Business Applications Case Essay

Chapter 1.5. What does the statement embody can be additions or expenses mean? 6. Why ar the salaries of production workers accumulated in an inventory account instead of being expensed on the income statement? 7. How do product costs affect the fiscal 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 Dell, Inc.Required a. Explain whether each line of information in the table above would best be described as being primarily financial accounting or managerial accounting in nature. b. Provide some additional examples of managerial and financial accounting information that could apply to Dell. c. If you analyze only the data you identified as financial in nature, does it appear that Dells 2009 fiscal stratum was better 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 changeable cost? Give an example of how the definitions of these costs become invalid when volume is outside the relevant range. 12. When would the high-low method be appropriate for estimating variable and fixed costs? When would least-squares regression be the most desirable? 13. Which cost structure has the greater risk? Explain.Chapter 36. When would the customer be willing to pay a allowance price for a product or service? What pricing strategy would be appropriate under these circumstances? 7. What are three alternative approaches to make up the break-even point? What do the results of these approaches show? 8. What is the equation method for determining 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 tracea ble to products? 11. What is the objective of allocating indirect manufacturing overhead costs to the product?Chapter 51. Why did traditional costing systems animal foot allocations on a single high societywide cost driver? 2. Why are labor hours ineffective as a companywide allocation base in many another(prenominal) industries today? 3. What is the difference between volume-based cost drivers and activity-based cost drivers? 4. Why do activity-based cost drivers provide more accurate allocations of overhead in an automated manufacturing milieu? 5. When would it be appropriate to use volume-based cost drivers in an activity-based costing system? ATC 5-4Writing AssignmentAssessing a strategy to control quality cost Lucy Sawyer, who owns and operates Sawyer tamper Company, is a perfectionist.She believes literally in the zero-defects approach to quality control. Her favorite saying is, You cant spend too much on quality. Even so, in 2010 her company experienced an embarrassing b reach of quality that required the national recall 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 disappointed with the 2011 year-end quality cost report shown here.Although external failure costs had declined, they remained much high than expected. The increased inspections had identified defects that were corrected, thereby avoiding another recall however, the external failure costs were still too high. Ms. Sawyer responded by saying, We will have to simulacrum 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 chief 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 existing app roach, andrecommend changes in expenditure patterns that can meliorate 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 $500 minimum balance in the account. Is the checking account truly free?