Compute the cost per cost driver

beplay体育怎么安装Managerial Accounting
Reference no: EM13486818

Activity Based Costing

The local accounting firm of Dewey, Cheetum, and Howe has had many profitable years providing financial planning and tax services to retirees. Recent developments in do-it-yourself tax software have begun to erode business and the firm wants to take a closer look at costs. As one of the firm's new hires you have been assigned to prepare an activity based cost analysis with the following data.

The focus of the analysis is to compare the cost of providing financial planning versus tax preparation services. Your analysis reveals the following about cost centers and their respective drivers:

272_Activity Based Costing.png

The two main service activities and their related data follow:

1375_Activity Based Costing1.png

Required
1. Compute the cost per cost driver for each of the three cost centers.
2. Use the results from part 1 to allocate costs from each of the three cost centers to both financial planning and tax preparation. Compute total cost and average cost per customer for both financial planning and tax preparation Analysis Component
3. Without providing computations, would the average cost of tax preparation be higher or lower if all center costs were allocated based on the number of customers alone? Explain

Reference no: EM13486818

Estimate the cost of the inventory destroyed

1. Kauai Store's inventory is destroyed by a fire on September 5, 2013. The following data for year 2013 are available from the accounting records. Estimate the cost of the in

Minimum amount of revenue

Estilo Company has 3 operating segments with following information: What is the minimum amount of revenue that each of these segments must generate to be considered separately

Prepare a production budget and sales budget

Why have you made the choices you have made? What information informed your decision for eachitem - Why have you made the choices you have made? What information informed your

Analyse annual report of national australian bank

Demonstrate a higher level of understanding of accounting standards and theoretical and philosophical approaches, as they apply to the resolution of more complex accounting

What strategies will help you achieve this goal

What is your instructor's goal for students in this course?What strategies has he or she devel-oped to achieve this goal - What is your goal in this course? What strategies wi

Why is transfer pricing such a significant issue

Calculate the increase or decrease in profits for the three divisions and the company as a whole if the agreement is enforced - Why is transfer pricing such a significant

Line cost expense recorded in its financial statements

Consult Paragraph A5 (in Appendix A) of PCAOB Auditing Standard No. 5. Do you believe that WorldCom had established an effective system of inter- nal control over financial re

How those issues impact the various financial statements

List a few of the issues and considerations businesses should have when it comes to the selection of long-term investments and how those issues impact the various financial

Reviews

写a Review

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

beplay安卓下载

Baidu