Essays on Selling Price

Two distinct set of financial reports are used in managing a company, one made by Financial Accountants and the other by Managerial Accountants. These reports are aimed at the company’s external stakeholders such as investors and creditors and are prepared for each quarter and at the end of the financial year and. The format and content of these reports are laid down in laws such as the SOX (Sarbanes- Oxley) Act and in accounting regulations such as the GAAP (Generally Accepted Accounting Principles) and the IFRS (International Financial Reporting Standards). Financial reports become comparable across companies. Managerial accounting ...

Introduction

This term paper is completed to show the understanding of the statistics and to demonstrate the application of probability theory to a real world problem. The aim of this research project is to pick a data set that most closely ties my chosen field and perform statistical procedures such as descriptive statistics and statistical inference using the selected data. Since my field lies in the area of sales, real estate and business administration, I selected the Goodyear Arizona Real Estate Sales Data. The main research question I will investigate in this paper is: what are the factors that have ...

Value Chain

The objective of analyzing Monster’s value chain is to make a product that will become popular to its customers, which includes not only the production segment but also marketing and distribution (Horngren and Data, 2015). This is because products will eventually need to be discontinued due to changing customer preferences and product innovation from competitors. This means that the company’s core operations and its products must continuously evolve and this could be done using the value chain analysis tool. For an energy drink company like Monster, one of its main goals is to continuously adapt to the ...

Introduction

Legal Documents/Agreements for day to day Management of New Business Venture One of the documents that would be needed for the day-to-day management is the article of incorporation. It enbles the ownwers to be successful in starting the business. A key mistake that start-up owners make is the failure to provide an appropriate structure. It can be understood by the fact that if the company’s ownwers do not identify an appropriate legal structure, it can lead to high level taxes and legal liabilities. Hence, the companies should fill with the Internal Revenue Service to develop a specific legal ...

Cost structure

Monster Beverage Corporation is a manufacturer and distributor of energy drinks. The cost structure of the company consists of both fixed and variable costs. The unit price for a can of Monster Energy drink sells at an average price of $7.90.

Variable costs

Monster’s variable costs include the cost of concentrates and beverage bases, the cost of raw materials, re-packing costs and co-packing costs. The company’s raw materials include cans, flavours, containers, bottles, packing materials and ingredients. The table below indicates each of the variable cost items and the respective costs per can of Monster’s Energy Drink.

Contribution margin

Contribution ...

1. Factors likely to affect the demand for the line of Washburn guitars Various factors tend to influence the demand for any product. However, the factor in play may depend on the kind of customer for the product and the nature of the product (Boundless n.p). If the product is to be sold to the first time buyer, the demand- determinant factors may be different for a customer demanding for a unique product. The common factors likely to affect the demand for Washburn guitars when bought by first-time buyers include prices of the guitars and the income of the ...

A business company always has maximizing of profits on top of its priorities; utilizing minimal resources, operating at minimal costs and increasing the returns. According to Trench (2001), target costing is a business accounting approach where a set desired profit margin subtracts from a competitive price in the market; while the quality and functionality of this particular product maintain, the company ensures achievement of the profit you want at the end of the period. A target cost is, therefore, the maximum cost that a company can incur as expenses in the production of a product but still maintain the ...

Tax policy is the choice that the government makes on the amount of tax to charge on a product, to what amount as well as the people to pay it (Pechman 23). This discussion will focus on tax policy on tobacco products. According to Centers for Disease Control and Prevention posted in 2014, an estimate of forty million of United States adults smoke tobacco and its products (Retrieved from http://www.cdc.gov/tobacco/data_statistics/fact_sheets/adult_data/cig_smoking/). With this large number of tobacco smokers, the US government can implement a tax policy that would favor both them as well as the users. While implementing the tax ...

BEP and CVP Analysis.

1. Scenario #1 – New Wing Rental. In order to determine the break-even number of knee replacements, the Finance Director should do several calculations. First he needs to determine the total variable cost. They are equal to $12 500 ($9 500 Supplies + $3 000 sales costs per knee). Knowing the selling price of one knee replacement ($17 000), the Finance Director can now calculate the contribution margin. In order to do that, he needs to subtract total variable costs from the selling price. The contribution margin is $ 4 500 ($17 000 – 12 500). This is the amount that can be ...

MANAGEMENT ACCOUNTING REPORT

Introduction This report covers budgeting, break-even analysis, and the analysis of make-or-buy decision. The budgeting details the purpose of a budget and the importance of involving staff in developing a budget. The report contains a direct material purchase budget (in units and in dollars), a direct labor budget (in hours and in dollars), and a manufacturing overhead budget. The break-even analysis compares the hammer division break-even point locally and in Myanmar. The break-even analysis indicates that the business will have a lower break-even point if they shift the hammer division to Myanmar because of lower fixed costs and reduced ...

IPhone Apps’ Price Effect on iPhone Marketing

The price of complements is among the things that affect the overall demand for a commodity. Admittedly, people value an item based on its durability, features, and cost. Having this in mind, it is possible to figure out the difficulties in marketing the iPhone gadgets based on the apps’ cost. IPhone itself is more expensive than Android phones and still most of the apps’ on its store are for sale, and one cannot access the full versions without coughing out some bucks. Many users might be attracted to the great features of the phone but being driven away with ...

Activity Based Costing and Process Costing

Contribution margin per unit: Formula = selling price per haircut – total variable cost per haircut Selling price per haircut = $12 Variable cost per haircut = $0.40 Contribution margin per haircut = $12 - $0.40 = $11.60 per haircut

Discussion:

The contribution per unit is $11.60 per haircut, which means that the every haircut is $11.60 towards the profits of the business. Moreover, the portion of fixed cost is very high as compared to the variable costs.

Annual breakeven point in terms of haircuts:

Breakeven point formula = Total fixed cost for the year / Contribution per haircut Labor cost per year = 5 barbers x 40 hours x50 weeks x $9.90 = $99,000 ...

PERSONAL FINANCE INVESTMENT IN QATAR: INVESTING QR 1000000

Abstract This article describes a personal finance project which entails the investment of QR 1000000 in a short time frame, from 1 March to 27 May 2016. We first define personal finance and establish the five steps of a personal financial planning process, which entails: (1) assessment of the individual’s financial situation; (2) determination of the individual’s financial goals; (3) creation and details of the financial plan, based upon the determined goals; (4) execution of the aforementioned plan; (5) monitoring and reassessment of the plan. For each one of the five stages, we carry out the required ...

Management Accounting

Step 1: Question 1: The total variable cost for the company comprises of manufacturing costs and sales and administrative cost. Accounting both, the total variable costs for the firm was calculated at $10 per unit

Question 2:

The total production costs for any organization is bifurcated as fixed costs and variable costs. Important to note, while the variable costs and output carry a direct and proportional relationship, fixed cost is not related to output level and remains constant throughout. In other words, while the variable costs increase in proportion to the increase in output level, fixed cost does not change and ...

Process costing is a system used by manufacturing businesses to determine the cost of their products in an operation that produces large quantities of the same product. The management can determine which section of the operation is making the business incur huge production losses that may affect the final selling price of the product. Chewing gum production at Wrigley is a type of business that employs the process costing method (Anderson, 2009). Right from the mixing of the chewing gum ingredients at the mixing section to the sheeting of the gum loaves into pellets the process is monitored and ...

Business

2016-03-24 The current paper is devoted to the company Samsung Electronics and its functioning in the 1990s-2000s. Samsung Electronics Company is a part of the Samsung Group that it the largest conglomerate in South Korea (Official Site of Samsung, 2016). The main business directions of the Samsung Group were electronics, trade and services, finance. There were five directions of Samsung Electronics at those years. One of them is the Semiconductor Business. Let’s analyze this sector and its competitive environment in the 1990s-2000s in more detail, analyze data and evaluate the advantages of Samsung Electronics (Ellet, 2007).

Chinese Firms on the Market of Semiconductor Products

A lot ...

Task 1

Explain the nature and role of accounts. You need to also explain why James and Rebecca need to produce accounting information in order to make financial decisions.

Answer

Accounting is the process of identifying, measuring and reporting economic information to the owners of business and all interested parties (Joel, 2008). Business transactions have financial implication on a business in both short term and long term (Frank & Allan, 2005). Some of the transactions are sale or purchases of fixed assets or current assets, paying of business expenses, and settling current liabilities among other business transactions. Accounting involves identifying, measuring and reporting ...

Question 1

Residual income (RI) is calculated as the difference between the operating income and the minimum return on the assets. RI = Accounting income – (min rate of return (%) × average operating assets). If RI > 0, then the company is earning more than the hurdle rate (minimum rate of return), thus the proposed project is desirable. Value Added (EVA) is a special case of RI, calculated as the difference between net income (operating income after tax) and the cost of capital per annum. Therefore, unlike RI, EVA calculates the actual cost of capital, instead of the minimum rate of return and considers after-tax ...