Chapter 2—Cost Terminology and Cost Behaviors MULTIPLE CHOICE 1. The term "relevant range" as used in cost accounting means the range over which a. | costs may fluctuate. | b. | cost relationships are valid. | c. | production may vary. | d. | relevant costs are incurred. | ANS: B PTS: 1 DIF: Easy OBJ: 2-2 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Measurement‚ Reporting 2. Which of the following defines variable cost behavior
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make long-term investments in new product lines‚ new equipment and other assets‚ managers must know the cost of obtaining funds to acquire these assets. The cost associated with different sources of funds is called the cost of capital. . If the business earns more than its cost of capital‚ the market value of the business will increase. Likewise‚ if returns on long-term investments are below the cost of capital‚ market values will decline. Therefore‚ how we manage capital is extremely important to fulfilling
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The Ups and Downs of the NYSE Abstract This paper uses an online dataset provided by our Econometrics class that shows the fluctuation in price as well as the return on investments found in the New York Stock Exchange over a certain period of time. In this paper I will demonstrate through the use of Gretl how the return on investment affects the future price of the investment. As well as why fluctuations in price are directly affected by the returns of the investment. Keywords: Price‚ Returns
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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
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Should Florida Permit Young Children to Have Overnight Visit or Reside at Correctional Facilities with their Mothers? Every year in the United Sates‚ millions‚ if not more‚ parents are removed the society‚ taken away from their families‚ and sent to jail or prison. Some parents are able to return home after a very short time or are simply placed on other programs. Others‚ depending on the charges‚ are sent away for much longer‚ leaving their children to grow up with family member if they
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Is the company correct in its decision of not manufacturing standard model compressors on Sundays? Why? Show your calculations. Decision making should be based on change of RELEVANT items ONLY. The company’s calculation is WRONG‚ as it takes into concern of irrelevant fixed cost. By double-counting depreciation‚ other Mfg. overheads‚ SG&A in Sunday’s cost; it distorts the P&L sheet. To correctly show cost structure for decision making‚ there are two different approaches‚ yet each should reach
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activity-based costing and the creation of individual cost pools that will use direct labor hours (DLH)‚ material handling (MH)‚ and number of shipments (NS) as cost drivers. Data on the cost pools and respective driver volumes follow. Product Alpha Gamma Pool Cost Pool No. 1 (Driver: DLH) 200 1800 $420‚000 Pool No. 2 (Driver: MH) 15 10 $375‚000 Pool No. 3 (Driver: NS) 2‚000 18‚000 $20‚000 1. The overhead cost allocated to Alpha by using traditional costing procedures
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Is Standard Costing Still Relevant? Motivation The activity-based costing (ABC)‚ Just-in-Time (JIT)‚ the balanced scorecard‚ and target costing methods appeared and used wide‚ it leads to confusion about the sense of relevant of standard cost. Besides‚ standard costing and variance analysis had become disconnected from actual practices at the industry level. Research question In this case‚ author solved four questions: 1. Is standard costing used in Dubai? 2. How important are various functions
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Management Jacob Munodawafa Executive Secretary July 2008 Copyright 2008 © SATA Secretariat‚ All Rights Reserved 1 Overview of Association of Telecom Operators & ICTs Players in the SADC (Southern African Development Community‚ which is an economic grouping of 14 Member States) Established 28 years ago under SADC Treaty and Protocol on TCM Consultative Member of SADC on telecom and ICTs matters Sits on Telecom Sub-Sectoral Committee (SCOM) of SADC; and Has Constitution‚
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Introduction Accounting‚ which is also known as accountancy is a “language of business”. It provides financial information about one’s business to the internal and external users such as managers‚ investors‚ creditors and etc. Users need information to help in planning‚ decision-making‚ evaluating and controlling their business or investment. The information is generally in the form of financial statement where they can show where the money is spent‚ helps to assess performance over a period and
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