Participation Exercise #7: - Assignment Example

Comments (0) Cite this document
In development of business profits basing on the selling prices and the costs incurred, some products may affect the company’s profitability dragging it further due to their failure to surpass their costs and provide profits. The consideration of these unproductive parts of…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER96.4% of users find it useful
Participation Exercise #7:
Read TextPreview

Extract of sample "Participation Exercise #7:"

Participation Exercise #7 In development of business profits basing on the selling prices and the costs incurred, some products may affect the company’s profitability dragging it further due to their failure to surpass their costs and provide profits. The consideration of these unproductive parts of the business leads to determination of segment effects that the company suffers hence warranting a deep analysis to eliminate the challenge and improve on the performance of the company. The failure of the segments to provide the necessary profits originates from the untraceable costs existing also known as common fixed costs (Rawes). These costs drive the segments into a negative and leading to the decision to rid the company of the segments. Based on these, it’s viable to define “common” fixed costs as those costs that prove untraceable to specific segments and their allocation portrays the segment as unprofitable. It is viable to eliminate the common costs from their allocation to the segments to provide it with the necessary profitability.
Considering a company as Mazda, one discovers that the company eliminated the economy trucks from their product line. The economy trucks seem to have provided a negative segment margin that the company found no need to maintain. The major challenge with many companies is the challenge of identifying the major cause of the negative segment margin. Many make decisions deciding on the elimination of the segment based on the identification of the common fixed costs. A critical consideration of the possible reasons and approaches that the company may employ to improve the segment before its elimination proves vital.
Work cited:
Rawes, E.M. The Definition of “Traceable Costs” Demand Media. Chron. Viewed on May 08, 2015 from Read More
Cite this document
  • APA
  • MLA
(“Participation Exercise #7: Assignment Example | Topics and Well Written Essays - 250 words”, n.d.)
Participation Exercise #7: Assignment Example | Topics and Well Written Essays - 250 words. Retrieved from
(Participation Exercise #7: Assignment Example | Topics and Well Written Essays - 250 Words)
Participation Exercise #7: Assignment Example | Topics and Well Written Essays - 250 Words.
“Participation Exercise #7: Assignment Example | Topics and Well Written Essays - 250 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Participation Exercise #7:

Discussion Questions 1-6 participation 7-

...with outsourcing is quality control. 6. An industry in which “mother nature” can influence the demand and supply of the product is in the agricultural industry. A hurricane or storm can wipe out a lot of crops. When this occurs the supply of the product is lower thus the price of the good goes up. Other factors such as bug infestation can lower the amount of crop produced. In the agricultural industry when there is too much of certain produce in the market such as too many tomatoes the price of the food item goes down. 7. Your situation is similar to what occurred to the retired people receiving social security this year. There was a cero increase in social security benefit this year. Almost every year social...
4 Pages(1000 words)Essay

How to Write an Essay - Should Euthanasia Be Approved By-Law

...Participation Participation A good Essay writing begins with an introductory clear thesis ment such as should Euthanasia be approved by law in the present scenario? A good essay never encourages personal opinions in the body but it takes into account ground realities through proper research. The essay then develops around this thesis statement scanning all pros and cons. A first body paragraph should list core points keeping in mind the thesis statement. Three to four strong points in its favor will develop the essay logically. Points that can be made in the case of euthanasia could be terminal illness and suffering of the patient seeking euthanasia; its social implications and economic fallouts for...
1 Pages(250 words)Essay

Broyles Textbook Exercise 7

...Health Statistics Number Question 7 Diagnosis A B C 1 11, 7, 9 8, 6, 7 5, 4, 7 2 14, 10, 11 10, 9, 8 6, 8, 7 3 4, 5, 3 5, 5, 6 3, 4, 2 4 10, 9, 7 6, 7, 4 5, 6, 3 If α= 0.05, determine whether differences among the treatment, block, and interactive effects are...
2 Pages(500 words)Assignment

Participation Exercise #4

... Overhead costs In the world of manufacturing it is important for management to control its overhead and understand how it is assigned to products because of its impact on the measurement of individual products profitability. Thereafter it is reported in the company financial statements. Overhead is viewed as two types of costs namely; manufacturing overhead and nonmanufacturing costs. Manufacturing overhead refers to indirect-factory related costs that are incurred when a product is manufactured. Electricity used to operate the factory equipment is an example of manufacturing overhead (Kimmel, Weygandt and Kieso). Manufacturer’s expenses that occur apart from the actual manufacturing is the second component of overhead... Overhead costs In...
1 Pages(250 words)Assignment

Participation Exercise #5

...Participation Exercise 5: Question One: Any potential business needs to identify their point of making profits and the costs they need give them a profit. The business incurs fixed costs and variable costs. The variable costs vary based on volumes available for sale hence having an impact on the profits that the business will register. Having volumes from which the organization obtains profit defines the breakeven point of that business. A breakeven point aids the business owner to estimate the level of profits that they will generate from it overtime. These guide one in decisions on whether to invest in the idea or not. Calculation of a breakeven also aids the business owner in learning the different...
1 Pages(250 words)Assignment

Participation Exercise #6

...Participation Exercise 6: To achieve a breakeven point, there is need to have volumes that provide for a profit afterreduction of the costs incurred. These costs range from fixed costs and variable costs. The fixed costs remain the same throughout or for a longer period in the business while the variable costs change in relation to volumes produced. These and other factors such as the selling price allocated to the products, and the volumes produced impact the breakeven point that the business has to consider. Variable costs: Variable costs include costs incurred in the production of each unit of products. The higher the number of units produced the lower the variable costs providing for more profits to...
1 Pages(250 words)Assignment

Participation Exercise #8

...Participation Exercise#8 Both absorption costing and variable costing provides good costing methods to businesses. The two provide different costing approaches that distinguish them. The absorption costing system is more acceptable under the Generally Acceptable Accounting Systems due to its efficiency in accounting for costs in a business. Absorption costing is a system of accounting that takes into account the all costs incurred in the production process ranging from direct costs of labor, and materials. It also considers the fixed and variable costs referred to as manufacturing overheads incurred providing it with a more conclusive approach to providing for costs in the manufacture of goods. The...
1 Pages(250 words)Assignment

Participation Exercise #9

...Participation Exercise #9: Question One: What is the difference between “traditional” and “activity-based” costing?Activity Based Costing ABC applies the costing to identify activities in an organization making it more efficient compared to the traditional costing system that base on the machine hours to allocate costs. The costing system easily allocates the actual costs that each activity incurs compared to the traditional system that may generalize costs giving some activities costs that they did not incur making it less effective. The traditional costing system works better for retail companies while the traditional system works better for manufacturing companies due to its ability to allocate each...
1 Pages(250 words)Assignment

Participation Exercise #10

...Participation Exercise #10: Question One: What is a supply chain? How can managerial accountants help to improve thesupply chain? A supply chain refers to the different sequences or activities involved in the production process followed by the distribution of the various products that a company dwells in and provides for their customers. Managerial accountants aid improve the supply chain through the provision of information that would aid in managing the supply chain and its effective recording and management. Information regarding to the various cost incurred in the supply chain would aid the company improve the supply chain and hence better supply of its products to its customers or distributors....
1 Pages(250 words)Assignment

Participation Exercise #13

... Participation Exercise #13: How does variance analysis affect decisions make by management? Variance analysis provides the management with an understanding of the difference between the actual costs incurred and those planned for during the development of the project. Variance analysis may prove vital in indicating to the management the different costs they need to evaluate critically and eliminate to keep the project costs controllable. As a way of ensuring that all costs remain controlled, variance analysis needs considering when making decisions in management. The management may also realize that the materiality of the variance may affect the general gains to result from the project. These provide an avenue for creating change...
1 Pages(250 words)Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Assignment on topic Participation Exercise #7: for FREE!

Contact Us