MANAGERIAL ACCOUNTING FOR MANAGERS EBOOK
MANAGERIAL ACCOUNTING FOR MANAGERS EBOOK
6th Edition
ISBN: 9781264445615
Author: Noreen
Publisher: MCG
Question
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Chapter 8, Problem 8.32C

(1)

To determine

The solution to the problem arose in the F&S manufacturing company as it reduces the effectiveness of the system.

Introduction: Budget means the estimation made for the usage of money to decide the amount that executor will need to execute the plan. The budgeting process refers to the process in which future business activity is planned for preparing the way of performing goals by mapping the formal plan.

(2)

To determine

Revision of budgetary control system to improve effectiveness of system.

Introduction: Budget means the estimation made for the usage of money to decide the amount that executor will need to execute the plan. The budgeting process refers to the process in which future business activity is planned for preparing the way of performing goals by mapping the formal plan.

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A company enters into a contract to sell 70 products to a customer for $80 each.  After the company transfers 30 of the 70 products, the customer orders an additional 25 products.  The contract is modified, and the additional 25 products are priced at $40 each.  $40 is not reflective of the product's standalone selling price.  What is the price per product for the remaining 65 products (40 products from the original contract and 25 products from the modification)?      A. $80 for the remaining 40 from the original contract and $40 for the additional 25products from the modification        B. $60, the average of the prices for the remaining products        C. $40, the new price for the products specified in the contract modification        D. $64.62, the blended price for the products from the original contract and the modification
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