CHAPTER 2 AN INTRODUCTION TO COST TERMS AND PURPOSES 2-20 (15–20 min.) Classification of costs‚ manufacturing sector. Cost object: Type of car assembled (Corolla or Geo Prism) Cost variability: With respect to changes in the number of cars assembled There may be some debate over classifications of individual items‚ especially with regard to cost variability. |Cost Item |D or I |V or F | |A
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drops to only 4 days (0.5 + 2.8 + 0.7). The MCE becomes: Thus‚ the MCE increases to 70%. This exercise shows quite dramatically how lean production approach can improve operations and reduce throughput time. Exercise 11-6 (15 minutes) 1. 2. Exercise 11-6 (continued) 3. Exercise 11-7 (20 minutes) 1. ROI computations: Perth: Darwin: 2. Perth Darwin Average operating assets $3‚000‚000 $10‚000‚000 Net operating income $630‚000 $1‚800‚000 Minimum
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Page 1 of 59 6 Student: _______________________________________________________________________________________ 1. All of the following statements describe qualities of relevance except: A. B. C. D. Relevant information is future oriented. Relevant information differs between the alternatives. Relevant information requires a high degree of precision. Relevant information includes qualitative as well as quantitative data. 2. Select the correct statement regarding relevant costs and revenues. A
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or less than the amount that would be reported if the straight-line method of amortization were used? (3) Determine the total cost of borrowing over the life of the bond. (4) Would the total bond interest expense be greater than‚ the same as‚ or less than the total interest expense that would be reported if the straight-line method of amortization were used? SOLUTION (a) (1) 2010 July 1 Cash 3‚501‚514 Discount on Bonds Payable 498‚486 Bonds Payable 4‚000‚000
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Problems/Answers: FIN 534 I have provided the answers to Chapters 6 and 7‚ you are to provide the solutions and explanations‚ namely‚ how were you able to determine the same answers. I want to see‚ how you go about solving these problems. I would encourage you to use the MyFinanceLab and go over the previous Chapters. Keep in mind that these responses are due‚ November 1‚ 2010. I will use your submission to grade you and not the group work that you did in class‚ last Thursday. I trust that you will
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Inventories Additional Valuation Issues ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) TopicsQuestionsBrief ExercisesExercisesProblems Concepts for Analysis1.Lower-of-cost-or-market.1‚ 2‚ 3‚ 4‚ 5‚ 61‚ 2‚ 31‚ 2‚ 3‚ 4‚ 5‚ 61‚ 2‚ 3‚ 9‚ 101‚ 2‚ 3‚ 52.Inventory accounting changes relative sales value method net real-izable value.7‚ 847‚ 83.Purchase commitments.95‚ 69‚ 10964.Gross profit method.10‚ 11‚ 12‚ 13711‚ 12‚ 13‚ 14‚ 15‚ 16‚ 174‚ 55.Retail inventory method.14‚ 15‚ 16818‚ 19‚ 20‚ 22‚ 23‚ 266‚ 7‚ 8
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Chapter 6 Review Questions 1) Which of the following must a firm in a market economy do today to succeed? A) Produce the goods and services that consumers want at a lower cost than consumers themselves can produce. B) Organize the factors of production into a functioning‚ efficient unit. C) Have access to sufficient funds. D) Market firms today must do all of these things. 2) Organizing a successful firm in a market economy has become ________ over the last century. A) legally impossible
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Chapter 7 - Consolidated Financial Statements - Ownership Patterns And Income Taxes CHAPTER 7 CONSOLIDATED FINANCIAL STATEMENTS - OWNERSHIP PATTERNS AND INCOME TAXES Answers to Problems 1. D 2. B 3. D 4. C 5. C 6. C 7. A Damson ’s accrual-based income: Operational income ................................................................... Defer unrealized gain ................................................................ Damson ’s accrual-based income ......................................
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CAPITAL BUDGETING PROBLEMS: CHAPTER 11 Answers to Warm-Up Exercises E11-1. Categorizing a firm’s expenditures Answer: In this case‚ the tuition reimbursement should be categorized as a capital expenditure since the outlay of funds is expected to produce benefits over a period of time greater than 1 year. E11-2. Classification of project costs and cash flows Answer: $3.5 billion already spent—sunk cost (irrelevant) $350 million incremental cash outflow—relevant cash flow $15 million per year cash
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Sou SOLUTIONS TO EXERCISES EXERCISE 18-1 (15-20 minutes) (a) Huish could recognize revenue at the point of sale based upon the time of shipment because the books are sold f.o.b. shipping point. Because of the return policy one might argue in favor of the cash collection basis. Because the returns can be estimated‚ one could argue for shipping point less estimated returns. (b) Based on the available information and lack of any information indicating that any of the criteria in FASB Statement
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