Reference no: EM131808969

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Managerial Account (easy questions)

1) Border Company produces a hand-held electric saw that it sells for $5000 per saw. Total operating expenses for May were:

Saws produced and sold700
Components used in saws140,000
Assorted supplies used in saws1,000
Labor to assemble saws7,000
Rent for factory5,000
Production supervisor's salary15,000
Utilities for factory2,000
Product shipping expenses1,400
Advertising costs3,000
Administrative costs12,500

Use account analysis to determined fixed costs for the month of May and the variable cost per saw.

2) Does financial accounting focus on the past or the future? Does managerial accounting focus on external or internal users of information? How do financial and managerial accounting compare? How are they alike, and how are they different?

3) Identify each of the following as either a committed fixed cost or a discretionary fixed cost:

1.Advertising expenses
2.Insurance on the production facility
3.Rent on the production facility
4.Salary of the CEO
5.Research and development expenses
6.Annual contribution to the company deferred compensation plan
7.Repair and maintenance expenses for production equipment
8.Depreciation in the production facility
9.Key man life insurance costs for the five top company executives
10.Salary of the production supervisor

For problems, be sure to answer all questions and provide all requested information. Your response should be at least 75 words in length.

4) Variable costs increase as production activity increases and decreases as production activity decreases, but variable costs do not necessarily increase or decrease in direct proportion to increases and decreases in production. What are step-variable costs, and what role does the relevant range play in identifying variable costs?

Your response should be at least 75 words in length. For problems, be sure to answer all questions and provide all requested information.