Business Applications Case Essay

Chapter 1.5. What does the statement greets can be additions or expenses mean? 6. why are the salaries of productionion workers accumulated in an farm animal account instead of being expensed on the income statement? 7. How do product be affect the financial statements? How does the classification of product cost (as an asset vs. an expense) affect net income?The following information was taken from the 2008 and 2009 Form 10-Ks for dingle, Inc.Required a. apologize whether each line of information in the table above would outperform be described as being primarily financial be or managerial accounting in nature. b. Provide some surplus examples of managerial and financial accounting information that could apply to Dell. c. If you analyze only if the data you identified as financial in nature, does it appear that Dells 2009 monetary year was get around or worse than its 2008 fiscal year? Explain. d. If you analyze only the data you identified as managerial in nature, does it appear that Dells 2009 fiscal year was better or worse than its 2008 fiscal year? ExplainChapter 210. How is the relevant range of activity related to fixed and variable cost? guide an example of how the definitions of these costs belong invalid when volume is outside the relevant range. 12. When would the high-low method be enamor for estimating variable and fixed costs? When would least-squares obsession be the most desirable? 13. Which cost structure has the greater seek? Explain.Chapter 36. When would the customer be willing to pay a subsidy price for a product or service? What pricing system would be appropriate under these circumstances? 7. What are three option approaches to determine the break-even point? What do the results of these approaches show? 8. What is the equation method for find the break-even point? Explain how the results of this method differ from those of the contribution margin approach. Chapter 410. Why are some manufacturing costs not directly t rackable to products? 11. What is the objective of allocating indirect manufacturing overhead costs to the product?Chapter 51. Why did traditional costing systems base allocations on a single alliancewide cost driver? 2. Why are labor hours ineffective as a societywide allocation base in many industries today? 3. What is the difference amid volume-based cost drivers and activity-based cost drivers? 4. Why do activity-based cost drivers provide more(prenominal) accurate allocations of overhead in an automated manufacturing environment? 5. When would it be appropriate to use volume-based cost drivers in an activity-based costing system? ATC 5-4Writing AssignmentAssessing a outline to control quality cost Lucy Sawyer, who owns and operates Sawyer Toy Company, is a perfectionist.She believes literally in the zero-defects approach to quality control. Her favorite saying is, You cant pass on too much on quality. Even so, in 2010 her company experienced an embarrassing breach of qual ity that required the national turn back of a defective product. She vowed never to repeat the experience and instructed her staff to spend whatever it takes to ensure that products are delivered free of defects in 2011. She was somewhat frustrated with the 2011 year-end quality cost report shown here.Although external failure costs had declined, they remained much higher than expected. The increased inspections had identified defects that were corrected, thereby avoiding another give back however, the external failure costs were still too high. Ms. Sawyer responded by saying, We will have to double our efforts. She authorized hiring additional inspectors and instructed her production supervisors to become more vigilant in identifying and correcting errors. RequiredAssume that you are the straits financial officer (CFO) of Sawyer Toy Company. Ms. Sawyer has asked you to review the companys approach to quality control. Prepare a memo to her that evaluates the alert approach, and recommend changes in expenditure patterns that can improve profitability as well as increase the effectiveness of the quality control system.Chapter 67. What is an opportunity cost? How does it differ from a sunk cost? 8. A local bank advertises that it offers a free noninterest-bearing checking account if the depositor maintains a $ergocalciferol minimum balance in the account. Is the checking account truly free?