Hello, I need a three four page document on the below topic which is to be presented. Can you please help in providing a documenter for the same. Consider the following companies from three different industries: Iron & Steel industry: Tata Steel Ltd. FMCG industry: Hindustan Unilever Ltd. (HUL) Software industry: Infosys Ltd. Collect the annual reports and financial statements of these three companies and analyse the cost structure of these companies for the financial year 2016-17. Also comment on the differences you get in the cost structure of these companies. Pointers: If you see the Profit & Loss accounts of these companies, you will find different elements of costs which will vary wide among the companies. For instance, in the case of Tat Steel ltd. (steel sector) you may find that the material cost is the major component of the total costs. On the other hand for HUL (FMCG sector), both material cost as well as selling & advertisement may be of significant portion of the total cost. For Infosys (IT sector), material cost may not be the major one. Also for HUL and Infosys, finance cost or interest on debt capital will be very less unlike that of Tata steel, where this may be a significant one. As these sectors (FMCG and IT) use less amount of debt capital compared to Steel sector. In this way, you may find out the proportion of each element of costs out of the total costs among different companies belonging to different industries. This will help to understand the differences in cost structure across industries. For this you need to look at the details of the notes to accounts of each and every cost element in the financial statements.
In: Finance
Peach Bags (PB) is a designer of high-quality backpacks and purses. Each design is made in small batches. Each spring, PB comes out with new designs for the backpack and for the purse. The company uses these designs for a year and then moves on to the next trend. The bags are all made on the same fabrication equipment that is expected to operate at capacity. The equipment must be switched over to a new design and set up to prepare for the production of each new batch of products. When completed, each batch of products is immediately shipped to a wholesaler. Shipping costs vary with the number of shipments. Budgeted information for the year is as follows:
|
Peach Bags |
|||
|
Budget for Costs and Activities |
|||
|
For the Year Ended February 28, 2014 |
|||
|
Direct materials—purses |
$323,200 |
||
|
Direct materials—backpacks |
456,000 |
||
|
Direct manufacturing labor—purses |
102,400 |
||
|
Direct manufacturing labor—backpacks |
99,000 |
||
|
Setup |
17,000 |
||
|
Shipping |
73,000 |
||
|
Design |
166,000 |
||
|
Plant utilities and administration |
212,000 |
||
|
Total |
$1,448,600 |
||
|
Other budget information follows: |
|||
|
Backpacks |
Purses |
Total |
|
|
Number of bags |
6,000 |
3,200 |
9,200 |
|
Hours of production |
1,500 |
2,500 |
4,000 |
|
Number of batches |
120 |
80 |
200 |
|
Number of designs |
2 |
2 |
4 |
1.
Identify the cost hierarchy level for each cost category.
2.
Identify the most appropriate cost driver for each cost category. Explain briefly your choice of cost driver.
3.
Calculate the budgeted cost per unit of cost driver for each cost category.
4.
Calculate the budgeted total costs and cost per unit for each product line.
5.
Explain how you could use the information in requirement 4 to reduce costs.
In: Accounting
Kingsport Containers Company makes a single product that is subject to wide seasonal variations in demand. The company uses a job-order costing system and computes plantwide predetermined overhead rates on a quarterly basis using the number of units to be produced as the allocation base. Its estimated costs, by quarter, for the coming year are given below: Quarter First Second Third Fourth Direct materials $ 240,000 $ 120,000 $ 60,000 $ 180,000 Direct labor 120,000 60,000 30,000 90,000 Manufacturing overhead 240,000 216,000 204,000 ? Total manufacturing costs (a) $ 600,000 $ 396,000 $ 294,000 $ ? Number of units to be produced (b) 120,000 60,000 30,000 90,000 Estimated unit product cost (a) ÷ (b) $ 5.00 $ 6.60 $ 9.80 $ ? Management finds the variation in quarterly unit product costs to be confusing and difficult to work with. It has been suggested that the problem lies with manufacturing overhead because it is the largest element of total manufacturing cost. Accordingly, you have been asked to find a more appropriate way of assigning manufacturing overhead cost to units of product. Required: 1. Assuming the estimated variable manufacturing overhead cost per unit is $0.40, what must be the estimated total fixed manufacturing overhead cost per quarter? 2. Assuming the assumptions about cost behavior from the first three quarters hold constant, what is the estimated unit product cost for the fourth quarter? 3. What is causing the estimated unit product cost to fluctuate from one quarter to the next? 4. Assuming the company computes one predetermined overhead rate for the year rather than computing quarterly overhead rates, calculate the unit product cost for all units produced during the year.
In: Accounting
37. P=MC for firms only in:
a. Monopoly markets.
b. Oligopoly markets.
c. Perfectly competitive markets.
d. Monopolistically competitive markets.
41. If a firm produces no output, its only cost will be:
a. It’s variable cost.
b. It’s fixed cost.
c. It’s marginal cost.
d. None of the above.
44. A distinguishing characteristic of monopolistic competition is:
a. Price discrimination.
b. Product differentiation.
c. High barriers to entry.
d. Profits in both the short and long-run.
48. In monopolistic competition, a firm’s demand curve is tangent to the long-run average cost curve because:
a. Barriers to entry are very high.
b. Entry eliminates economic profit, and exit eliminates losses.
c. Advertising is ineffective in differentiating a product.
d. All of the above.
49. In the long-run firms in monopolistic competition produce at:
a. The lowest point on their average total cost curve.
b. A point to the left of the lowest point on their average total cost curve.
c. A point to the right of the lowest point on their average total cost curve.
d. Where P=MC.
51. A similarity of an oligopoly and a monopoly is:
a. Zero profits in the long run.
b. The number of firms in the industry.
c. The existence of market power.
d. All of the above.
52. The kinked demand curve reflects the idea that:
a. Rivals match price increases.
b. Rivals do not match price decreases.
c. Prices may remain rigid even in the face of cost increases.
d. All of the above.
53. In an oligopoly:
a. The barriers to entry are high.
b. Firms are independent.
c. Resources are allocated most efficiently.
d. Price competition is common.
In: Economics
Kingsport Containers Company makes a single product that is subject to wide seasonal variations in demand. The company uses a job-order costing system and computes plantwide predetermined overhead rates on a quarterly basis using the number of units to be produced as the allocation base. Its estimated costs, by quarter, for the coming year are given below:
|
Quarter |
|||||||||||
|
|
First |
Second |
Third |
Fourth |
|||||||
|
Direct materials |
$ |
280,000 |
$ |
140,000 |
$ |
70,000 |
$ |
210,000 |
|||
|
Direct labor |
120,000 |
60,000 |
30,000 |
90,000 |
|||||||
|
Manufacturing overhead |
230,000 |
206,000 |
194,000 |
? |
|||||||
|
Total manufacturing costs (a) |
$ |
630,000 |
$ |
406,000 |
$ |
294,000 |
$ |
? |
|||
|
Number of units to be produced (b) |
80,000 |
40,000 |
20,000 |
60,000 |
|||||||
|
Estimated unit product cost (a) ÷ (b) |
$ |
7.88 |
$ |
10.15 |
$ |
14.70 |
$ |
? |
|||
Management finds the variation in quarterly unit product costs to be confusing and difficult to work with. It has been suggested that the problem lies with manufacturing overhead because it is the largest element of total manufacturing cost. Accordingly, you have been asked to find a more appropriate way of assigning manufacturing overhead cost to units of product.
Required:
1. Assuming the estimated variable manufacturing overhead cost per unit is $0.60, what must be the estimated total fixed manufacturing overhead cost per quarter?
2. Assuming the assumptions about cost behavior from the first three quarters hold constant, what is the estimated unit product cost for the fourth quarter?
3. What is causing the estimated unit product cost to fluctuate from one quarter to the next?
4. Assuming the company computes one predetermined overhead rate for the year rather than computing quarterly overhead rates, calculate the unit product cost for all units produced during the year.
In: Accounting
Payton Bags (PB) is a designer of high-quality backpacks and purses. Each design is made in small batches. Each spring, PB comes out with new designs for the backpack and for the purse. The company uses these designs for a year and then moves on to the next trend. The bags are all made on the same fabrication equipment that is expected to operate at capacity. The equipment must be switched over to a new design and set up to prepare for the production of each new batch of products. When completed, each batch of products is immediately shipped to a wholesaler. Shipping costs vary with the number of shipments. Budgeted information for the year is as follows:
|
Payton Bags |
|
|
Budget for Costs and Activities |
|
|
For the Year Ended February 28, 2014 |
|
|
Direct materials—purses |
$342,200 |
|---|---|
|
Direct materials—backpacks |
470,850 |
|
Direct manufacturing labor—purses |
87,000 |
|
Direct manufacturing labor—backpacks |
116,100 |
|
Setup |
90,675 |
|
Shipping |
71,370 |
|
Design |
165,000 |
|
Plant utilities and administration |
221,000 |
|
Total |
$1,564,195 |
Other budget information follows:
|
Backpacks |
Purses |
Total |
|
|---|---|---|---|
|
Number of bags |
6,450 |
2,900 |
9,350 |
|
Hours of production |
1,665 |
2,585 |
4,250 |
|
Number of batches |
115 |
80 |
195 |
|
Number of designs |
4 |
2 |
6 |
|
1. |
Identify the cost hierarchy level for each cost category. |
|
2. |
Identify the most appropriate cost driver for each cost category. Explain briefly your choice of cost driver. |
|
3. |
Calculate the budgeted cost per unit of cost driver for each cost category. |
|
4. |
Calculate the budgeted total costs and cost per unit for each product line. |
|
5. |
Explain how you could use the information in requirement 4 to reduce costs. |
In: Accounting
Kingsport Containers Company makes a single product that is subject to wide seasonal variations in demand. The company uses a job-order costing system and computes plantwide predetermined overhead rates on a quarterly basis using the number of units to be produced as the allocation base. Its estimated costs, by quarter, for the coming year are given below:
| Quarter | |||||||||||
| First | Second | Third | Fourth | ||||||||
| Direct materials | $ | 240,000 | $ | 120,000 | $ | 60,000 | $ | 180,000 | |||
| Direct labor | 80,000 | 40,000 | 20,000 | 60,000 | |||||||
| Manufacturing overhead | 230,000 | 206,000 | 194,000 | ? | |||||||
| Total manufacturing costs (a) | $ | 550,000 | $ | 366,000 | $ | 274,000 | $ | ? | |||
| Number of units to be produced (b) | 120,000 | 60,000 | 30,000 | 90,000 | |||||||
| Estimated unit product cost (a) ÷ (b) | $ | 4.58 | $ | 6.10 | $ | 9.13 | $ | ? | |||
Management finds the variation in quarterly unit product costs to be confusing. It has been suggested that the problem lies with manufacturing overhead because it is the largest element of total manufacturing cost. Accordingly, you have been asked to find a more appropriate way of assigning manufacturing overhead cost to units of product.
Required:
1. Assuming the estimated variable manufacturing overhead cost per unit is $0.40, what must be the estimated total fixed manufacturing overhead cost per quarter?
2. Assuming the assumptions about cost behavior from the first three quarters hold constant, what is the estimated unit product cost for the fourth quarter?
3. What is causing the estimated unit product cost to fluctuate from one quarter to the next?
4. Assuming the company computes one predetermined overhead rate for the year rather than computing quarterly overhead rates, calculate the unit product cost for all units produced during the year.
In: Accounting
Kingsport Containers Company makes a single product that is subject to wide seasonal variations in demand. The company uses a job-order costing system and computes plantwide predetermined overhead rates on a quarterly basis using the number of units to be produced as the allocation base. Its estimated costs, by quarter, for the coming year are given below:
| Quarter | |||||||||||
| First | Second | Third | Fourth | ||||||||
| Direct materials | $ | 320,000 | $ | 160,000 | $ | 80,000 | $ | 240,000 | |||
| Direct labor | 80,000 | 40,000 | 20,000 | 60,000 | |||||||
| Manufacturing overhead | 220,000 | 196,000 | 184,000 | ? | |||||||
| Total manufacturing costs (a) | $ | 620,000 | $ | 396,000 | $ | 284,000 | $ | ? | |||
| Number of units to be produced (b) | 160,000 | 80,000 | 40,000 | 120,000 | |||||||
| Estimated unit product cost (a) ÷ (b) | $ | 3.88 | $ | 4.95 | $ | 7.10 | $ | ? | |||
Management finds the variation in quarterly unit product costs to be confusing and difficult to work with. It has been suggested that the problem lies with manufacturing overhead because it is the largest element of total manufacturing cost. Accordingly, you have been asked to find a more appropriate way of assigning manufacturing overhead cost to units of product.
Required:
1. Assuming the estimated variable manufacturing overhead cost per unit is $0.30, what must be the estimated total fixed manufacturing overhead cost per quarter?
2. Assuming the assumptions about cost behavior from the first three quarters hold constant, what is the estimated unit product cost for the fourth quarter?
3. What is causing the estimated unit product cost to fluctuate from one quarter to the next?
4. Assuming the company computes one predetermined overhead rate for the year rather than computing quarterly overhead rates, calculate the unit product cost for all units produced during the year.
In: Accounting
Kingsport Containers Company makes a single product that is subject to wide seasonal variations in demand. The company uses a job-order costing system and computes plantwide predetermined overhead rates on a quarterly basis using the number of units to be produced as the allocation base. Its estimated costs, by quarter, for the coming year are given below:
| Quarter | |||||||||||
| First | Second | Third | Fourth | ||||||||
| Direct materials | $ | 320,000 | $ | 160,000 | $ | 80,000 | $ | 240,000 | |||
| Direct labor | 160,000 | 80,000 | 40,000 | 120,000 | |||||||
| Manufacturing overhead | 240,000 | 216,000 | 204,000 | ? | |||||||
| Total manufacturing costs (a) | $ | 720,000 | $ | 456,000 | $ | 324,000 | $ | ? | |||
| Number of units to be produced (b) | 120,000 | 60,000 | 30,000 | 90,000 | |||||||
| Estimated unit product cost (a) ÷ (b) | $ | 6.00 | $ | 7.60 | $ | 10.80 | $ | ? | |||
Management finds the variation in quarterly unit product costs to be confusing and difficult to work with. It has been suggested that the problem lies with manufacturing overhead because it is the largest element of total manufacturing cost. Accordingly, you have been asked to find a more appropriate way of assigning manufacturing overhead cost to units of product.
Required:
1. Assuming the estimated variable manufacturing overhead cost per unit is $0.40, what must be the estimated total fixed manufacturing overhead cost per quarter?
2. Assuming the assumptions about cost behavior from the first three quarters hold constant, what is the estimated unit product cost for the fourth quarter?
3. What is causing the estimated unit product cost to fluctuate from one quarter to the next?
4. Assuming the company computes one predetermined overhead rate for the year rather than computing quarterly overhead rates, calculate the unit product cost for all units produced during the year.
In: Accounting
Kingsport Containers Company makes a single product that is subject to wide seasonal variations in demand. The company uses a job-order costing system and computes plantwide predetermined overhead rates on a quarterly basis using the number of units to be produced as the allocation base. Its estimated costs, by quarter, for the coming year are given below:
| Quarter | |||||||||||
| First | Second | Third | Fourth | ||||||||
| Direct materials | $ | 320,000 | $ | 160,000 | $ | 80,000 | $ | 240,000 | |||
| Direct labor | 160,000 | 80,000 | 40,000 | 120,000 | |||||||
| Manufacturing overhead | 230,000 | 206,000 | 194,000 | ? | |||||||
| Total manufacturing costs (a) | $ | 710,000 | $ | 446,000 | $ | 314,000 | $ | ? | |||
| Number of units to be produced (b) | 120,000 | 60,000 | 30,000 | 90,000 | |||||||
| Estimated unit product cost (a) ÷ (b) | $ | 5.92 | $ | 7.43 | $ | 10.47 | $ | ? | |||
Management finds the variation in quarterly unit product costs to be confusing and difficult to work with. It has been suggested that the problem lies with manufacturing overhead because it is the largest element of total manufacturing cost. Accordingly, you have been asked to find a more appropriate way of assigning manufacturing overhead cost to units of product.
Required:
1. Assuming the estimated variable manufacturing overhead cost per unit is $0.40, what must be the estimated total fixed manufacturing overhead cost per quarter?
2. Assuming the assumptions about cost behavior from the first three quarters hold constant, what is the estimated unit product cost for the fourth quarter?
3. What is causing the estimated unit product cost to fluctuate from one quarter to the next?
4. Assuming the company computes one predetermined overhead rate for the year rather than computing quarterly overhead rates, calculate the unit product cost for all units produced during the year.
In: Accounting