...Bill has assumed that Duo-Products' relevant range for fixed costs will remain constant even after planned expansion of production capacity. He has also assumed that there is just one breakeven point for the firm (by taking the average of the 3 products). He has also assumed that the sales mix will remain constant. Two other assumptions are that total revenue and total expenses behave in a linear manner over the relevant range. These 2 are standard when Cost Volume Profit analysis is carried out. 2. a) There is an extra $720,000 a year in fixed costs estimated by Fred Williams for this year. Since capacity is being expanded to increase production of Product C, it could be assumed that this increase should be allocated to this product. Production of Product A is to be scaled down, but as there isn't any information as to whether its relevant range of fixed costs will change, I have left its level of fixed costs unchanged. As a result both A's and B's breakeven points remain the same. For C the breakeven point is 354,545 units. The overall breakeven point is 1,035,686 units. b) Duo-Products must make a $1.2 million profit before tax to meet this requirement. To do this it must sell 1,372,494 units. c) An increase in variable costs across the board by 10% would increase the average variable cost to $3.72 per unit. For Duo-Products to break even under these conditions it would need to sell 1,144,440 units. d) Duo-Products would have to sell 1,516,615 units to meet...
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...MCQ ANSWERS AFF3651 Final Exam MCQ Solutions – Semester 2 2008 Section A 1. e 2. a 3. e 4. b 5. e 6. b 7. b 8. a 9. d 10. b 11. c 12. e 13. d 14. e 15. d Final Exam MCQ Solutions – Semester 2 2009 Section A 1. E 2. A 3. B 4. D 5. C 6. C 7. D 8. C 9. C 10. D 11. D 12. C 13. B 14. A 15. E Final Exam MCQ Solutions – Semester 2 2010 Section A (1) C (2) A (3) C (4) D (5) A (6) C (7) B (8) E (9) A (10) E Final Exam MCQ Solutions – Semester 2 2011 Section A 1. e 2. b 3. d 4. e 5. d 6. e 7. e 8. b 9. c 10. a 11. c 12. d 13. d 14. c 15. e Deferred Exam MCQ Solutions – Semester 2 2011 Section A (1) A (2) B (3) C (4) A (5) C (6) E (7) A (8) E (9) D (10) C Final Exam MCQ Solutions – Semester 2 2012 Section A 1. E 2. E 3. A 4. C 5. B 6. E 7. B 8. B 9. D 10. B 11. D 12. C 13. B 14. A 15. C Deferred Exam MCQ Solutions – Semester 2 2012 Section A 1. E 2. A 3. B 4. D 5. C 6. C 7. D 8. C 9. C 10. D 11. D 12. C 13. B 14. A 15. E Final Exam MCQ Solutions – Semester 2, 2013 Section A 1. B 2. A 3. C 4. B 5. C 6. D 7. C 8. B 9. E 10. B 11. B 12. C 13. A 14....
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...In today’s business world , the characterized as the information age where media has extended its boundaries to reach even the smallest population across the globe, the board of directors of all corporations must go to extreme measures to maintain due diligence in every aspect of their duties in managing corporations. Any corporate transgressions can be immediately disclosed to the world through television, radio or internet. These perceptions of misconduct, whether true or false, can greatly affect the corporations’ position. Because of the critical affect that inappropriate conduct on the part of directors and corporate management has on the future of the corporation in addition to the adverse effects on all of its stakeholders, the United States government passes the Sarbanes-Oxley Act of 2002. This act was initiated in order to create a specific framework for auditing all functions of Board members to circumvent corruption as well as to encourage improvements in the stock market. Improving the confidence of stockholders in the United States was also a major consideration in the implementation of this legislation (Thompson, 2005). The passage of the Sarbanes Oxley Act of 2002 has developed a specific set of auditing tools and guidelines for directors. Directors now have a legal responsibility to follow these guidelines and their corporate bylaws or, as evidenced by the aforementioned scandals, face public scrutiny as well as criminal and civil action. According to John Nash...
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...Accounting Information Systems ACC 210 August 30, 2012 Michael Wells FedEx Corporation is one of the leading logistics service companies in the world. As its global presence increases and technology becomes more accessible and powerful, FedEx must stay ahead of the curve to keep customers satisfied, and competitors on their toes. In the past 10 years FedEx has made much progress in automating many of their information systems such as invoicing and accounts receivable. They also led the industry in providing online services to their customers, and high-speed mobile devices to their couriers. One of their most notable technological advances was their development of DirectLink. FedEx created DirectLink, a powerful electronic data interchange (EDI) enabling software, to allow customers to download invoices, create reports, export data, and remit payments. Customers can still pay their bills online, over the phone or the traditional way by mailing in payments; however, FedEx encourages customers to sign up for DirectLink because of many advantages it offers (FedEx, n.d.a). DirectLink allows customers to download bills, remit payments online and manage their own account, which is extremely efficient for the customers and the company. For one, electronic invoicing allows FedEx to save money on printing and postage costs. Electronic payments also save time and create less manual work for the company. The AIS validates records and processes payments. With...
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...Kudler Accounting System Paper Name BSA/310 January 14, 2013 While the company is successful with its current structure the accounting system could use an overhaul. With the new upgrade to the current system will be easy to manage portfolio of accounts, and analyzes the contents of them with a click of a mouse. With the ability to access reports such as annually, Bi- annually, quarterly, or yearly reports will help to increase productions. Accounting is arguably the most important aspect of the business. When dealing with number it is vital that one play close attention to numbers. One minor error can mean the difference form $1.00 and $1,000. There are many government and legal regulations that want detail records. If these records are off it could cost a business thousands of dollars in taxes. That is why these records, or Books need to be 100% accurate, and all sources of income are presents. One of the key benefits of this upgrade will allow the company to process, and handle data from all departments. This system will allow one to improve our current financial strategies due to better business decisions based on the reports. These reports will stream information quicker and more accurate than the previous system. Allowing upper management to review these reports on a daily basis. Another perk would be the ability to review cash sheets as they are speaking with investors. Some of the key features are software compatibly. The software will include...
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...A. Provide twelve business terms and definitins that are new to you that are used by this company. Franshisee- Aperosn who buys a franchise Profit- revenue minus expenses Mission statement- outlines the organization's fundamental purposes. Importing- buying products from other countrie Exporting- selling products to another country Contract manufacturing- foreign company produces private label goods to which a domestic company then attaches its own brand name or trademark. Integrity based ethics code- define the organizations guiding alues, create an environment taht supports ethically sound behavoir Corporate social initiaves - enhanced forms of corporate philanthropy directly related to the company's competencies. Insider trading- uses private company infomation to further insers own fortuenes or those of their family and friends. Unified system- this happes after managers have decided a course of action now they need to organize the fimr to accomplish their goals. Middle management- this includes gernal managers, division managers, and branch and plant managers. B. Discuss the organizationl structure of the business relative to these five functinal areas: Marketing - The different forms of marketig, sales, and adverting for Gap are television, radio, credit card discounts, mail, and email. Gap spends a certain amount of money on advertising everymonth, and if they do not feel as though they are getting the response they hoped for they will pull the plug...
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...Enron has had on both the accounting and business world will be long lasting and there is a need for an accounting shake-up. German newspapers have been casting doubts on the long-term prospects of the so-called “Big 5”. Some articles have been sceptical over the remaining “Big 4” accounting firms’ future and see Andersen as the start of a long-term downturn in the accounting world. (“Das Ende der Big 5”, ICN 2002) Andersens were auditors of Enron until the company’s collapse. They were not only auditors but provided consultancy. This was one of the major factors behind Enron’s collapse, as there were conflicts in their duties. Andersen could have found their fees cut substantially if they did not comply with Enron’s auditing demands. Acconting firms want their consultancy practices to be efficient. Therefore, they want their clients to look as profitable as possible. However, auditors need to provide a true and fair view of the accounts. They must not be tempted to manipulate financial reports. In Enron’s case, thıs duty was neglected. There is a lot of literature on creative accounting and Andersens used some of oldest tricks of manipulation. Enron’s financial reports had hidden liabilities and capatalised many expenses which should have been written off in the year they occured. As a result, profits were largely inflated, which is misleading to investors. Enron used off-balance sheet financing and recognised many long-term contractsto make the business look financially healthier...
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...I. Resumen Ejecutivo Recientemente el interés en la profesión de la contabilidad ha tomado mucho auge y mucho más la inspección de su liderazgo. ¿Porqué algunos son líderes y otros no? Esa es la gran pregunta que necesitamos contestar para poder recobrar la confianza y la buena fe ante los ojos del público. Ahora bien, utilizando la lista de las 100 personas más influyentes en el campo de la contabilidad durante la primera década del siglo XXI de la revista “Accounting Today” y la examinación de portales que añaden poder a nuestra apreciación; se revela información de suma importancia referente a la existencia de la profesión como una muy diferente a la que es apreciada en los círculos académicos. II. Síntesis del Artículo a. Idea Central Presentada por el Autor i. Los grandes retos en tiempos difíciles y su credibilidad ante el público. ii. Personas de gran influencia en la profesión según estudio realizado año tras año por “Accounting Today” y los cambios que va sufriendo la profesión. b. Resumen Narrativo La primera década del siglo XXI ha sido una de grandes retos, difíciles situaciones que han marcado grandemente a los contadores y su profesión. Como por ejemplo, recordamos la gran cantidad de bancarrotas, la caída del Wall Street y otras circunstancias que le fueron restando credibilidad a nuestros contadores. Por lo tanto, según van cambiando los tiempos; más y mejor informados está la sociedad y reconoce que los contadores...
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...When identifing the activities it is important to chose all relative activities that are the main generators of the cost. Table x: The structure of costs Costs | Amount of costs | Percentage | Direct Costs | 2.200.000 | 27.5% | Indirect costs | 5.500.000 | 72.5% | Total production Costs | 8.000.000 | 100% | Table x : Direct costs and amount of production Product | Heater S | Heater M | Heater + | TOTAL | Amount of production | 230 | 235 | 220 | | Cost of Direct Material | 600.000 | 500.000 | 600.000 | 1.700.000 | Direct Labor cost | 200.000 | 200.000 | 100.000 | 500.000 | Table 1. Identifying Activities Activities | 1.Administration | 2.Sales * Distribution of the product * Contacting customers * Cost acconting | 3.Purchase * Contacts with suppliers * Supply of inputs * Quality controll of the inputs | 4.Finance * Processing of suppliers invoices * Payments * Billings | 5.Accounting * Material Accounting * Accounts receivable * Accounting suppliers * Wage accounting * Taxation | 6.Production * Transport * Monitoring of production * Execution of the production process | Once we identify the activities, next step is to assaign the resource cost through indicators of resources, and they are used in order to determine how much each activity affected the consumption of resources. Table 2 : Type of cost and causes of resource cost Types of Cost | Total Cost | Causes of cost | Administration and office costs...
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...Edible Treats Introduction Being a mommy is never an easy job. Mothers have to keep their eyes open all the time on their little angels when their playing around the house, since there’s always a risk of them having to accidently eat their play items. Crayons, play sand and play dough are some of the things that baby’s love to playing with, they are safe, harmful and convenient. Playing helps occupy your baby’s time and energy in a way that increases creativity, imagination, social skills and helps enhance development. But play time can turn into a visit to the emergency room once your baby swallows a significant amount of their play items. Babies will put everything in their mouths, and mothers are always in constant fear of the accidents that might happen. Something that seems harmful to play with can cause some serious health damage. “Every year, more than 30,000 children under the age of five go to hospital as a result of suspected accidental poisoning. Many cases will be false alarms, and the vast majority will not be serious, but a small number are fatal.” Sally Weale. Most of these play items contain Wax and pigment, which if consumed in large amounts can lead to poising or intestinal obstruction. Edible’s is safe alternative for your babies, we offer you a product that’s fun and safe, Mother’s no longer have to worry about what could go wrong. We offer a selection of edible play dough, play sand and crayons that are made with all natural, safe to eat ingredients...
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...PROJECT REPORT (Submitted for the Degree of B.com Honours in Accountancy and Finance under the University of Calcutta.) A Survey on Accounting & Reporting of Intangible Assets in some selected Indian companies Submitted by Name: MAITREYEE MUKHERJEE Registration no: 043-1221-0272-10 Roll no: Name of the college: Heramba Chandra College. Supervised by Name of the supervisor: JAYANTA GHOSH Name of the college: Heramba Chandra College. BACKGROUND: In 1494, a mathematically minded Veteran monk named Luca Pacioli published his “Summa de Arithmetica, Geometrica”, the first accounting textbook. It illustrated double-entry accounting, a system that makes the modern corporation manageable, even possible. Today, half a millennium later, Pacioli’s process, still pretty much intact, is being challenged like never before. Pacioli’s accounting system lets businesses keep track of changes in their assets. But this system deals primarily with tangible assets such as cash, inventory, investments, receivables, property, plant, and equipment. What go unrecorded are intangible assets such as quality of management, customer loyalty, information infrastructure, trade secrets, patents, goodwill, research, and...
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...ABSTRACT BACKGROUND: During the last two years, most of the Private Equity (PE) companies of Bangladesh have increased their investments significantly. Easy access to capital, as well as inexpensive leverage, has led to an increase in activity of PE buy-outs of market leaders with strong cash flow. The competition for objects that are for sale has amplified, which has resulted in price increases of the objects. The higher prices offered by the PE companies also affects the number of initial public offerings (IPO) on the Dhaka and Chittagong Stock Exchanges. One reason for the small number of current IPOs is that the objects simply have been valued higher by PE companies than they would do in an IPO. PURPOSE: The purpose with this thesis is, from a shareholder’s point of view, to analyze and describe the reasons of making an IPO instead of selling to a PE company. METHODOLOGY: Since the research is based on gathering and understanding information regarding specific persons’ choices and motives, a qualitative approach has been conducted. CONCLUSION: All the main motives of the IPO could have been achieved by selling to PE Company, except the motive of attaining share liquidity. One of the attractive reasons for share liquidity is that shareholders easily can choose between reducing ownership, increasing ownership or remain with existing shares. Another attractive reason is that financial institutions normally become shareholders, which in turn increases the credibility...
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...Publishing Publishing F3 INT Study Text Financial Accounting ACCA Publishing ACCA Distance Learning Courses Learn quickly and efficiently Using a blended learning approach, our distance learning package will steer you towards exam success. Our aim is to teach you all you need to know and give you plenty of practice, without bombarding you with excessive detail. We therefore offer you the following tailored package: • Access to our dedicated distance learning website – where you’ll find a regular blog from the distance learning department – reminders, hints and tips, study advice and other ideas from tutors, writers and markers – as well as access to your course material • • Tutor support – by phone or by email, answered within 48 hours The handbook – outlining distance learning with us and helping you understand the ACCA course Study phase Revision phase • The key study text – covering the syllabus without excessive detail and containing a bank of practice questions for plenty of reinforcement of key topics • A key study guide – guiding you through the study text and helping you revise • An online question bank for additional reinforcement of knowledge • An exam kit – essential for exam preparation and packed with examstandard practice questions • 2 tutor-marked mock exams to be sat during your studies • Key notes - highlighting the key topics in an easy-to-use format Total price: £160.95 ...
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