"Relationship Between Fixed And Variable Costs Used In A Flexible Budget" Essays and Research Papers

Relationship Between Fixed And Variable Costs Used In A Flexible Budget

Flexible Budgets ACC/543 May 14, 2012 Write a paper of no more than 1,050 words in which you discuss flexible budgets. Explain the relationship between fixed and variable costs used in a flexible budget. (SAID) Discuss the differences between static and flexible budgets and (Cynthia) how a flexible budget lends itself to a cost-volume-profit analysis. Intro and Conclusion/ Compile and Submit Format your paper consistent with APA guidelines Flexible...

Cost, Costs, Economics of production 971  Words | 3  Pages

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Variable Cost and Flexible Budget

for Danshui to assemble 2.4 million iPhones in the period between June 1, 2010, and May 31, 2011, but now in the third month of the contract, production was only 180,000 units per month. Chen called Jianye Ma, the plant controller, to request a summary of monthly operations for August as soon after the end of the month as possible. Danshui was a contract manufacturer that assembled electronic products for companies wishing to save labor costs by locating in southern China where semiskilled labor was...

App Store, Apple Inc., Costs 1735  Words | 6  Pages

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Flexible Budgets Acc543

Flexible Budgets Team ACC/543 Professor Deborah Fitzgerald Thomas University of Phoenix 2010 Team B, You have done a great job on the assignment. I have noted some minor issues to help you on future assignments. Abstract The purpose of this paper is to give an overview of the budget process. It analyzes flexible budgets, discusses the relationship between fixed and variable cost, explores the differences between static and flexible budgets, and how budgets assist in the cost-volume-profitability...

Budget, Cost, Costs 1125  Words | 4  Pages

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Flexible Budgets

the flexible budget sales variance is a favorable variance of $. Smith Wholesale’s budgeted sales price is $40 per unit for a budgeted sales volume of 5,000 units. The actual performance was 5,500 units at an average sales price of $39.75. The dollar amount of sales variance to the difference in actual and budgeted volume is a favorable variance of $. McCarver Roofing's budgeted manufacturing costs for 22,000 squares of shingles are the following: Fixed manufacturing costs is $15,000 Variable manufacturing...

Budget, Cost, Costs 734  Words | 4  Pages

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Flexible Budget Research

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...

Budget, Cost, Costs 1462  Words | 6  Pages

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flexible budget

 “Team B” Flexible Budget Tenecia Blevins, Zokieya Canida, Robert Edmonds, Carl Hignite, Harold Smith Accounting - ACC/561 September 1, 2014 Myrtle Clark Flexible Budget Organizations in today’s ever-changing global market make use of budgeting to help measure performance, plan, and control its business operations. Organizational leaders make use of flexible budgets to help take into consideration; various uncertainties that may emerge after business operations commence. According...

Budget, Budgets, Management accounting 1285  Words | 5  Pages

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Fixed and Variable Costs

Health services managers are essentially interested in how costs are affected by changes in volume. Cost behavior refers to a cost's reactions to activity level. A cost may rise, fall, or remain constant as activity levels fluctuate. We can classify several types of costs on the basis of their relationship to the amount of services provided, often referred to as activity, utilization, or volume (Gapenski, 2012). When dealing with the future there is a level of uncertainty of volume with regard to...

Cost, Cost driver, Costs 888  Words | 3  Pages

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Flexible Budget

Below are the solution: Question 1 Prepare a new contribution report for February, in which: * The static budget column in the contribution report is replaced with a flexible budget column. * The variances in the contribution report are recomputed as the difference between the flexible budget and actual columns. Answer Particulars | Static Budget | Flexible Budget | Actual | Variance | Unit (pounds) | 200000 | 225000 | 225000 | 0 | Revenue | 1600000 | 1800000 | 1777500 |...

Contribution margin, Cost, Cost driver 923  Words | 5  Pages

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Direct Material Price Variance and Flexible Budget

Materials ch24 Student: 1. Standard costs can serve as a basis for evaluating actual performance. True False 2. Standard material, labor, and overhead costs can be obtained from standard cost tables published by the Institute of Management Accountants. True False 3. Standard costs provide a basis for assessing the reasonableness of actual costs incurred for producing a product or service. True False 4. When standard costs are used, factory overhead is assigned to products...

Budget, Cost, Cost accounting 633  Words | 3  Pages

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Exercise Flexible Budgets

ACC 3515 – MANAGEMENT ACCOUNTING SEM 1 2014/2015 FLEXIBLE BUDGETING 1. The following overhead data are for a department in a large company. Actual Costs Incurred Static Budget Activity level (in units) 200 220 Variable costs: Supplies $4,050 $4,906 Power $1,690 $1,892 Fixed costs: Administration $6,240 $6,200 Depreciation $6,280 $6,200 Required: Prepare a report that would be useful in assessing how well costs were controlled in this department. 2. Hempstead Corporation...

Cost, Costs, Economics of production 733  Words | 4  Pages

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Budget Variance

Exercise 8-3B a. Master Price / Cost Budget per Unit 18,000 Units $12 $216,000 $ 8 (144,000) 72,000 (20,000) (18,000) $ 34,000 b. Flexible Budget 19,000 Units $228,000 (152,000) 76,000 (20,000) (18,000) $ 38,000 Sales Variable manufacturing Contribution margin Fixed manufacturing Fixed selling and admin. Net income Exercise 8-4B Sales Variable manufacturing Contribution margin Fixed manufacturing Fixed selling and admin. Net income c. Master Budget 18,000 Units $216,000 (144,000) 72,000...

Contribution margin, Cost, Costs 677  Words | 3  Pages

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Variable Cost and Net Operating Income

large company. Actual costs Static Incurred budget Activity level (in units) 800 750 Variable costs: Indirect materials $6,850 $6,600 Electricity $1,312 $1,275 Fixed costs: Administration $3,570 ...

Cost, Costs, Depreciation 601  Words | 4  Pages

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Variable Cost

reports. D. budgets. 3. The costs of direct materials are classified as:     A. Choice A B. Choice B C. Choice C D. Choice D 4. The three basic elements of manufacturing cost are direct materials, direct labor, and:  A. cost of goods manufactured. B. cost of goods sold. C. work in process. D. manufacturing overhead. 5. 25. Prime cost consists of direct materials combined with:  A. direct labor. B. manufacturing overhead. C. indirect materials. D. cost of goods manufactured...

Cost, Costs, Economics of production 856  Words | 5  Pages

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Variable Costs

Plant No. 2 1. Using budget data, how many Apple iPhone 4’s would have to have been completed for Danshui Plant No. 2 to break even? 2. Using budget data, what was the total expected cost per unit if all manufacturing and shipping overhead (both variable and fixed) were allocated to planned production? What was the actual cost per unit of production and shipping. 3. Prepare a flexible budget for 180,000 iPhone 4’s and calculate flexible budget variances using actual costs for August. 4. Estimate...

Apple Inc., Cost, Costs 460  Words | 3  Pages

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M3.27 Working with Costs and Budgets

M3.27 Working With Costs and Budgets Explain the Importance of agreeing a budget and operating within it: A budget plan is the most effective way to keep the business and its finances on track. It gives you the opportunity to review the business’ performance and any factors that are affecting or may affect your business. Also to manage your money more effectively, allocate appropriate resources, monitor performance, meet planned objectives and plan for the future. To be most effective this...

Cost, Cost accounting, Costs 663  Words | 3  Pages

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Budget: Management and Budgeting

Introduction What Is A Budget? "A budget is a plan." More specifically, a budget is a plan of action matched by resources required to implement the plan. Budgets generally divide between two broad categories: the operating budget, sometimes known as the "expense" budget and the capital budget. Budget in simple word means a sum of money allocated for a particular purpose. Budget is there in everyone's life, it may be a small or a big one. Budget is a tool which helps in controlling and planning...

Activity-based costing, Budgets, Cost 1883  Words | 6  Pages

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Direct Material Price and Quantity Variances Actual Material Cost Budget for Material Based on Actual Quantity Standard Material Cost

2. Direct Material Price and Quantity Variances Actual Material Cost Budget for Material based on actual quantity Standard Material Cost Actual Actual Actual Standard Standard Standard Quantity  Price Quantity  Price Quantity  Price ____________________________________________________________ __________________________ 5,500 kilograms purchased  $6 per kilogram 5,500 kilograms purchased  $5.50 per kilogram 5,000 kilograms allowed  $5.50 per kilogram $33,000 $2,750 Unfavourable Direct...

Cost, Cost accounting, Direct material price variance 382  Words | 4  Pages

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Cost Acc

Name: Class: Cost Accounting Date: 02.12.2012 Quiz 5 1) Absorption costing: A) expenses marketing costs as cost of goods sold B) treats direct manufacturing costs as a period cost C) includes fixed manufacturing overhead as an inventoriable cost D) is required for internal reports to managers 2) Variable costing: A) expenses administrative costs as cost of goods sold B) treats direct manufacturing costs as a product cost C) includes fixed manufacturing overhead as an inventoriable...

Cost, Costs, Marginal cost 1315  Words | 6  Pages

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Accounting: Variable Cost and New Equipment

knowledge and ability of all candidates interviewing for the position. Each candidate will be provided with the information below and then asked to prepare a series of reports, schedules, budgets, and recommendations based on that information. The information provided to each candidate is as follows. Cost Items and Account Balances $ Administrative salaries 15,500 Advertising for helmets 11,000 Cash , December 1 0 Depreciation – Factory Building 1,500 Depreciation – Office Equipment 800 ...

Contribution margin, Cost, Costs 665  Words | 4  Pages

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One Hundred Cost Term in Accounting

100 Costs term 1. Absorption costing is a costing method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed overhead - as part of the cost of a finished unit of product. 2. Administrative costs are all executive, organizational, and clerical costs associated with the general management of an organization rather than with manufacturing, marketing, or selling. 3. Allocation base is a measure of activity such as direct labor-hours or machine-hours...

Contribution margin, Cost, Costs 2246  Words | 6  Pages

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Basic Cost Concepts

Basic Cost Concepts Meaning of Cost Accounting – Cost accounting is concerned with ➢ recording, classifying and summarizing costs for determination of costs of products or services, ➢ planning, controlling and reducing such costs and ➢ furnishing of information to management for decision-making. Cost accounting, thus, provides information to the management for decision of all sorts. It serves multiple purposes on account of which it is generally indistinguishable from management...

Cost, Costs, Economics 1071  Words | 5  Pages

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Costs and Total Variable Cost

possible $1 price changes. What can you conclude about the relationship between the slope of a curve and its elasticity? Explain in a nontechnical way why demand iselastic in the northwest segment of the demand curve and inelastic in the southeast segment. Product Price Quality Demanded $5 1 Vb 4 2 3 3 2 4 1 5 Answer: 1/1.5 / ¼.5= .67%/ 22%= 3.05 Ch 22 #7 1. Key Question A firm has fixed costs of $60 and variable costs as indicated in the table on the following page. Complete...

Costs, Economics of production, Fixed cost 424  Words | 3  Pages

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The Budget Process

1. Budgeting - An Introduction A budget is a plan that outlines an organizations financial or operational goals. It is an action plan. It helps a business allocate resources, evaluate performance, and formulate plans. Understanding the importance of budgeting is the first step in successful financial planning. This tutorial introduces budgeting and the 5 most commonly used methods of budgeting 2. Preparing & Controlling a Budget Budgeting is potentially a managers most valuable planning and...

Budgets, Business, Finance 1747  Words | 6  Pages

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Cost Accounting System

a) COST ACCOUNTING Cost accounting system is the part of management accounting that makes budget, actual cost of operations, analysis of variance and profitability of social use of funds. Cost accounting helps the manager in decision making regarding the reduction of the cost of the company and in improving the profitability. Cost accounting system is primarily used for internal managers therefore it does not need to follow the standards of GAAP. Cost accounting is also considered very important...

Cost, Costs, Economics of production 1155  Words | 5  Pages

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Total Variable Costs

MODULE 2 1. To predict costs and manage them on a day-to-day basis, managers must identify: A. cost of resources used B. key activities and resources used to perform activities C. cost drivers D. all of the above 2. Cost drivers are ________. A. measures of activities that require the use of resources and thereby cause costs B. different types of functional areas in the firm C. different types of cost calculations D. the different functions in the value chain 3. Which of the following statements...

Costs, Fixed cost, Total cost 1424  Words | 5  Pages

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Types of Budget

History of Indian Budget India's first Finance Minister Sir R.K. Shanmugham Chetty, presented the first Finance Budget of independent India on November 26, 1947. Since then, 28 differentUnion Finance Ministers have been presenting the budget year after year. Initially, major attention was paid towards the agriculture sector but as the economy evolved, the focus shifted from agriculture to other sectors like industrial, financial etc. During the early the fifties, Indian budget highlights revolved...

Budget, Budgets, Fiscal year 1964  Words | 6  Pages

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Variable Costing

VARIABLE COSTINGMorenike Onibon Liberty University Abstract Determining the actual valuation of manufactured assets has always been a major problem in the accounting field. The real controversy exist in the decision regarding which costs are relevant to future periods, and thus should be included in assets valuation, and which should not be charged against net income. An understanding of the relationship between costs, volume, and profit, enables management to set more realistic objectives for...

Cost, Cost accounting, Costs 1846  Words | 4  Pages

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Variable Manufacturing

The following per unit data apply for sales to regular customers: Direct materials $455 Direct labor 300 Variable manufacturing support 45 Fixed manufacturing support 100 Total manufacturing costs 900 Markup (60%) 540 Targeted selling price $1440 Grant’s Kitchens has excess capacity. Ms. Wang wants the cabinets in cherry rather than oak, so direct material costs will increase by $30 per unit. 72. For Grant’s Kitchens, what is the minimum acceptable price of this one-time-only...

Capacity utilization, Cost, Costs 900  Words | 6  Pages

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Variable Cost and Contribution Margin

term manufacturing overhead? | A) | Factory overhead | B) | Pervasive costs | C) | Burden | D) | Indirect manufacturing costs | 2. | Which one of the following is an example of a period cost? | A) | A change in benefits for the union workers who work in the New York plant of a Fortune 1000 manufacturer. | B) | Workers' compensation insurance on factory workers' wages allocated to the factory. | C) | A box cost associated with computers. | D) | A manager's salary for work that is...

Contribution margin, Costs, Inventory 836  Words | 5  Pages

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Town of Bellington Budget

Budgets serve five main purposes; planning, facilitating communication and coordination, allocating resources, controlling profits and operations and evaluating performance and providing incentives. The budgeting process requires both technical and interpersonal leadership skills to achieve each of these purposes effectively. The director’s memo demonstrates several short comings in the budgeting process. The director instituted the “responsibility accounting system” as a means of evaluating performance...

Budget, Cost, Cost driver 1556  Words | 5  Pages

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Fixed Costs, Variable Costs, and Break-Even Point

Assignment: Fixed Costs, Variable Costs, and Break-Even Point Exercise 10.1 During the sixth month of the fiscal year, the program director of the Westchester Home-Delivered Meals (WHDM) program decides to again recompute fixed costs, variable costs, and the BEP using the high–low method. Here are the number of meals served and the total costs of the program for each of the first six months: Month Meals Served Total Costs July 3,500 $20,500. August 4,000 $22,600. September 4,200 $23...

Cost, Costs, Economics of production 480  Words | 3  Pages

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Hsm/260: Fixed Costs, Variable Costs, and Break

HSM/260: Fixed Costs, Variable Costs, and Break Fixed Costs, Variable Costs, and Break Exercise 10.1 During the sixth month of the fiscal year, the program director of the Westchester Home-Delivered Meals (WHDM) program decides to again recompute fixed costs, variable costs, and the BEP using the high–low method. Here are the number of meals served and the total costs of the program for each of the first six months: Month Meals Served Total Costs July 3,500...

Cost, Costs, Economics of production 625  Words | 3  Pages

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13-B3 Comparison of Variable Costing and Absorption Costing

13-B3 Comparison of Variable Costing and Absorption Costing Consider the following information pertaining to a year’s operations of Youngstown Manufacturing: Units sold 1,400 Units produced 1,600 Direct labor $4,200 Direct materials used 3,500 Fixed manufacturing overhead 2,200 Variable manufacturing overhead 300 Selling and administrative expenses (all fixed) 700 Beginning inventories 0 Contribution margin 5,600 Direct-material inventory, end 800 There are no work-in-process inventories...

Activity-based costing, Cost, Cost accounting 537  Words | 3  Pages

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Cash Budget

Definition of Budget It is an estimation of the revenue and expenses over a specified future period of time. It can help to create a system when someone wants to open a shop or start investments. A budget can be made for a person, family, group of people, business, government or anything else that makes and speaks money. It can also help to establish a planned level of expenditures and it can help to maintain a budget for a company either on an accrual or a cash basis. Structured planning can...

Budget, Budgets, United Kingdom budget 942  Words | 4  Pages

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Variable Cost and Contribution Margin

CHAPTER 1 – COST VOLUME PROFIT- MULTIPLE CHOICE QUESTIONS 1. CVP analysis can be used to study the effect of:  A. changes in selling prices on a company's profitability. B. changes in variable costs on a company's profitability. C. changes in fixed costs on a company's profitability. D. changes in product sales mix on a company's profitability. E. All of these. 2. The break-even point is that level of activity where:  A. total revenue equals total cost. B. variable cost equals fixed cost. C. total...

Contribution margin, Cost, Costs 1377  Words | 7  Pages

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Mixed Costs

Definition and explanation of mixed or semi variable cost: A mixed cost is one that contains both variable and fixed cost elements. Mixed cost is also known as semi variable cost. Examples of mixed costs include electricity and telephone bills. A portion of these expenses are usually consists line rent. Line rent normally is fixed for each month. Variable portion consists units consumed or calls made. The relationship between mixed cost and level of activity can be expressed by the following equation...

Costs, Fixed cost, Variable cost 1258  Words | 5  Pages

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Cost Descriptors

This paper will clarify the various terms used to describe costs, such as fixed, variable, direct, indirect, and sunk, giving examples of each to help a good understanding of current budget discussions. These concepts will help HR Management with an understanding of making effective budget decisions for its company, since they need to have clear and full knowledge of basic accounting language to grasp the concepts of the various accounting terms. The term cost can be defined as the amount to be paid...

Cost, Costs, Decision making 965  Words | 3  Pages

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Budget and Design Elements in a Proposal

Budget and Design Elements in a Proposal Budget and Design Elements in a Proposal “Like it or not, budgets are often one of the most important parts of any proposal or grant” (Johnson-Sheehan, 2008, p. 141). A project budget is an estimated financial plan for any project that may require funding. The budget is a financial snapshot of a project. An effective budget will outline specific costs that will be incurred in the performance of a project during a specific time period. Budgets that...

Cost, Costs, Fixed cost 1217  Words | 4  Pages

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Midterm: Variable Cost

Prime cost. | B | Conversion cost. | C | Period cost. | D | Nonmanufacturing cost. | 2. | Prime cost and conversion cost share what common element of total cost? | A | Direct materials. | B | Direct labor. | C | Variable overhead. | D | Variable overhead. | 3. | On the Schedule of Cost of Goods Manufactured, the final Cost of Goods Manufactured figure represents: | A | the amount of cost charged to Work in Process during the period. | B | the amount of cost transferred...

Contribution margin, Cost, Costs 1266  Words | 7  Pages

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Difference Between Absorption & Variable Costing

Difference between Variable & Absorption Costing When it comes to managerial accounting, the way that information is presented can affect decision-making for a business. In a manufacturing environment, companies can use absorption costing or variable costing when accounting for the costs of products produced. While these methods are similar, they have some key differences that can impact the company. Absorption Costing * Absorption costing, also known as full costing is a method by...

Cost, Cost accounting, Costs 783  Words | 3  Pages

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Absorption and Variable Costing,

Absorption and Variable Costing, Inventory Management Absorption and Variable costing are very important tools for cost accounting. Both of these costing methods allow you to see the cost of your inventory, in a different way. For example the absorption method allows you to assign all costs to the product, while variable costing allows only variable costs to be assigned to the product. Inventory management is extremely important as well because it ties into efficiency and lowering your costs so that...

Cost, Costs, Equals sign 1600  Words | 5  Pages

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Cost Volume Profit Analysis

COST – volume –profit analysis LEARNING OBJECTIVES Students should be able to: 1. Explain the nature of CVP Analysis and name and illustrate planning and Decision-making situations in which it may be used, 2. Separate semi-variable (mixed) costs into their fixed and variable components. 3. Construct profit/volume charts given selling price, costs and volume data. 4. Construct a cost/volume/profit (CVP) model representing the data in a marginal ...

Contribution margin, Costs, Economics of production 802  Words | 5  Pages

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Cost Accounting Analysis

3.0 Variance Analysis 3.1 Flexible-Budget Variance Analysis In Barnes Scuba Diving case, the main comparison for the flexible-budget variance analysis would be between the actual results and flexible budget. Static budget would not be useful for this comparison due to the different sales unit output which may result in a misleading and inaccurate result comparison. With reference to the Flexible Budget Section attached in Annex X, Flexible-Budget Variance for Revenues was identified to be a...

Cost, Cost accounting, Costs 1768  Words | 6  Pages

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Variable Cost

Running head: VARIABLE COSTS Variable Costs ACC/561 June 12, 2012 Variable Costs Any cost which is not fixed and will change in same amount when there is change in production volume is accounted as variable costs. This also means that they change in total rather than per unit whenever there is production or activity change. In production- labor, material or overhead could be the variable costs involved in the business. In Fitness center, there are different variable costs involved and each...

Business, Cost, Costs 783  Words | 3  Pages

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Variable Cost and Company

Section B Attempt Any Six Questions (6*5= 30) 1. Company A’s costs are mostly variable, whereas Company B’s costs are mostly fixed. When sales increase, which company will tend to realize the greatest increase in profits? Explain. 2. Crystal Telecom has budgeted the sales of its innovative mobile phone over the next four months as follows: Sales in Units July. . . . . . . . . . . . . . 30,000 August . . . . . . . . . . . 45,000 September . . . . . . . . 60,000 October . . . ....

Balance sheet, Cash flow, Contribution margin 1030  Words | 5  Pages

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Relationship between Selling Price and Variables

Group Assignment 1 According to the output, three variables (section, bed and pool) are insignificant because the p-value of them are larger than 0.05. The relationship between the selling price and variables should be: Y= -49.59+4.04X1+32.97X2+11.09X3+29.15X4+22.52X5+12.92X6-25.66X7+1.59X8 X1=lot size X2=number of bathrooms X3= number of other rooms X4= number of stories X5 =number of fireplaces X6 = car garages X7 =whether or not the lot is fenced X8= age Q4: Based on the results...

1124  Words | 4  Pages

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Harrington: Cost and Variable Costs

Financial Analysis While doing the financial analysis it is important to calculate the unit price first. Using the wholesale price rather than the retail price, the calculated unit price is $95. Next, we sum up the start-up costs and operating costs, both fixed and variable, and use these numbers to calculate the breakeven units. After calculation, the breakeven point is 289,846 units. Appendix A shows the details of our process. Active-wear sales are expected to double by 2009, and 40% of those...

Contribution margin, Cost, Costs 1073  Words | 4  Pages

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Chapter 8 Flexible Budgets, Overhead Cost Variances, and Management Control

CHAPTER 8 FLEXIBLE BUDGETS, OVERHEAD COST VARIANCES, AND MANAGEMENT CONTROL 8-16 (20 min.) Variable manufacturing overhead, variance analysis. 1. Variable Manufacturing Overhead Variance Analysis for Esquire Clothing for June 2009 | | |Flexible Budget: |Allocated: | |Actual Costs Incurred | |Budgeted Input Qty. |Budgeted Input Qty. ...

Analysis of variance, Control, Control theory 11684  Words | 75  Pages

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Competition Bikes Budget Analysis

Running Head: BUDGET SUMMARY REPORT Competition Bikes Inc. Budget Analysis Summary Report In Partial Fulfillment of the Requirements for JET2 Western Governors University Competition Bikes Inc. Budget Analysis Summary Report Budgetary Concerns There are several budget areas in Competitions Bikes year nine budget forecast that are areas for concern. The factory overhead budget for the year was budgeted at $481,798 less $150,000 depreciation. Total depreciation over the last three years has...

Cost, Depreciation, Expense 1957  Words | 6  Pages

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Prepare a Master Budget

Electra Manufacturing, Inc., produces control valves used in the production of oil field equipment. The control valves are sold to various gas and oil engineering companies throughout the United States. Projected sales in units for the coming four months are as follows: January ……………… 20,000 February …………….. 25,000 March ……………….. 30,000 April ………………… 30,000 The following data pertain to production policies and manufacturing specifications followed by Electra: a. Finished goods inventory on...

Budget, Costs, Drug control law 1253  Words | 6  Pages

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meaning A budget (from old French bougette, purse) is a financial plan and a list of all planned expenses and revenues. It is a plan for saving, borrowing and spending.[1] A budget is an important concept in microeconomics, which uses a budget line to illustrate the trade-offs between two or more goods. In other terms, a budget is an organizational plan stated in monetary terms. In summary, the purpose of budgeting is to: 1. Provide a forecast of revenues and expenditures, that is, construct...

Budget, Budget constraint, Budgets 790  Words | 3  Pages

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Ac552 Cost Accounting Week 1 Homework

& Exams" for due date information. 1. You are on a tight budget and need to decide between the following 3 texting plans: Plan A: Pay $0.10 per text Plan B: Pay a fixed monthly fee of $15 for up to 500 texts per month and $0.08 for each text over the 500. Plan C: Pay a fixed monthly fee of $25 for up to 1,000 texts per month and $0.05 for each text over the 1,000. Requirements a. Draw a graph of the total monthly cost of the three plans for different levels of texting. b....

Cost, Costs, Management 788  Words | 3  Pages

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Cost Accounting - Acct 3334 Chapter 9 Solutions

min.) Denominator-level problem 1. Budgeted fixed manufacturing overhead costs rates: Budgeted Fixed Budgeted Fixed Denominator Manufacturing Budgeted Manufacturing Level Capacity Overhead per Capacity Overhead Cost ------------------------------------------------- Concept Period Level Rate Theoretical $4,560,000 3,600 $1,266.67 Practical 4,560,000 2,400 1,900.00 Normal 4,560,000 1,200 3,800.00 Master-budget 4,560,000 1,440 3,166.67 The rates are different...

Cost, Costs, Economics of production 813  Words | 3  Pages

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Costs and Points Question

1. Product costs used for pricing and product-mix decisions generally include: Answer | | manufacturing costs only | | | design costs plus manufacturing costs | | | all costs incurred along the value chain | | | distribution costs only | 0.1 points   Question 4   Within the relevant range, if there is a change in the level of the cost driver, then: Answer | | fixed and variable costs per unit will change | | | fixed and variable costs per unit will remain the...

Activity-based costing, Cost, Cost accounting 945  Words | 7  Pages

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The Impact of flexible benefit plans on employee satisfaction

Assignment On The Impact of flexible benefit plans on employee satisfaction Submitted To Mr. Prof. DR. Moazzem Hossain Lecturer Department of Finance Premier University, Chittagong Submitted By Name: Pujan Chanda Student ID # 1021114104 Sub: Compansation Management Section: A BBA, Major in HRM Faculty of Business Studies Date of Submission:22nd July, 2014 Introduction In today’s day and age, compensation packages have evolved...

Cafeteria plan, Employee benefit, Wage 1733  Words | 6  Pages

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A Significant Difference Between Absorption Costing And Marginal Costing

A significant difference between Absorption costing and Marginal Costing The costs that vary with a decision should only be included in decision analysis. For many decisions that involve relatively small variations from existing practice and/or are for relatively limited periods of time, fixed costs are not relevant to the decision. This is because either fixed costs tend to be impossible to alter in the short term or managers are reluctant to alter them in the short term. To begin with, Marginal...

Cost, Cost accounting, Costs 1612  Words | 4  Pages

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Classification of Cost Behavior: Variable or Fixed

I: Identification: Fill in the blanks the correct answer. You are having a dress shop, indicate the proper classification of cost behavior whether it is VARIABLE or FIXED for each of the following items below: |Cost Element |Cost Behavior | |Material used to make shirts | ...

1753  Words | 13  Pages

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Costs and Question

long-lived assets generally include those expenditures that:  1) are made for normal repairs to maintain the usefulness of the asset over a number of years. 2) are for items that have a physical life of more than a year, regardless of their cost. 3) are material and that have an economic benefit to the entity only in the current year. 4) are material and that have an economic benefit to the entity that extends beyond the current year. Question 11 0 / 1 point Cassady, Inc....

Contribution margin, Cost, Costs 486  Words | 6  Pages

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Cost Control and Cost Reduction

PRINCIPLES OF COST CONTROL 1.1 Introduction Cost is important to all industry. Costs can be divided into two general classes; absolute costs and relative costs. Absolute cost measures the loss in value of assets. Relative cost involves a comparison between the chosen course of action and the course of action that was rejected. This cost of the alternative action - the action not taken - is often called the "opportunity cost". The accountant is primarily concerned with the absolute cost. However,...

Cost, Costs, Economics 1630  Words | 5  Pages

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Chapter 7 Flexible Budget

CHAPTER 7 FLEXIBLE BUDGETS, DIRECT-COST VARIANCES, AND MANAGEMENT CONTROL 7-1 Management by exception is the practice of concentrating on areas not operating as expected and giving less attention to areas operating as expected. Variance analysis helps managers identify areas not operating as expected. The larger the variance, the more likely an area is not operating as expected. 2. Two sources of information about budgeted amounts are (a) past amounts and (b) detailed engineering studies...

Cost, Cost accounting, Costs 12095  Words | 61  Pages

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