2. ACCOUNTING FOR MANUFACTURING ENTERPRISES i. Flow of costs i. Cost of goods manufactured ii. Cost of goods sold 3. ELEMENTS OF COST Cost classification i. i. Inventory valuation ii. Decision making iii. Planning and control iv. Sketching fixed‚ variable and mixed cost curves ii. Raw Material costs i. Procurement function ii. Calculating Economic order quantity (EOQ) iii. Inventory or stock valuation valuations using Last In First Out (LIFO)‚ First In First Out (FIFO) and average costs (AVCO) iv
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ACC 206 Week Three Assignment Please complete the following five exercises below in either Excel or a word document (but must be single document). You must show your work where appropriate (leaving the calculations within Excel cells is acceptable). Save the document‚ and submit it in the appropriate week using the Assignment Submission button. 1. Overhead application: Working backward The Towson Manufacturing Corporation applies overhead on the basis of machine hours. The following divisional
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Introduction: Financial management is basically makes plans‚ organize‚ direct and control the financial activities in an organization. Applying general management principle to financial resources of the organization is part of financial management activity. Financial management is concern with the efficient and effective management of the financial resources of the organization. Nature and Main areas of financial management: Financial management is broadly concerned with the mobilization and
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Ch8 Pricing Goods for External Sales Pricing Objectives: gain market rate of return Environment: Political reaction to prices patent or copyright protection Demand: Price sensitivity demographics Cost Considerations: Fixed and variable costs short-run or long-run In the long run‚ a company must price its product to cover its costs and earn a reasonable profit Most case: Company does not set the prices‚ competitive market does Price takers: the companies cannot set the price of gasoline by
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the convention. What would the indifference point be between option 1 and option 2? a. 500 units; b. 400 units; c. 300 units; d. 200 units 7. The following information is for Winnie Company: P roduct A: Product B: Revenue $4.00 $6.00 Variable Cost $1.00 $2.00 Total fixed costs are $40‚000. What is the break-even point‚ assuming the sales mix consists of two units of Product A and one unit of Product B? a. b. c. d. 2‚000 units of B and 4‚000 units of A 2‚025 units of B and
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Materials All variable 360‚000 Direct Labour All variable 200‚000 Overhead costs: Electricity and water 60% variable 60‚000 Managerial salaries 20% variable 100‚000 Maintenance costs 40% variable 100‚000 Depreciation 0% variable 120‚000 Indirect labor 50% variable 120‚000 Non manufacturing costs Accounts Nature or Classification Amount in Tshs 000 Administration expenses 0% variable 120‚000 Marketing expenses 40% variale 100‚000 Depreciation costs 0% variable 80‚000
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sequence {x1‚ x2‚ ...‚ xT } or {xt} ‚ t = 1‚ ...‚ T‚ where t is an index denoting the period in time in which x occurs. We shall treat xt as a random variable; hence‚ a time-series is a sequence of random variables ordered in time. Such a sequence is known as a stochastic process. The probability structure of a sequence of random variables is determined by the joint distribution of a stochastic process. A possible probability model for such a joint distribution is: xt = α +
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Sunk costs: costs already incurred‚ cannot be changed by any decision COST behavior‚ fixed vs. variable “in the long term‚ all costs are variable” VC: increase as number of units increases‚ based on level of activity FC: remain same over range of activity‚ “relevant range” over time this changes‚ committed or discretionary‚ the latter wont effect the production capacity. Step or “semi-variable” costs: change in response to
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Fixed cost is the difference between total cost and total variable cost. Answer Selected Answer: True Correct Answer: True Question 2 In general‚ an increase in price increases the break even point if all costs are held constant. Answer Selected Answer: False Correct Answer: False Question 3 Parameters are known‚ constant values that are usually coefficients of variables in equations. Answer Selected Answer: True
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Normal Distribution:- A continuous random variable X is a normal distribution with the parameters mean and variance then the probability function can be written as f(x) = - < x < ‚ - < μ < ‚ σ > 0. When σ2 = 1‚ μ = 0 is called as standard normal. Normal distribution problems and solutions – Formulas: X < μ = 0.5 – Z X > μ = 0.5 + Z X = μ = 0.5 where‚ μ = mean σ = standard deviation X = normal random variable Normal Distribution Problems and Solutions – Example
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