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In 2013, several data server companies took a dramatic decision to begin using energy surcharges to recapture rising energy costs. However, customers are critical of how the energy surcharges are being allocated.
Specifically, the data server companies allocate costs based on bandwidth available to customers. Customers however prefer allocations to be based on actual usage metrics such as data-bytes transferred or data-stored in servers.
The US Department of Energy has hired your team to provide a recommendation on the allocation. How would you allocate and provide an illustrative example.
Identify the wrong statement - Management accounting relies heavily on the use of generally accepted accounting principles
Compute the cost per unit, using absorption costing. Compute the difference in net operating income between the two methods.
Determine the inventory turnover and days in inventory for 2013 and 2014. Discuss the changes in the amount of inventory, the inventory turnover and days in inventory, and the amount of sales across the two years.
In respect of Abel furniture manufacturing facility, identify costs that would be classified as a) variable and b) fixed from the list below. Classify the costs listed below as either Variable or Fixed and give reasons for your choice.
A firmproduces its products by a continuous process involving threeproduction departments, 1 through 3. Present entries torecord the selected transactions related to productionduring August:
Compute for the month of June - Direct materials used, June and Direct material inventory, June 1.
Why do you think the loan officer suspected that the accounts had not been adjusted prior to the preparation of the statements and indicate possible accounts that might need to be adjusted before an accurate set of financial statements could be pre..
Brief recommendation on how to avoid the problem or improve the process in the future - Suggest something that was not directly addressed in the current problem that needs to be addressed in the future
Burnwood Tech plans to issue some $60 par preferred stock with a 6% dividend. The stock is selling on the market for $70.00, and Burnwood must pay flotation costs of 5% of the market price.
What are its limitations and how might it be improved, especially from a communication viewpoint - Identify all attributes of measurement explicitly identified in the balance sheet and accompanying notes. Notice which items are not specified.
Give an example of activity-based costing methods by creating a fictitious company. Include a cost analysis. Discuss the 2-3 advantages of the ABC method.
If the company budgets to produce 52,000 units in 2015, what are the expected total costs and expected costs per unit for 2015?
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