Accounting chapter 7 managerial accounting Exercises Lambert Fabrication‚ Inc.‚ uses activity-based costing data for internal decisions. The company has the following four activity cost pools: Activity Cost Pool Annual Activity Producing units 5‚000 machine-hours Processing orders 1‚000 orders Customer support 200 customers Other Not applicable The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs. The company traces the costs of direct
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The world of accounting opens doors of opportunity for investors‚ stockholders and many businesses and organizations. However‚ accountants must follow guidelines established by “The American Institute of Certified Public Accountants”. (AICPA) Council designated the Federal Accounting Standards Advisory Board or (FASAB) as the body that establishes generally accepted accounting principles (GAAP). Accounting Standards GAAP is considered to be collection of methods used to prepare‚ process and
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Dawn Howarth ACC122 Managerial Accounting Career Paper Baker College What is Managerial Accounting Managerial accounting is the process of identifying‚ recording‚ analyzing and finally presenting the financial data which is used by the management and business owners for the purposes of command and for decision making. The difference between financial accounting and management accounting Financial accounting is reported publicly while management accounting is used by the company or organization
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Marketing Principles Assignment “What does the term marketing mean? Many people think of marketing only as advertising and selling… although they are important they are only the tip of the marketing iceberg” (Kotler et al.‚ 2008:6). Discuss this statement. Introduction Marketing is always one of the most significant parts in ensuring a successful business strategy. Saying so‚ what does the term marketing mean? Marketing‚ referred by McDaniel (2006)‚ is an organizational function
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422 4000‚ Fax.: +27 422 5181 Dear Vendor IMPROVED VALUE-ADDED TAX PROCESSES AND PROCEDURES Since April 2011 SARS has been introducing changes to Value-Added Tax (VAT) that are aimed at improving its systems‚ simplifying processes and enabling compliance. The first changes to VAT were implemented in April 2011 and included the following: • The introduction of an enhanced VAT201 Declaration with additional fields for demographic information and the declarant’s signature • A unique 10-digit Payment
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a 1. a. Percentage Change in Quantity = (12‚000 – 8‚000)/8‚000 = 0.5 x 100% = 50% Percentage change in price = ($150 - $120) / $120 = 0.25 x 100% = 25% Price elasticity = 50% / 25% = 2% b. Elastic‚ because when the price rises the quantity goes down‚ and also when the price goes down the quantity goes up. 2. a. P1 E1 Q1 b. P2 E2 P1 E1 Q1 Q2
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property‚ plant and equipment 2. Able Company purchased land and incurred the following costs: Purchase price $1 000 000 Excavation costs 100 000 Removing old building 25 000 Broker fees 20 000 Cost of a parking lot 50 000 What is the cost of the land? a. $1 100 000 b. $1 195 000 c. $1 145 000 d. $1 125 000 3. Which of the following costs related to the purchase of production equipment incurred by ABC Company during 2013 would be considered an expense
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CHAPTER 1 MANAGEMENT ACCOUNTING: INFORMATION FOR CREATING VALUE AND MANAGING RESOURCES ANSWERS TO QUESTIONS 1.1 There are several possible answers to the question. QANTAS‚ the national airline of Australia‚ has faced a number of changes to the business environment in recent years‚ including deregulation of the domestic aviation industry. This resulted in increased competition as new firms attempted to enter the industry. The most notable of these was two failed attempts by Compass to succeed
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of the interrelationship between financial decisions‚ expected return‚ risk‚ and a firm’s value. Study Guide Suggested Study Guide examples for classroom presentation: Example Topic 1 Constant growth rate model 4 Mixed growth rates Suggested Answer to Chapter Opening Critical Thinking Question How might the owners of a closely held company react to an initial public offering when the stock’s value immediately rises significantly above its initial offering price? Setting the proper price
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(ABC) and Activitybased Management (ABM) Implementation – Is This the Solution for Organizations to Gain Profitability? Authors*: Ildikó Réka CARDOŞ‚ Ştefan PETE A bstract. Adherents of ABC/ABM systems claimed traditional management accounting systems generated misleading costs in a contemporary‚ tumultuous‚ often changing business environment and implementing ABC/ABM would remedy this. That is why activity-based costing (ABC) and activity-based management (ABM) represents the symbol
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