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1-What is direct cost? What criteria are used to determine whether a cost is a direct cost?
To calculate the total cost of the production department or to calculate each product's total cost, it is necessary to allocate some of the rent (and other indirect costs) to the department and to the product.
2-In manufacturing environment, which cost are direct and which are indirect in product costing?
3-What is the objective of allocating indirect manufacturing overhead cost of product?
Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.
Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.
Custom Computers is a company started by two engineering students to assemble and market personal computers to faculty and students.
Pacheco, Inc., manufactures two products, overs and unders, in single process. The joint costs of this process were $50,000, and 14,000 units of overs and 36,000 units of unders were produced.
Explain any opportunity, sunk, out-of-pocket, and/or relevant costs that figured in Rosley's decision. How did Rosley compute the $400 per month savings?
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.
Buchanan Corp. is refunding $12 million worth of 10% debt. The corporation's tax rate is 35%. The call premium is 9%. What is the net cost of the call premium? Please show ALL work of how the answer was composed.
Kristen is unsure about whether she should use her own car or rent a car to go on an extended cross-country trip for two weeks during spring break. What costs above are relevant in this decision? Explain.
Write down the strengths and weaknesses of current costing model.
Develop a value chain for the airline industry
Determine total product cost per unit for each product using an activity based costing system. Use the number of units as the cost driver for each activity.
Processors Ltd. uses three different products - X, Y and Z to produce its major product line. Each kg of the raw material costs $2.00 for X, $3.75 for Y and $5.20 for Z.
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