HARVARD BUSINESS I SCHOOL 9 - 10 1-09 2 REV: AUGUST S, 2003 ROBERT S. KAPL AN Wilkerson Cotnpany The decline in our profits has become intolerable. The severe p rice cutting in pumps has dropped ou r pre-tax margin to less than 3%, far below our historicallO margins. Fortunately, % our competitors are overlooking the opportunities for profit in flow controllers. Our recent 10% price increase in tha t line has been implemented without losing any business. Robert Parker, presiden
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For the exclusive use of J. Wang, 2016. 9-101-092 REV: AUGUST 5, 2003 ROBERT S. KAPLAN Wilkerson Company The decline in our profits has become intolerable. The severe price cutting in pumps has dropped our pre-tax margin to less than 3%, far below our historical 10% margins. Fortunately, our competitors are overlooking the opportunities for profit in flow controllers. Our recent 10% price increase in that line has been implemented without losing any business. Robert Parker, president
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the entire year. Carrying cost is $1 per wheel a year. Set up cost for a production run of wheels is $45. The firm operates 240 days per year. Determine the following: 1. Optimal run size -2400 2. Minimum total annual cost for carrying and set-up ….$1,800 3. Cycle time for the optimal run size……12days 4. Run time…….3days 2. The maintenance department of a large hospital uses about 816 cases of liquid cleanser annually. Ordering costs are $12, carrying costs are $4 per case a year,
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provide a detailed product or service cost analysis for the company/business of your choice. Since MODCOS1 tackles about job order costing system, make sure that the company you choose is using a job order costing system. Please ensure that the business is registered with the respective government offices. You are to provide a picture/photocopy of the certificate that the business/company is indeed registered (part of attachments section). Project Title: Cost Analysis of (Product/Service): A Case
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XIAO ZHANG Assignment: 1. Use the information in case Exhibits 1 and 2 and other necessary data in the case on activities and costs to develop an activity-based cost system for JBI to use to determine customer profitability. Use this system to estimate customer profitability for Saver Superstore, Oscar’s OddLots, Midwellen Supermarket, and Downtown Retail. * Answer: * Product handling allocation
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Management accounting is not new in any sense of the world. The origins of modern management accounting can be traced to the emergence of managed, hierarchical enterprises in the early nineteenth century (Johnson and Kaplan, 1987) [2]. The Industrial Revolution in the early nineteenth century resulted in the emergence of a factory system that dramatically changed the production process (Ashton, D., Hopper, T. and Scapens, R.W. 1991) [3]. This has created a new demand for accounting information. Market
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Method 1 FIFO Method of Process Costing In this supplement to Managerial Accounting we will illustrate the first-in, first-out (FIFO) method of process costing using the data for MVP Sports Equipment Company, which was given in Exhibit 4–4 in Chapter 4 of the text. Unlike the weighted-average method, the FIFO method does not commingle costs from two or more accounting periods. As the illustration will show, the costs from each period are treated separately. Step 1: Analysis of Physical Flow of
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CASE BETA COMPANY SYNOPSIS Beta Company produces two Product A and B and standard costs of each product were predetermined by management. During November actual production for Product A was 4,200 units while Product B was 3,600 units. For material X, 39,000 pounds were purchased at $14.40 and for material Y, 11,000 pounds were purchased at $9.70. Variance analysis for actual cost versus standard cost should be prepared for the said month to be able to measure results of operations, which may
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1. Question : (TCO A) Managerial accounting provides all of the following EXCEPT _____. Student Answer: future-oriented information a balance sheet prepared in accordance with GAAP internal reports that don't follow GAAP financial and nonfinancial reports on departments Instructor Explanation: Chapter 1, page 4 Points Received: 6 of 6 Comments: 2. Question : (TCO A) Borders Books is an example of a Student Answer: manufacturing-sector
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Managerial accounting is different from cost accounting in that it takes into account more than the cost of the perpetual inventory system; it also has to make decisions based on the needs of the whole company. Cost accounting deals with the process of tracking recording and analyzing costs that are associated with a company’s product or project. As an internal manager, they are the ones that normally use the cost accounting information. Direct costs, indirect costs and overhead costs are what
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