These questions relate to the Integrated Analytics Case: Bene Petit. Select the appropriate eBook link to open the Case Overview, Case Background, and Part 3: Managerial Decision Making. Assume that Bene Petit sells only family-sized meals and that the average price is $5.00 per serving. Variable manufacturing costs are $1.75 per serving for customer meals and $0.75 per serving for donated meals. Variable delivery expenses are $2.00 per customer delivery (with an average order size of four meals or 16 servings in each delivery). Variable delivery expenses for donated meals are $200 per delivery, with an average of 1,000 donated meals or 4,000 servings in each delivery. Other variable selling expenses are $0.30 per customer meal sold. Total fixed costs are $144,000. Assume Bene Petit plans to launch a new marketing effort to increase total sales revenue. If the marketing campaign is expected to cost $9,000, how much must total sales increase is necessary to justify the expenditure?
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
These questions relate to the Integrated Analytics Case: Bene Petit. Select the appropriate eBook link to open the Case Overview, Case Background, and Part 3: Managerial Decision Making.
Assume that Bene Petit sells only family-sized meals and that the average price is $5.00 per serving. Variable
Assume Bene Petit plans to launch a new marketing effort to increase total sales revenue. If the marketing campaign is expected to cost $9,000, how much must total sales increase is necessary to justify the expenditure?
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