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Custom Computers is a company started by two engineering students to assemble and market personal computers to faculty and students. The company operates out of the garage of one of the students' homes. From the following costs of a recent month, compute the total cost function and total cost for the month:
Telephone $ 50, fixedUtilities 260: fixed, 25% attributable to the garage, 75% to the houseAdvertising 75, fixedInsurance 80, fixedMaterials 7,500, variable, for five computersLabor 1,800: $1,300 fixed plus $500 for hourly help for assembling five computers
Assuming that the amount of rent revenue from Condo 2 is $48,000, what amount of income did it earn? Based on the preceding information, will the company show finished goods inventory
Why is variable costing not allowed for financial reporting purposes?
The following table presents the weekly average of direct materials costs per unit for two products. How could the manager of the department that makes these products use this information?
Since easing the credit policy generally lengthens the collection period and worsens the aging schedule, why do firms ever ease their credit policies?
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The president asks you to compare the alternatives on a total-annual-cost basis and on a per-unit basis for annual needs of 60,000 units. Which alternative seems more attractive?
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Explain how traditional cost systems, using a single unit-level cost rate, may distort product costs.
I am having to explain and provide detailed example of where activity base costing would be employed. I'm capable to describe ABC in length but can't come up with detailed example.
Joint costs should not be allocated to individual products for decision purposes. For what purposes are such costs allocated to products?
ACT 6691, Managerial Accounting Case: - Read the case and analyze the information. Prepare a narrative report (or notes to the income statement) addressing why/how quantitative items were selected. The following items must be explained:
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