Accounting

Unit I - Assignment 1

Costs can be classified into two categories , fixed and variable costs These costs behave differently based on the level of sales volumes Suppose we are running a restaurant and have identified certain costs along with the number of annual units sold of 1000

Item : Raw Materials (cost for hamburgers )Item : Building Rent Identify which cost item above is fixed and variable and why ? What is the cost per unit of each ? Suppose we increased our sales volume to 6000 units and then to 8000 units the following year (and

are still within the relevant range , what would be the of fixed and variable costs (1 ) Identify which cost item below is fixed and variable and why

Raw materials : Expense for raw materials is considered as variable cost because the amount paid for raw materials increase with the amount of goods sold by the firm . The company pays 650 for 1 ,000 units of hamburgers . The expense for raw materials increases proportionally with the volume of hamburgers produced or sold . The amount paid for the raw materials increases to 3 ,900 for 6 ,000 units , and 5 ,200 for 8 ,000 units , or at a rate of 0 .65 per unit

Building rent : Building rest is considered a fixed cost because the the volume of goods sold by the restaurant . Whether the firm sells 1 ,000 units , 6 ,000 units or 8 ,000 units , building rent remains at 9 ,000 (2 ) What is the cost for 1 ,000 units

The variable cost per unit is 650 /1 ,000 units 0 .65 per unit

The The fixed cost per unit is 9 ,000 /1 ,000 units 9 per unit

The The The The variable cost per unit is 650 / 1 ,000 units 0 .65 per unit

The The fixed cost per unit is 9 ,000 / 6 ,000 1 .5 per unit

The The The unit (4 ) What is the cost for 8 ,000 units

The variable cost per unit is 650 / 1 ,000 units 0 .65 per unit

The The fixed cost per unit is 9 ,000 /8 ,000 units 1 .125per unit

The The The Unit I - Assignment 2

Discuss the role of the financial accounting and managerial accounting functions in organizations and some of their job responsibilities . What are some of the differences between the two and the type of reports they may each use

Managerial accountants measure , interpret and report financial information for management 's use , while financial accountants provide "useful " information to people outside the organization , primarily the lenders and investors . Both managerial and financial accounting makes use of financial statements , but the degree , timing , focus and the specificity of these reports may differ

Managerial accountants provide reports to management , on a daily weekly , or monthly basis . Financial reports given to investors however , are on a quarterly basis . The Securities and Exchange Commission , for example , requires public companies to submit quarterly reports , which can be accessed by anybody at its Web site http /www...