manufacturing wants to estimate costs for each product they produce at its Troy plant. The Troy plant produces three products at this plant‚ and runs two flexible assembly lines. Each assembly line can produce all three products. Required: a. Classify each of the following costs as either direct or indirect for each product. b. Classify each of the following costs as either fixed or variable with respect to the number of units produced of each product. Direct Indirect Fixed Variable Assembly line
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Introduction to Management Science‚ 10e (Taylor) Chapter 1 Management Science 1) Management science involves the philosophy of approaching a problem in a subjective manner. Answer: FALSE Diff: 1 Page Ref: 2 Main Heading: The Management Science Approach to Problem Solving Key words: scientific approach 2) Management science techniques can be applied only to business and military organizations. Answer: FALSE Diff: 1 Page Ref: 2 Main Heading: The Management Science Approach to Problem Solving
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Break - even point A firm that ‘Breaks – even’ make a profit or a loss on it product it is producing. Formula to use for break even Breakeven = Fixed Costs Point (Selling Price – Variable Cost Per Unit) £250000 (£1.50 – 70p) 80p = £31500 units E.g.) |0utput |FC |VC |TC |TR
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(830904045387001) BBMP 1103 Introduction 4 Mohd Hairull bin Abdolah (830904045387001) BBMP 1103 Formulate the cost + revenue fns Total Cost = Fixed Cost (FC) + Variable Cost (VC) 7 3 3 From data ‚ we may observe that profit (2006-2010) let‚ P = RM (719‚678 + 731‚931 + 811‚413 + 746‚784 + 170‚654) x 10 =RM 3‚180‚460 x 10 3 Look‚ Profit = Total Revenue - Total Cost = RM 16‚495‚583 x 10 – Total Costs (2006-2010) Mohd Hairull bin Abdolah (830904045387001) BBMP 1103 16‚495‚583 x 10 = Unit Price x Total Quantity
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INTRODUCTION: Speed net is trying to launch a new ISP product called the Speed net Internet service provider in a maturing market in Dhaka covering Baridhara‚ Banani‚ Gulshan and DOHS. Despite the dominance of market leader ZIP Online and companies like spark system we can compete because our product offers a unique combination features and value added price. We are targeting specific segments in the consumer and business markets‚ taking advantage of opportunities indicated by higher demand
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expectation. However‚ based on the numbers‚ the Prestige Data Services appears to be rather potential after just two years of performance. Its revenue hours sold to outside firms have being growing‚ and the majority of Prestige Data Services’ costs are fixed costs‚ e.g.‚ rent‚ custodial services‚ computer lease‚ maintenance‚ etc. In order to determine whether or not the subsidiary is indeed “too good to give up‚” two scenario were calculated as follows to demonstrate the financial impact to the
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623.50 7. Indirect costs @ 25% of $3‚622.50 $ 906.00 Subtotal $4‚529.00 8. Profit margin @ 5% of $4‚528.13 $ 227.00 Subtotal $4‚756.00 You are the executive director. Following the checklist in Figure 11.1‚ perform all the computations necessary to set a fee. What will your fee be? What is your break-even point? What is your go/no-go decision point? Fixed Costs 1. Conference room rental $175
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resulting goods or services are * produced according to specifications ( Quality ) * in the quantity and by the schedule demanded * out of minimum cost OBJECTIVES OF PRODUCTION MANAGEMENT * To produce right goods or services of / at right * QUALITY * QUANTITY * TIME * COST * Without compromising on * SAFETY * STATUTORY RULES & REGULATIONS * By effectively utilising the * The loop : MONITORING / FEEDBACK
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1). ABC provides a more accurate view of product cost‚ but companies typically use it as a supplemental costing system. The allocation bases used in activity-based costing differ from those used in traditional costing. Activity-based costing determines every activity associated with producing an item and allocates a cost to the activity. The cost assigned to the activity is then assigned to products that require the activity for production. 2). The methods are the following: Account analysis-
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this at a reasonable cost. The purpose of this paper is to describe Snap Fitness and identify cost-volume-profit analysis as well as break even analysis. Snap Fitness estimates each location will have $4‚000 expense for fixed operating expenses and $2000 to lease equipment. In order for an individual looking to own a franchise such as Snap Fitness‚ in order to make a profit the business may only need 300 members. The paper will provide an estimate of variable costs‚ monthly sales in dollars
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