ACC550 Final Milestone

Ac. [Managerial Accounting]   Pls help me with " Differential analysis:The Key to Decision Making"   There are Six Short-Term Decisions:​​​​​​​   1.Pricing   2.Special orders   3.Discontinuing products, departments, or stores   4.Product mix when resources are constrained   5.Outsourcing (make or buy)   6.Selling “as is” or processing further   Help me Define each decsioin pitfall to avoid

Understanding the relationships in the expanded contribution margin model may be the singlemost important concept developed in managerial accounting. The model presented here provides a structure for explaining, in a consistent manner, the effect on operating income of changesin selling price, variable expenses, fixed expenses, or the volume of activity. As you study theseexamples, you will notice that four relationships are constantly interacting with one another:1. Revenue −Variable expenses 5 Contribution margin.2. Contribution margin / Revenue 5 Contribution margin ratio.3. Total contribution margin depends on the volume of activity.4. Contribution margin must cover fixed expenses before an operating income is earned.Your goals are to identify these relationships in every cost–volume–profit question and appreciatetheir interaction as a way of thinking that becomes second nature for you. Once you can visualize thisinteraction of these relationships, you are well on your way to…

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Question 6.1                                                                                                         For each item listed, select the appropriate purpose of cost allocation from the list below. A purpose may be used more than once. A - To provide information for economic decisions B - To motivate managers and other employees C - To measure income and assets for reports to external parties D - To justify costs or compute reimbursement amounts   Required To encourage simpler product design To cost inventories for reporting on a company's tax return To encourage the sales department to focus on high-margin products To evaluate a make or buy decision To cost inventories for the balance sheet To decide whether to add or delete a product line To decide on an appropriate selling price for a special-order product To cost a product at a fair price for government contracts

Final Price and Profit Equations     This exercise will help you identify and understand what goes into determining both the final price for a purchased product as well as the equation for the profit on a product.   Among all marketing and operations factors in a business firm, price has a unique role. It is the place where all other business decisions come together. The price must be "right"—in the sense that customers must be willing to pay it; it must generate enough sales dollars to pay for the cost of developing, producing, and marketing the product; and it must earn a profit for the company. Small changes in price can have big effects on both the number of units sold and company profit.     Read the case below and answer the questions that follow.     You are shopping for a new printer to take back to college with you. You decide on the PIXMA iP100 due to its superior photo print quality and are now looking for the best price. Different stores have different deals, plus the…

Final Price and Profit Equations     This exercise will help you identify and understand what goes into determining both the final price for a purchased product as well as the equation for the profit on a product.   Among all marketing and operations factors in a business firm, price has a unique role. It is the place where all other business decisions come together. The price must be "right"—in the sense that customers must be willing to pay it; it must generate enough sales dollars to pay for the cost of developing, producing, and marketing the product; and it must earn a profit for the company. Small changes in price can have big effects on both the number of units sold and company profit.     Read the case below and answer the questions that follow.     You are shopping for a new printer to take back to college with you. You decide on the PIXMA iP100 due to its superior photo print quality and are now looking for the best price. Different stores have different deals, plus the…

7. Responsibility Accounting: a. What is a cost center? Give an example of a cost center b. What is a Profit center? Give an example of a profit center c. What is an investment center? Give an example of an investment center d. What is management by exception: e. The Hydride Division of Murdoch Corporation is an investment center. It has $1,000,000 of operating assets. During 2022, the Hydride Division earned operating income of $400,000 on $5,000,000 of sales. Murdoch's companywide return on investment or desired rate of return is approximately 20% SHOW WORK FOR CREDIT! 1. What is the ROI? 2. What is the margin? 3. What is the turnover? 4. What is the residual income?

For CVP analysis calculations, which of the following statements is correct? A. In target profit calculations, sales revenue is less than total costs. B. CVP analysis relies on our knowledge of cost function to express relationships among costs, sales volume, and profit. OC. A company's sales mix is ultimately determined by the management of a company. D. The Break-even point is the point at which operating income is greater than $0. O E. If sales volume is expected to be higher than the indifference point, management should choose the cost structure with the higher fixed costs.

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Describing the balanced scorecard and identifying key performance indicators for each perspective Consider the following key performance indicators, and classify each according to the balanced scorecard perspective it addresses. Choose from financial perspective, customer perspective, internal business perspective, or learning and growth perspective. a. Number of employee suggestions implemented b. Revenue growth c. Number of on-time deliveries d. Percentage of sales force with access to real-time inventory levels e. Customer satisfaction ratings f. Number of defects found during manufacturing g. Number of warranty claims h. Return on investment i. Variable cost per unit j. Percentage of market share k. Number of hours of employee training l. Number of new products developed m. Yield rate (number of units produced per hour) n. Average repair time o. Employee satisfaction p. Number of repeat customers

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Mastery Problem: Target Income and Margin of Safety Target Income and Margin of Safety At the break-even point, sales and costs are exactly equal. However, the goal of most companies is to make a profit. When a company decides that it wants to earn more than the break-even point of income, it must define the amount it thinks it will realistically make. By modifying the break-even equation, the sales required to earn a target or desired amount of profit may be computed. Complete the following: If a company makes $5 off of each unit it sells and has a target operating income of $5,000, then it must sell units. Similarly, if a company has a target operating income of $75,000 and knows that total expenses for the period will be $75,000, how much revenue must it earn to reach its target operating income? $ Units sold or revenue earned above and beyond the break-even point contributes to the margin of safety for a company. Margin of safety is a crude measure of risk, in that it serves as the…

Q9 b (i) Your Boss is looking over a Breakeven Chart which you have prepared to portray the Cost Volume Profit relationship of proposed plan of operations. He comments, “The chart only tells me more we sell more profits we make.” What will be your reply?  How will you convince your boss that BEP analysis is important for every organization, it gives a way to design production units and identifying profits and losses?                                                    Q9 b (ii) Do you ever wonder why these Breakeven Charts are necessary to prepare only for manufacturing businesses not for trading or service business? Give Real life examples for each type of business mentioned here to justify your answer.

9 Which purpose of cost allocation is used to encourage sales representatives to push high-margin products or services?   Select one: a. To measure income and assets for reporting to external parties b.To compute reimbursement c.To provide information for economic decisions d.To justify costs e.To motivate managers and other employees