Saturday, February 29, 2020
Accounting Theory Of Mavis Ltd
Allocated fixed overhead†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..... 8.00 Total unit of subassembly†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 30.00 8.Why is the distinction between relevant and non-relevant costs so important for Decision making in Cost and Management Accounting?       9.Equipment to be used in producing the order has a book value of $2,000. The equipment has no other use for Lansing Company. If the order is not accepted, the equipment will be sold for $1,500. If the equipment is used in producing the order, it can be sold in three months for $800. 10.If the special order is accepted, the operations will require some of the storage space in the company’s plant. If the space is used for this purpose, the company will rent storage space temporarily in a nearby warehouse at a cost of $18,000. The building depreciation allocated to the storage space to be used in producing the special order is $12,000. (1.5 marks) 11.If the special order is accepted, it will require a Subassembly. Lansing Camera can purchase the subassembly for $24.00 per unit from an outside supplier or make it for $30.00 per unit. The 330.00 per unit was determined as follows: Allocated fixed overhead†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..... 8.00 Total unit of subassembly†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 30.00 12.Why is the distinction between relevant and non-relevant costs so important for decision making in Cost and Management Accounting? 13.Equipment to be used in producing the order has a book value of $2,000. The equipment has no other use for Lansing Company. If the order is not accepted, the equipment will be sold for $1,500. If the equipment is used in producing the order, it can be sold in three months for $800. 14.If the special order is accepted, the operations will require some of the Storage Space in the Company’s plant. If the space is used for this purpose, the Company will rent storage space temporarily in a nearby warehouse at a cost of $18,000. The building depreciation allocated to the storage space to be used in producing the special order is $12,000. 15.If the special order is accepted, it will require a subassembly. Lansing Camera can purchase the subassembly for $24.00 per unit from an outside supplier or make it for $30.00 per unit. The 330.00 per unit was determined as follows: Allocated fixed overhead†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..... 8.00 Total unit of subassembly†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 30.00                                           16.Why is the distinction between relevant and non-relevant Costs so important for decision making in cost and Management Accounting? 1.Computation of budgeted factory overhead rate for Department Alpha. Budgeted Factory Overhead Rate ($225,000/$180,000)  2.Computation of budgeted factory overhead rate for Department Bet Budgeted Factory Overhead Rate ($180,000/40,000) The total overhead cost of Job 100 is Rs. 78,250/- WN-1: Calculation of factory overhead: 4.It is possible to have different overhead allocation rates. The possible reasons for using different allocation rate by Mavis Ltd. could be to split overhead costs in most appropriate and justifiable manner by using different cost pools. As this approach results in more fine-tuned allocations and costing. As in the above case, department alpha is using direct labour cost for allocation of factory overhead because it could be a labour intensive department and most of the tasks are done by labour. So, using labour cost as allocation rate is more appropriate. Whereas, the department beta could be machine intensive department, an The relevance of each of the following items in computation of the costs of the special order is as follows: 5.The book value of equipment to be used in producing the order of $2,000 is a sunk cost and therefore it is irrelevant for the decision. The relevant cost of the equipment is $ 700, i.e. $1,500 (sale value of equipment now, if the order is not accepted) Less $800 (sale value of equipment after 3 months, after producing the equipment). 6.The $12,000 building depreciation allocated to the storage space to be used in producing the special order is irrelevant that means the company will going to incur it irrespective of the fact whether the special order is accepted or not. So, it is a sunk cost. Further, the relevant cost is $18,000 which the company is going to incur only for the special order, if accepted. 7.The purchasing cost of subassembly is $24 per unit whereas if the company made it in house it will cost $22 calculated as below: Allocated fixed overhead of $8 is irrelevant for the special order as the company will incur this overhead irrespective of the fact whether the special order is accepted or not. So, from above it is clear that, the company should make the subassembly instead of purchasing it from outside. 8.The distinction between relevant and non-relevant costs is determined to ascertain the profitability of different alternatives available with the management. There are some costs which remain the same irrespective of the alternative chosen, these costs are irrelevant costs and hence are ignored while decision making, while the costs which changes or have impact on alternative chosen are treated as relevant costs. For ex, for the decision of making a particular product in house or purchasing it from outside, there may be come costs which the company has to incur in both the alternatives, is treated as irrelevant costs. 9.Calculation of Unit Contribution Margin Unit Contribution Margin            =            Sales – Variable Cost                                                                =            $5,595 – $899-$233                                                                =            $4,463 10.Calculation of breakeven point in units Breakeven Point                              =            Fixed Cost / Unit contribution Margin                                                                =            $2,352,000/$4,463                                                                =            527 units Calculation of breakeven point in dollars Breakeven Point                              =            Fixed Cost / Unit Contribution Margin * Sales Price                                                                =            $2,352,000/$4,463 * $5,595 11.Desired level of sales if the company plans to increase fixed costs by 5 percent and achieve a desired before-tax profit of $200,000 is 598 units amounting to $3,345,810 calculated as follows: Current Fixed costs                                                        =            $2,352,000 Proposed Fixed Costs (2,352,000*105%)                               =            $2,469,600 Desired Profit                                                                   =            $ 200,000 Total Contribution Margin                                           =            $2,669,600 Units to be sold (2,669,600/4,463)                           =            598 Sales value (598*5,595)                                                =            $3,345,810 12.If the company’s income tax rate is 22 per cent, then 570 units (Sales value 3,189,649) are required to be sold to achieve an after-tax profit of $150,000. Managers uses break even analysis to determine the point of sales or the number of units required to be sold to recover all the costs incurred, meaning thereby to determine the level of sales where the company is having no profit or no loss. Thus, it also helps management in decision making. 13.Calculation of Contribution margin per unit of service Charges per night           =            $50 Variable expense            =            $20 Contribution                     =            $30 14.Calculation of Contribution-margin ratio Contribution Margin Ratio          =            contribution margin / sales                                                                =            $30/$50                                                                =            60% 15.Calculation of annual break-even point in units of service and in dollars of service revenue Annual break-even point in units ($42,000/$30) Annual break-even point in dollars of service revenue ($42,000/60%)
Thursday, February 13, 2020
Operations Management Research Paper Example | Topics and Well Written Essays - 2250 words
Operations Management - Research Paper Example Development of models attributed to numerous development cycle models exists and are developed to attain a range of goals. The process of choosing these models is immensely attributed to the eventual impact on the testing, which is done. In addition, it will define the techniques to be applied. Some of the software development models include RAD, Agile, Iterative and V models among others. In the case of regulation of the quality of assurance approaches, the software development cycle (SDLC) has distinctive features such as corrective measures, which defines the manner in which quality assurance should be implemented. The Plan-Do-Check-Act (PDCA) cycle is attributed to the repeated and continuous improvement of the quality assurance. This cycle is also called the Deming circle. It is imperative to note that, the application of the PDCA has proved to be more convenient and effective when compared to the adoption and use of â€Å"the right first-time†approach. It is justifiable that, the use of the PDCA cycle implies a continuous search for better approaches to improvement. The cycle is effectual in performing any kind of work and in managing programs. This cycle offers both permanent and temporary corrective actions (ALAN, 2013). For instance, the temporary action practically tackles and fixes the problem with the aim of attaining results (IEEE INTERNATIONAL CONFERENCE ON INDUSTRIAL ENGINEERING AND ENGINEERING MANAGEMENT, ERSHI, JIANG, AND RUNLIANG, 2013).
Saturday, February 1, 2020
Steategic management- ADOBE Research Paper Example | Topics and Well Written Essays - 1750 words
Steategic management- ADOBE - Research Paper Example The company has a well defined corporate strategic management base employing some of the best skills circling basic the realms of corporate resources. This paper purports to explore the basic concepts that Adobe utilizes through marketing, financial strategies, Research and Development, Human Resource Management, Information Technology and Operation and Logistics, evaluating which of them is most competent to the business and how they are relevant to the future of the business. It also looks into the viable internal factors that management can outsource to other companies, while looking at the future of the business and its ability to remain relevant in a diversifying and competing business environment (Morden, 398). As a research driven company, Adobe researchers strive to remain on their toes in order to remain relevant in the ever changing information technology world. Researchers ensure to create the best innovations for clients. To make this doable, the company employs passionate individuals, who remain committed leaders and trustworthy to the creativity process. The company ensures that the innovators get the support they need and gives them the freedom to roam around their ideas. Additionally, the company holds collaborative projects with other companies as well as universities. The universities’ Information Technology Faculties are important because in order to advance to the future, technological advancement is core especially in the Information Systems and Technology techniques, which is the main focus of Adobe Company. Adobe’s inter-faculty relationship strategies between IT and engineering in collaborating universities make the research and development practice sharp ed ged. Consequently, the company provides some of the best software in the market like Content-Aware Fill in Photoshop CS5. It also invests heavily in employing PhD researchers who provide radical innovations for the company’s
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