Explain batch-related and product-sustaining activities

Assignment Help Cost Accounting

Reference no: EM13169535

Question

Your company is interested in having a new facility constructed. The contractor expects that it will take approximately 3 years to complete the building. The contractor has offered you three payment plans for the building. They are as follows:

Time	Plan 1	Plan 2	Plan 3
Today	$300,000	$1,035,000	$950,000
1 year from now	$1,300,000	$1,035,000	$0
2 years from now	$1,300,000	$1,035,000	$1,600,000
3 years from now	$1,300,000	$1,035,000	$1,600,000

The CFO of your company has asked you to provide recommendation concerning which payment plan to accept. What is your recommendation? Assume your weighted-average cost of capital is 10%.

Question

List and describe four "red flags" that may indicate you should consider revising your overhead allocation system.

Question

a) Describe the differences between unit-related, batch-related, and product-sustaining activities. Give one example of each type of activity.

b) Describe the difference between transaction drivers and duration drivers. When would one type be preferred over the other?

Reference no: EM13169535

Questions Cloud

State benzoin from the more hindered face : Using stereoformulas, show that reduction of (R)-benzoin from the more hindered face would give give (R,R)-hydrobenzoin. Please no links to external sites. Be clear and concise.

What is the molar mass of the gas : An experiment shows that a 250mL gas sample has a mass of 0.434g at a pressure of 744mm Hg and a temperature of 27C. What is the molar mass of the gas?

State the formula that relates the temperature change : What is the formula that relates the temperature change obsereved in a substance with the energy released or abosrbed? when you measure a temperature rise during a chemical reaction, is the reaction endothermic or exothermic?

What is the maximum pressure that will be attained : what is the maximum pressure that will be attained in the tank before the plug will melt and release gas?

Explain batch-related and product-sustaining activities : Describe the differences between unit-related, batch-related, and product-sustaining activities. Give one example of each type of activity and describe the difference between transaction drivers and duration drivers. When would one type be preferre..

What will happen to the pressure inside container a : Container A (with porous walls) is filled with air at STP. It is then inserted into a large enclosed container (B) which is then flushed with H2(g). What will happen to the pressure inside container A?

What is the partial pressure of oxygen in the mixture : a gasous mixture of oxygen and nitrogen contains 32.8% nitrogen by mass. what is the partial pressure of oxygen in the mixture if the total pressure is 405mmHG?

What is the partial pressure of each component : A mixture of 2.20 moles of gas A and 5.81 moles of gas B has a total pressure of 0.794 atm. What is the partial pressure of each component?

Should the firm purchase the new equipment : How much value will this new equipment create for the firm and at what discount rate will this project break even and should the firm purchase the new equipment?

User Account

All Pages