• 0.9091

• 0.6709

• 0.607

• 0.639

• 0.6645

1.
(a) What is cost behavior analysis?
(b) Why is cost behavior analysis important to management?
2.
(a) Scott Winter asks your help in understanding the
term "activity index." Explain the meaning and
importance of this term for Scott.
(b) State the two ways that variable costs may be
defined.
3. Contrast the effects of changes in the activity level on
total fixed costs and on unit fixed costs.

4. J. P. Alexander claims that the relevant range concept
is important only for variable costs.
(a) Explain the relevant range concept.
(b) Do you agree with J. P.'s claim? Explain.

5. "The relevant range is indispensable in cost behavior
analysis." Is this true? Why or why not?

.Explain the importance of ethics in cost accounting.
.Name three situations the cost accountant may face - in which
Your integrity as an accountant - and how you should deal with it - may be in question

Annual demand is 12500 units, cost per order is $60 and carrying cost per unit as a    percentage is 8%. The company works 50 weeks a year; the lead-time on all orders placed is 5 weeks.
Assuming constant lead-time demand, and a unit cost of $40 what is the economic order quantity? What is the reorder point.
If lead-time demand shows variability that follows a normal distribution with a mean μ =280 and a standard deviation σ =20, what will the revised reorder point if two stock-outs (shortages) are allowed?
What is the company’s reorder point if the probability of a stock-out on any cycle is restricted to 0.05

(1) "Describe what is meant by "Cost Behavior".

(2) "Distinguish between a Variable Cost and Fixed Cost (in Total and Per Unit)".

(3) "Described what is a "Mixed Cost".

(4) "Discuss the purpose of uses of the "High-Low Method".

Draw a diagram showing the typical relationship between the Average Total Cost (ATC) and Marginal Cost (MC) curves for a firm.

• Do a cost-benefit analysis of the selected healthcare organization.

Explain your analysis of the cost-benefit ratio and how it helps an organization.

• Explain the impact of the cost-benefit ratio on recruitment and retention strategies of a healthcare organization.

• Outline ways to improve the cost-benefit ratio of the selected healthcare organization.

• Explain the role of HRM in ensuring the most competitive compensation package for employees.

• Describe methods of improving the compensation package of the selected healthcare organization.

Explain how your recommendations could enhance recruitment and retention strategies of the organization.

• Discuss how you would address competitive compensation, benefits packages, career development, and succession planning in working towards the selected healthcare organization's strategic goals.

Arlington, Texas wants to build a new recreation center. The estimated cost of construction cost us $14 million with annual staffing and maintenance costs of $520,000 per year over the twenty-year life of the center. At the end of the life of the center, Arlington expects to sell the land for $5 million, though that figure might be as low as $1 million and as high $ 9 million. City staff estimate first year benefits to be $2.1 million (accruing at the end of the first year). Staff expect annual benefits to grow in real terms at 4 percent, though this could be as low as 1 percent and as high as 6 percent. They assume that the real discount rate for use in Arlington should be 7 percent, thought it might be a percentage point higher or lower

a) What is the present value of net benefits for the recreation project using staff predictions?

b) What is the sensivity of the present value of net benefits to alternative predictions about land price, growth rate of annual benefits and the real discount rate.

Monitoring the Cost Of Money: Interest Rates

Interest rates, the cost of money, influence most all factors related to personal and corporate capital budgeting. The more obvious personal information for the cost of money is the rates associated with a mortgage or car loan. As a CFO you would “shop” interest rates to find the best rate for your financing needs.

Would you, as the CFO, finance your projects as soon as possible if cost of capital was expected to drop? Please explain.

More importantly where do you find the information to analyze expected changes in interest rates?