1. Explain the cost-behavior patterns of variable and fixed cost. 

2. Identify examples variable and fixed costs.

3. What is a cost driver? 

4. Identify examples of a cost driver? 

5. What is a relevant range? 

6. What is the relationship between a cost driver and a relevant range?

7. Is financial accounting or management accounting more useful to an operations manager? Explain your answer. 

8. Explain why profits could increase at a faster rate than sales. Be sure to utilize accounting terminology, such as variable costs and fixed costs. in your answer. 

9. Explain what effects automating a production line would have on a company's cost structure using CVP terminology. Identify positive and negative effects of the automation. 

10. What is a hybrid costing system? 

11. What are the advantages of a hybrid system? 

12. What are the two distinct methods of calculating product costs?

13. Compare and contrast the two distinct methods of calculating product costs. 

14. Explain how activity-based costing systems can provide more accurate product costs than traditional cost systems.

15. Do activity-based costing systems always provide more accurate product costs than conventional cost systems? Explain your response. 

16. Explain how traditional cost systems, using a single unit-level cost rate, may distort product costs.

17. Smith and Sons report the year-end information from 2010 as follows: 
Sales (100,000 units) $400,000/$100,000 = $ 4 per unit $400,000
Less: cost of goods sold ($250,000/$400,000= 62.5%) 250,000
Gross profit (150,000/400,000 = 37.5%) 150,000
Operating expenses (includes $10,000 of depreciation)
((110,000 -10,000)/100,000 units = $1.00 per unit) 110,000
Net income (40,000/400,000 = 10%) $ 40,000

Smith and Sons is developing the 2011 budget. In 2011 the company would like to increase selling prices by 20%, and as a result expects a decrease in sales volume of 10%. Cost of goods sold as a percentage of sales is expected to increase to 65%. Other than depreciation, all operating costs are variable as a percentage of total sales. 

Prepare a budgeted income statement for 2011. 

18. Explain the causes of favorable or unfavorable price variances.

19. Explain the causes of favorable or unfavorable efficiency variances.

20. Explain the potential problems that may be encountered in changing from a budget to a cost estimation system? Utilize accounting terminology such as cost drivers, fixed costs, variable costs, cost data, etc. 

21. Discuss the major influences that should be consider in pricing a new product? 

22. Discuss the five stages of capital budgeting. 

23. Discuss the four capital budgeting methods. 

24. Discuss how to determine which four capital budgeting methods to use.

25. Discuss the two capital budgeting methods that use discounted cash flow. 

26. Discuss how to determine which of the two capital budgeting methods to use.

    • 10 years ago
    100% ACCURATE ANSWER RELIABLE A++ TUTORIAL PLAGIARISM FREE PERFECT GUIDE
    NOT RATED

    Purchase the answer to view it

    blurred-text
    • attachment
      cost-behavior_patterns.docx
    • attachment
      8564478.pdf
    • attachment
      sol_17.docx
    • attachment
      8564478.docx