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of Employment and Environment Paper and PowerPoint You are an accountant at a small accounting firm. One of your clients is looking to open a small river-rafting business. Your client will run the business operations from a mobile home office on a piece of land on the riverbank. Your client must decide the best location to start this business and has asked you to explain the accounting advantages of choosing the best location. Your client is also wondering if the business should build a permanent structure on the land, or use the mobile home they – PowerPoint PPT presentation

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Title: ACC 543 Course Extrordinary Success - snaptutorial.com


1
ACC 543 Course Extrordinary Success -
snaptutorial.com
The Best way to predict the Future is to create
it.....To Best way....
www.snaptutorial.com
2
ACC 543 Course Extrordinary Success -
snaptutorial.com
ACC 543 Aspects of Employment and Environment
Paper and PowerPoint   For more classes
visits www.snaptutorial.com          Aspects of
Employment and Environment Paper and PowerPoint
You are an accountant at a small accounting firm.
One of your clients is looking to open a small
river-rafting business. Your client will run the
business operations from a mobile home office on
a piece of land on the riverbank. Your client
must decide the best
3
ACC 543 Course Extrordinary Success -
snaptutorial.com
ACC 543 Capital Budget Recommendation   For
more classes visits www.snaptutorial.com     Capit
al Budget Recommendation Guillermo Furniture, a
company that manufactures midgrade and high-end
sofas, has just hired you as an accountant. The
owner, Guillermo Navallez, has assigned you the
tasks of determining which decisions provide the
greatest returns. Read the Guillermo Furniture
Scenario and review the Guillermo Furniture Data
Sheets on your student Web site. Enter your name
in cell A3 of the Income
4
ACC 543 Course Extrordinary Success -
snaptutorial.com
ACC 543 Entire Course   For more classes
visits www.snaptutorial.com          ACC 543
Capital Budget Recommendation ACC 543 Aspects of
Employment and Environment Paper and
PowerPoint ACC 543 Exercise 24-1 Net Present
Value/Present Value Index
5
ACC 543 Course Extrordinary Success -
snaptutorial.com
ACC 543 Exercise 15-6B   For more classes
visits www.snaptutorial.com             Exercise
15-6B Fixed versus variable cost behavior
Professional Chairs Corporation produces
ergonomically designed chairs favored by
architects. The company normally produces and
sells from 5,000 to 8,000 chairs per year. The
following cost data apply to various production
activity levels. Required a. Complete the
preceding table by filling in the missing amounts
for the levels of activity shown in the first row
of the table.
6
ACC 543 Course Extrordinary Success -
snaptutorial.com
ACC 543 Exercise 15-12B   For more classes
visits www.snaptutorial.com             Exercise
15-12B Effect of cost structure on projected
profits Logan and Martin compete in the same
market. The following budgeted income statements
illustrate their cost structures. Required a.
Assume that Logan can lure all 80 customers away
from Martin by lowering its sales price to 75
per customer. Reconstruct Logans
7
ACC 543 Course Extrordinary Success -
snaptutorial.com
ACC 543 Exercise 15-17A Identifying Cost
Behavior   For more classes visits www.snaptuto
rial.com             Exercise 15-17A Identifying
Cost Behavior Identify the following costs as
fixed or variable. Costs related to plane trips
between San Diego, California, and Orlando,
Florida, follow. Pilots are paid on a per trip
basis. a. Pilots salaries relative to the number
of trips flown. b. Depreciation relative to the
number of planes in
8
ACC 543 Course Extrordinary Success -
snaptutorial.com
ACC 543 Exercise 16-9A   For more classes
visits www.snaptutorial.com        Exercise 16-9A
Mimosa Corporation expects to incur indirect
overhead costs of 72,000 per month and direct
manufacturing costs of 11 per unit. The expected
production activity for the first four months of
2007 is as follows. Required a. Calculate a
predetermined overhead rate based on the number
of units of product expected to be made during
the first four months of the year. b. Allocate
overhead costs to each month using
9
ACC 543 Course Extrordinary Success -
snaptutorial.com
ACC 543 Exercise 18-17A   For more classes
visits www.snaptutorial.com     Exercise 18-17A
Hamby Company had 250 units of product in its
work in process inventory at the beginning of the
period and started 2,000 additional units during
the period. At the end of the period, 750 units
were in work in process inventory. The ending
work in process inventory was estimated to be 60
percent complete. The cost of work in process
inventory at the beginning of the period was
3,420, and 27,000 of product
10
ACC 543 Course Extrordinary Success -
snaptutorial.com
ACC 543 Exercise 18-17B Process Cost System Cost
of Production Report   For more classes
visits www.snaptutorial.com          rcise
18-17B Process Cost System Cost of Production
Report At the beginning of 2004, Dozier Company
had 1,800 units of product in its work in process
inventory, and it started 19,200 additional units
of product during the year. At the end of the
year, 6,000 units of product were in the work in
process inventory. The ending work in process
inventory was estimated to be 50 percent
complete. The cost of work in process
11
ACC 543 Course Extrordinary Success -
snaptutorial.com
ACC 543 Exercise 19-24A Assessing Simultaneous
Changes in CVP Relationships   For more
classes visits www.snaptutorial.com         Exerci
se 19-24A Assessing Simultaneous Changes in CVP
Relationships Green Shades Inc. (GSI) sells
hammocks variable costs are 75 each, and the
hammocks are sold for 125 each. GSI incurs
250,000 of fixed operating expenses annually.
Required a. Determine the sales volume in units
and dollars required to
12
ACC 543 Course Extrordinary Success -
snaptutorial.com
ACC 543 Exercise 22-6A Using a flexible budget to
accommodate market uncertainty   For more
classes visits www.snaptutorial.com     Exercise
22-6A Using a flexible budget to accommodate
market uncertainty According to its original
plan, Katta Consulting Services Company would
charge its customers for service at 200 per hour
in 2006. The company president expects consulting
services provided to customers to reach 40,000
hours at that rate. The marketing manager,
however, argues that actual results may range
from 35,000 hours to 45,000 hours because of
market uncertainty. Kattas standard variable
cost is 90 per hour, and its standard fixed cost
is 3,000,000.
13
ACC 543 Course Extrordinary Success -
snaptutorial.com
ACC 543 Exercise 24-1 Net Present Value Present
Value Index   For more classes
visits www.snaptutorial.com     Exercise 24-1
Net Present Value/Present Value Index The
management team at Savage Corporation is
evaluating two alternative capital investment
opportunities. The first alternative, modernizing
the companys current machinery, costs 45,000.
Management estimates the modernization project
will reduce annual net
14
ACC 543 Course Extrordinary Success -
snaptutorial.com
ACC 543 Exercise 24-3A Present Value Analysis  
For more classes visits www.snaptutorial.com    
    Exercise 24-3A Present Value Analysis
Ginger Smalley expects to receive a 300,000 cash
benefit when she retires five years from today.
Ms. Smalleys employer has offered an early
retirement incentive by agreeing to pay her
180,000 today if she agrees to retire
immediately. Ms. Smalley desires to earn a rate
of return of 12
15
ACC 543 Course Extrordinary Success -
snaptutorial.com
ACC 543 Exercise 24-4A Determining the present
value of an annuity   For more classes
visits www.snaptutorial.com     Exercise 24-4A
Determining the present value of an annuity The
dean of the School of Social Science is trying to
decide whether to purchase a copy machine to
place in the lobby of the building. The machine
would add to student convenience, but the dean
feels compelled to earn an 8 percent return on
the investment of funds. Estimates of cash
inflows from copy machines that have been placed
in other university buildings indicate that the
copy machine would probably produce incremental
cash inflows of approximately 8,000
16
ACC 543 Course Extrordinary Success -
snaptutorial.com
  ACC 543 Exercise 24-5A Determining net present
value   For more classes visits www.snaptutoria
l.com         Exercise 24-5A Determining net
present value Transit Shuttle Inc. is considering
investing in two new vans that are expected to
generate combined cash inflows of 20,000 per
year. The vans combined purchase price is
65,000. The expected life and salvage value of
each are four years and 15,000, respectively.
Transit Shuttle has an average cost of capital of
14 percent. Required a. Calculate the net present
value of the investment opportunity. b. In
17
ACC 543 Course Extrordinary Success -
snaptutorial.com
ACC 543 Exercise 24-5B Purchase of Popcorn
Machine   For more classes visits www.snaptutor
ial.com           Exercise 24-5B Purchase of
Popcorn Machine Heidi Kahn, manager of the Grand
Music Hall, is considering the opportunity to
expand the companys concession revenues.
Specifically, she is considering whether to
install a popcorn machine. Based on m
18
ACC 543 Course Extrordinary Success -
snaptutorial.com
ACC 543 Exercise 24-6A Determining Net Present
Value   For more classes visits www.snaptutoria
l.com         Exercise 24-6A Determining Net
Present Value Travis Vintor is seeking part-time
employment while he attends school. He is
considering purchasing technical equipment that
will enable him to start a small training
services company that will offer tutorial
services over the Internet. Travis expects demand
for the service to grow rapidly in the first two
years of operation as customers learn about the
availability of the Internet
19
ACC 543 Course Extrordinary Success -
snaptutorial.com
ACC 543 Exercise 24-8A Determining the Internal
Rate of Return   For more classes
visits www.snaptutorial.com         Exercise
24-8A Determining the Internal Rate of Return
Medina Manufacturing Company has an opportunity
to purchase some technologically advanced
equipment that will reduce the companys cash
outflow for operating expenses by 1,280,000 per
year. The cost of the equipment is 6,186,530.56.
Medina expects it to have a 10-year useful life
and a zero salvage value. The company has
established an investment opportunity hurdle rate
of 15 percent and uses the straight-line method
for depreciation. Required a. Calculate the
internal rate of return of the investment
opportunity. b. Indicate whether the investment
opportunity should be accepted.
20
ACC 543 Course Extrordinary Success -
snaptutorial.com
ACC 543 Flexible Budgets Team Paper   For more
classes visits www.snaptutorial.com           Flex
ible Budgets Team Paper Write a paper of no more
than 1,050 words in which you discuss flexible
budgets. Explain the relationship between fixed
and variable costs used in a flexible budget.
Discuss the differences between static and
flexible budgets and how a flexible budget lends
itself to a cost-volume-profit
21
ACC 543 Course Extrordinary Success -
snaptutorial.com
The Best way to predict the Future is to create
it.....To Best way....
www.snaptutorial.com
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