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Exercise 22.1 (Static) Accounting Terminology (LO22-1, LO22-4, LO22-6) The following are nine technical accounting terms: Responsibility margin Contribution margin Performance margin Transfer price Cost-plus transfer price Product costs Common fixed costs Traceable fixed costs Committed fixed costs Each of the following statements may (or may not) describe one of these technical terms. For each statement, indicate the accounting term described, or answer "None" if the statement does not correctly describe any of the terms. a. The costs deducted from contribution margin to determine responsibility margin. b. Cost to produce plus a predetermined markup. c. Fixed costs that are readily controllable by the manager. d. A subtotal in a responsibility income statement, equal to responsibility margin plus committed fixed costs. The subtotal in a responsibility income statement that is most useful in evaluating the short-run effect of e. various marketing strategies on the income of the…

F1. Topic: FAR Part 15, Contract by Negotiation…Evaluation Factors.   Question: Is there an “ideal” number of factors in the Evaluation process? Should factors be limited to a small number or a larger number of factors? Explain. Other than cost/price, list three factors (and/or subfactors) that you would include and explain your rationale for choosing those factors.

18.2 The Five-Step Process Revisited When a revenue arrangement involves more than one performance obligation, which of the following conditions must be evaluated? O whether each product or service involved is distinct within the contract O whether revenue recognition is simultaneous for all products or services O whether the promises involved with each product or service are explicit or implicit O whether customary business practice dictates that the products and services be provided together Submit Answer Save for Later

C-2 if your recommendation in part (c-1) is followed, what would be the company's overall profit ?

Problems 5.1-5.3 relate to Goods and Services Selection the life cycle, identify a reasonable operations strategy for each: ... 5.1 ing products, and given the position in its life cycle, identify the issues likely to confront the operations manager and his or her possible actions. Product Alpha has annual sales of 1,000 units and a contribution of $2,500; it is in the introductory stage. Prepare a product-by-value analysis for the follow- COMPANY CONTRIBUTION (%: TOTAL ANNUAL CONTRIBUTION PRODUCT CONTRIBUTION (% OF SELLING PRICE) DIVIDED BY TOTAL ANNUAL SALES) POSITION IN LIFE CYCLE Product Bravo has annual sales of 1,500 units and a contribu- PRODUCT tion of $3,0003; it is in the growth stage. Product Charlie has annual sales of 3,500 units and a contribution of $1,750; it is in the decline stage. Smart watch 30 40 Introduction Tablet 30 50 Growth Hand calculator • 5.2 Given the contribution made on each of the 50 10 Decline three products in the following table and their position in

Which of the following is the EVC of new product X? Product Product price Startup cost Maintenance and operations cost Productivity 600 650 750 850 900 Reference Product Y $400 $200 $500 New Product X EVC: $100 $400 $150

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Exercise 11-13 (Algo) Transfer Pricing Situations [LO11-3] [The following information applies to the questions displayed below.] In each of the cases below, assume Division X has a product that can be sold either to outside customers or to Division Y of the same company for use in its production process. The managers of the divisions are evaluated based on their divisional profits. Case A B Division X: Capacity in units Number of units being sold to outside customers Selling price per unit to outside customers 95,000 95,000 96,000 79,000 $ 50 $ 30 Variable costs per unit Fixed costs per unit (based on capacity) Division Y: $ 28 $ 12 $ 6 $ 4 Number of units needed for production 17,000 17,000 Purchase price per unit now being paid to an outside supplier $ 43 $ 24 Exercise 11-13 (Algo) Part 2 Required: 2. Refer to the data in case B above. In this case, there will be no savings in variable selling costs on intracompany sales. a. What is the lowest acceptable transfer price from the…

Calculate standard rate per direct labor hour general accounting question correct option

Need help Q.19

Question 5-price allocation Red Windows manufactures and sells custom storm windows for enclosed porches. Red also- provides installation service for the windows. The installation process does notinvolve changes in the windows, so this service can be provided by other vendors. Red enters into the following contract on 15 Jun 2020, with alocal homeowner. The customer purchases windows for a price of £7,500 and chooses Red to do the installation. Red charges the same price for the windows irrespective of whether it does the installation or not. The price of the installation service is estimated to have a fair value of £1,000. The customer pays Red £6,000 (which equals the fair value of the windows, which have a cost of £4,300) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on 15 Jul 2020, Red completes installation on 4 Aug 2020, and the customer pays the balance due. e Required Prepare the journal entries for Red on all the dates…

Examine exhibit 12.8, what conclusions about the AVCO quote can you draw from the data? Are you able to make a buy decision?

Exercise 5-11 (Algo) Missing Data; Basic CVP Concepts [LO5-2, LO5-9] Fill in the missing amounts in each of the eight cases below. Each case is independent of the others. (Hint: One way to find the missing amounts would be to prepare a contribution format income statement for each case, enter the known data, and then compute the missing items.) Required: a. Assume that only one product is being sold in each of the four following case situations: b. Assume that more than one product is being sold in each of the four following case situations: Complete this question by entering your answers in the tabs below. Required A Required B Assume that only one product is being sold in each of the four following case situations: Units sold Sales Variable expenses Fixed expenses Net operating income (loss) Contribution margin per unit $ $ Case 1 8,400 226,800 109,200 98,000 $ 19,600 $ $ Case 2 400,200 176,000 44,800 $ 16 $ Case 3 20,900 250,800 Case 4 5,400 $ 151,200 87,000 76,200 $ (38,400) 8…

EXERCISE 5-11 Missing Data; Basic CVP Concepts [LO5-1, LO5-9] Fill in the missing amounts in each of the eight case situations below. Each case is independent of the others. (Hint: One way to find the missing amounts would be to prepare a contribution format income statement for each case, enter the known data, and then compute the missing items.) Assume that only one product is being sold in each of the four following case situations: a. Contribution Net Operating Income Units Sold Variable Margin per Unit Fixed Case Sales Expenses Expenses (Loss) $180,000 $100,000 $120,000 15,000 ? $50,000 $32,000 $8,000 $12,000 2 $10 3 10,000 $70,000 $13 4 6,000 $300,000 ? $100,000 $(10,000) b. Assume that more than one product is being sold in each of the four following case situations: Average Contribution Net Operating Variable Margin Ratio Fixed Income Case Sales Expenses Expenses (Loss) 1. $500,000 $400,000 20% $7,000 $100,000 $130,000 ? 2 $260,000 ? $20,000 $(5,000) 3. 60% $600,000 $420,000 ?