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Overhead Costs Company Example
Process Costing and Chapter 4 Activity Based Costing. Process Costing is for manufacturers which assemble products that are identical. Activity Based Costing assigns costs to overhead activities and then assigns those costs to the assembled products. Using the company in your Week 1 post, please identify some overhead costs in the manufacturing operations. What makes these overhead costs and what cost driver should be used to apply the overhead costs to the products? 75 words
Product Profitability
This week we covered Chapter 5, Cost-Volume-Profit Analysis and Chapter 6, Variable Costing for Management Analysis. Cost-Volume-Profit Analysis is about formulas and ratios used to determine the profitability of individual products and/or operations. Variable Costing is a way to calculate profitability of a firm’s operations by either calculating the contribution margin or gross profit. Still using the company from your Week 1, please discuss how the contribution margin might be used to determine the profitability of that product and how it’s used to make the operations more profitable. must be at least 250 words with one external reference in APA format
Determining Benchmarks
This week we covered Chapter 7, Budgeting and Chapter 8, Evaluating Variances from Standard Costs. Budgeting is used to project revenue and costs into the future, typically twelve months. Evaluating variances from standard costs is the process of evaluating performances against benchmarks serving as goals. From the company you used in Week 1, please speculate how benchmarks can be determined when evaluating variances from standard costs. Provide detailed examples and how you arrived at those examples.must be at least 75 words with one external reference in APA format
Coca-Cola’s primary line of business is the making and selling of syrup to bottlers. These bottlers then sell the finished bottles and cans of Coca-Cola to the consumer.
Coca Cola measures their sales volume in two ways: (1) gallon shipments of concentrates and syrups and (2) unit cases of finished product (bottles and cans of Coke sold by bottlers).
Use the following link https://investors.coca-colacompany.com/ to find the most current annual review for Coca-Cola.
INSTRUCTIONS:
Answer the following questions.
1.In your opinion, are Coca-Cola’s marketing expenditures a fixed cost, variable cost, or mixed cost? Give justification for your answer.
2.Are sweeteners and packaging a variable cost or fixed cost? What is the impact on the contribution margin of an increase in the per unit cost of sweeteners or packaging? What are the implications for profitability?
3.Which of the two measures cited for measuring volume represents the activity index? Why might Coca-Cola use two different measures?
Please be thorough with your responses, answering each question completely. Your paper should adhere to APA formatting, including double-spacing and references, if applicable.
