What would be reply to the manager

Assignment Help Cost Accounting
Reference no: EM132598044

Question 1: A manager in your organization tells you over coffee one morning, "Differential costing is easy; variable costs are the only costs that are relevant." As the organization's accountant, how would you respond to this statement?

Question 2: Later in your conversation this same manager opens a folder and produces a document he just received regarding a special order at a price that he believes is "below cost." The manager is opposed to accepting orders of this nature because he feels every sale needs to carry a fair share of full costs in order to keep the company from failing. What would be your reply to this manager?

Reference no: EM132598044

Questions Cloud

What is the maximum price that chemical managers would : What is the maximum price that Chemical's managers would be willing to pay for benzene? Should Adams International produce polystyrene
Determine two major employment laws : Employers sometimes violate employment laws because they lack knowledge and understanding of how these laws apply to their workplace.
Draw conclusions about the genotype counts : Is it possible to draw conclusions about the genotype counts from examine phenotypes? Why not why not?
Compare the two main levels of financial benchmarking : Compare and contrast the two main levels (i.e., internal comparison and external comparison) of financial benchmarking. Next, analyze the strategic purpose.
What would be reply to the manager : "Differential costing is easy; variable costs are the only costs that are relevant." As the organization's accountant, how would you respond to this statement?
Development of appropriate antimicrobial treatment : Describing the interrelationship among a bacterial pathogen, the affected host, and potential antimicrobial drugs
Phenotypic ratios of the f2 generation : Yellow pea pods are dominant to green pods, and round seeds are dominant to wrinkled. Two true-breeding individuals
Explain the issues that surround transfer pricing : Explain the issues that surround transfer pricing within organizations and give at least three examples of different options a firm may consider
Determine difference between a cost object and a cost driver : Determine the difference between a cost object and a cost driver by giving an example of each within the context of a manufacturing plant

Reviews

Write a Review

Cost Accounting Questions & Answers

  Complex job costing information using equivalent units

Complex Job costing information using equivalent units. The Custer Manufacturing Corporation, which uses a job order cost system, produces various plastic parts for the aircraft industry.

  What is the company return on investment

What is the company's return on investment (ROI)? Mow Yur Lawns is a major corporation with the data from last year. What is the company's residual income

  Which products or product lines will happen to

While they do seem to have the lowest costs, they still need to make a profit or have margins. Which products or product lines they will happen to?

  Calculate the conversion costs in total

Calculate The conversion costs in total and the conversion cost per unit, The total variable production,The total production, The prime cost per unit

  Should purchase the computer system

As well, she is concerned that the amount of savings promised by the controller won't materialize. Should you purchase the computer system?

  Questionluke valued and sold at 210000 his original basis

questionluke valued and sold at 210000. his original basis in the land was 180000.for the land luke received 60000 in

  What amount should be recorded as the cost of the land

Previn Brothers Inc. purchased land at a price of $29,210. Closing costs were $3,290. An old building was removed at a cost of $15,220. What amount should be recorded as the cost of the land?

  Some years ago polar inc acquired an 80 interest in icecap

some years ago polar inc. acquired an 80 interest in icecap co. the book values of icecaps liability and asset accounts

  Two service departments- purchasing and maintenance

The Sakick Manufacturing Company has two service departments- purchasing and maintenance, and two production departments fabrication and assembly.The distribution of each service department's efforts to the other departments is shown below:

  Bisson uses weighted-average costing

Bisson uses weighted-average costing.

  Determine the amount of the annual depreciation

Determine the amount of the annual depreciation and determine the book value at the end of the twentieth year of use.

  Should the costs be considered variable or fixed

Do you agree with the controller's assumptions or do you feel that the plant manager has some genuine points? Should the costs be considered variable or fixed? Finally, how would you respond to the plant manager if you were the controller? Please ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd