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Question - A special contract had been offered to a company to supply it's products on a monthly basis for a period of 36 months to a sport complex in Rwanda. The volume of transaction is estimated to be about $10,500,000 per month. The gross profit margin is however very low at 4% and it involve logistic costs of about $ 400,000 per month.
a) Should the company take up the contract? If the answer is yes, which plastics factory should be signing the contract?
b) What are the qualitative considerations that must be taken into account in the decision?
HND Business - Management Accounting - Explanation of management accounting and the essential requirements of management accounting system
The tax rate is 22 percent and the discount rate is 11 percent. At what sales quantity per year will the investment break even on a financial basis?
Sushi House has budgeted sales revenues as follows: Credit sales: June $85,000, July $80,000, August $72,000. Cash sales: June $14,000, July $25,000, August $32,000. Prepare a cash budget for the month of July
"Accountants do not ordinarily record opportunity costs in the formal accounting records." Do you agree with the statement? Why or why not?
Under what market conditions is a firm a price-taker. What would happen to a firm if it becomes price-maker? Explain in detail with an example.
Kaloy Enterprises, a merchandising firm, Prepare the purchases budget for Kaloy Enterprises for the quarter ended June 30 with details shown for each month.
Given an after-tax discount rate of 11%. what tax rate would be needed in order for the PV of the depreciation deductions to equal $15,300?
3. Overhead and administrative expense budget schedule for the month of June.
How does the flow of costs & its accounting differ or are similar in these two sectors? What implications does this have on changes in equity?
Explain why the allocation of general and administrative costs to the service department is higher in the current year.
Explain the steps that should be taken by an internal accountant/CMA when there is a difference of opinion with one's supervisor on an accounting
Examine the main reasons service companies are more sensitive to labor and price variances, as compared to material price variances
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