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
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Receivable 4‚150 Increase in Inventories 5‚900 Decrease in Salaries Payable 1‚130 11‚180 Net Cash Flows from Operating Activities P153‚850 COST VOLUME PROFIT 1. Melanie Company produces a merchandise that has the following data: Unit Sales price P80 per unit Unit vairiable costs P48 per unit Total fixes costs P640‚000 per annum Units sold during the current year P25‚000 units
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2.2 Analyze the relationship between productivity and the cost of production. The definition of productivity is what is put out per the number of hours put in‚ or worked. For instance‚ if you make 50 cookies over 50 hours worked‚ your rate of productivity is 1 per hour. The cost of production is comprised of several factors: fixed costs; variable costs; and the total cost. The fixed costs are defined as “costs that are spent and cannot be changed in the period of time under consideration”
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Average Variable Cost : 2002 $1‚011‚008** **$417‚004+$124‚101.20+$117‚903+$351‚000 2003 1‚142‚681.00** ** $520‚069+$171‚622.70+$79‚888+$371‚101 2004 1‚798.131.00 ** ** $915‚787.50+$320‚525.52 +$115‚999+$445‚819 Total $3‚951‚820.00 No.of Years 3 Average VC $1‚317‚273.00 Average Customers 8‚202.00 Average VC per unit $161.00 Fixed Cost $174
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CHAPTER 12 PRICING DECISIONS AND COST MANAGEMENT 12-1 The three major influences on pricing decisions are 1. Customers 2. Competitors 3. Costs 12-2 Not necessarily. For a one-time-only special order‚ the relevant costs are only those costs that will change as a result of accepting the order. In this case‚ full product costs will rarely be relevant. It is more likely that full product costs will be relevant costs for long-run pricing decisions. 12-3 Two examples of pricing decisions with
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to add that cost behavior is also identifying the key resources that are performed‚ resources used in performing these activities‚ costs of the resources‚ and what the cost is driven from. 2-2. Two rules of thumb when analyzing cost behavior are to manage what the company manufactures‚ sells‚ and to give advice as to where costs can be reduced. 2-3. Three examples of a variable cost are a 12% increase in the production of dresses‚ which will cause a 12% increase in variable costs. A 10% increase
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Question 1 1. Mrs. Granberry is going to sell Christmas tree lights for $20 a box. The lights cost Marsha $5 a unit and any unsold lights can be returned for a full refund. She is planning to rent a booth at the upcoming Happy Holidays Convention‚ which offers three options: 1. paying a fixed fee of $1‚500‚ or 2. paying a $500 fee plus 10% of revenues made at the convention‚ or 3. paying 25% of revenues made at the convention.Which of the following statements is FALSE? Answer | | One
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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
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- each with half the country. The distributors then sell through 6 sporting goods wholesalers‚ and they‚ in turn‚ sell to 1‚000 retail outlets (split between two national sporting goods chains and two general merchandise stores). ATB and its channel make little effort to work together. However‚ because of a relatively low level of competition between the distributors‚ the wholesalers‚ or the retail stores‚ each member of the channel gives the product special attention. 3) National Tennis Ball (NTB)
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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
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