|
Cost of Owning—Anywhere Clinic—Comparative Present Value |
||||||
|
For-Profit Cost of Owning: |
Year 0 |
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|
Net Cash Flow |
(48,750) |
2,500 |
2,500 |
2,500 |
2,500 |
5,000 |
|
Present value factor |
||||||
|
Present value answers = |
||||||
|
Present value cost of owning = |
||||||
|
Cost of Leasing—Anywhere Clinic—Comparative Present Value |
||||||
|
For-Profit Cost of Leasing: |
Year 0 |
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|
Net Cash Flow |
(8,250) |
(8,250) |
(8,250) |
(8,250) |
(8,250) |
— |
|
Present value factor |
— |
|||||
|
Present value answers = |
||||||
|
Present value cost of leasing = |
||||||
Record the preset value factor at 10% for each year and compute the preset value cost of owning and the preset value of leasing. Which alternative is more desirable at this rate? do you think your answer would change if the interest rate was 6% instead of 10%
In: Finance
|
Cost of Owning—Anywhere Clinic—Comparative Present Value |
||||||
|
For-Profit Cost of Owning: |
Year 0 |
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|
Net Cash Flow |
(48,750) |
2,500 |
2,500 |
2,500 |
2,500 |
5,000 |
|
Present value factor |
||||||
|
Present value answers = |
||||||
|
Present value cost of owning = |
||||||
|
Cost of Leasing—Anywhere Clinic—Comparative Present Value |
||||||
|
For-Profit Cost of Leasing: |
Year 0 |
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|
Net Cash Flow |
(8,250) |
(8,250) |
(8,250) |
(8,250) |
(8,250) |
— |
|
Present value factor |
— |
|||||
|
Present value answers = |
||||||
|
Present value cost of leasing = |
||||||
Record the preset value factor at 10% for each year and compute the preset value cost of owning and the preset value of leasing. Which alternative is more desirable at this rate? do you think your answer would change if the interest rate was 6% instead of 10%
In: Finance
Which product costing system distributes costs evenly across total production?
Variable cost system
Standard cost system
Process cost system
Job order cost system
In: Accounting
Presentation of Project Cost Estimate This module covers project cost estimation approaches (top-down estimates, bottom-up estimates, and parametric modeling). Research the textbook and other online resources to identify and understand various cost estimation approaches. Critically describe five cost estimation techniques, that are different from the three provided in the textbook. In a separate paragraph, explain with reasons the most suitable cost estimation technique for your term project.
In: Operations Management
Problem 16-7AA FIFO: Process cost summary, equivalent units, cost estimates LO C2, C3, C4, P4
[The following information applies to the questions
displayed below.]
Dengo Co. makes a trail mix in two departments: roasting and
blending. Direct materials are added at the beginning of each
process, and conversion costs are added evenly throughout each
process. The company uses the FIFO method of process costing.
During October, the roasting department completed and transferred
23,000 units to the blending department. Of the units completed,
3,400 were from beginning inventory and the remaining 19,600 were
started and completed during the month. Beginning work in process
was 100% complete with respect to direct materials and 40% complete
with respect to conversion. The company has 2,800 units (100%
complete with respect to direct materials and 80% complete with
respect to conversion) in process at month-end. Information on the
roasting department’s costs of beginning work in process inventory
and costs added during the month follows.
| Cost | Direct Materials | Conversion | ||||
| Of beginning work in process inventory | $ | 10,300 | $ | 111,690 | ||
| Added during the month | 266,560 | 1,117,584 | ||||
Problem 16-7A Part 2
2. Prepare the journal entry dated October 31 to transfer the cost of completed units to the blending department. (Do not round your intermediate calculations.)
In: Accounting
Question 5)
|
1. Parametric cost estimates utilize a “bottom-up” approach |
True False |
|
2. Engineering cost estimates require detailed designs |
True False |
|
3. “Rough order of magnitude” estimates are most often associated with Parametric cost estimating |
True False |
|
4. Engineering cost estimates are quick and easy to develop |
True False |
|
5. Class 1 estimates are the initial/basic estimate, usually involving the largest range of error |
True False |
|
6. According to Standish, more than 50% of all IT projects experience cost overruns of 51% or more |
True False |
|
7. Tetlock believes Hedgehogs make better forecasters due to their cognitive style that is biased towards a single idea or approach. |
True False |
|
8. When developing a cost estimate, determining the estimates “purpose” is one of the most important steps |
True False |
|
9. Updating an estimate is recommended only when it is easily achieved |
True False |
|
10. Analogy estimates are based upon years of highly accurate data, therefore is the gold standard whenever possible |
True False |
In: Accounting
Problem 16-5AA FIFO: Process cost summary; equivalent units; cost estimates LO C3, C4, P4
[The following information applies to the questions
displayed below.]
Tamar Co. manufactures a single product in one department. All
direct materials are added at the beginning of the manufacturing
process. Conversion costs are added evenly throughout the process.
During May, the company completed and transferred 23,700 units of
product to finished goods inventory. Its 3,300 units of beginning
work in process consisted of $93,945 of direct materials and
$457,446 of conversion costs. It has 2,550 units (100% complete
with respect to direct materials and 80% complete with respect to
conversion) in process at month-end. During the month, $525,555 of
direct material costs and $2,605,614 of conversion costs were
charged to production.
Beginning work in process consisted of 3,300 units that were 100% complete with respect to direct materials and 40% complete with respect to conversion.
Of the 23,700 units completed, 3,300 were from beginning work in process. The remaining 20,400 were units started and completed during May.
Assume that Tamar uses the FIFO method to account for its process
costing system.
Problem 16-5A Part 1
1. Prepare the company’s process cost summary for May using the FIFO method. (Round "Cost per EUP" to 2 decimal places.)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Problem 16-5A Part 2
2. Prepare the journal entry dated May 31 to transfer the cost of completed units to finished goods inventory.
In: Accounting
E9.7 (LO 2) (Lower-of-Cost-or-Market) Wangerin Company follows the practice of pricing its inventory at the lower‐of‐cost‐or‐market, on an individual-item basis.
| Item No. |
Quantity |
Cost per Unit |
Cost to Replace |
Estimated Selling Price |
Cost of Completion and Disposal |
Normal Profit |
| 1320 |
1,200 |
$3.20 |
$3.00 |
$4.50 |
$0.35 |
$1.25 |
| 1333 |
900 |
2.70 |
2.30 |
3.50 |
0.50 |
0.50 |
| 1426 |
800 |
4.50 |
3.70 |
5.00 |
0.40 |
1.00 |
| 1437 |
1,000 |
3.60 |
3.10 |
3.20 |
0.25 |
0.90 |
| 1510 |
700 |
2.25 |
2.00 |
3.25 |
0.80 |
0.60 |
| 1522 |
500 |
3.00 |
2.70 |
3.80 |
0.40 |
0.50 |
| 1573 |
3,000 |
1.80 |
1.60 |
2.50 |
0.75 |
0.50 |
| 1626 |
1,000 |
4.70 |
5.20 |
6.00 |
0.50 |
1.00 |
Instructions
From the information above, determine the amount of Wangerin Company inventory.
In: Accounting
Assignment 4: generic strategies
The four strategies to choose from are:
1)Cost Leadership
2)Differentiation
3)Cost Focus
4)Differentiation Focus
pick an industry e.g. fast food, fast casual, retail, auto, watch, etc. Identify at least 2 firms that follow each of four generic strategies.
For each firm, explain why the target market is broad/narrow and explain the source of competitive advantage as low-cost or differentiation.
Also identify best cost providers (if any with exmaple and explanation).
.
In: Operations Management
Assignment 4: generic strategies
The four strategies to choose from are:
1)Cost Leadership
2)Differentiation
3)Cost Focus
4)Differentiation Focus
pick an industry e.g. fast food, fast casual, retail, auto, watch, etc. Identify at least 2 firms that follow each of four generic strategies.
For each firm, explain why the target market is broad/narrow and explain the source of competitive advantage as low-cost or differentiation.
Also identify best cost providers (if any with exmaple and explanation).
In: Operations Management