linerboard manufactured by a Del Norte Paper Company mill in the United States? Answer 1: Transfer pricing: is the setting of the price for goods and services sold between controlled (or
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Executive summary Cost management is a critical technique to every business firm; the main issue for manager making decision is cost control and profit maximization. This report aims to analyze the different cost occur in a real business based on a case study of Gearbulk Australasia Pty Ltd such as costing systems and value chain. The main methodologies we used in this project are face to face interview of the company’s line manager who called Bryan. It provides us lots of insights of cost control and
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share some similarities in their accounting systems. Being strongly influenced by the individualism culture‚ both countries exercise a high level of professionalism among accountants. There is a common tendency to follow accounting standards bodies in both countries. In the UK this would be the Accounting Standards Board (ASB) which helps to set the Financial Reporting standards (FRS) used in the UK‚ whereas in the Netherlands the Dutch Generally Accepted Accounting Polices (GAAP) are provided by the
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Fundamentals of Cost and Management Accounting Part Four: Allocation of Support Department Costs‚ Common Costs and Revenues Exercise No. 4 الاسم: الرقم الأكاديمي: رقم الشعبة: Choose the best answer for every question of the following questions: 1) Max’s Movie Store encounters revenue-allocation decisions with its bundled product sales. Here‚ two or more of the movie videos are sold as a single package. Managers
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