Identify several types of manufacturing companies for which process costing would be an appropriate product-costing system. What characteristics do the products of these companies have that would make process costing a good choice? How is process costing similar and different in a second or later processing department?
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Identify several types of manufacturing companies for which process costing would be an appropriate product-costing system. What characteristics do the products of these companies have that would make process costing a good choice?
How is process costing similar and different in a second or later processing department?
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- If you are performing a break-even analysis for a business and their cost and revenue equations are dependent, explain what this means for the company's profit margins.If you graph a revenue and cost function, explain how to determine in what regions there is profit.A manufacturer produces two models of television stands. The table at the left shows the times (in hours) required for assembling, staining, and packaging the two models. The total times available for assembling, staining, and packaging are 3750 hours, 8950 hours, and 2650 hours, respectively. The profits per unit are $30 for model I and $40 for model II. What is the optimal inventory level for each model? What is the optimal profit?
- In predicting a person’s income, identify two possible quantitative predictor variables and two possible qualitative predictor variables.Sleep Late, a large hotel chain, has been using activity-based costing to determine the cost of a night’s stay at their hotels. One of the activities, “Inspection,” occurs after a customer has checked out of a hotel room. Sleep Late inspects every 10th room and has been using “number of rooms inspected” as the cost driver for inspection costs. A significant component of inspection costs is the cost of the supplies used in each inspection Mary Adams, the chief inspector, is wondering whether inspection labor-hours might be a better cost driver for inspection costs. Mary gathers information for weekly inspection costs, rooms inspected, and inspection labor-hours as follows: Q.Plot the data and regression line for rooms inspected and inspection costs. Plot the data and regression line for inspection labor-hours and inspection costs. Which cost driver of inspection costs would you choose? Explain.Accounting procedures allow a business to evaluate its inventory costs based on two methods: LIFO (last in first out) or FIFO (first in first out). A manufacturer evaluated its finished goods inventory (in $000s) for five products with the LIFO and FIFO methods. To analyze the difference, they computed FIFO - LIFO for each product. We would like to determine if the LIFO method results in a lower cost of inventory than the FIFO method. The company wishes to test this hypothesis at the 0.05 level of significance. Product 1 2 4 5 FIFO (F) LIFO (L) 228 220 122 101 105 117 215 205 250 246 What is the value of the test statistic? Multiple Choice +0.70 13.002 +2.358 +1159
- Accounting procedures allow a business to evaluate its inventory costs based on two methods: LIFO (last in first out) or FIFO (first in first out). A manufacturer evaluated its finished goods inventory (in $000s) for five products with the LIFO and FIIFO methods. To analyze the difference, they computed FIFO - LIFO for each product. We would like to determine if the LIFO method results in a lower cost of inventory than the FIFO method. The company wishes to test this hypothesis at the 0.05 level of significance. Product FIFO (F) LIFO (L) 1 225 221 121 103 3 100 117 215 253 4 204 5 248 What is the value of the test statistic? Multiple Cholce +1.916 +0.717 +2.560 +0.25Accounting procedures allow a business to evaluate its inventory costs based on two methods: LIFO (last in first out) or FIFO (first in first out). A manufacturer evaluated its finished goods inventory (in $000s) for five products with the LIFO and FIFO methods. To analyze the difference, they computed FIFO minus LIFO for each product. We would like to determine if the LIFO method results in a lower cost of inventory than the FIFO method. The company wishes to test this hypothesis at the 0.05 level of significance. Product FIFO (F) LIFO (L) 1 229 220 2 122 102 3 103 114 4 214 203 5 252 247 What is the value of the test statistic? Multiple Choice +1.338 ±3.181 +0.87 +2.537Myrtle Air Express decided to offer direct servide from Cleveland to Myrtle Beach. Management must decide between a full-price service using the company's new fleet of jet aircraft and a discount service using smaller-capacity commuter planes. It is clear that the best choice depends on the market reaction to the service Myrtle Air offers. Management developed estimates of the contribution to profit for each type of service based on three possible levels of demand for service to Myrtle Beach: strong, medium and weak. The following table shows the estimated quarterly profits (in thousands of dollars): Demand for Service Service Strong Medium Weak Full Price 950 600 -400 Discount 750 450 300 Probability 0.4 0.3 0.3 Suppose that management of Myrtle Air Express has developed the following utility function: U(950) = 100, U(750) = 89, U(600) = 72, U(450) = 58, U(300) = 48, and U(-400) = 0. Use the expected utility approach to determine the optimal decision. What is the…
- Briefly explain how the organization forecast sales for its products.a. Using historical sales data, choose a quantitative technique to forecast sales for thatorganisation for the next sales period. Comment on the appropriateness of thetechnique used.b. Describe three strategies that the organization uses to compete and comment on theappropriateness of these strategiesAccounting procedures allow a business to evaluate its inventory costs based on two methods: LIFO (last in first out) or FIFO (first in first out). A manufacturer evaluated its finished goods inventory (in $000s) for five products with the LIFO and FIFO methods. To analyze the difference, they computed FIFO-LIFO for each product. We would like to determine if the LIFO method results in a lower cost of inventory than the FIFO method. The company wishes to test this hypothesis at the 0.05 level of significance. Product 1 2 3 4 5 FIFO (F) 225 123 101 212 253 LIFO (L) 216 105 116 202 250 What is the value of the test statistic?Distinguish between the rationing function and the allocation function of price system?