What are the cost incurred for the benefit of several business units called?
a-Direct cost
B-variable cost
C-product cost
D-indirect cost
In: Accounting
1)Generally speaking, what is the difference between direct cost and indirect cost? Assume you are a manager, which one would concern you more when you are analyzing the cost of your product/service? Why?
2)Traditionally, in a manufacturing company, what is the most popular way to treat indirect cost? What is the advantage and disadvantage of that?
In: Accounting
Choose a cost in your organization (or personal life). Now identify what drives that cost. Keep in mind that the cost driver is something that can be counted!
For instance, if I choose gasoline cost, my cost driver is the number of miles I drive to meet at clients' offices. At home, the cost driver for my electric bill is the number of people-days at my house - i.e. some months everyone is gone (low bill), and other times many houseguests makes for a high electric bill. What are your examples?
In: Accounting
Cost Information and the Weighted Average Method
Morrison Company had the equivalent units schedule and cost information for its Sewing Department for the month of December, as shown below.
| Direct Materials | Conversion Costs | ||||||
| Units completed | 48,000 | 48,000 | |||||
| Add: Units in ending work in process × | |||||||
| Percentage complete: | |||||||
| 17,000 × 100% direct materials | 17,000 | — | |||||
| 17,000 × 40% conversion materials | — | 6,800 | |||||
| Eqivalent units of output | 65,000 | 54,800 | |||||
| Costs: | |||||||
| Work in process, December 1: | |||||||
| Direct materials | $60,000 | ||||||
| Conversion costs | 12,000 | ||||||
| Total work in process | $72,000 | ||||||
| Current costs: | |||||||
| Direct materials | $500,000 | ||||||
| Conversion costs | 186,000 | ||||||
| Total current costs | $686,000 | ||||||
Required:
1. Calculate the unit cost for December, using
the weighted average method. Do NOT round interim calculations and,
if required, round your answer to the nearest cent.
$ per equivalent unit
2. Calculate the cost of goods transferred out, calculate the cost of EWIP, and reconcile the costs assigned with the costs to account for.
Cost of goods transferred out:
| Units completed | $ |
| Cost of EWIP | |
| Total costs assigned (accounted for) | $ |
Reconciliation
Cost to account for:
| BWIP | $ |
| Current (December) | |
| Total | $ |
3. What if you were
asked to show that the weighted average unit cost for materials is
the blend of the November unit materials cost and the December unit
materials cost? The November unit materials cost is $3.53
($60,000/17,000), and the December unit materials cost is $10.42
($500,000/48,000). The equivalent units in BWIP are 17,000, and the
FIFO equivalent units are 48,000. Calculate the weighted average
unit materials cost using weights defined as the proportion of
total units completed from each source (BWIP output and current
output). Do NOT round interim calculations and, if required, round
your answer to the nearest cent.
$ per unit
In: Accounting
Use PWs to calculate the benefit/cost ratio of i=5% for a highway project. The first cost is $150,000 and the O&M costs are $5000 per year. There is no salvage value after 20 years. Time savings to users are worth $35,000 per year, and neighborhood disruption is a disbenefit of $10,000 per year. Is this project attractive?
In: Economics
13. What mistake might a business make if it confuses marginal cost and average cost?
14. How does adverse selection explain why it might be difficult to change the Affordable Care Act?
In: Economics
Tidewater Company uses the product cost concept of applying the cost-plus approach to product pricing. The cost and expenses of producing and selling 50,000 units of Product K are as follows:
| Variable costs: | |
| Direct materials | $5.00 |
| Direct labor | 8.50 |
| Factory overhead | 2.50 |
| Selling and administrative expenses | 1.00 |
| Total | $17.00 |
| Fixed costs: | |
| Factory overhead | $50,000 |
| Selling and administrative expenses | 34,000 |
Tidewater desires a profit equal to a 10% rate of return on invested assets of $1,285,000.
a. Determine the amount of desired profit from
the production and sale of Product K.
$ 128,500
b. Determine the total manufacturing costs and the cost amount per unit for the production and sale of 50,000 units of Product K.
| Total manufacturing costs | $850,000 |
| Cost amount per unit | $17 |
c. Determine the markup percentage for Product
K.
%
d. Determine the selling price of Product K.
Round your answer to two decimal places.
$21.25
I'm having trouble with C.
In: Accounting
| Click here to read the eBook: The Cost of Retained Earnings,
rs Problem Walk-Through COST OF COMMON EQUITY The future earnings, dividends, and common stock price of Callahan Technologies Inc. are expected to grow 4% per year. Callahan's common stock currently sells for $22.75 per share; its last dividend was $2.50; and it will pay a $2.60 dividend at the end of the current year.
|
In: Finance
1. Match the correct term to the following statement.
Cost equals :
cost minus markdown.
markdown minus markup.
net profit minus operating expenses.
selling price minus markup.
cost minus markup.
2.
Use the basic equations to determine the selling price in the following problem. Round your answer to the nearest cent.
| Cost | Selling Price | Markup Amount | |
| $274.75 | $ | $120.30 |
3.
Use the basic equations to determine the markup amount in the following problem. Round your answer to the nearest cent.
| Cost | Selling Price | Markup Amount | |
| $28.46 | $67.50 | $ |
4.
Complete the following problem. Round your answer to the nearest cent.
If the selling price is $32.99 and the cost is $16.00, the markup is $ =
5.
Complete the following problem. Round your answer to the nearest cent.
If the markup is $22.00 and the cost is $15.50, the selling price is $ =
6. Match the correct term to the following statement.
________ Incurred by a business, such as rent and utilities
Select =
cost
markdown
markup
net profit
operating expenses
selling price
7.
Use the basic equations to determine the markup amount in the following problem. Round your answer to the nearest cent.
| Cost | Selling Price | Markup Amount | |
| $35.90 | $73.40 | $ |
8.
Match the correct term to the following statement.
___________ Amount manufacturer charges for merchandise.
select=
cost
markdown
markup
net profit
operating expenses
selling price
9.
Use the basic equations to determine the cost in the following problem. Round your answer to the nearest cent.
| Cost | Selling Price | Markup Amount | |
| $ | $44.79 | $18.80 |
10. Match the correct term to the following statement.
Selling Price equals =
cost plus markdown
markdown plus markup
net profit plus operating expenses
selling price plus operating expenses
cost plus markup
In: Accounting
WACC 9.00%
|
|
0 1 2 3 4
l l l l l
ProjA -$1,000 $675 $650
ProjB -$1,000 $1,000 $700 $50 $50
In: Finance