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H & R Block is a service company that prepares tax returns; Borders is a retail company that sells books and CDs; Indian Motorcycle Corporation is a manufacturing company that makes motorcycles. Show that you understand how these companies differ by giving for each one an example of a direct and an indirect cost, a variable and a fixed cost, a value-adding and a nonvalue-adding cost, and a product and a period cost. Discuss the use of cost classifications in these three types of organizations.
As the management accountant, you are responsible for setting costs for your manufacturing company's products, prior to setting the budget for the upcoming year.
Why does the US Army Corp of Engineers worry about cost allocations? Aren't they a branch of the US Federal Government? Why does it matter whether or not costs are allocated?
A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.
Diego Motors is a small car dealership. On average it sells the car for $25,000 which it buys from the manufacturer for $22,000. Each month, Diego Motors pays $50,000 in rent and utilities and $60,000 for salespeople's salaries.
Contrast the 3 major classes of tax bases, also addressing economic bases. Examine various methods of government financing in their budget, and give a synthesis of the strengths and weaknesses of these methods, as well as their long term effects.
Thomas Selling, an expert on nuclear strategy and arms control, examined in his book The Strategy of Conflict (Cambridge, MA: Harvard University Press, 1960), " The power to constrain the adversary depends on the power to bind oneself." Describe t..
Describe customer perceived value, total customer benefit, and total customer cost. How do the total customer benefit and the total customer cost affect the consumer's perception? Explain.
Bello Corp. has annual sales of $50,735,000, an average inventory level of $15,012,000, and average accounts receivable of $10,008,000. The company makes all purchases on credit and has always paid on the 30th day.
Your CFO, in her initial work, needs to decide whether to set up a job order costing system or a process type costing system. She has asked you to make a recommendation based on the following information.
Evaluate the total cost of the work in process inventory on January 31. Determine the cost of jobs completed during January, and show the proper journal entry to reflect job completion.
Avitar Corporation manufactures the line of computer memory expansion boards employed in microcomputers. The average selling price of its finished product is $175 per unit. The variable cost for these same units is $115. Avitar incurs fixed costs ..
Explain the logical flow represented in the master budget, beginning with the organization goals and ending with the pro forma financial statements.
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