ACC 400

Cost-Volume-Profit Relationship

3 Other / Other ashford university / ACC 400 29 Apr 2015

Complete the following activities from the Financial & Managerial Accounting textbook: E25.4 Sapsora Company uses ROI to measure the performance of its operating divisions and to reward division managers. A summary of the annual reports from two divisions is shown below. The company’s weighted-average cost of capital is 12 percent. Division A Division B Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10 Other / Other ashford university / ACC 400 29 Apr 2015

BE. 23.6 Identify the budgets in Column B from which dollar amounts are transferred directly in constructing the budgets listed in Column A. Column A Column B 1. Budgeted income statement 2. Budgeted balance sheet 3. Cash flow budget 4. Cost of goods sold budget 5. Production budget a. Direct materials budget b. Cost of goods sold budget c. Production budget d. Payables budget e. Sales budget f. Budgeted income statement EXERCISE

10 Other / Other ashford university / ACC 400 29 Apr 2015

E20.1 Listed below are nine technical accounting terms introduced in this chapter: Variable costs Relevant range Contribution margin Break-even point Fixed costs Semivariable costs Economies of scale Sales mix Unit contribution margin Each of the following statements may (or may not) describe one of these technical terms. For each statement, indicate the accounting term described, or answer “None” if the statement does not corre

10 Other / Other ashford university / ACC 400 29 Apr 2015

BRIEF EXERCISE 16.9 Prime vs. Conversion Costs Star Repairs Co. does all the repair work for a medium-sized manufacturer of handheld computer games. The games are sent directly to Star, and after the games are repaired, Star bills the game manufacturer for cost plus a 20 percent markup. In the month of February, purchases of parts (replacement parts) by Star amounted to $97,000, the beginning inventory of parts was $38,500, and the ending i

10 Other / Other ashford university / ACC 400 28 Apr 2015