Methods to create accurate estimates
What are some methods to create accurate estimates? What are the benefits and risks of each method? What considerations must be recognized when creating initial estimates? Why are those considerations important?
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Illustrate the difference between an approximate estimate and a definitive estimate? When would you use one instead of the other? How does the culture of an organization affect the quality of the estimates? Explain why?
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They pay 60% with cash the month it is incurred. They pay for the rest on credit of which they pay 75% the month after it is incurred and 25% two months after. They also have depreciation in their operational expenses of $10,000 a month, and have
McBean Inc. reported net income of $300,000 for the year ended December 31, 2009. McBean Inc. had 50,000 shares of common stock outstanding throughout 2009. On January 1, 2009, McBean Inc. issued 400, five-year, $1,000 face value bonds at par. The
Write down some methods to make accurate estimates? Write down the benefits and risks of each method? What considerations should be recognized when creating initial estimates? Why are such considerations important?
Star Services, Inc., a manufacturer of telescopes, began operations on October 1 of the current year. Throughout this time, the company produced 50,000 units and sold 35,000 units at the sales price of $500 per unit. Cost information for thi
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Conan Company has total fixed costs of $112,000. Its product sells for $35 per unit and variable costs amount to $25 per unit. Next year Conan Company wishes to earn a pretax income that equals 10% of fixed costs.
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