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ALGEBRAIC ANALYSIS
The supposition of linear cost behavior allows use of straight-line graphs and simple linear algebra in cost-volume study.The net cost is a semi-variable cost—few of the costs are fixed, a number of costs are variable, and others are semi-variable. In study, the fixed component of a semi-variable cost can be treated similar to any other fixed cost. The variable component can be treated similar to any other variable cost. As an outcome, we can state that:Total Cost = Fixed Cost + Variable Cost By using symbols: C = F + VHere:C = Total costF = Fixed costV = Variable costNet variable cost based on two elements:Variable Cost = Variable Cost per Unit x Volume Produced By using symbols:V = Vu (Q)Here:VU = Variable cost per unitQ = Quantity (volume) producedReplacing this variable cost information into the fundamental total cost equation, we have the equation employed in cost-volume study:C = F + VU (Q)
Stine Company uses a job order cost system. On May 1, the company has a balance in Work in Process Inventory of $3,730 and two jobs in process: Job No. 429 $2,150, and Job No. 430
Decision Making Process Decision making is the process of choosing among alternatives. There are 7 steps that should be followed as shown in figure below: Figure:
Sean Corp. issued a $60,000, 10 year bond at the face rate of 8% annually on 1/1/X0. The market rate was 10%. How much cash will the bond investors receive at the end of the first
The board of a company decides that the strategic objectives of the company should be: * to become established as the best in its field * to be the largest in its market Comment on
Explain TWO limitations of using accounting ratios to assess the performance of a firm and suggest how each limitation may be improved
Explain performance budgeting according to seal and summers According to seal and summers performance budgeting comprises three elements: a) The result (final outcome)
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Problem Marginal costing plays a major role in making certain decisions. It provides information to management regarding the behaviour of costs and the incidence of such costs
Pricing decision Price may be defined as the exchange of goods or services in terms of money. Without price firm can survive in the society. If money is not there exchange of g
Risk seeking: A risk seeker is a decision maker who is concerned in the best likely outcome no matter how small the chance that they might take place i.e. he takes high risks
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