Required: a) Use activity-based costing to estimate the cost of preparing: A wage and salary tax return. ii A business tax return. b) In the light of your answers to requirement 1, evaluate the firm's pricing policy.
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Hi, I just need to know how did find out the ratio of wages and salary tax return and business tax return in this question?? Could you please show me working of the first table? I really need to know the answer please. Thank you.
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- Required: a) Use activity-based costing to estimate the cost of preparing: i A wage and salary tax return. ii A business tax return. b) n the light of your answers to requirement 1, evaluate the firm's pricing policy.Accounting Questioncompany You are a management accountant of EON and Brothers Ltd., a manufacturing that produces two products simultaneously in one of their production plants. You are asked to produce a management report on costing techniques. This company follows a traditional approach to costing and absorbs production overhead using machine hours. The company's policy is to add a 50% markup on the unit cost to obtain the selling price. The relevant information is given below: EON and Brothers Ltd. produces two similar products called Alfa and Beta. Total Overheads = £155,000 Machine Hours = 58980 hrs Product Alfa Beta Production Units 2,580 5,100 Material Cost per unit £31 £51 Labour Cost per unit £21 £17 Machine Hours per unit 11 16 After discussing with all the important people of the production plant you have allocated the overhead costs as mentioned below: % Overheads Set up Costs 30 Inspections 40 Materials Handling 30 Cost Pools are as mentioned below: Alfa Beta Total Setups 400 65 465…
- (a) Briefly explain the MAIN difference between variable costing and absorption costing in terms of the treatment of costs in the financial statements. And Explain why the variable costing income measurement approach would be attractive to a manager who is interested in projecting her firm’s future profit performance..Which of the following is the format of the income statement that is MOST useful in decision-making? Select one: A.Contribution margin format B.Absorption costing format C.Single-step format D.Multiple-step formatIn making short-term business decisions, what should you do? a. Use a traditional costing approach. b. Focus on total costs. c. Separate variable from fixed costs. d. Focus only on quantitative factors.
- Which objective of cost accounting classifies and analyzes cost date for measuring efficiency? a. Guide to business policy b. Determination of selling price c. Cost control and reduction d. Measuring and improving performanceWhich of the following is NOT a period cost? Select one: O a. manufacturing costs. Ob general and administrative costs. Oc marketing costs. Od. research and development costs. Which of the following is NOT one of the questions management accountants might attempt to help answer in the formulation of strategy? Select one: a. What substitute products exist in the marketplace? Ob. Who are our most important customers? Does the strategy comply with GAAP (Generally Accepted Accounting Principles)? Od. Will adequate cash be available to implement the strategy?Winters, Inc. is preparing financial statements to be distributed to investors and creditors. The company should prepare the income statement using a. variable costing because it is better for planning purposes. b. variable costing because it follows GAAP. c. absorption costing because it is better for controlling purposes. d. absorption costing because it follows GAAP.
- Cost calculation is based, in decision-making, on long-term thinking and can be the basis for the company's pricing. choose an alternative True FalseFollowing GAAP, the income statement issued to investors and creditors must OA. be prepared in the contribution margin format OB. be prepared using variable costing OC. show the value of contribution margin OD. be prepared in the traditional format1. "Cost accounting is a form of managerial accounting that aims to capture a company's total cost of production by assessing the variable costs of each step of production as well as fixed costs." Required to: a. Discuss the cost classification by behavior giving your own examples for each. Also, explain how these costs change with change in the level of activity. b. Explain the role of demand and cost in pricing decisions. 2. "Marginal costing is the technique of presenting cost data wherein variable costs and fixed costs are shown separately for managerial decision making." Required to: Explain the application of Marginal costing in Selection of Product Mix by giving your own numerical example.