¶ … Behavior
There are some differences between the income statements when compiled under absorption costing and under contribution margin. In this instance, the basic income statement is compiled without knowing the costs that go into the absorption costing. One of the differences is that absorption costing reflects the costs of all the activities that go into the production of the good. So when you have an income statement produced under absorption costing it will look as follows:
Revenue
COGS
Gross Profit
SGA Exp
Net Income
The fixed costs are $800,000, so the contribution margin income statement would be as follows:
Revenue
COGS
Gross Profit
Fixed Costs
Net income
350000
For the next quarter, if production is 50,000 units, the absorption statement would be:
Revenue
2500000
COGS
1800000
Gross Profit
700000
SGA Exp
350000
Net Income
350000
This statement reflects the fact that 50,000 units were produced, which is double the expected sales. The following statement reflects the contribution margin approach:
Revenue
2500000
COGS
3150000
Gross Profit
-650000
SGA Exp
800000
Net Income
-1450000
Both income statements...
Behaviors Allocation Cost behaviors in health care organizations are complex, and the costs are classified according to the relationship they have with the volume of the care provided. It is, therefore, important to address the cost allocation and how health care organizations can leverage costs to operate more effectively. There are five ways in which health care is funded. These include taxation of a municipality, state, or county, private (voluntary)
Behavior This particular analysis will rely on the financial data of FedEx and UPS for the financial years ended 31st May 2013 and 31st May 2012; and 31st Dec 2012 and 31st Dec 2011 respectively. FedEx and UPS Comparison -- Selected Balance Sheet and Income Statement Items FedEx UPS (in millions) (in millions) % Change (in millions) (in millions) % Change Revenues Cost of Goods Sold Accounts Receivable Accounts Payable Inventory From the figures above, it is clear that FedEx outperformed UPS on a number
Behavior Therapy is generally an approach of psychotherapy which aims to treat any sort of psychopathology to eliminate undesired behaviors in a patient or subject (Masters, et. al., 1987). This type of psychotherapy is based on the learning theory. Behavior therapy generally attempts to help in solving certain behavioral problems; this type of therapy has a long history. In the early first century in Rome, Pliny the Elder was known
Behavior Modification and Skill Enhancement for High-Risk Students in Community Colleges Community colleges traditionally maintain an open-door policy, often enrolling students who are poorly prepared to enter higher education. Once these students are enrolled, they often find themselves struggling with severe skill deficiencies and, in a survey of 6,246 students attending a large, urban community college, Jack Friedlander (1981) discovered that, of the students who were not confident in one or more
By focusing measurement on cycle time, productivity, quality and profitability, Guillermo will have better information that can help guide his decision-making with respect to the different strategic choices with which he is faced. If he chooses to continue making furniture, he will be better equipped to improve his processes in the future as this information forms the basis of a much stronger control system than is currently utilized at Guillermo. Break-Even
Cost AccountingA. The allocation system might not be accurate, because it allocates based on the number of units produced. However, it does not take into account the time it takes to produce an individual unit. The overhead costs would be more accurate if they reflected not just the number of units, but the time taken to produce each unit. If the Ogunquit takes up more than 12% of the total
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