Wednesday, September 25, 2019

Case Study in Managerial Accounting Essay Example | Topics and Well Written Essays - 250 words

Case Study in Managerial Accounting - Essay Example The cost endor being placed at $5.50 is referred to as the variable cost since it is believed to be the market cost though it tends to vary depending on the market situations. The $5.75 is referred to as the period cost since used for accounting purposes to record the actual expense to be incurred when the product is purchased The $14,000 that Alderon received from Solo Industries is referred to as fixed price that Solo Industries fixed for the tatooine. The $20,000 that Alderon paid is referred to as the product cost since Aalderon actually incurred the cost and it was used for accounting purposes.10If the tatooine was purchased today by Alderon, then it would cost $11.00 which is therefore referred to as the market price. The $1,000 is referred to as indirect labor cost as the price cannot be directly traced back to the product. The $10,000 that would have been a donation of each of the 10 percent viewers of the wildlife show is an opportunity cost as the best forgone alternative. The $5000 is referred to as the outlay cost as it would be the future cash flow. The $25,000 is the revenue cost likely to be collected once the wildlife show is sold to another television show. The wildlife show has a smaller viewing percentage but have high income of $10000Ãâ€"10=$100,000 as compared to the manufacturing show with a big viewing percentage but low income of $5000Ãâ€"15=$75000. It is therefore of significance to show wildlife as opposed to manufacturing

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