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Variable Costing

5 pages (1250 words)
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... FINANCE AND ACCOUNTING Basic ideas about cost behavior Cost behavior is mainly divided into three i.e. the fixed, variable and mixed costs. Cost behavior is the change in cost in relation to the level of activity changes. The total variable cost normally changes as the activity level changes, while per unit, the variable cost per unit will normally remain the equal over a wider range of activity. Fixed cost will always remain the same when the activity level changes while fixed cost per unit decreases with an increase in the activity level (Hansen, et, al 2006) Mixed cost, have both the component of variable and fixed costs. Product cost versus period cost Also known as inventorial costs, product...

Variable costing

4 pages (1000 words)
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... OF CONTENTS Executive summary 2 Assumptions of marginal costing 3 Uses of marginal costing in short term decision making 3 Types of costing methods 4 Marginal costing absorption method 5 Advantages of Marginal Costing over Absorption Costing 6 Recommendation 7 Conclusion 7 Costing is one of the managerial accounting functions which needs a careful selection and evaluation of the effectiveness of every technique used by a firm. Despite the various methods of pricing a firm based on its industry should select the most effective method to the firm. Costing is the main function in every firm, the rational being every firm exists in its industry with the main aim as profit making. References 8 VARIABLE...

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The Independent Variable and Dependent Variable

3 pages (750 words)
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Free

... Research The initial step of a research process is identifying a topic in line with the research Polonsky and Waller (3) identify a research as a detailed study undertaken to discover new information and reach a new understanding. The main significance of a research topic is in the defining of e path to assist in pursuing the truth about an idea of the subject on research (Hair et al. 3). The topic we identify in our case is the effect of various activities of British American Tobacco (B.A.T) on the health of Kenyan citizens. These activities could include cigarette manufacturing, advertisement of their products, marketing and promotions. In Kenya, B.A.T is one of the companies with the greatest...

Variable Selection

1 pages (250 words)

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... selection Variable selection Bruce Ratner prefers forward and backward selection because they are better selection methods as opposed to stepwise. Bruce Ratner views stepwise selection as being far too narrow in yielding confidence and will not produce good results if used when the data has redundant predictors. This is opposed to forward and backward selection which are very efficient in such situations and many others (Bruce, 2011). Many other people do not share the same opinion as Bruce Ratner: many computer data analysts find stepwise selection to be very efficient and good to use. They prefer when the stepwise selection method is used in the algorithm of data analysis programs such as SAS and...

Mock Variable

2 pages (500 words)

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... variable: Variables February 26, Mock variable: Variables The study, based on background knowledge of the role of leadership and leadership style (Graham, Ziegert, and Capitano, 2015; Aragon-Correa, Garcia-Morales, and Cordon-Pozo, 2007; Liden, Wayne, Liao, and Meuser, 2014), seeks to investigate effects of leadership style and leadership potential on productivity of sales consultants at AT&T. The hypothesis that difference in productivity level exist across different leadership types and leadership potentials of the consultants and their supervisors is tested. This section discuses the study’s variables and focuses on variable definition, variable measure, and descriptive statistics for the...

Variable Overhead Variance

2 pages (500 words)
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... Teva sandals a company which sells sandals for water sports has undertaken variance analysis to achieve the profits planned while controlling the manufacturing overheads spending. Hence,
1. Variable overhead analysis for spending and efficiency,
2. Meaning and possible causes of such variances,
3. Explanation to the management and
4. Conclusion is considered to arrive at a solution.
Variable overhead analysis for spending and efficiency
Variable overhead spending variance = (Actual Machine Hours x Flexible budget Rate/hour) - Actual resultant overhead.
Actual Machine Hours = 67,500 (given), Standard rate/ hour = $30 (given) &
Actual resultant overhead = $1,950,000 (given).
Variable overhead spending...

Variable and Fixed Costs

2 pages (500 words)

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... Margin Income ment Following is the contribution income ment of Herrested Company for the year ending December 31, In this income statement, all the variable costs are first deducted from total sales to get a contribution margin figure. After that, all the fixed expenses are then deducted from contribution margin figure to reach at the net income figure. In year 2011, Herrested Company earned contribution margin of $60 per unit or $480,000 in total with the net income of $180,000.
Herrested Company
Contribution Margin Income Statement
For the period ending December 31, 2011
per unit
No. of units sold
Total
Sales
250
8,000
2,000,000
Variable Cost
Direct Material
100
Direct Labor
50
...

Variable pay scheme

2 pages (500 words)
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... Pay Programme By + Introduction Variable pay is bonuses rewarded to employees by employers for achieving certain set goals in an organization. This pay is given depending on individual or groups performance. Variable pay provides a tangible reward for employees and encourages them to work hard and more efficient. Variable pay is given in a number of way. It includes annual incentives, individual incentives, gaining shares, and payments for newly acquired knowledge and skills.
Variable pay in an organisation is used to motivate employees to perform effective in their line of work. This is a type of incentive to workers (Belcher, 2006).
In recent time variable cost should be critically understood be...

Two-Variable Inequality

2 pages (500 words)

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... variable Inequalities Two variable Inequalities Introduction: Two variable inequalities de equations with two variables. The equations often take the form of ax + by = c, where a, b and c are real numbers and b and a represent values that cannot be zero simultaneously. This often presents a straight line and is thus a two variable linear inequality (Boyd, Laurent & Eric, 1994).
Problem: Ozark Furniture Company can obtain at most 3000 board feet of maple lumber for making its classic and modern maple rocking chairs. A classic maple rocker requires 15 board feet of maple, and a modern rocker requires 12 board feet of maple. Write an inequality that limits the possible number of maple rockers of e...

Fixed and Variable Costs

2 pages (500 words)

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... 3 DQ's Fixed cost is that cost that does not change significantly with the change in the level of activity. Examples of fixed cost include interest expense, salaries and expenses of the employees or executives, property taxes and insurance protection.
Variable cost is that cost that cost which changes with the change in the level of activity. For example if the company is producing more aero planes then more amount of raw material will be required to make the planes (Leslie 1993). Examples of variable cost include raw material, labor cost.
There are some costs which include both the fixed and variable element in it and are referred to as semi variable costs. Examples of semi variable costs include el...

Variable and Fixed Costs

2 pages (500 words)
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... head: VARIABLE AND FIXED COSTS Variable and Fixed Costs (Course Name)
29th November 2012
Variable and Fixed Costs
Absorption income statement entails the use of all costs by a manufacturing concern to produce the products. This implies that the prices of every unit produced by a firm include direct materials, direct labor, as well fixed and variable overheads. Key examples of costs that are covered under the absorption income statement include wages to salaries, overheads costs and the raw materials used in the production facility. On the other hand, variable income statement organizes costs incurred by business by their behavior. Additionally, it indicates the relationship existing between fixed cos...

Quantitative Communication Research Variable

2 pages (500 words)

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... Communication Research Variable I have chosen four different variables - Experience doing something, Logical appeals, Grade point average, and Interaction.
1. "Experience doing something"
Transformed to "experience in a particular business field" is an independent variable in the following hypothesis: "Speakers, who have ten or more years of experience in a particular business field, integrate parts of their previously conducted business-related speeches into the new texts more often than speakers who have less than ten years of experience in given field."
In the form of "experience delivering public speeches" it is a dependent variable in the statement: "Students, who took creative writing and rheto...

Two-Variable Inequality

2 pages (500 words)

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... Module: Introduction Symbols less than or greater than are used to represent the inequality equation. It entails forming an equation derived from a given task and thereby using it to solve for mathematical problems. Inequality can be represented on the graph and used obtain solutions of the inequality. The required region must first be identified and shaded. The shaded part satisfies the equation of the inequality.
Problem solution
1. Problem 46
Maple rockers. Ozark Furniture Company can obtain at most 3000 board feet of maple lumber for making its classic and modern maple rocking chairs. A classic maple rocker requires 15 board feet of maple, and a modern rocker requires 12 board feet of maple. Writ...

Variable and Fixed Costs

2 pages (500 words)

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... and Fixed Costs Part I Financial accounting mainly focuses on financial ments that distributed to financial analysis, lenders, stakeholders and others that are outside the company. On the other hand, financial accounting courses covers general principles of accounting that are generally acceptable. These are principles that must be followed in reporting a corporations’ past transaction results on its income statement, balance sheet, cash flows’ statement, and statements showing changes in the equity of shareholders. On the other hand, managerial accounting focuses on providing information that is essential and is found within the company so that the management of the company can use that information ...

Variable and Fixed Costs slp

3 pages (750 words)

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... Income ments and Break-Even Points of Herrestand Company Contribution income ment For the period ended 31, 2011
Sales $2,000,000
Less Variable cost
Direct materials 800,000
Direct labor 400,000
Variable overhead 240,000
Variable selling and administrative 80,000 1,520,000
Contribution margin ...

Variable Costing and Samanta Shoes

1 pages (250 words)

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... Variable Costing and Samanta Shoes There are different types of costs that will explain the wide range of the shoe selling prices. Production costs are influenced by the range in the prices of materials. If the materials cost are high, the prices per pair will increase, therefore explaining the range in prices in the different shoe pairs.
Labor costs are directly proportional to production costs. Increase in the availability of workers will lead to a decrease in labor costs; hence production costs. Lower labor costs will lead to a decrease in shoe prices. The amount of labor will, therefore, influence the price of each pair explaining the disparity in shoe prices.
Transportation costs are directly pr...

Full Costing and Variable Costing

8 pages (2000 words)
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... Costing and Variable Costing Contents Full Costing and Variable Costing Instructor 1 Date 1 Contents 2 Executive Summary 3 Main Findings 4 Direct Costs 5 Indirect Costs 6 Full Costing 6 Variable Costing 7 Summary of Full Costing and Variable Costing Components 8 Making a choice between the two 9 Conclusion and Recommendations 10 References 12 Accounting for Management, 2011. Advantages and Disadvantages of Absorption Costing System. [online] Available at < http://www.accountingformanagement.com/advantages_and_disadvantages_of_absorption_costing.htm > [Accessed 25 December 2011] 12 Charles T. Horngren, Srikant M. Datar, George Foster, 2007. Cost Accounting: A 12 Managerial Emphasis. 12th ed. Prentice ...

Absorption Costing versus Variable Costing

6 pages (1500 words)

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... Costing versus Variable Costing Introduction Absorption and variable costing are one of the important costing techniques which facilitatean organization to allocate organizational expenses against revenues and determine profits. Both the techniques follow different processes. Absorption costing is however considered to be more appropriate than variable costing as it is recognized by GAAP. The absorption costing technique is more favourable as the profits estimated under this system are more accurate. Variable costing is seen to inflate expenses and reduce the level of profits. Both the methods are usually adopted to analyse the organizational efficiency and to estimate the expenses incurred under...

Two Variable Inequalities

2 pages (500 words)

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... Two variable inequalities al affiliations Two variable inequalities a) The wanted or shaded region which gives the solution to the inequality is bound by the x-axis, y-axis and a solid line. The solid line implies that the ‘equals’ part constitutes the linear inequality. A linear inequality divides the coordinate plane into two halves, where one half gives the solution to the inequality. This is the case for our problem. The boundary line is usually solid for ≥ or ≤ and dashed for > or < The range of points that will satisfy the inequality or for which the inequality is true falls within the shaded area as well as along the solid line. In writing the equality describing the region, we first of all ...

CASE 3- Variable and Fixed Costs

3 pages (750 words)

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... and Fixed Costs The paper below approaches to explain the differences between variable and fixed costs. It also evaluates and explains the different approaches (absorption costing approach and variable costing approach) of making income statements under cost and management accounting concepts. And what is the use of each of the explained approaches. Further the concept of breakeven points is explained, the method to come to the breakeven point is also explained and the purpose of calculating breakeven point is discussed in the following paper.
Variable and Fixed Costs
Absorption and Variable Costing Systems and Their Effects on the Income of a Company
Absorption costing approach refers to the costing...

Two- Variable Inequalities

2 pages (500 words)

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... Two-Variable Inequality Problem ment -- Shipping Restrictions. The accompanying graph shows all of the possibilities for the number of refrigerators and the number of TVs that will fit into an 18-wheeler.
Solution
(a) To be able to write a linear inequality describing the region shown, consider the corner points (0, 330) and (110, 0) and use these points to come up with a linear equation. Since slope must be determined first, then slope would be (0 - 330) / (110 - 0) which equals -3. Through the point-slope formula, the value of the slope as well as the coordinates of one of the points (0, 330) may be plugged into y - y1 = m(x - x1) to give y - 330 = -3(x - 0) which i...

Loans. Variable interest and fixed interest loans

3 pages (750 words)

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... There are many reasons why comparable short term loans have various degrees of risk. One of the primary reasons is the existence of variable termloans. A variable interest loan can change in payment on a monthly basis based on the current interest rate in the marketplace. Fixed loans are much different because these loans have a fix payment rate until maturity. A secondary reason why short term loans have different levels of risk is due to credit history of the individual or business entity. People that have excellent credit pay less than people that have bad credit. The reason people with bad credit pay more on short term loans is because they represent a high risk. A third reason why the terms of...

Variable pay strategy and program for an online retailer

4 pages (1000 words)
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... VARIABLE PAY Introduction This is a significant component of directly compensating packages of the tedious growing organizational sector. This technique is to frequently use variable pay, increasing prominence, and expanded eligibility of variable pay while dealing with the package of direct total compensation. Variable pay can be defined as a form of direct compensation which does not become part of ground/base pay or salary and which varies depending with the periods. Other terms that may be used to refer to variable pay are incentives compensation, commissions, incentives, cash award, lump sums, and bonuses among others. Variable pay can at times be long termed (more than a year) while at times...

The difference between concepts of Absorption costing and Variable Costing

9 pages (2250 words)
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... MANAGEMENT ACCOUNTING PART To understand the different concepts of Absorption costing and Variable Costing, it is essential to know and understand about the various types of costs that are a part of the total costing process. Such concepts comprise of: Operating Gearing Operational gearing is the total impact of fixed costs that is laid on the link between the sales and the profit incurred. Operational gearing is increased when the fixed costs are augmented. To understand the concept better, a simple example is described underneath: Company X Company Y Sales 2,000,000 2,000,000 Variable Costs 7,00,000 800,000 Fixed Costs 200,000 100,000 Operating profit 11,00,000 11,00,000 The above example states ...

Full costing versus variable costing: Does the choice still matter

7 pages (1750 words)

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... costing versus variable costing: Does the choice still matter Introduction The evaluation of the needs of organizations in terms of the funding of their activities is a challenging task. Expenses in regard to the various phases of organizational processes may be differentiated under the influence of market turbulences and the organization’s internal environment. Two major costing approaches have been developed for ensuring the accurate measurement of costs of products in organizations operating in different industrial sectors: the full costing, also known as absorption costing, and the variable costing. Both these approaches are based on different criteria for evaluating the cost of products, as...

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