You are the account manager for Acme Pickles.
Table of Contents
Requirements
Your analysis for the Controller and Sales Manager is needed to suggest a different way of calculating the pricing of the pickles that may be lower. As part of your analysis, address the following items:
- Explain why some production costs are variable and some are fixed.
- Analyze the benefit of recalculating the cost of pickle production.
- How would you recalculate it?
- What would the result be?
- What is the benefit to the company of recalculating the cost?
- Analyze how financial accounting of production cost differs from managerial accounting of production cost.
- Explain the difference between the two accounting methods.
- Identify the benefits and drawbacks of each method.
- Recommend a plan of action to management regarding Super Deals offer.
Below is the cost report for a recent month. In this month, Acme produced 9,000 cases and sold them at $20 per case, which is Acme’s normal selling price. Nine thousand cases are well beyond Acme’s break-even point, enabling Acme to record a substantial profit at the nine-thousand-case level.
| Item | Cost |
| Cucumbers | $15,000 |
| Spices and vinegar | 11,000 |
| Jars and lids | 10,000 |
| Direct labor, paid by the case | 30,000 |
| Line supervisors, on salary | 10,000 |
| Depreciation on factory | 10,000 |
| Property taxes on factory | 3,000 |
| Insurance on factory | 1,000 |
| Total Costs: | $90,000 |
| Cost per case (9,000 cases produced) $10.00 | |
What Students Are Saying About Us
.......... Customer ID: 12*** | Rating: ⭐⭐⭐⭐⭐"Honestly, I was afraid to send my paper to you, but you proved you are a trustworthy service. My essay was done in less than a day, and I received a brilliant piece. I didn’t even believe it was my essay at first 🙂 Great job, thank you!"
.......... Customer ID: 11***| Rating: ⭐⭐⭐⭐⭐
"This company is the best there is. They saved me so many times, I cannot even keep count. Now I recommend it to all my friends, and none of them have complained about it. The writers here are excellent."
“Order a custom Paper on Similar Assignment at essayfount.com! No Plagiarism! Enjoy 20% Discount!”
