COST MANAGEMENT: A STRATEGIC EMPHASIS E
8th Edition
ISBN: 9781260912449
Author: BLOCHER
Publisher: MCG
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Question
Chapter 10, Problem 1Q
To determine
State the three benefits that are realized by the organization from the budgeting.
Expert Solution & Answer
Explanation of Solution
Budgeting: The budgeting is the process of preparing budgets and the evaluation of it to see whether the budget is able to meet the objectives set by the company. This is a complete process which helps in understanding the spending of money in accordance with the income. In addition, budget is the pre-estimate the expense and revenue related to the business.
Following are the various benefits that are realized by the organization from the budgeting:
- 1. The budgeting serves as a basis for the performance evaluation.
- 2. It helps in motivating the managers and employees.
- 3. The budgeting helps in promoting the coordination and communication within the organization.
- 4. The budgeting serves as a basis for resource allocation, providing authorization documentation and aiding
cash flow management.
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Chapter 19 Homework
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Exercise 19-20 (Algo) Contribution margin ratio by sales territory LO A1
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Big Bikes manufactures and sells mountain bikes in two sales territories, West Coast and East Coast. Information for the year
follows. The company sold 550 bikes in each territory.
Per unit
Sales price
Variable cost of goods sold
West Coast
$ 1,500
East Coast
$ 1,440
830
70
830
Variable selling and administrative expenses
160
Ask
a. Compute contribution margin (in dollars) for each sales territory.
b. Compute contribution margin ratio for each sales territory. Which sales territory has the better contribution margin ratio?
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Complete this question by entering your answers in the tabs below.
References
Required A Required B
Compute contribution margin (in dollars) for each sales territory.
Sales
Variable expenses
Variable cost of goods sold
Variable selling and administrative expenses
Contribution margin
West Coast
East Coast…
Chapter 19 Homework
15
0.87
points
eBook
Saved
Exercise 19-20 (Algo) Contribution margin ratio by sales territory LO A1
Help Save & Exit
Submit
Check my work
Big Bikes manufactures and sells mountain bikes in two sales territories, West Coast and East Coast. Information for the year
follows. The company sold 550 bikes in each territory.
Per unit
Sales price
Variable cost of goods sold
West Coast
$ 1,500
East Coast
$ 1,440
830
70
830
Variable selling and administrative expenses
160
Ask
a. Compute contribution margin (in dollars) for each sales territory.
b. Compute contribution margin ratio for each sales territory. Which sales territory has the better contribution margin ratio?
Print
Complete this question by entering your answers in the tabs below.
References
Required A Required B
Compute contribution margin (in dollars) for each sales territory.
Sales
Variable expenses
Variable cost of goods sold
Variable selling and administrative expenses
Contribution margin
West Coast
East Coast…
Determine the gross margin of this financial accounting question
Chapter 10 Solutions
COST MANAGEMENT: A STRATEGIC EMPHASIS E
Ch. 10 - Prob. 1QCh. 10 - Differentiate among master, operating, and...Ch. 10 - Many accountants believe that the most important...Ch. 10 - Some critics of budgeting believe that budgets are...Ch. 10 - Prob. 5QCh. 10 - Prob. 6QCh. 10 - Prob. 7QCh. 10 - Prob. 8QCh. 10 - Prob. 9QCh. 10 - Prob. 10Q
Ch. 10 - Prob. 11QCh. 10 - Prob. 12QCh. 10 - Prob. 13QCh. 10 - Prob. 14BECh. 10 - Prob. 15BECh. 10 - Prob. 16BECh. 10 - Prob. 17BECh. 10 - Easy Clean operates a chain of dry cleaners. It is...Ch. 10 - Prob. 19BECh. 10 - Prob. 20BECh. 10 - Prob. 21BECh. 10 - Prob. 22BECh. 10 - Prob. 23BECh. 10 - Purchase Discounts It is typically beneficial for...Ch. 10 - Production and Materials Purchases Budgets White...Ch. 10 - Prob. 26ECh. 10 - Prob. 27ECh. 10 - Cash Budget—Financing Effects You are a relatively...Ch. 10 - Cash Budget Marsha Inc. has the following budgeted...Ch. 10 - Budgeted Cash Receipts: Cash Discounts Allowed on...Ch. 10 - Cash Receipts and Payments Information pertaining...Ch. 10 - Retailer Budget D. Tomlinson Retail seeks your...Ch. 10 - Accounts Receivable Collections and Sensitivity...Ch. 10 - Prob. 34ECh. 10 - What-If Analysis As the management accountant for...Ch. 10 - Profit Planning and Sensitivity Analysis You are...Ch. 10 - Scenario Analysis As part of the process of...Ch. 10 - Prob. 40ECh. 10 - Activity-Based Budgeting (ABB) OFC Company of...Ch. 10 - Prob. 42ECh. 10 - Prob. 43ECh. 10 - Prob. 44ECh. 10 - Prob. 45ECh. 10 - Prob. 46ECh. 10 - Prob. 47ECh. 10 - Prob. 48ECh. 10 - Budgeting for a Merchandising Firm Goldberg...Ch. 10 - Prob. 50PCh. 10 - Prob. 51PCh. 10 - Prob. 52PCh. 10 - Prob. 53PCh. 10 - Prob. 57PCh. 10 - Prob. 59PCh. 10 - Prob. 60P
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