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Accounting Discussion Questions
1 - What is the difference between an opportunity cost and a sunk cost? Share an example of each with the group.
2 - Define variable, fixed, and mixed costs. Share an example of each with the group.
3 - What is the formula for the contribution margin ratio? How is it useful in the decision-making process?
Ten years ago J-Bar Company purchased a lathe for $250,000. It was being depreciated on a straight-line basis to an estimated $25,000 salvage value over a 15 year period. The firm is considering selling the old lathe and purchasing a new one.
What is the net change in the budget of prevention costs if the procedures are automated in 2010? Will management agree with the changes?
the management of wiersema corporation is investigating purchasing equipment that would increase sales revenues by
journal entries1. january 2 smith sold 100000 shares of common stock 10. the stock had a par value of 82. january 5
at year-end december 31 alvare company estimates its bad debts as 0.40 of its annual credit sales of 945000. alvare
Workings should be clearly given. Depreciation is charged on time basis. Also prepare the Contractee's account and show how these accounts should appear in the Balance Sheet as on 31st December, 2009.
complete the contribution income statement calculate the break-even level in units and sales dollars and calculate the
Southern Company's accountant failed to accrue as of 12/31/08 some employee fringe benefit program expenses that were incured in 2008 and that will be paid in 2009. The result of this ommision is to:
assume that the current ratio for arch company is 2.0 its acid- test ratio is 1.5 and its working capital is 300000.
Ross would like to dispose of some land he acquired five years ago because he believes that it will not continue to appreciate. Its value has increased by $50,000 over the five-year period. He also intends to sell stock that has declined in va..
drake company purchased materials on account. the entry to record the purchase of materials having a standard cost of
Mark Miller started his own delivery service, Miller Deliveries, on June 1, 2010. The following transactions occurred during the month of June.
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