• Q : What is horizontal analysis....
    Accounting Basics :

    What is horizontal analysis? What is the value in using horizontal analysis? Why would a company use this analysis? What does this analysis tell you?

  • Q : Is it possible the surveyor can affect the responses....
    Accounting Basics :

    Problem: For personal interview and observations : is it possible the surveyor can affect the responses? How might that happen?

  • Q : Texco under-or overapplied overhead....
    Accounting Basics :

    What was Texco's under- or overapplied overhead for last year?

  • Q : New household timers cost on a fully allocated basis....
    Accounting Basics :

    Using the new overhead rates recomputed the new household timer’s cost on a fully allocated basis.

  • Q : Preparing the production cost report....
    Accounting Basics :

    Instructions: 1. Show how Ira arrived at the unit cost of $14.26 per gallon of Surtan. 2. What error(s) did Ira make in preparing his production cost report?

  • Q : Operating leverage and business risk....
    Accounting Basics :

    Which operating structure has greater operating leverage and business risk? If Tri-Star Productions, Inc. projects sales of 20,000 units, which operating structure is recommended?

  • Q : Concept of constructive ownership....
    Accounting Basics :

    Under the related party rules of Sec. 267, why has Congress imposed the concept of constructive ownership?

  • Q : Fixed payment cash-coverage ratio....
    Accounting Basics :

    If the firm must retire $300,000 of debt for the sinking fund each year, what is its "fixed payment cash-coverage ratio" (the ratio of cash flow to interest plus other fixed debt payments)?

  • Q : Tax consequences to a corporation....
    Accounting Basics :

    Problem: What are the tax consequences to a corporation that is liquidated? Provide an example.

  • Q : Aftertax income increase to prevent dilution of eps....
    Accounting Basics :

    Its investment banker plans to sell an issue of common stock to the public for $40, less a spread of 5%. How much must Newdex's aftertax income increase to prevent dilution of EPS?

  • Q : Qualify for the travel expense deduction....
    Accounting Basics :

    Allowing for the cutback adjustment (50% reduction for meals and entertainment), which of the following trips, if any, will qualify for the travel expense deduction?

  • Q : Formula to express the cost behavior....
    Accounting Basics :

    Q1. Use the high-low method to estimate the variable cost er tour miles traveled and fixed cost per month. Q2. Develop a formula to express the cost behavior exhibited by the compny's maintenance cost

  • Q : Committed and discretionary fixed costs....
    Accounting Basics :

    Distinguish between committed and discretionary fixed costs. If Antioch were to experience severe economic difficulties, which of the two types of fixed costs should management try to cut? Why?

  • Q : Report the reimbursement in gross income....
    Accounting Basics :

    Your friend Scotty informs you that he received a "tax-free" reimbursement in 2007 of some medical expenses he paid in 2006. Which of the following statements best explains why Scotty is not require

  • Q : Maximum allowable medical expense deduction....
    Accounting Basics :

    Roger filed a claim for $4,800 of his own expenses with his insurance company in November 2007 and received the reimbursement in January 2008. What is Roger's maximum allowable medical expense deduc

  • Q : Record patent amortization....
    Accounting Basics :

    In 2008, the company successfully defends the patent in extended litigation at a cost of $47,200, thereby extending the patent life to December 31, 2015. What is the proper way to account for this c

  • Q : Scheduled purchases of raw materials....
    Accounting Basics :

    What is the Scheduled production for the third quarter and the scheduled purchases of raw materials for the second quarter?

  • Q : Contribution margins and contribution-margin ratios....
    Accounting Basics :

    The Skill Craft Appliance Company has two products: a plain mixer and a fancy mixer. The plain mixer sells for 464 and has a variable cost of $48. The fancy mixer sells for $100 and has a variable

  • Q : Optimum order quantity-eoq analysis....
    Accounting Basics :

    Determine the EOQ under each of the following conditions: (1) no changes, (2) order cost of zero, and (3) carrying cost of zero.

  • Q : Monthly break-even point in number of units....
    Accounting Basics :

    1. What is the monthly break-even point in number of units? In dollar sales? 2. If 40,000 units were sold, what would be the company's net income?

  • Q : Anticipating an economic recovery....
    Accounting Basics :

    In late October, anticipating an economic recovery, Patel began an extensive remodelling of the company's sales floor. Construction costs, decorating, and equipment purchases are projected to cost $

  • Q : Changing fixed costs to variable costs at blockbuster video....
    Accounting Basics :

    According to an article in Business Week, when John F. Antioco took charge of Blockbuster Video, he changed the company's strategy. Traditionally, Blockbuster had bought videotapes from the move stu

  • Q : Variable and fixed components of the utilities cost....
    Accounting Basics :

    A. Calculate the variable and fixed components of the utilities cost. B. Using the data calculated above, estimate the utilities cost for August.

  • Q : Total equivalent units for direct material-conversion cost....
    Accounting Basics :

    A. Compute the total equivalent units for direct material and conversion cost. B. Compute the cost per equivalent unit of direct material and conversion cost.

  • Q : Calculation of manufacturing overhead total....
    Accounting Basics :

    The accounting records of the Microfine Company revealed the following costs: Costs that would be considered in the calculation of manufacturing overhead total...... ?

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