revenue and product costs for recognition in later periods. Non-GAAP financial measures do not adjust for the costs associated with the Company’s intention to provide unspecified new features and software to purchasers of iPhone and Apple TV products. These costs are expensed as incurred under GAAP’s subscription accounting model, and are not adjusted in these non-GAAP financial measures. 2. GAAP is a more conservative method cause it underestimate the profit and overestimate the cost compares to Non-GAAP
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RJET2 Task 2 Budgeting for any company can be a challenge especially when the economy does not change in the companies favor. For Competition Bikes, Inc. (CB) budgeting is an area that is both of great need and seriously lacking. The company is setting high goals to make up for the 15% loss of revenue from year 8 over the next three years. What the company needs to look at is whether or not their goals versus reality are a possibility and not make their budget too high or too low. Budgeting is
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Mayer, MPH, CHES September 16, 2013 Stress Effects and Management Proposal My company will be initiating an employee wellness program. I am submitting a proposal for a stress management program that can be implemented at the workplace with no costs for the employee. The technique I would like incorporated in the wellness program is Progressive Muscle Relaxation (PMR). Stress—physical, mental and emotional wear and tear—is emerging as a leading health risk of the 21st century and as a serious
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requires a short-term ROI target of 15%. This a fair measure of divisional profitability for a new project for Diversified Electronics. The new product is in a growth market and can expect a 10% increase in price every year which applies to price and costs except depreciation and land. RULES There are four ways to measure divisional performance – divisional income, Return on Investment (ROI), Residual Income, and Economic Value Add (EVA). Diversified Electronics currently uses the ROI measure. ROI
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and Equipment (Fixed Asset or Plant Asset) Historical cost principle Include any “normal” or “routine” expenditure to get an asset in place and functioning. A. Whether you buy it, build it, plan to keep it and operate it or plan to sell it: Capitalize all costs necessary to make the asset ready for its intended use Anything you get back is a reduction Capitalize indirect costs if you can make the link to the asset Capitalize costs associated with owning it during the construction period=
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textbooks have been increasing which has become a major burden to all students of all majors. This increase makes a difficult situation for students already trying to pay university tuition and housing bills. Many students have jobs to help pay the costs, so an increase in the price of textbooks is a cause for concern. The University Bookstore is convenient for some students on campus, it can be time saving for some who are trying to get their books on time before semester classes begins. The University
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Solution to Practice Quiz #1 1. A 2. D 3. B 4. Cost Summary: Direct Materials $ 78,000 Direct Labor 45,000 Manufacturing Overhead 33,750 ( $45,000 X 75%) ---------- Total Cost $ 156,750/Units Completed 4,000 = Unit Product Cost = $ 39.19 5. a. Raw Materials Inventory
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economy supply and demand can be at polar ends. During high demand times finding suitable substitutes is an issue as it can cause customer dissatisfaction. As they are in a high demand economic time currently they are looking for ways to be more cost management effective before the downturn occurs. We will analyze FHPC issues to determine which costing system would serve to improve both profitability and provide a strategy for a cyclical economy. 1. How would you classify FHPC in terms
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ACC561 - Accounting Michael Gaspar, CPA Costing Methods In every business, management needs to have a way to track their costs. These costs can be related to production, inventory, shipping, or overhead. There are many different ways for management to track these changes. Management can choose between traditional costing methods, job order costing system, process order cost system, and activity based costing. In our example, Super Bakery chooses to change their costing method to activity based
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service. Market Share is created in this market through price competition, so when major company decreases their price many competitors must price match in order to keep the rivalry strong. Also, exiting the industry is highly difficult due to sunk costs and losses during the liquidation process. Buyer Power (High) Buyer Power for this industry is high due to the large number of airlines in the industry. Most consumers are price sensitive which will force most competitors to adapt. This can be done
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