Got a tricky question? Receive an answer from students like you! Try us!

Intermediate Management Accounting past paper - Essay Example

Only on StudentShare
Author : halvorsonrosaly


Intermediate Management Accounting: Past Papers Name: Course: Professor: Institution: City and State: Date: 2011 Question 7 (a) Year 1 Year 2 Year 3 Estimated Unit sales 100 200 300 Anticipated sales price 22,500,000 20,000,000 20,000,000 Variable cost (materials) (9,000,000) (7,500,000) (6,750,000) Variable cost (Processing) (3,600,000) (3,400,000) (3,200,000) R&D Costs (8,000,000) (8,000,000) (8,000,000) Margin (100,000) 1,100,000 2,050,000 Target net operating income -0.004% 5.5% 10.25% Less Fixed costs Production capacity costs (3,000,000) (3,000,000) (3,000,000) Marketing costs (3,000,000) (2,000,000) (1,000,000) Warehouse costs (1,000,000) (2,000,000) (3,000,000) Total fixed costs (7,00…

Extract of sample
Intermediate Management Accounting past paper

Nevertheless, the target profit margin is seen to rise substantially from a low of -0.004% in year one to 10.25% in year three. (b) Issues facing firms like KZ in making decisions on the costs to cut in order to meet the specified target income level. Costs relevance: It could be difficult for firms like KZ to associate all the costs involved to products. This makes the firm continue incurring costs that do not directly involve production hence eating on the margins. Cost classification: The firm has not classified its costs appropriately. For instance, marketing costs are classified as fixed costs and such costs are required to be consistent with sales made in a given year. In this regard, during year 2 and year 3, KZ sales were the same despite difference in marketing campaign undertaken. The marketing campaign should therefore be consistent with the amounts allocated in a given year. ...
Download paper

Related Essays

Accounting Ethics and Impact on Business Performance
This paper seeks to explain the relevance and need to embrace these ethical practices and their impact on the general business performance. Accounting ethics are moral values that govern the profession of accounting. They can also be described as judgments that apply in course of undertaking accounting tasks (Saleemi, 2002). These ethics have become accepted globally by government agencies and companies and help instill some degree of discipline both at organization level as well as employee level. Embracing these ethics cannot be ignored at this time of global economic crisis caused by…
10 pages (2510 words)
American Accounting Scandals
55, 2009). Interestingly, this is not the first time in the history of United States that its accounting practices, approaches and system has received criticism and strict scrutiny from its stakeholders. After the bankruptcy of Enron and WorldCom in 2001 and 2003, respectively that was also the biggest accounting scandals of their time, the US accounting practices made the headlines all over the world (Ketz, pp. 234, 2003). This paper is an attempt to explore the accounting standards whether they are too flexible or too rigid. The discussion would include looking over the causes of Enron’s…
10 pages (2510 words)
Financial Management and Accounting
69). Such facilities are licensed under state regulatory bodies with approval of either Medicare or Medicaid, or both of them, and can be a simple facility or a complex one under corporate management. The facility’s main purpose is to offer care services to people who cannot maintain sufficient self-care at home, such as the physically challenged, those who are mentally incapacitated and individuals with other forms of disabilities. It, as a result, offers services such as “personal care” and “intensive skilled care” with medical supervision (Evashwick, 2005). Sources of Revenues for…
3 pages (753 words)
Intermediate Financial Accounting
International Accounting Standard 38 mentions the utility and usage of intangibles in the financial aspect of companies. The intangible assets are the intellectual property rights, goodwill and the expenditures of the company on research and developments. They are also known as capital developments. In the second part of the report, the examples of two famous listed Australian companies have been taken. Both of these companies are from pharmaceutical industry. Acrux Limited specializes into development of fast-drying sprays and other medicinal products, while Agenix Limited is mainly based in…
8 pages (2008 words)
management accounting
78). A firm cannot function efficiently without management since it is a core factor, which determines the profitability of the firm. The article highlights clearly that in the modern society numerous individuals hardly understand how the modern management operates in the firm, and this could be a dangerous situation. The world today is built through the effort of all the human beings who work together to ensure key developments occur in the society. Management is obviously ubiquitous since it is vital in all firms, and individuals should understand that it did not just evolve: it was through…
6 pages (1506 words)
accounting ethics, pertaining to disclosure and conflict of interest
With the increasing complexity of the modern business environment, many accounting related topics in ACC 40A is under scrutiny now. This paper will evaluate some key current accounting related topics in ACC 410A that are of considerable importance in the present business context. Time value of money is a key aspect of accounting because every business transaction is recorded in terms of monetary value. Businesses generally do not record transactions in books of accounts if those transactions cannot be expressed in terms of money. There are two common methods such as historical cost and market…
4 pages (1004 words)
Intermediate Accounting Research paper
The following illustration provides a simplified view of the business model followed by Groupon: Comparison of this business model of Groupon with Wal-Mart reveals some fundamental differences in the approach followed by the two businesses. First of all, as mentioned earlier, the virtual operating style of Groupon through internet is a primary factor which distinguishes the extent to which both companies can target their respective customers. Based on the differences identified in the business model for Groupon in comparison with the approach followed by Wal-Mart, it is possible to determine…
12 pages (3012 words)