• Q : Identify the management accounting information needs....
    Accounting Basics :

    If the pilot store that Julie isoperating is successful, then the parent company will likely try toopen many similar outlets near schools and universities throughoutthe metropolitan area.

  • Q : Explain how making more products that can be sold....
    Accounting Basics :

    Explain how making more products that can be sold ina period can increase a company's operating income. Shouldthis tactic be used to increase operating income? Would this happenin service companies

  • Q : What would explain the drastic change in cost structure....
    Accounting Basics :

    Over the past few decades, the cost structure ofmanufacturing companies has shifted. In the early 1900s, directmaterial costs were substantial while fixed costs represented asmall fraction of total

  • Q : How widely known were the improprieties within the company....
    Accounting Basics :

    The article states that managers faced aggressive revenue targets and reports testimony about "a dozen or moreaccounting tricks that various employees, at various levels ofmanagement, had deployed t

  • Q : How should the management accountant determine....
    Accounting Basics :

    Comment on this production manager's assessment of his limited use for financial and cost summaries of performance. For what purposes, if any, are cost and financial information help fulto operating

  • Q : Should you have approached him differently....
    Accounting Basics :

    Stunned by his confession, you tell himthat he has to resubmit an accurate reimbursement claim. Andrewresponds; "Look, I don't feel that I get paid enough inthis lousy organization, and this is my w

  • Q : Why should management accountants create extra work....
    Accounting Basics :

    Why should management accountants create extra work for theorganization by deliberately adopting policies for internal costingthat violate the generally accepted accounting principles that mustbe us

  • Q : Whatwill be the new value of p0....
    Accounting Basics :

    Friedman Steel Company will pay a dividend of $1.50 per sharein the next 12 months (D1). The required rate of return (Ke) is 10percent and the constant growth rate is 5 percent.

  • Q : Explain what the quantity factors and price factors....
    Accounting Basics :

    Explain what the quantity factors, price factors and unit cost factors mean? What are these used for? As any value in determining these factors.

  • Q : How will the price of the preferred stock be affected....
    Accounting Basics :

    North Pole Cruise Lines issued preferredstock many years ago. It carries a fixed dividend of $6 per share. With the passageof time, yields have soared from the original 6 percent to 14 percent (yiel

  • Q : What is the contribution margin ratio for banner company....
    Accounting Basics :

    Banner Company budgets sales of $480,000, fixed costs of$90,000 and variable costs of $360,000. What is thecontribution margin ratio for Banner Company?

  • Q : Describe the main idea behind variable costing....
    Accounting Basics :

    Describe the main idea behind Variable Costing? Is this type of costing more prefereable when compared to Throupoint and Absorption costing?

  • Q : What if a company has a high level of inventory....
    Accounting Basics :

    Inventory is an asset before it is used and does not have a directimpact to income. What if a company has a high level of inventory due to decreasing demand, could that have an impact to income?

  • Q : How is material used determined....
    Accounting Basics :

    Increasing or decreasing inventory does have an affect on incomebecause it used to calculate either cost of good manufactured (rawmaterials) which goes into calculating costs of good sold(inventory)

  • Q : What single payment could be made at the beginning....
    Accounting Basics :

    You need $28,974 at the end of 10 years, andyour only investment outlet is an 8 percent long-term certificate ofdeposit (compounded annually).

  • Q : Discuss the efficiency of the manufacturing process....
    Accounting Basics :

    A few years ago, the Chariot Manufacturing Companyinstalled automated robots worth billions of dollars in its auto assembly lines, believing that the robots would improve profitability and increase

  • Q : Will the raw material inventory affect this years income....
    Accounting Basics :

    At a recent company meeting, an employee remarks: "We were working so hard to get the income for our bonus this year. Then they got all that raw material inventory in-and even paid for it.

  • Q : Discuss the barrels of product during the year....
    Accounting Basics :

    In addition ABC company sold 136 million barrels of productduring the year. Assume that variable costs were 70% ofthe cost of goods sold and 45% of margeting and distrubution expenses.

  • Q : What would be the total maintenance and repair cost....
    Accounting Basics :

    At an activity level of 8,700 machine-hours in a month,Braughton Corporation's total variable maintenance and repair costis $548,100 and its total fixed maintenance and repair cost is$318,100.

  • Q : What amount will georgia report for accounts receivable....
    Accounting Basics :

    If estimated uncollectibles as apercentage of sales or receivables were to increase over severalyears, what information might this provide to decision makers?

  • Q : What dollars has the cash management system freed up....
    Accounting Basics :

    If city Farm has $5 million per day in collections and $3million per day in disbursements, how many dollars has the cash management system freed up?

  • Q : Why the income statement showed a gain....
    Accounting Basics :

    ABC corporatoin accumulateddepreciation increased by $11,000, while patents decreased by$3,200 between consecutive balance sheet dates. There were nopurchases or sales of depreciable or intangible a

  • Q : Who cares about the income statement....
    Accounting Basics :

    Your pal comments, "I just ignore the incomestatement when I'm making an investment decision. All I careabout is the cash, so that the company can pay me dividends.

  • Q : Does it matter whether it was paid for this year....
    Accounting Basics :

    At a recent company meeting, an employee remarks:"We were working so hard to get the income for our bonus thisyear. Then they got all that raw material inventory in-andeven paid for it. We don't nee

  • Q : What is mcdonalds contribution margin....
    Accounting Basics :

    How much would income from operating increase if same-storessales increased by $450 million for the coming year, with no chargein the contribution margin ratio or fixed costs?

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