Consider McDonald’s for a moment and list an example of each of the following costs that would be incurred by a McDonald’s restaurant: (a) a fixed cost, (b) variable cost, and (c) mixed cost. Please be specific and explain why each is a good fit in that category. (Note: For the variable cost on your list, please identify the activity base (driver))
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Consider McDonald’s for a moment and list an example of each of the following costs that would be incurred by a McDonald’s restaurant: (a) a fixed cost, (b) variable cost, and (c) mixed cost. Please be specific and explain why each is a good fit in that category.
(Note: For the variable cost on your list, please identify the activity base (driver))
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- company You are a management accountant of EON and Brothers Ltd., a manufacturing that produces two products simultaneously in one of their production plants. You are asked to produce a management report on costing techniques. This company follows a traditional approach to costing and absorbs production overhead using machine hours. The company's policy is to add a 50% markup on the unit cost to obtain the selling price. The relevant information is given below: EON and Brothers Ltd. produces two similar products called Alfa and Beta. Total Overheads = £155,000 Machine Hours = 58980 hrs Product Alfa Beta Production Units 2,580 5,100 Material Cost per unit £31 £51 Labour Cost per unit £21 £17 Machine Hours per unit 11 16 After discussing with all the important people of the production plant you have allocated the overhead costs as mentioned below: % Overheads Set up Costs 30 Inspections 40 Materials Handling 30 Cost Pools are as mentioned below: Alfa Beta Total Setups 400 65 465…What are the Costs per unit of Alfa and Beta under traditional and ABC costing systems? What would be the prices of Alpha and Beta traditional and ABC costing systems? Compare the costs and prices calculated in the two systems. Please write down the calculation process!thanks!!!The line that begins at the origin on a CVP graph represents total expenses. total fixed expenses. total sales revenues. both the total expenses and the total sales revenues. Which of the following best describes the concept of a "constraint?" Expected future costs that differ among alternatives. None of the items in this list of answers. A benefit foregone by choosing one alternative course over another. The distribution of all products to be sold.
- 4) Design ABC system for EON and Brothers (discuss steps) 5) What are the Costs per unit of Alfa and Beta under traditional and ABC costing systems?What would be the prices of Alpha and Beta traditional and ABC costing systems? Comparethe costs and prices calculated in the two systems (Calculations should be shown in theappendix) and for analysis 6) Discuss your recommendation on the viability of ABC for EON and Brothers Ltd., given thefinancial director's concerns.I am attaching two pictures, one is the contribution margin analysis and the other is the break-even analysis. For the contribution margin analysis, select a price for each service. Determine the variable cost from the variable fixed (information provided below) for each service and calculate the contribution margin for each service based on your sales price and the variable cost for that service. For the break-even analysis, determine the fixed from the variable fixed (information provided below) designation is provided, calculate the break-even units (round up) for each service, calculate the break-even units (round up) for suggested target profile levels for each service. Variable fixed Information (use this to fill out the following information in the two pictures) GROOMING (based on 5 grooms per day) Shampoo - $1.04 Clippers - $1.37 Bowls - $0.72 Towels - $5.83 Scissors - $1.01 Total Variable costs - $9.97 Groomer - $2,080.00 Rent - $30.95 Loan - $20.00 Utilities and…A fast food restaurant manager plotted total costs on a graph where total costs are plotted on the vertical axis and activity level is plotted on the horizontal axis. If management makes a decision to more fully automate food preparation that will increase fixed costs, the impact on the graph for total costs will most likely be: A decrease in the vertical axis intercept A decrease in the slope of the total cost line An increase in the vertical axis intercept An increase in the slope of the total cost line
- Why should a standard cost that is higher than an actual cost be of concern to management? Utilize a theoretical example from any restaurant to defend your response.Describe a business you are familiar with or might start yourself. Name 2 fixed and 2 variable costs. Optional: How could you replace a variable cost with a fixed cost to increase operating leverage?Please choose a company which produces more than one product. Take at least two of these products and discuss the different costs between these two products which may make one more profitable than the other.
- For questions 5-6, please classify the costs of each of the following as variable, fixed, mixed, or step. Sales volume is the cost driver. 5. Real estate taxes A) Variable В) Fixed C) Mixed D) Step Your answer is Explain your answer: 6. Electric power in a factory A) Variable B) Fixed с) Mixed D) Step Your answer is Explain your answer:Felipes Restaurant and Pie Shop needs help defining the costs for his business. He also wants to know which costs are relevant or irrelevant to his decision. Identify each cost as relevant or irrelevant. Then identify the type of cost (sunk. fixed, variable, or opportunity).How important is it to trace costs appropriately? Explain. As you are beginning to think about the importance of tracing costs appropriately, please consider the differences between variable costing and absorption costing. What implications does each of these have on such things as financial reporting of profit and pricing your products for the marketplace?