The document discusses accounting practices for small businesses known as micro business accounting (MBA). It notes challenges small businesses face with record keeping like high costs, lack of knowledge, and time. It describes MBA as involving cash and credit transactions recorded in personal supplier and customer accounts, with double entry for cash receipts and payments. Non-recurring transactions like asset purchases and borrowing are also discussed. The need for proper accounting is outlined to determine profit, file taxes, and obtain loans. Methods for preparing a statement of affairs and statement of profit are provided. Key accounts to reference for income and expense items are listed. Finally, common ratios for analyzing MBA financial statements are identified.
This document discusses petty cash and the imprest system. It explains that petty cash books are used to record small transactions to avoid cluttering the main cash book. The imprest system allows a set amount of cash (the float) to be allocated for petty expenses, and is replenished after expenses are deducted from vouchers. The document also notes that some businesses use a bank cash book instead of a cash book to record non-cash transactions like cheques and transfers.
The teacher introduces herself to the parents of students entering the 3rd grade. She explains that her goal for the year is to help students become independent learners who make responsible choices. She attaches forms for parents to fill out along with the class schedule. The teacher emphasizes the importance of communication, providing a classroom blog for parents to stay updated on lessons and events. She welcomes parents to contact her with any questions or concerns.
This document compares cash accounting and accrual accounting. Cash accounting measures profit based on cash received from revenue and cash paid for expenses. Accrual accounting measures profit based on revenue earned and expenses incurred regardless of when cash is received or paid. Accrual accounting provides a more accurate measure of net profit as it accounts for transactions that occur across reporting periods. Examples are provided to illustrate the differences between cash and accrual accounting treatment of transactions like prepaid expenses, credit sales, and depreciation.
1. The document provides solutions to homework problems from a complex analysis class.
2. It shows the work to find harmonic conjugates and derivatives of complex functions, evaluate complex expressions, and take logarithms and exponents of complex numbers.
3. Key steps include using the Cauchy-Riemann equations to test if functions are analytic, decomposing complex expressions into polar form, and applying properties of logarithms and exponents to manipulate expressions.
Preparation of financial statements for a business which has not maintained proper records(Double Entry records)
Profit Equation method or Converting incomplete records to complete records.
Persamaan kuadrat umumnya memiliki bentuk aX^2 + bX + c = 0, dimana a, b, dan c adalah koefisien persamaan dan X adalah variabel. Dokumen menjelaskan cara menentukan nilai koefisien a, b, dan c dari suatu persamaan kuadrat, serta menghitung akar-akarnya dengan berbagai metode.
The document discusses accounting practices for small businesses known as micro business accounting (MBA). It notes challenges small businesses face with record keeping like high costs, lack of knowledge, and time. It describes MBA as involving cash and credit transactions recorded in personal supplier and customer accounts, with double entry for cash receipts and payments. Non-recurring transactions like asset purchases and borrowing are also discussed. The need for proper accounting is outlined to determine profit, file taxes, and obtain loans. Methods for preparing a statement of affairs and statement of profit are provided. Key accounts to reference for income and expense items are listed. Finally, common ratios for analyzing MBA financial statements are identified.
This document discusses petty cash and the imprest system. It explains that petty cash books are used to record small transactions to avoid cluttering the main cash book. The imprest system allows a set amount of cash (the float) to be allocated for petty expenses, and is replenished after expenses are deducted from vouchers. The document also notes that some businesses use a bank cash book instead of a cash book to record non-cash transactions like cheques and transfers.
The teacher introduces herself to the parents of students entering the 3rd grade. She explains that her goal for the year is to help students become independent learners who make responsible choices. She attaches forms for parents to fill out along with the class schedule. The teacher emphasizes the importance of communication, providing a classroom blog for parents to stay updated on lessons and events. She welcomes parents to contact her with any questions or concerns.
This document compares cash accounting and accrual accounting. Cash accounting measures profit based on cash received from revenue and cash paid for expenses. Accrual accounting measures profit based on revenue earned and expenses incurred regardless of when cash is received or paid. Accrual accounting provides a more accurate measure of net profit as it accounts for transactions that occur across reporting periods. Examples are provided to illustrate the differences between cash and accrual accounting treatment of transactions like prepaid expenses, credit sales, and depreciation.
1. The document provides solutions to homework problems from a complex analysis class.
2. It shows the work to find harmonic conjugates and derivatives of complex functions, evaluate complex expressions, and take logarithms and exponents of complex numbers.
3. Key steps include using the Cauchy-Riemann equations to test if functions are analytic, decomposing complex expressions into polar form, and applying properties of logarithms and exponents to manipulate expressions.
Preparation of financial statements for a business which has not maintained proper records(Double Entry records)
Profit Equation method or Converting incomplete records to complete records.
Persamaan kuadrat umumnya memiliki bentuk aX^2 + bX + c = 0, dimana a, b, dan c adalah koefisien persamaan dan X adalah variabel. Dokumen menjelaskan cara menentukan nilai koefisien a, b, dan c dari suatu persamaan kuadrat, serta menghitung akar-akarnya dengan berbagai metode.
The document discusses cost behavior patterns and analysis. It defines variable and fixed costs, and how their total and per unit costs change with activity levels. Mixed costs that have both fixed and variable components are also examined. Methods for analyzing costs are presented, including account analysis, engineering estimates, high-low analysis, scattergraph analysis, and least squares regression. The contribution format income statement is introduced as a tool that emphasizes cost behavior for management decision making.
Operating income = $8,000
Oxco’s contribution margin ratio is 40
percent. If sales are $100,000 and break-
even sales are $80,000, what is operating
income?
What is our Margin of Safety?
Oxco’s contribution margin ratio is 40
percent. If sales are $100,000 and break-
even sales are $80,000, what is operating
income?
Margin of safety = Actual sales - Break-even sales
= $100,000 - $80,000 = $20,000
Operating Margin Contribution
Income of safety margin ratio
= $20,000 × .40
= $8,000
Therefore, the operating income is $8,000.
This document discusses cost behavior patterns and cost analysis techniques. It defines variable costs, fixed costs, and mixed costs. Variable costs change proportionally with activity levels while fixed costs remain constant. Mixed costs have both fixed and variable components. The document describes several methods to analyze mixed costs, including the high-low method, scattergraph method, and least-squares regression. It aims to classify costs and estimate the fixed and variable portions of mixed costs through statistical analysis.
The document discusses different types of cost behavior including variable costs, fixed costs, and mixed costs. It provides examples of variable costs, fixed costs, and mixed costs for different types of organizations. Methods for analyzing mixed costs are presented, including the high-low method, scattergraph method, and least-squares regression method. The trends toward more fixed costs in organizations are also discussed.
This document discusses three methods for assigning overhead costs in manufacturing: the plantwide overhead rate method, departmental overhead rate method, and activity-based costing. It provides examples to illustrate how overhead is allocated using each method. The plantwide rate method uses a single overhead rate based on direct labor hours. The departmental method uses multiple rates based on departments. Activity-based costing identifies activities causing overhead and assigns costs based on activity drivers. The document outlines the four steps to implement activity-based costing.
This document discusses the differences between variable costing and absorption costing. Variable costing treats fixed manufacturing overhead costs as period expenses, while absorption costing allocates these costs to inventory. Absorption costing results in higher product costs and cost of goods sold, but lower net operating income compared to variable costing when production exceeds sales. The two methods will produce the same net income over multiple periods if production equals sales. Worked examples are provided to illustrate the calculations and reconcile the income statements under each method.
This document discusses cost behavior and different types of costs. It defines variable costs as changing proportionally with activity level and fixed costs as remaining constant despite changes in activity. Total and per-unit cost behaviors are examined for variable and fixed costs. Examples are provided to illustrate concepts. Methods for analyzing mixed costs are presented, including high-low, scattergraph, and least squares regression. The contribution format income statement is introduced as a way to organize costs by behavior.
Cost is the measurement of resources expended to obtain an object or complete an activity, usually expressed in monetary terms. There are different types of costs including product and period costs, variable and fixed costs, direct and indirect costs. Costs are also classified by their purpose such as differential costs and sunk costs. Manufacturing overhead costs from a shared facility can be allocated to products using different allocation bases like units produced, direct labor hours, or machine hours.
Cost-volume-profit (CVP) analysis is used to determine how changes in costs and sales volume affect a company's profits. It requires identifying all costs as either variable or fixed. CVP analysis explores the relationship between costs, revenues, and activity level to measure how costs and profits vary with sales volume. It is used for forecasting profits, budget planning, pricing decisions, determining sales mix, and more. The three elements of CVP are costs, volume, and profit. The break-even point is the sales volume where total revenue equals total costs. Relevant costs must differ between alternatives and affect the decision. Sunk costs do not affect decisions as they cannot be changed.
EGT267 Programming for Engineering Applications Spring 2020 .docxgidmanmary
EGT267 Programming for Engineering Applications Spring 2020
1
EGT 267 HW-1 (Due on February 20 in the class)
PROGRAMMIING ENGINEERING PROBLEMS
Problem 1: (Conversions) This problem involves converting a value in one unit to a value in
another unit. The program should prompt the user for a value in the specified units and then print
the converted value, along with the new units.
(1) Write a program to convert pounds to kilograms. (Recall that 1 kg = 2.205 lb). The pound
value you input/test is 159 lb.
Problem 2: (Areas and Volumes) This problem involves computing an area or a volume using
input from the user. The program should include a prompt to the user to enter the variables needed.
(1) Write a program to compute the area of a triangle with base b and height h. (Recall that
Aerea = ½* (b * h). ) The b and h values are 1.8 and 6.7 meters, respectively.
Problem 3: (Wind Tunnels) A wind tunnel is a test chamber built to generate different wind
speeds, or Mach numbers (which is the wind speed divided by the speed of sound). Accurate scale
models of aircraft can be mounted on force-measuring supports in the test chamber, and then
measurements of the forces on the model can be made at many different wind speeds and angles.
At the end of an extended wind tunnel test, many sets of data have been collected and can be used
to determine the coefficient of lift, drag, and other aerodynamic performance characteristics of the
new aircraft at its various operational speeds and positions. Data collected from a wind tunnel test
are listed in the following table:
EGT267 Programming for Engineering Applications Spring 2020
2
Assume that we would like to use linear interpolation to determine the coefficient of lift for
additional flight-path angles that are between -4 degrees and 21 degrees (Let’s estimate the
coefficient of lift @ 9 flight-path angle degrees). Write a program that allows the user to enter the
data for two points and a flight-path angle between those points. The program should then compute
the corresponding coefficient of lift.
Homework requirements:
please take two screenshots (one screen shot is for your code; the other is for the results), copy &
past them into your homework, and then submit a hard copy.
Sheet1MAC 7200, CASE STUDY WEEK 61) BREAK EVEN POINTA) IN UNITSSales Revenue16.00 Variable Materials3.00 Variable Labor1.00 Variable Overhead3.50 Variable Marketing Costs1.50Total Variable Costs:9.00CONTRIBUTION MARGIN PER UNIT7.0044%Fixed overhead4.00Fixed Marketing costs2.00Total Fixed Costs6.00BREAK EVEN POINT IN UNITS = FIXED COSTS / CONTRIBUTION MARGIN PER UNITEQUATION16N - 9N - 90,000 = 0Fixed Costs:90,000.007N = 90000CONTRIBUTION MARGIN PER UNIT7.00BREAK EVEN POINT IN UNITS12,857N=B) BREAK EVEN IN DOLLARSUNITS BREAKEVEN12,857SALES PRICES$ 16.00BREAK EVEN IN DOLLARS$ 205,712.00Combined2. SPECIAL ORDER ANALYSISremainder of ca ...
This document discusses flexible budgets and overhead analysis. It begins by explaining the advantages of flexible budgets over static budgets, noting that flexible budgets allow for "apples to apples" cost comparisons by showing costs that should have been incurred at the actual activity level. The document then provides an example of preparing a flexible budget for CheeseCo, calculating variable and fixed overhead costs across different activity levels. It concludes by discussing how to prepare a performance report using a flexible budget to analyze variances between budgeted and actual costs.
Cost, volume, profit Analysis. for decision makingHAFIDHISAIDI1
Part 1 discusses different cost behaviors such as fixed, variable, and semi-variable costs. It also covers topics like direct vs indirect costs, marginal costing, and operational gearing.
Part 2 is about cost-volume-profit (CVP) analysis. It discusses how CVP is used to determine the break-even point and analyze how costs and profits are affected by changes in sales volume. The assumptions of CVP analysis and formulas for calculating the break-even point in terms of units and sales volume are also presented.
Cost-volume-profit (CVP) analysis is a technique used to analyze the relationship between costs, volume, and profits. It uses linear equations to model how total costs and revenues change with production volume. CVP breaks down costs into fixed and variable components and calculates the break-even point, where total revenues equal total costs. It also determines the contribution margin of each unit and how many units must be sold to cover fixed costs. CVP analysis is useful for short-term decision making but assumes costs and prices remain constant, which limits its effectiveness for long-term planning.
Activity Analysis, Cost Behavior, and Cost Estimation .docxgalerussel59292
The document discusses various methods for estimating cost behavior, including the account classification method, visual-fit method, and high-low method. The account classification method involves classifying each cost item as variable, fixed, or semivariable based on an analysis of ledger accounts and source documents. The visual-fit method involves plotting historical cost and activity data on a scatter diagram and fitting a line to estimate the cost behavior pattern. It can help analyze mixed or semivariable costs. The document also provides examples of how to use the visual-fit method to estimate fixed costs from the data.
1. The document discusses different types of costs including variable costs, fixed costs, indirect costs, and mixed costs. It provides examples of calculating contribution margin and separating fixed and variable components of mixed costs.
2. Fixed costs remain constant regardless of the number of units produced, while variable costs fluctuate depending on the level of production. Mixed costs contain both fixed and variable elements.
3. The document includes examples of graphs that could be used to illustrate fixed costs over time, variable costs that increase with production volume, and scatter plots of mixed cost data. It also discusses outliers and the high-low estimation method.
This document provides an overview of master budgets and performance planning. It discusses the importance of budgeting and describes the master budget components and budget preparation process. The document also includes examples of budgets prepared for a company called Hockey Den, including sales, purchases, expense, cash receipts, and other budgets. The examples demonstrate how to prepare budgets for sales, expenses, cash flows, and other items based on estimated sales and inventory levels.
This document outlines the key concepts and objectives for a chapter on variable costing and performance reporting. It discusses the differences between absorption costing and variable costing, how each method determines product costs and reports income. Absorption costing allocates all production costs to products, while variable costing only includes costs that vary with production levels. The chapter will teach how to compute unit costs, prepare income statements, contribution margin reports, and convert between the two costing methods. It provides examples comparing income reporting when units produced equal and do not equal units sold.
The document discusses cost behavior patterns and analysis. It defines variable and fixed costs, and how their total and per unit costs change with activity levels. Mixed costs that have both fixed and variable components are also examined. Methods for analyzing costs are presented, including account analysis, engineering estimates, high-low analysis, scattergraph analysis, and least squares regression. The contribution format income statement is introduced as a tool that emphasizes cost behavior for management decision making.
Operating income = $8,000
Oxco’s contribution margin ratio is 40
percent. If sales are $100,000 and break-
even sales are $80,000, what is operating
income?
What is our Margin of Safety?
Oxco’s contribution margin ratio is 40
percent. If sales are $100,000 and break-
even sales are $80,000, what is operating
income?
Margin of safety = Actual sales - Break-even sales
= $100,000 - $80,000 = $20,000
Operating Margin Contribution
Income of safety margin ratio
= $20,000 × .40
= $8,000
Therefore, the operating income is $8,000.
This document discusses cost behavior patterns and cost analysis techniques. It defines variable costs, fixed costs, and mixed costs. Variable costs change proportionally with activity levels while fixed costs remain constant. Mixed costs have both fixed and variable components. The document describes several methods to analyze mixed costs, including the high-low method, scattergraph method, and least-squares regression. It aims to classify costs and estimate the fixed and variable portions of mixed costs through statistical analysis.
The document discusses different types of cost behavior including variable costs, fixed costs, and mixed costs. It provides examples of variable costs, fixed costs, and mixed costs for different types of organizations. Methods for analyzing mixed costs are presented, including the high-low method, scattergraph method, and least-squares regression method. The trends toward more fixed costs in organizations are also discussed.
This document discusses three methods for assigning overhead costs in manufacturing: the plantwide overhead rate method, departmental overhead rate method, and activity-based costing. It provides examples to illustrate how overhead is allocated using each method. The plantwide rate method uses a single overhead rate based on direct labor hours. The departmental method uses multiple rates based on departments. Activity-based costing identifies activities causing overhead and assigns costs based on activity drivers. The document outlines the four steps to implement activity-based costing.
This document discusses the differences between variable costing and absorption costing. Variable costing treats fixed manufacturing overhead costs as period expenses, while absorption costing allocates these costs to inventory. Absorption costing results in higher product costs and cost of goods sold, but lower net operating income compared to variable costing when production exceeds sales. The two methods will produce the same net income over multiple periods if production equals sales. Worked examples are provided to illustrate the calculations and reconcile the income statements under each method.
This document discusses cost behavior and different types of costs. It defines variable costs as changing proportionally with activity level and fixed costs as remaining constant despite changes in activity. Total and per-unit cost behaviors are examined for variable and fixed costs. Examples are provided to illustrate concepts. Methods for analyzing mixed costs are presented, including high-low, scattergraph, and least squares regression. The contribution format income statement is introduced as a way to organize costs by behavior.
Cost is the measurement of resources expended to obtain an object or complete an activity, usually expressed in monetary terms. There are different types of costs including product and period costs, variable and fixed costs, direct and indirect costs. Costs are also classified by their purpose such as differential costs and sunk costs. Manufacturing overhead costs from a shared facility can be allocated to products using different allocation bases like units produced, direct labor hours, or machine hours.
Cost-volume-profit (CVP) analysis is used to determine how changes in costs and sales volume affect a company's profits. It requires identifying all costs as either variable or fixed. CVP analysis explores the relationship between costs, revenues, and activity level to measure how costs and profits vary with sales volume. It is used for forecasting profits, budget planning, pricing decisions, determining sales mix, and more. The three elements of CVP are costs, volume, and profit. The break-even point is the sales volume where total revenue equals total costs. Relevant costs must differ between alternatives and affect the decision. Sunk costs do not affect decisions as they cannot be changed.
EGT267 Programming for Engineering Applications Spring 2020 .docxgidmanmary
EGT267 Programming for Engineering Applications Spring 2020
1
EGT 267 HW-1 (Due on February 20 in the class)
PROGRAMMIING ENGINEERING PROBLEMS
Problem 1: (Conversions) This problem involves converting a value in one unit to a value in
another unit. The program should prompt the user for a value in the specified units and then print
the converted value, along with the new units.
(1) Write a program to convert pounds to kilograms. (Recall that 1 kg = 2.205 lb). The pound
value you input/test is 159 lb.
Problem 2: (Areas and Volumes) This problem involves computing an area or a volume using
input from the user. The program should include a prompt to the user to enter the variables needed.
(1) Write a program to compute the area of a triangle with base b and height h. (Recall that
Aerea = ½* (b * h). ) The b and h values are 1.8 and 6.7 meters, respectively.
Problem 3: (Wind Tunnels) A wind tunnel is a test chamber built to generate different wind
speeds, or Mach numbers (which is the wind speed divided by the speed of sound). Accurate scale
models of aircraft can be mounted on force-measuring supports in the test chamber, and then
measurements of the forces on the model can be made at many different wind speeds and angles.
At the end of an extended wind tunnel test, many sets of data have been collected and can be used
to determine the coefficient of lift, drag, and other aerodynamic performance characteristics of the
new aircraft at its various operational speeds and positions. Data collected from a wind tunnel test
are listed in the following table:
EGT267 Programming for Engineering Applications Spring 2020
2
Assume that we would like to use linear interpolation to determine the coefficient of lift for
additional flight-path angles that are between -4 degrees and 21 degrees (Let’s estimate the
coefficient of lift @ 9 flight-path angle degrees). Write a program that allows the user to enter the
data for two points and a flight-path angle between those points. The program should then compute
the corresponding coefficient of lift.
Homework requirements:
please take two screenshots (one screen shot is for your code; the other is for the results), copy &
past them into your homework, and then submit a hard copy.
Sheet1MAC 7200, CASE STUDY WEEK 61) BREAK EVEN POINTA) IN UNITSSales Revenue16.00 Variable Materials3.00 Variable Labor1.00 Variable Overhead3.50 Variable Marketing Costs1.50Total Variable Costs:9.00CONTRIBUTION MARGIN PER UNIT7.0044%Fixed overhead4.00Fixed Marketing costs2.00Total Fixed Costs6.00BREAK EVEN POINT IN UNITS = FIXED COSTS / CONTRIBUTION MARGIN PER UNITEQUATION16N - 9N - 90,000 = 0Fixed Costs:90,000.007N = 90000CONTRIBUTION MARGIN PER UNIT7.00BREAK EVEN POINT IN UNITS12,857N=B) BREAK EVEN IN DOLLARSUNITS BREAKEVEN12,857SALES PRICES$ 16.00BREAK EVEN IN DOLLARS$ 205,712.00Combined2. SPECIAL ORDER ANALYSISremainder of ca ...
This document discusses flexible budgets and overhead analysis. It begins by explaining the advantages of flexible budgets over static budgets, noting that flexible budgets allow for "apples to apples" cost comparisons by showing costs that should have been incurred at the actual activity level. The document then provides an example of preparing a flexible budget for CheeseCo, calculating variable and fixed overhead costs across different activity levels. It concludes by discussing how to prepare a performance report using a flexible budget to analyze variances between budgeted and actual costs.
Cost, volume, profit Analysis. for decision makingHAFIDHISAIDI1
Part 1 discusses different cost behaviors such as fixed, variable, and semi-variable costs. It also covers topics like direct vs indirect costs, marginal costing, and operational gearing.
Part 2 is about cost-volume-profit (CVP) analysis. It discusses how CVP is used to determine the break-even point and analyze how costs and profits are affected by changes in sales volume. The assumptions of CVP analysis and formulas for calculating the break-even point in terms of units and sales volume are also presented.
Cost-volume-profit (CVP) analysis is a technique used to analyze the relationship between costs, volume, and profits. It uses linear equations to model how total costs and revenues change with production volume. CVP breaks down costs into fixed and variable components and calculates the break-even point, where total revenues equal total costs. It also determines the contribution margin of each unit and how many units must be sold to cover fixed costs. CVP analysis is useful for short-term decision making but assumes costs and prices remain constant, which limits its effectiveness for long-term planning.
Activity Analysis, Cost Behavior, and Cost Estimation .docxgalerussel59292
The document discusses various methods for estimating cost behavior, including the account classification method, visual-fit method, and high-low method. The account classification method involves classifying each cost item as variable, fixed, or semivariable based on an analysis of ledger accounts and source documents. The visual-fit method involves plotting historical cost and activity data on a scatter diagram and fitting a line to estimate the cost behavior pattern. It can help analyze mixed or semivariable costs. The document also provides examples of how to use the visual-fit method to estimate fixed costs from the data.
1. The document discusses different types of costs including variable costs, fixed costs, indirect costs, and mixed costs. It provides examples of calculating contribution margin and separating fixed and variable components of mixed costs.
2. Fixed costs remain constant regardless of the number of units produced, while variable costs fluctuate depending on the level of production. Mixed costs contain both fixed and variable elements.
3. The document includes examples of graphs that could be used to illustrate fixed costs over time, variable costs that increase with production volume, and scatter plots of mixed cost data. It also discusses outliers and the high-low estimation method.
This document provides an overview of master budgets and performance planning. It discusses the importance of budgeting and describes the master budget components and budget preparation process. The document also includes examples of budgets prepared for a company called Hockey Den, including sales, purchases, expense, cash receipts, and other budgets. The examples demonstrate how to prepare budgets for sales, expenses, cash flows, and other items based on estimated sales and inventory levels.
This document outlines the key concepts and objectives for a chapter on variable costing and performance reporting. It discusses the differences between absorption costing and variable costing, how each method determines product costs and reports income. Absorption costing allocates all production costs to products, while variable costing only includes costs that vary with production levels. The chapter will teach how to compute unit costs, prepare income statements, contribution margin reports, and convert between the two costing methods. It provides examples comparing income reporting when units produced equal and do not equal units sold.
This document provides an overview of process cost accounting, including key concepts and steps. It defines process operations as those used for mass production of small, identical items. Equivalent units are used to calculate the total production when units are in different stages of completion. The four steps in accounting for production are: 1) determining physical flow, 2) computing equivalent units, 3) computing cost per equivalent unit, and 4) assigning and reconciling costs. A process cost summary helps managers evaluate costs and performance across periods.
This document provides an overview of key concepts in managerial accounting. It discusses the differences between managerial and financial accounting, including the purpose and users of each. It also defines important cost classification concepts like behavior, traceability, controllability, and relevance. Additionally, it covers the lean business model and just-in-time manufacturing. The document outlines how costs are treated as product or period costs and how this impacts financial statements for manufacturers versus merchandisers. It also explains the flow of manufacturing costs and differences in balance sheet presentation between the two types of companies.
This document provides an overview of key concepts and procedures related to job order costing. It defines job order costing and the types of businesses that use it. It describes important documents like the job cost sheet, materials requisition, and time ticket that are used to accumulate and assign direct material, direct labor, and overhead costs to jobs. It explains how a predetermined overhead rate is used to apply overhead costs. It also provides examples of how costs flow through the job order costing process and are recorded on documents and accounts.
The document is an excerpt from an accounting textbook that discusses several key topics:
- Accounting identifies, records, and communicates financial information to help users make informed decisions.
- Accounting has three main activities: identifying business transactions, recording them, and communicating the results.
- Accounting information is used by both external and internal users for decision making.
- There are many career opportunities in accounting fields like financial, managerial, taxation, and related areas.
This document contains copyright information for Pearson Education and discusses emerging issues in management accounting, including figures on a balanced scorecard, product life cycle, marginal cost and throughput accounting systems, and a production company's value chain. The document provides copyright information for Pearson Education and references several management accounting concepts across 5 figures.
This document discusses capital investment appraisal methods and includes figures on capital investment appraisal methods, the impact of inflation, and sources of finance. It is from a chapter in an accounting textbook for non-accounting students on management accounting and capital investment.
This document discusses decision making and management accounting. It contains copyright information for Pearson Education and is from their 10th edition textbook on accounting for non-accounting students. The document references three figures related to the nature of decision making, cost classification, and types of decisions.
This document contains copyright information for Pearson Education and describes Chapter 16 of the textbook "Accounting for Non-Accounting Students, Tenth Edition". The chapter covers standard costing and includes figures explaining performance measures, standard cost variances for direct material, direct labor, variable overhead, fixed overhead, and sales profit.
This document discusses budgeting and budgetary control. It includes 5 figures related to budgeting features, procedures, functional budgets, flexing budgets, and behavioral elements. The document is from Chapter 15 of the 10th edition of the textbook "Accounting for Non-Accounting Students" and discusses management accounting concepts.
The document discusses indirect costs and absorption costing systems in management accounting. It includes figures showing how costs flow in an absorption costing system, how reciprocal costs work between cost centers, and how predetermined overhead rates can lead to under- or over-recovery of overhead costs.
This document discusses direct costs and includes three figures related to direct costing methods. Figure 13.1 shows the elements of cost, including direct materials, direct labor, and other direct costs. Figure 13.2 illustrates different direct material costing methods. Figure 13.3 provides an example of a stores ledger account for tracking direct material costs.
This document discusses management accounting and its differences from financial accounting. It covers management accounting's development over time and its main functions, which include planning, decision making, performance evaluation, and control. Figures are included on the differences between management and financial accounting as well as the development and main functions of management accounting.
This document discusses interpretation of accounts and financial reporting. It mentions Chapter 10 on interpretation of accounts as part of financial reporting for non-accounting students. The document also references Figure 10.1 on interpreting accounts using main analytical techniques.
This document discusses the structure and components of annual accounts, including figures showing the structure of annual accounts, an example group company structure, and an example independent auditors' report. It covers accounting topics related to financial reporting for non-accounting students from a textbook on the subject.
This document discusses the structure and contents of annual reports for companies. It includes copyright information and figures showing examples of highlights pages, chairman's statements, corporate governance reports, directors' reports, and extracts from directors' remuneration reports that are typically included in annual reports. The figures are cited as being from annual reports of easyJet plc and J. Smart & Co. (Contractors) PLC from 2018.
The document is from a textbook chapter about statements of cash flows. It includes copyright information and captions for 6 figures related to statements of cash flows, including examples of cash inflows and outflows in businesses, grouping cash flows by operating, investing and financing activities, a sample statement of cash flows, the relationship between financial statements, and the operating cash flow section of a statement of cash flows under an accounting standard.
This document discusses chapter 6 of an accounting textbook about other entity accounts. It focuses on part 2 of financial accounting and covers the relationship between main accounts as shown in figure 6.1. The copyright is held by Pearson Education for the years 2020, 2017 and 2010.
Financial Reporting Council Accounting ssuserce9546
This document summarizes the findings of a project examining accounting policy disclosures and the integration of related financial information in corporate reports. It gathered input from 16 companies and 19 institutional investors. Key findings include:
1) Investors want improved prominence and quality of disclosures for significant accounting policies, but views differ on how non-significant policies should be presented. 2) Attributes that may indicate a significant policy include material transactions, accounting choices, and policies requiring significant judgement or estimation. 3) Investors find current disclosures often include boilerplate text and lack company-specific details. They want disclosures to better explain policy applications, judgements, and impacts. 4) Opinions are mixed on note ordering and integrating financial statements with
IMPACT Silver is a pure silver zinc producer with over $260 million in revenue since 2008 and a large 100% owned 210km Mexico land package - 2024 catalysts includes new 14% grade zinc Plomosas mine and 20,000m of fully funded exploration drilling.
How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....Lacey Max
“After being the most listed dog breed in the United States for 31
years in a row, the Labrador Retriever has dropped to second place
in the American Kennel Club's annual survey of the country's most
popular canines. The French Bulldog is the new top dog in the
United States as of 2022. The stylish puppy has ascended the
rankings in rapid time despite having health concerns and limited
color choices.”
[To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
This presentation is a curated compilation of PowerPoint diagrams and templates designed to illustrate 20 different digital transformation frameworks and models. These frameworks are based on recent industry trends and best practices, ensuring that the content remains relevant and up-to-date.
Key highlights include Microsoft's Digital Transformation Framework, which focuses on driving innovation and efficiency, and McKinsey's Ten Guiding Principles, which provide strategic insights for successful digital transformation. Additionally, Forrester's framework emphasizes enhancing customer experiences and modernizing IT infrastructure, while IDC's MaturityScape helps assess and develop organizational digital maturity. MIT's framework explores cutting-edge strategies for achieving digital success.
These materials are perfect for enhancing your business or classroom presentations, offering visual aids to supplement your insights. Please note that while comprehensive, these slides are intended as supplementary resources and may not be complete for standalone instructional purposes.
Frameworks/Models included:
Microsoft’s Digital Transformation Framework
McKinsey’s Ten Guiding Principles of Digital Transformation
Forrester’s Digital Transformation Framework
IDC’s Digital Transformation MaturityScape
MIT’s Digital Transformation Framework
Gartner’s Digital Transformation Framework
Accenture’s Digital Strategy & Enterprise Frameworks
Deloitte’s Digital Industrial Transformation Framework
Capgemini’s Digital Transformation Framework
PwC’s Digital Transformation Framework
Cisco’s Digital Transformation Framework
Cognizant’s Digital Transformation Framework
DXC Technology’s Digital Transformation Framework
The BCG Strategy Palette
McKinsey’s Digital Transformation Framework
Digital Transformation Compass
Four Levels of Digital Maturity
Design Thinking Framework
Business Model Canvas
Customer Journey Map
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Brian Fitzsimmons on the Business Strategy and Content Flywheel of Barstool S...Neil Horowitz
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This PowerPoint compilation offers a comprehensive overview of 20 leading innovation management frameworks and methodologies, selected for their broad applicability across various industries and organizational contexts. These frameworks are valuable resources for a wide range of users, including business professionals, educators, and consultants.
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Zodiac Signs and Food Preferences_ What Your Sign Says About Your Tastemy Pandit
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Storytelling is an incredibly valuable tool to share data and information. To get the most impact from stories there are a number of key ingredients. These are based on science and human nature. Using these elements in a story you can deliver information impactfully, ensure action and drive change.
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This chapter shows how information on both costs and sales behavior is useful to managers in performing cost-volume-profit analysis. This analysis is an important part of successful management and sound business decisions.
Cost-volume-profit analysis will allow us to answer many questions and make important decisions involving the relationships between the volume of activity and costs and revenues. Before we can answer these questions using cost-volume-profit analysis, we must first study cost behavior.
We begin our study of cost behavior with fixed costs. Your basic land-line telephone has a monthly connect charge that remains constant regardless of the number of local calls that you might make. The monthly charge that is independent of call activity is a fixed cost..
Fixed costs per unit decline as activity increases. Dividing your monthly connect fee by more local calls reduces the cost per call by spreading the fixed amount over a higher number of calls. For example, if your monthly connect charge is twenty dollars and you make forty local calls in a month, your cost per local call is fifty cents. If you make one hundred local calls in a month, your cost per local call is twenty cents.
Total variable costs increase as activity increases. For most people, the total land-line long distance telephone bill is based on the number of minutes talked. So there’s a direct relationship between the number of minutes talked and your total bill. You can see a graph of that relationship in the lower left-hand part of your screen.
The cost per land-line long distance minute talked is normally constant. For example, for your service, it may be seven cents per minute. Talking more or less minutes will not change the per minute charge. So, on a per unit basis, variable costs remain unchanged. You can see the graph of that in the lower right-hand side of your screen.
We know that some of the language we use to differentiate fixed and variable costs in total and per unit can be very confusing when you first see it. So we’ve prepared this chart to help you identify how those costs behave.
Many costs are mixed in nature. That is, they have both a fixed and variable component. Think about your utility bill. You have a fixed monthly charge for the hook-up, and the variable portion of your bill depends upon the number of kilowatt hours you consume. The more the kilowatt hours you use, the higher your total utility bill will be.
Here we see a graph with utility cost on the vertical axis and kilowatt hours on the horizontal axis. Notice that the fixed monthly charge is the same at all levels of kilowatt usage, even the zero level of usage. The variable cost, which rises as more kilowatt hours are used, is added to the fixed cost to obtain the total mixed cost.
Another type of cost is referred to as a step cost. Step costs remain constant in total within a relatively narrow range of activity.
Total step costs increase as the level of activity increases beyond the initial narrow range of activity.
Not all costs are linear as shown in our previous examples. Here we see a curvilinear cost where the cost increases at an increasing rate as activity increases. Although curvilinear costs might exist on occasion, we will limit our analysis to linear relationships.
When presented with a mixed cost, we will separate the variable portion of the cost from the fixed portion of the cost. There are number of ways to do this. We will use a scatter diagram and the high-low method. A more sophisticated method, the least squares regression model, is also available, but we will not use it here.
A scatter diagram is a plot of cost data points on a graph. It is almost always helpful to plot cost data to be able to observe a visual picture of the relationship between cost and activity.
We begin by plotting the data points on our graph. The vertical axis is cost and the horizontal axis is activity.
Next, we draw a straight line through the data points with about an equal number of observations above and below the line. We continue the line past the observed points until it intersects with the vertical axis. The intercept in this case is our fixed cost, which is estimated to be ten thousand dollars.
Next, we determine the slope of the line. The slope of the line is the change in cost divided by the change in activity. The slope, the amount of change in cost for a one unit change in activity, is the variable cost per unit of activity.
Now let’s look at the high-low method. In our example, we’re going to look at a company’s relationship between cost and sales activity. During the year, the company reports sales and costs on a monthly basis. The month with the high level of sales shows sales of sixty seven thousand five hundred dollars and a corresponding cost of $29,000, and the month with the low level of sales show sales of $17,500 with a corresponding cost of $20,500. We will use this information to compute the variable cost per dollar of sales and the total fixed cost.
To determine the variable costs per unit of activity, we divide the change in cost by the change in activity, sales dollars in this example. In our case, the change in cost is $8,500 and the change in sales dollars is $50,000. The result is a variable cost rate of $0.17 per dollar of sales.
Next, we calculate the fixed cost by subtracting the total variable cost from the total cost. Since total cost and total variable cost are different amounts at different sales levels, we must choose either the high level or the low level for our computations.
Let’s choose the high level of activity, sixty seven thousand five hundred dollars in sales. Our first step is to calculate the total variable cost. At sixty seven thousand, five hundred dollars of sales, the total variable cost is point one seven per dollar of sales times sixty seven thousand, five hundred dollars, resulting in a total variable cost of eleven thousand, four hundred seventy five dollars. Next, we subtract eleven thousand, four hundred seventy-five dollars from the total cost at the high sales activity, to get the fixed cost, seventeen thousand, five hundred twenty-five dollars. You will obtain the same result if you select the low level of activity to compute fixed cost. Why don’t you compute fixed cost using the low level of sales activity before advancing to the next screen.
If we have a large number of observations, we’ll probably want to use computer software that can do regression analysis to determine cost volume relationships. Excel is a wonderful tool to carry out this computation.
Now that we have improved our knowledge of cost behavior, we are ready to apply the concepts to break-even analysis.
The break-even point is the level of sales where a company’s income is exactly equal to zero. At breakeven, total costs equal total revenues.
We’re going to concentrate exclusively on the contribution format income statement for our break-even analysis. Contribution margin is the amount remaining after we deduct all our variable expenses from sales revenue. Contribution margin can be expressed as a total amount, thirty thousand dollars in this example, or as an amount per unit, twenty dollars in this example. Each unit sold contributes twenty dollars toward covering fixed costs and providing for profits.
Part I
Contribution margin goes to cover our fixed costs. If all our fixed costs are covered, the company will operate in the profit area. If we fail to cover our fixed expenses, we will operate in the loss area. How much contribution must this company have to cover its fixed costs?
Part II
Fixed costs are twenty-four thousand dollars, so this company must generate twenty-four thousand dollars in contribution margin to cover its fixed costs. When contribution margin is exactly twenty-four thousand dollars, the company’s sales are at breakeven as its income will be zero.
Part I
This company is earning thirty-six thousand dollars income by selling two thousand units. The breakeven point will obviously occur at a sales volume less than two thousand units. If each unit contributes thirty dollars to covering fixed costs, can you compute the number of units that must be sold to cover the thirty thousand dollars in fixed costs and allow the company to breakeven?
Part II
We compute the break-even sales volume in units by dividing fixed costs by the unit contribution margin.
The results of the previous question can be expressed in equation form as seen on your screen. The break-even point in units is equal to fixed costs divided by the unit contribution margin.
The break-even point in sales dollars is equal to fixed costs divided by the contribution margin ratio. The contribution margin ratio is equal to the the unit contribution divided by the unit sales price. In the earlier example, the contribution margin ratio is thirty percent, resulting from dividing the thirty dollars unit contribution margin by the one hundred dollars unit sales price. You might want to refer back to the example to verify these numbers. The contribution margin ratio tells us that thirty cents of each sales dollar contributes to covering fixed costs and providing for income.
Let’s look at a couple of questions to see if we have these concepts mastered.
Here’s your first question.
The unit contribution margin is two dollars. The break-even point in units is equal to two hundred thousand dollars in fixed costs divided by the two dollars unit contribution margin.
Here’s your second question using the same information.
The contribution margin ratio is equal to the two dollars unit contribution divided by the five dollars unit sales price. The break-even point in sales dollars is equal to two hundred thousand dollars in fixed costs divided by the forty percent contribution margin ratio.
In this graph, we have plotted costs and revenues on the vertical axis and volume in units on the horizontal axis. The total cost line has a slope equal to the variable cost per unit and intercepts the vertical cost axis at the fixed cost.
When we add the sales line to our graph, we see the break even point where the sales line crosses the total cost line. The sales line begins at the origin and has a slope equal to the unit sales price. The sales line is steeper, that is increases at a faster rate than the total cost line, because because the unit sales price is greater than the unit variable cost.
There are some basic assumptions related to cost volume profit analysis that we are studying in this chapter. Some of these assumptions may be very restrictive. First, costs and revenues are assumed to be linear in nature, meaning that the selling price is assumed to be constant, the unit variable cost is assumed to be constant, and total fixed costs are assumed to be constant. Also, for manufacturing companies, inventories don’t increase or decrease during the period. All units produced, are sold.
We have seen what it takes for a company to breakeven, but we are not in business just to breakeven. Hopefully our business will earn an income. The break-even relationships that we have studied can be slightly altered to include income.
Income is equal to sales less total costs. Subtracting Rydell’s one hundred five thousand dollars variable cost and its twenty four thousand dollars fixed cost from one hundred fifty thousand dollars in sales results in a pretax income of twenty one thousand dollars Work through the numbers and see if you agree.
We can adjust the break-even formulas that we used earlier to incorporate income. Recall that we calculated breakeven by dividing fixed costs by contribution. When we incorporate income, contribution must cover the fixed cost as well as provide for income. To adapt the break-even formulas for income, we add the desired amount of income to the numerator.
Let’s see if we can use these formulas to answer a question.
Here’s your question.
The unit contribution margin is two dollars. ABC Company must sell one hundred twenty thousand units to first cover its two hundred thousand dollars in fixed costs and then provide for the forty thousand dollars target income.
Our previous formulas allowed us to solve for sales necessary to earn a target income used pretax income. Pretax income which has two components, net income (after tax) and the income taxes paid on the pretax income are shown on your screen.
If our target income is stated as after-tax net income, we can covert to pretax income by dividing the target after-tax net income by one minus the tax rate. Let’s work an example to see how income taxes affect cost-volume-profit problems.
Rydell’s target after tax net income is eighteen thousand dollars and the tax rate is twenty five percent. First, we need to convert the eighteen thousand dollars after-tax net income to before-tax income, and then multiply the before-tax income by the twenty five percent tax rate to find the income tax expense. Work through the computations before advancing to the next screen.
Divide the eighteen thousand dollars after-tax income by one minus the twenty five percent tax rate to convert to before-tax income. Now that we have the twenty four thousand dollars before-tax income, we can multiply it by twenty five percent to find that the income tax expense is six thousand dollars.
We will divide the fixed costs plus income by the contribution margin ratio to find the sales revenue necessary to earn after-tax income of eighteen thousand dollars. Be careful with the income that you add to fixed costs in the numerator of your computation. Is it after-tax income or pretax income? Refer to the previous discussion a couple of screens back if you have doubts.
The first step in working this problem is finding the contribution margin ratio.
Work through the computations before advancing to the next screen.
We subtract the seventy dollars unit variable cost from the one hundred dollars unit selling price to get the thirty dollars unit contribution. The thirty percent contribution margin ratio is equal to the thirty dollars unit contribution divided by the one hundred dollars unit selling price. Now we are ready to solve for the sales revenue needed to achieve an eighteen thousand dollars after-tax target net income.
Note that the numerator contains the eighteen thousand dollars after-tax target net income and the six thousand dollars income tax expense. The sum of these two amounts is twenty four thousand dollars, the before-tax target income.
We can also solve for the number of units that we must sell to achieve the after-tax target net income. The only difference is that we use the thirty dollars unit contribution margin in the denominator of our computation.
The margin of safety is the excess of expected sales (or actual sales) over the breakeven sales. It’s the amount by which expected sales can drop before the company begins to incur losses. We can also express the margin of safety as a percent of sales. The margin of safety percentage is equal to the margin of safety in dollars divided by the expected sales in dollars.
Here’s a question for you dealing with margin of safety. Calculate the margin of safety first and then calculate the margin of safety percentage.
The margin of safety is equal to actual sales of one hundred thousand dollars less the break-even sales of eighty thousand dollars. The margin of safety percentage is equal to the twenty thousand dollars margin of safety divided by actual sales of one hundred thousand dollars.
Our basic assumptions related to cost volume profit analysis such as the selling price is assumed to be constant, the unit variable cost is assumed to be constant, and total fixed costs are assumed to be constant, can be restrictive. Let’s look at an example where we change some of the costs and see what happens.
The new machine is more efficient, reducing unit variable costs by ten dollars, but the monthly fixed costs for the new, more efficient machine are six thousand dollars higher. Will the break-even point change?
We use our same formula to determine the break-even point, but with the dollar amounts for the new machine. The revised level of fixed costs for the new machine is thirty thousand dollars. The revised unit contribution margin is the one hundred dollars unit selling price minus sixty dollars variable cost for the new machine. The revised contribution margin ratio is the forty dollars revised unit contribution margin divided by the one hundred dollar unit selling price.
To this point, we’ve assumed that a company sells a single product. We can extend the cost-volume-profit relationships to cover multiproduct companies. Instead of unit contribution margin for one unit, we will have a composite unit contribution for all units. The composite unit contribution margin is dependent on the sales mix of the products sold.
.
Note that the break-even formula looks the same for a multiproduct company. The only difference is the denominator. The unit contribution margin for one unit is replaced by a composite unit contribution for all units. A composite unit is composed of specific numbers of each product in proportion to the product sales mix. Next, we will see how sales mix is used to compute the contribution per composite unit.
Sales mix is the ratio of the volumes of the various products. In this case, the sales mix is four basics cuts sold for each budget cut, and two ultra cuts sold for each budget cut.
The four-two-one mix means that if we sell five hundred budget cuts, then we will sell one thousand ultra cuts and two thousand basic cuts.
The first thing we do in computing the contribution margin for a composite unit is to multiply the unit contribution for each product times the sales mix number for each product. The resulting amounts are called weighted unit contributions because they are weighted by the sales mix numbers in the computation.
The second thing we do in computing the contribution margin for a composite unit is to add the weighted unit contributions. The resulting number, thirty two dollars in this example, is the contribution margin per composite unit.
We calculate our breakeven point in composite units by dividing our total fixed cost by the contribution margin per composite unit that we have just calculated. Go ahead and solve for the breakeven point in composite units before advancing to the next screen.
How did you do? We can see from the computations on this screen that we must sell three thousand composite units to break even.
Now that we know the number of composite units that must be sold to break even, we can solve for the number of each product that we must sell to break even. We do this by multiplying the sales mix number for each product times three thousand composite units. Notice that the resulting twelve thousand basic cuts, six thousand ultra cuts, and three thousand budget cuts remains in the same relative sales mix of four-two-one.
We can verify the results of our break-even computations by preparing an income statement for the three products. You might want to review the original given information for this example before you work through this income statement.
Operating leverage is an important concept for managers to understand. It’s a measure of how sensitive operating income is to changes in sales. When operating leverage is high, a small percentage increase in sales can result in a much larger percentage increase in operating income. The degree of operating leverage is equal to contribution margin divided by net income. Let’s look at an example.
At Rydell, the operating leverage is three computed by dividing the thirty-six thousand dollars contribution margin by the twelve thousand dollars income. We multiply the operating leverage times the percentage increase in sales to find the percentage increase in income. If Rydell increases sales by ten percent, what will be the percentage increase in income?
With an operating leverage of two, a ten percent increase in sales will produce a thirty percent increase in income. We multiply the percentage increase in sales times the degree of operating leverage to determine the percentage increase in profit.
Now that we have mastered some of the basic concepts and principles of managerial accounting, we are ready to put this knowledge to work.