different cost classifications for different purposes. Cost data that are classified and reported in a particular way for one purpose may be inappropriate for another use. 2.6 Fixed costs remain constant in total across changes in activity levels‚ whereas variable costs change in proportion to the level of activity. Examples are: Fixed costs Variable costs Salaries of permanent staff Casual staff salaries will vary with forecast demand and the need to cover permanent staff leave arrangements Depreciation
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IGNOU MBA MS - 04 Solved Assignment 2011 ------------------------------------------------- Course Code : MS - 04 ------------------------------------------------- Course Title : Accounting and Finance for Managers ------------------------------------------------- Assignment Code : MS-04/SEM - I /2011 ------------------------------------------------- Coverage : All Blocks Note: Answer all the questions and send them to the Coordinator of the Study Centre you are attached with. 1. Following
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$3) | 67‚467.00 | Fixed indirect cost ($199‚769 – $90‚000) | 109‚769.00 | Selling & Administration costs | 300‚000.00 | Dividends | 130‚000.00 | Total estimated cash payments | $1‚223‚950.00 | Estimated ending cash balance | $82‚447.38 | Calculations 1. Estimate the October sale ∵ Contribution Margin = Selling price – Variable cost = $49 - (12 + 14 + 3) = $20 ∴ The expected quantity of product sale in October: Fixed Cost + Expected profit
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Strategic Cost Management ACCT90009 Seminar 1 Seminar 1 Subject Administration Introduction to SCM oduc o o SC Administration • Subject Coordinator Dr. David Huelsbeck Email: david.huelsbeck@unimelb.edu.au Room: 08.028‚ The Spot Phone: +61 3 9035 6256 Consultation Hours: Monday 4:15pm – 6:15pm • Seminars: Tuesday: 2.15 pm – 5.15 pm‚ FBE ‐ Theatre 211 (Theatre 2) Thursday: 6.15 pm – 9.15 pm‚ Alan Gilbert ‐ Theatre 2 Teaching Format and Resources • Seminar Format 3 hour seminar
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the product line would also be unclear as well. An incremental analysis would be the best approach in determining whether keeping product 103 is beneficial or not. Continue Drop Difference ***(Thousands $)*** Sales $ 26‚670 0 -26‚670 Less-Variable Expense Compensation Insurance 458 0 458 Direct Labor 6‚879 0 6‚879 Materials 4‚851 0 4‚851 Supplies 350 0 350 Repairs 104 0 104 Power 302 0 302 Total Variable Expense 12‚944 12‚944 Contribution Margin 13‚726 -13‚726 Less-Fixed Expenses Rent
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Introduction A budget is considered as a standard to facilitate control work activities of the organization. Budgets are planning tools prepared firstly to start the period being budgeted. Valuable information about the performance contains of the difference between the actual results and the planning budgets. Therefore‚ budgets are both planning tools and performance evaluation. The most common important element in budget is some measure of anticipated output such as the number
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estimated unit costs for Hoteling Industries‚ when operating at a production and sales level of 10‚000 units‚ are as follows: Cost Item Estimated Unit Cost Direct materials $15 Direct labor 10 Variable factory overhead 8 Fixed factory overhead 5 Variable marketing 4 Fixed marketing 3 Required: (1) Identify the estimated conversion cost per unit. (2) Identify the estimated prime cost per unit. (3) Determine the estimated total variable cost per unit. (4) Compute the total cost that would be
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more or less abandoned a fixed currency system and using the modern floating currency/exchange model in an attempt to regulate markets in the newly developed foreign market economy. But what effects‚ both positive and negative have there been in the adoption of a floating model compared to a fixed model? Is the global economy better off or worse off by this implementation? To really be able to analyze the issue it is important to know the background of this switch from a fixed to floating currency system
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to understand which costs can make the company gain a profit or‚ unfortunately‚ lose profit. Albatross Anchors has their own shipping‚ receiving‚ administrative‚ manufacturing‚ raw materials and product departments all on site‚ which helps keep the fixed cost‚ the costs that do not cary with output‚ down. In this case‚ Albatross Anchors manufactures two different types of anchors; the mushroom/bell anchor and the snag hook anchor. In terms of cost of production‚ the raw materials needed to build the
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Cost-Volume-Profit analysis estimates how changes in costs (both variable and fixed)‚ sales volume‚ and price affect a company’s profit. CVP is a powerful tool for planning and decision making. Operating Income = Total revenue – Total Expense Contribution margin is the difference between sales and variable expense. It is the amount of sales revenue left over after all the variable expenses are covered that can be used to contribute to fixed expense and operating income. Contribution Margin = Price – Variable
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