Write at least one paragraph. Buying an extra copier would probably be a good choice, since the amount of revenue lost almost doubles (US$17,805.50 vs. US$8,000.00) the cost of buying an extra copier. I feel confident with my answer, although there are some limitations to it. As was mentioned before, the sum of the weeks will not always add up to 1 years’ worth, so that needs to be taken into account. Also, this simulation must be run several times to find the average amount
The electricity cost was charged on a quarterly basis and charged back to each department on a quarterly basis also. The quarterly costs were September 2013 $13000, December $11000, March $10000 and June $11000. Retail Banking make payment of 100% of the cost up front as they are the controlling department. Retail Banking then process an adjusting entry to Commercial Banking’s cost centre for 30% of the expense and an adjusting entry to Financial Planning’s cost centre for 10% of the expense which together with its 60% obligation brings the total to 100%
• Given the data on arrival and service times, how would you calculate an average arrival rate and service rate? The average arrival rate can be determined from Exhibit 4. Exhibit 4 gives us the arrival rate per half hour for three different possibilities viz. Normal, Peak and super peak intensity of flow. We can calculate the average flow rates for each individual scenario and then find the weighted average (by number of days) of these three scenarios to get a single average arrival rate (Ri) Service rate is determined by number of tellers divided by the time taken by each teller to service one customer.
Judgement Case 9-1 – Inventory costs; lower of cost or market; retail inventory method Requirement 1 Theoretically, Hudson should account for the warehousing costs related to its wholesale inventories as a part of inventory. All of the necessary costs associated with preparing, and in this case storing, items for sale are to be included in inventory. The key here is that the warehousing cost is related to a particular set of items and for that reason it is important to account for the warehousing cost with the inventory in order to satisfy the matching principle. The matching principle “requires that revenues and any related expenses be recognized together in the same period” (The matching principle). By following the matching principle all of the costs associated with a particular product, not just its wholesale price, is expensed when the item is sold.
The profit percentage of assets varies by industry, but in general, the higher the ROA the better. We can see a good trend over years in the company. Comments: Return on equity (ROE) is a measure of profitability that calculates how many dollars of profit a company generates with each dollar of shareholders' equity. The formula for ROE is: ROE is more than a measure of profit; it's a measure of efficiency. A rising ROE suggests that a company is increasing its ability to generate profit without needing as much capital.
The needs of the organization will determine which rule is utilized. Most organizations utilize the first come first served rule when it comes to productions. This keeps a great way to track products from receiving of parts, work in progress, and finished products. The first come first served concept According to Stevenson (2010), "are jobs processed in the order in which they arrive at a machine or work center (p746). This rule merely establishes the points in the manufacturing process where a product is actually in process.
They gave a good estimate of how my decisions would affect business performance for the upcoming quarter. I was able to look at the pro-forma statements and make adjustments in my decisions before moving into the next quarter. For example, in quarter 2, I had decided to not add another sales site due to not having enough cash on hand. After looking over the pro-forma statements, I realized that I would have enough money to add another location for the next quarter and still have more than $300,000 cash left over at the end of the quarter. Operating efficiency was improved using just-in-time and lean operations techniques.
Because the assumption does not require for the growth to be at the same constant every year, instead it states that the best estimate of growth for any future year is the expected growth rate from the previous year. It is just very unreasonable to assume that the growth rate will be constant every year. Companies just cannot maintain the same rate earning every year; sure they can for a few years in a row but not forever. If they do there could be a suspicion of fraud. 2.
Although the customers only needed the shipment the following year, this would be a way to exceed the targeted budget. Instead of offering the customers an early discount for receiving the merchandise earlier, Campbell sent the merchandise and reported the sales to be included in the financial reports. As a result of this procedure, the reported sales for the fourth quarter exceeded the budgeted amount with $80,000.00. The actual sales revenue for the year was over with $14,000.00. The internal auditors questioned why the two shipments were done before December 31, since the requested dates were in the following year.
Compute the labor rate and efficiency variances for the month. Was paying workers the actual wage rather than the standard wage an efficient strategy for Loring? Actual wage rate per hour = Actual direct labor cost / actual direct labor hours = $24,464 /2,780 = $8.80 Labor rate variance = (Actual Rate - Standard Rate) x Actual labor hours = ($8.80- $8.25) x2,780 = $1,529 U Labor efficiency variance = (Standard time for actual output - actual time) x Standard labor rate per hour = [(4,000x 0.75) - 2,780] x$8.25 = $1,815F It seems that it made more sense for Loring to pay the actual wage rather than the standard wage. The workers worked efficiently for 2780 hours instead of the standard 3000 (0.75 hours x 4000) hours allowed. Seems like an efficient strategy.