utilizing both variable (contribution margin) and traditional (absorption margin) methods. I will also show E-company’s computed contribution margin ratio‚ gross profit ratio and operating (net) income ratios‚ as well as explain the difference and reconcile operating income for the two methods. Additionally‚ I will discuss which method I would recommend to the CFO and why. INCOME STATEMENTS: Variable Costing Contribution Statement Sales: $10‚005‚000 Variable expenses:
Premium Variable cost Generally Accepted Accounting Principles Contribution margin
Managerial Accounting (MA) บัญชีบริหาร เป็นการจัดทำและนำเสนอข้อมูลและสารสนเทศทางการเงินที่เป็นอยู่ใ นปัจจุบันแก่ผู้บริหารและพนักงานภายในองค์กร ความสำคัญของบัญชีบริหาร MA เป็นเครื่องมือหนึ่งที่สำคัญในการบริหาร เนื่องจากเป็นสิ่งที่มีบทบาทในการสนับสนุนหน้าที่หลักของการบริ หารทั้ง 4 ที่มีวัตถุประสงค์เพื่อบรรลุเป้าหมายขององค์กร โดยช่วยปรับลักษณะเชิงพรรณนาของกลยุทธ์ให้อยู่ในรูปเชิงปริมาณท ี่สามารถปฏิบัติงานได้จริง หน้าที่หลักของการบริหารองค์กร กระบวนการของ MA บทบาทของ MA ที่ช่วยสนับสนุนหน้าที่
Premium Management accounting Variable cost Costs
Case Study Report on Whiz Calculator Company Introduction Whiz Calculator Company is currently considering the new method of planning and controlling selling cost. The old method was unsatisfactory in the new president ’s point of view. The old way of planning and controlling the selling expenses was as follows: 1. Selling expenses were budgeted on a "fixed" or "appropriation" basis. Each October‚ the accounting department sent to the branch managers and to other managers who were in charge of
Premium Variable cost Sales Costs
information in respect of semi-variable costs of a firm‚ segregate the cost into fixed and variable elements: Months2009 | Production (Units) | Semi Variable Cost (Rs.) | January | 200 | 2‚000 | February | 150 | 1‚750 | March | 250 | 2‚250 | April | 300 | 2‚500 | May | 400 | 3‚000 | June | 500 | 3‚500 | The Comparison Method Under this method‚ the quantum of output at two different levels of activity is compared with corresponding amount of semi-variable costs. As fixed cost remains
Premium Costs Variable cost Management accounting
machine hours (c) Units of output and (d) Number of production runs In some cases‚ there are mixed costs. That is‚ such costs have both fixed and variable elements that would need to be segregated. METHOD OF SEGREGATING MIXED COSTS INTO FIXED COST AND VARIABLE COSTS Mixed costs can be separated into their fixed and variable elements‚ using a number of methods which include: (i) The accounts classification method (ii) The high-low method (iii) The scatter graph (iv)
Premium Variable cost Costs Total cost
CHAPTER 9 PROFIT PLANNING AND BUDGETING Questions‚ Exercises‚ Problems‚ and Cases: Answers and Solutions 9.1 See text or glossary at the end of the book. 9.2 A cost center is a responsibility center in which management is responsible only for costs. In a profit center‚ management is responsible for both costs and revenues. 9.3 An investment center is a responsibility center in which management is responsible for managing costs‚ revenues‚ and assets. A profit center is not responsible
Premium Variable cost Budget Costs
Mills‚ Ltd.‚ sells a line of women’s knit underwear. The firm now sells about 20‚000 pairs a year at a average price of $10 each. Fixed cost amount to $60‚000‚ and total variable cost equal $120‚000. The production department has estimated that a 10 percent increase in output would not affect fixed cost but would reduce average variable cost by 40 cents. The marketing department advocates a price reduction of 5 percent to increase sales‚ total revenues‚ and profits. The arc elasticity of demand with
Premium Marginal cost Costs Variable cost
50 Vases 0.42 0.08 0.50 12.50 In addition to the direct variable costs‚ I also detected multiple operating costs. I would underline among others‚ the following: Furnace Gas $1‚000.00 Insurance 90.00 Rent 175.00 Total Fixed $1‚265.00 These costs are fixed. They do not depend on a production level. Even if you do not produce any number of goods‚ the fixed costs will stay the same. There are also a number of variable operating costs estimated as following: Office supplies $25
Premium Variable cost Costs Cost
Oldsmobile‚ Cadillac‚ and Oakland‚ today known as Pontiac" (General Motors‚ 2012). In this paper GM ’s income statement will be reviewed to figure out the following calculations: the number of cars sold each quarter‚ the elasticities‚ marginal cost‚ variable cost‚ and fixed costs. After figuring out these calculations‚ there will be a clear answer to what the future options are for General Motors if they decide to expand. Using the revenue figures from the income statement and the prices per car calculate
Premium Marginal cost Variable cost Costs
application of fixed costs‚ variable costs‚ the least-squares method‚ and the high-low method. Your assignment is to complete the requirements identified for Case 6-49: 1-4. 1. High-low method: Variable administrative cost per patient = Total cost at 1‚500 patients=$16‚100 Variable cost at 1‚500 patients=15‚000 Fixed cost per month=$1‚100 Cost formula: Total monthly administrative cost = $1‚100 + $10X‚ where X is the number of patients for the month. The variable cost per patient is $10.
Premium Costs Variable cost Fixed cost