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Suppose that the managers of hospital are setting the price on new outpatient service. Here are relevant data estimates:
Variable cost per unit- $5.00Annual direct fixed costs- $500,000Annual overhead allocation- $50,000Expected annual utilization- 10,000 visits
a. What per visit price must be set for the service to break even?
b. What per visit price must be set for the service to earn an annual profit of $100,000?
Write down the strengths and weaknesses of current costing model.
CP has decided to introduce the new product which can be manufactured by either a computer assisted manufacturing system or labor intensive production system. The manufacturing technique will not affect the quality of product. The estimated manufa..
Dealing with people is probably the most difficult thing we will ever encounter in life.
Which if the following statements are correct?
Some firms have a lot of fixed costs and a few variable costs, while other firms are configured the other way around. What effect do you think the existence of a high proportion of fixed costs has on the desirability of using ABC methods?
uppose the company decides that only 1,400 units can be sold at a price of $5,000 and, therefore, the target cost cannot be reached. The company is considering. dropping the steam feature, which adds $600 of variable cost per unit. With this featu..
Recognize types of responsibility centers as a cost center, a profit center, a revenue center or an investment center.
This individual assignment is based on the TerraCycle Inc.
Do the pension worksheet and create the journal entries needed to reflect the above activity.
After reviewing its cost structure (variable costs of £7.50 per unit and monthly fixed costs of £60,000) and its potential market, the Forecast Company established what it considered to be a reasonable selling price.
Task is to make a 10-12 powerpoint presentation on topic of costing. Explaining what needs to be done to project profits using the traditional income statement if sales were to increase 20%
What is the definition of the relevant cost and how would it execute to both job costing and process costing.
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