Cost Volume Profit Analysis The Cost Volume Profit analysis is an accounting tool that helpsbusiness managers to examine the relationship established between fixed andvariable costs, volume, and profits. Basically, the CVP analysis is able todetermine what are the most profitable products or services that a companyhas to offer, to determine scenarios in case of sales volume drops, how lowthey can drop, how low prices can […]

Accounting Information A senior executive in a Fortune 500 firm along with their colleagues on the company’s management team are dependent on accurate, timely, and pertinent financial information regarding the health of the organization. Accounting information has aptly been described as “the language of business, which is used in the management, planning, control, and decision- making processes integral to achieving organizational objectives” (Marshall, D.

balance sheet is prepared identifying the items which should be placed in this statement. Table 1; Balance Sheet Assets Current Cash Accounts receivable Prepaid expenses Inventory Total current assets Long-term (fixed) Equipment Total assets Liabilities Current Accounts payable Long-Term Mortgage Total liabilities Equity Total Capital (debt equity) Using the figures provided, identifying the relevant inputs, the income statement, also referred to as a profit and […]

ABC Cost Method Activity-Based Costing (ABC) method is a calculation technique that was initially developed to enhance the profitability of products and selection of manufactured products optimal mix. This costing method can be defined as a technique that entails allocating manufacturing overhead costs to goods using a more logical approach. In this case, the technique first allocates costs to activities that are the actual causes […]

Managerial Accounting In the case study, we are studying a fictitious company called EEL. They are a large electronics manufacturer of radars and related equipment. Recently, the firm has been facing a number of challenges associated with their costs in manufacturing and delivering the end product to customers. As a result, EEL has hired a consultant that will help them to create a workable standard […]

absorption costing method, and why? In this case, the absorption method would be the best choice due to the way the method incorporates only the overhead. The overhead is allocated to the 80,000 units sold. The variable method normally counts fixed overhead as a period expense. This means that the fixed overhead during this period is calculated on the basis of the 95,000 units made. […]

Behavior There are some differences between the income statements when compiled under absorption costing and under contribution margin. In this instance, the basic income statement is compiled without knowing the costs that go into the absorption costing. One of the differences is that absorption costing reflects the costs of all the activities that go into the production of the good. So when you have an […]

Accounting and Financial Statements The purpose of accounting is to provide managers with the information they need to evaluate the liquidity of an organization. The balance sheet, income statements, statement of owner’s equity, and statement of cash flows are financial statements that provide a basis on which managers, investors and creditors can make decisions. Of the four financial statements only the balance sheet, whose amounts […]

Environmental Accounting Test Results: “Total Cost Accounting course and Test” located at http://teexcit.tamu.edu/tca / (Total Cost Accounting online course and test). Bakshi, B.R., Landers, E.F., Singh, S., Merugula, L.A., Mishchenko, O., and Fiskel, J. (2012, November 2). Accounting for ecosystem services in life cycle assessment by Eco-LCA: Advances in methodology and software. Paper to be presented at the Annual Conference of the 11th Global Congress […]