1) Is not as important a measure of management effectiveness as the amount of net income. 2) Relates dividends paid to the entity’s assets. 3) Is calculated using net income as the amount of return. 4) Is calculated by dividing average assets for a period by the amount of net income for the period. Question 9 0 / 1 point Expenditures capitalized as long-lived assets generally include those expenditures that: 1) are made for normal repairs to maintain the usefulness
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Chapter 07 … Master Budgets and Performance Planning 1. A budget is a formal statement of future plans‚ usually expressed in monetary terms. 2. Continuous budgeting is the practice of preparing a new budget for a selected number of future periods and revising those budgets as each period is completed. 3. Budget preparation is best determined in a top-down managerial approach. 4. The master budget consists of three major groups of budget components: the operating budgets
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activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 2‚000 units and of Product B is 3‚000 units. There are three activity cost pools‚ with estimated total cost and expected activity as follows: The overhead cost per unit of Product A under activity-based costing is closest to: A. $6.00 B. $9.60 C. $8.63 D. $13.80 2. Austin Wool Products purchases raw wool and processes it into yarn. The spindles of yarn can then be sold directly to stores or they
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1933 president Roosevelt declared "There is nothing to fear but fear itself." The great depression was the worst economic slump ever in the U.S History‚ and one which spread to virtually all of the industrialized world. ( show second paragraph of overhead) However‚ the main causes for the depression was the combination of the greatly unequal distributions of wealth throughout the 1920’s‚ and the extensive stock market speculation that took place during the
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To: Gary Colbert From: Rachel Schmieding Re: Cliff Jumper Date: January 31‚ 2011 There are many aspects that Cliff Jumper needs to consider when deciding whether or not to accept Hi-Valu’s proposition about making a low priced bike. Not only has the demand for bicycles flattened‚ but also Cliff Jumper’s sales volume. Hi-Valu is proposing that Cliff jumper should make a low priced bike for their chain retail stores. Cliff Jumper believes that they are a high quality bike‚ and the making
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6‚000 + 9‚500 TC = 15‚500 Least-Squares Regression Method Makabuhay Funeral Homes’ total overhead costs at various levels of activity are presented below: Month Machine Hours Total Overhead Costs March 500 P 970 April 400 P 851 May 600 P 1‚089 June 700 P 1‚ 208 REQUIRED: 1. Using the least-squares method‚ determine the cost function for total overhead costs. 2. What would be the total overhead costs if operating level is 450 machine hours? (Adapted: Managerial Accounting
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Management Consultants Report Executive Summary John Deere Component Works (JDCW) has been subject to a number of unsuccessful competitive bids due to the inherent deficiencies of their existing costing system. This has illustrated the importance of obtaining a thorough understanding of costs‚ and desirability of implementing a superior costing system. This report contains: * A general overview of the problems confronted by JDCW * An analysis of the current standard costing
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Contributions of Activity-Based Costing (ABC) to the Modern Business Environment In the increasingly competitive business environment‚ the enterprises who intend to maintain and enhance competitive advantages must build an efficient costing system to control‚ plan and decide how to improve the profitability and efficiency of the operation. Activity-based costing system (ABC) is such an advanced costing system that satisfies the needs of companies in modern business environment. This essay gives
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of anticipating demand – assuming you are right about your assumptions – are saving on costs of output. If you are able to forecast sales you can build your capacity to the perfect amount of overhead and project for equipment and labor costs. However if you over build capacity you could have too much overhead that will go to waste. An example of a company that builds up capacity in anticipation of demand is Stewards Company. They have two flavors of salad dressing: Paul’s and Newmans. Both come
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Chapter 3 - Activity-Based Costing -Rather than use a plantwide overhead rate (POHR)‚ many companies use departmental overhead rates with a different predetermined overhead rate in each production department. The nature of the work performed in a department will determine the department’s allocation base -Ex. Overhead costs in a machining department may be allocated on the basis of machine-hours. In contrast‚ the overhead costs in an assembly department may be allocated on the basis of direct
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