Can somebody help me with my accounting project, here are the instructions: Comp
ID: 2337738 • Letter: C
Question
Can somebody help me with my accounting project, here are the instructions: Complete the Critical Thinking Problem A6-74 "Cost Behavior in Real Companies"Note: You must choose a publicly traded company for your analysis. You may not use Pearson or any other publishing company for this analysis. Your essay must include a cover page, introduction, body, conclusion, and a reference page. Be sure to address all relevant parts of each question. Your response should be a minimum of 700 words in length (not including the cover page and the reference page). Cite all references you use. Note: You must use at least three references. Proper citation format for a reference includes the name of the author(s), the title of the work, the date of the publication, and the page number. A6-74 Cost Behavior in Real Companies Choose a company with which you are familiar that manufactures a product or provides a service. In this activity, you will be making reasonable estimates of the costs and activities associated with this company; companies do not typically publish internal cost or process information. Basic Discussion Questions 1. Describe the company you selected and the products or services it provides. 2. List ten costs that this company would incur. Include costs from a variety of departments within the company, including human resources, sales, accounting, production (if a manufacturer), service (if a service company), and others. Make sure that you have at least one cost from each of the following categories: fixed, variable, and mixed. 3. Classify each of the costs you listed as either fixed, variable, or mixed. Justify why you classified each cost as you did. 4. Describe a potential cost driver for each of the variable and mixed costs you listed. Explain why each cost driver would be appropriate for its associated cost. 5. Discuss how easy or difficult it was for you to decide whether each cost was fixed, variable, or mixed. Describe techniques a company could use to determine whether a cost is fixed, variable, or mixed.
Explanation / Answer
ANSWER:
Introduction:
Cost behavior is an essential component which comprehends the idea of expenses includes for generation of merchandise and gave administrations. It decides the aggregate expense and furthermore helps in cost administration. For the most part, there are three sort of expense i.e. fixed cost, variable cost and mixed cost. In the moment task Apple Inc., a genuine organization is chosen to investigation the cost behavior and its effect on the cost management and also the financial statement of the organization.
Description of the organization:
Apple In. is an American Company which is includes in the creation of devices and cell phones. It's additionally configuration, creates and offers buyer gadgets, online administrations and PC programming. The different results of the organization are iPad tablet process, iPhone, Mac Book, Apple watch, Apple TV and so on. The headquarter of the organization is arranged in Cupertino, California. It is a multinational innovation organization. The organization was established in the year 1976 by Steve Jobs, Steve Wozniak and Ronald Wayne.
List of Costs:
The ten costs that organization is brought about are:
Classification of Expenses :
The costs are by and large ordered under three sections i.e. Settled, Variable and Mixed.
Fixed Expenses are:
Variable Expenses are:
Mixed Expenses are:
Description of potential cost drivers:
There are for the most part three kinds of expense as examined before. They are variable, fixed and mixed. The variable expense is differing with the generation. It is otherwise called marginal cost. For every unit of additional creation, the variable expense is expanded. So the variable expense is relying on the creation. The rate per unit of the variable expense are settled and the aggregate variable expense are changed and its relying on the aggregate volume of the preparations. Assume the aggregate no of units created are 10,000 and variable expense is $10 per unit. So the aggregate variable expense is $100,000. The aggregate expense will increment if the quantity of units created are expanded. In the other hand the settled expenses are stay settled and it doesn't fluctuate with the creation. It is immaterial and does not considered at the season of settling on choice of creation. The aggregate settled expense is unaltered because of increment in the quantity of generation yet the per unit cost will changes because of increment in the creation. As model if the aggregate no units delivered are 10,000 and add up to settled expense for the same is $50,000. The aggregate settled expense will stay settled if there should arise an occurrence of increment or reduction in the generation however the per unit cost will changed because of progress in the volume of the creation. If there should arise an occurrence of blended cost, it is the mix of the settled and the variable expense. The settled bit of this kind of expense are stay settled and the variable part will shift with the generation. In this sort of cost it is critical to distinguish the settled and variable part and figure the variable expense per unit.
The cost driver for distinguishing the variable expense is creation units. The expansion in the creation units will expand the aggregate variable expense and the progressions will equivalent to no unit additional generation and the variable expense per unit of generation. The distinguishing proof of this sort of expense are relying on the understanding the idea of the expense. In the event of blended cost, the comprehension is depending upon the idea of settled and variable expense. First need to register the variable expense per unit and afterward figure the aggregate variable expense. After that a similar will deduct shape the aggregate expense and the equalization cost will know as settled expense. This sort of expense isn't change similarly with the quantity of creation increment. This expense will comprise of both settled and variable segment. So the variable bit will just change because of increment in the generation.
Systems to decide the idea of expense:
The systems of assurance of the expenses are relying on the understanding the idea of the expense. The settled expense is staying settled so it is anything but difficult to distinguished. If there should arise an occurrence of variable cost it will increment similarly with the expansion of creation. Be that as it may, for blended cost it is trying to recognize the same.
For this situation first the variable expense per unit will be processed by utilizing the equation of Variable expense per unit is,
Variable expense per unit = Change in total Cost/Change in number of units of production.
In the wake of getting the variable expense per unit, at that point the settled cost component will figure.