Refer to Accounting Test Question No.1
 
(a) Computation of the activity based costs and profits for each contract.
Step 1: Compute cost per unit of cost driver
= Cost pool / cost driver volume

Activity

Cost pool (a)

Cost driver volume/yr […]

Company XYZ has 2 fixed price contract for 2 different customers.
The company has enough capacity for both contracts but
is uncertain whether they will be profitable.
 
 
 
 
Data as follows:

 
Customer

AAA

BBB

Component Type

A999

B999

Contract Value($)

$27,000

$100,000

Contract Quantity

1,000unit

2,000units

Material cost/unit

$15

$20

Moulding time/batch

5hours

7.5hours

Batch Size

100units

50units

[…]

The country’s chief statistics official,Xie Fuzhan, director of the National Bureau of Statistics in an appearance Thursday at Beijing’s Tsinghua University, made the comment that China’s consumer inflation rate for 2007 should be about 4.5 to 4.6 percent. Last year, China’s consumer inflation rate was 2 percent.
The forecast was in line with those of other […]

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Recently, American genius investor, Warren Buffett’s investment company Berkshire Hathaway has made a USD3.5bn profit though the sale of its shares in Chinese oil firm PetroChina. bought 11% of PetroChina’s public shares in 2006 for $500m.)
During his brief visit to Korea on Oct. 25 late […]

An interesting article from Businessweek.com regarding assessing your superior and really publicly announced on the company’s intranet to all the staff. What’s more superb is that this innovative idea on how to structure and lead organizations is coming out from emerging market like India:-
Details:

At India’s HCL Technologies, the fifth-largest of India’s info-tech outsourcers,workers get to grade […]