ACC 650 Week 4 Assignment Help | Grand canyon University

ACC 650 Week 4 Assignment Help | Grand Canyon University 


Cost Allocation Concepts

 

Complete Problems 6-37 and 7-38 in the textbook


1-     Classify the five costs listed in terms of their behavior: variable, step-variable, committed fixed, discretionary fixed, step-fixed, or semi-variable. Show calculations to support your answers for mining labor/fringe benefits and royalties.


2-     Calculate the total cost for next February when 1,650 tons are expected to be extracted.

Mining labor / fringe benefits

$379,500 (1,650 x 230)

Royalties

$144,000    (1,650 x 60 variable costs +45,000 fixed cost)

Trucking and Hauling

$275,000



3-     Comment on the cost-effectiveness of hauling 1,500 tons with respect to Antioch’s trucking/haul-ing cost behavior. Can the company’s effectiveness be improved? How?


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

5-     Speculate as to why the company’s charitable contribution cost arises only in December.

Problem 7-38 Lawrence Corporation


1-     Define the term sales mix.


2-     Comparing Plan A to the current compensation arrangement:

a.      Will Plan A achieve management’s objective of an increased presence in the marketplace? Briefly explain.

b.      From a sales-mix perspective, will the salespeople be promoting the product that one would logically expect? Briefly discuss.

C.      Will the sales force likely be satisfied with the results of Plan A? Why? 

D.      Will the sales force likely be satisfied with the results of Plan A? Why? 

3-     Assume that Plan B is under consideration.


a.      Compare Plan A and Plan B with respect to total units sold and the sales mix. Comment on the results.

     b.      In comparison with flat salaries, is Plan B more attractive to the sales force? To the company? Show calculations to support your answers.


   Both of these problems should be completed using Word.

Save your assignment as Lastname_FirstnameACC650_T4.docx.

At least one external source should be cited, not including a textbook.

Prepare this assignment according to the guidelines found in the APA Style Guide, located in the Student Success Centre. An abstract is not required.

You are required to submit this assignment to Lopes Write. Refer to the Lopes Write Technical Support articles for assistance.

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