Accounting Help for College and University Students

Step method

1. Using the step method, allocate the service department costs to the operating department. 2. Assume that the company allocates service department costs by the direct method, rather than by the step method. Assuming that the company uses the direct method, how much overhead costs would be assigned to each operating department ...continues

Investment Portfolio Analysis

Calculate NPV, IRR, PI, return and standard deviation, Cloak's beta relative to the market, correlation (coefficient), the return, beta and the variance of the portfolio.

Expected return on investment

Estimate expected returns and find the beta and the return on the fund.

Investment portfolio analysis

1. Ajax is considering a new project, Clear Clean (CC). CC requires an additional machine that costs $20 million dollars. It will be fully depreciated to a zero book value on a straight-line basis over 4 years. Each year for 4 years, CC will have revenues of $20 million, variable operating costs of $10 million and fixed ope ...continues

Compounding interest

Unless stated otherwise, interest is compounded annually and payments are at the end of the year. Explanations should be brief (1 or 2 sentences). 1. Jana, who just turned 55, would like to have an annual annuity of $25,000 paid each year for 15 years, the first payment occurring on her 66th birthday. How much must Jana sa ...continues

Management Accounting: Variable costs and joint product

19. If variable costs per unit decrease, sales volume at the break-even point will: a. increase b. decrease c. remain the same d. remain the same; however, contribution margin per unit will decrease 30. A joint product should be processed beyond split-off if additional revenue from further processing exceeds a. joint co ...continues

Fixed Assets and Journal Entries

Jackson Company was incorporated on Jan 2 of the current year but did not begin operations until Aug 1 this year. The Land and Building account as of the end of the current fiscal year appears below: 1/31 Land and old building on land $200,000 2/28 Cost of removal of old building $5,000 4/1 Legal fees $6,000 5 ...continues

Accounting questions on financial accounting, accounting authority, transaction, credit balance, adjusting entries, matching, trial balance, work sheet, ...

1. Financial accounting information: A. Is primarily historical in nature. B. Is intended primarily for internal management use. C. Need not conform to GAAP. D. Is not concerned with the solvency of a business. 2. The accounting authority widely accepted as the major source of new accounting prin ...continues

Cost variance analysis

See attachment for a case study of cost variances. The problem looks at direct cost and overhead variances, standards analysis, budgeted and actual gross margins.

Calculating a breakeven point given sales, contribution margin and net loss.

Sales last year were $640 000, a contribution margin of $160 000 and a net loss of $40 000. What is the break even point?