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Outline Five (5) demerits of Net Present Value (NPV).

Provide References

Absorption and Variable Costing Comparisons Peachtree Companymanufactures peach jam. Because of bad weather, its peach crop wassmall. The following data have been gathered for the summer quarterof 2009: Beginning inventory (cases) 0 Cases produced 10,000 Casessold 9,200 Sales price per case $60 Direct materials per case $6Direct labor per case $8 Variable manufacturing overhead per case$3 Total fixed manufacturing overhead $400,000 Variable selling andadministrative cost per case $2 Fixed selling and administrativecost $48,000 (a) Prepare a functional income statement for thequarter using absorption costing. (Do not use negative signs withyour answers, EXCEPT if you calculate a net loss.) PeachtreeCompany Functional (Absorption Costing) Income Statement For theSummer Quarter 2009 Sales $Answer Cost of goods sold: Variablecosts $Answer Fixed costs Answer Goods available Answer Endinginventory Answer Answer Gross profit Answer Operating expenses:Variable selling and administrative $Answer Fixed selling andadministrative Answer Answer Net income (loss) $Answer (b) Preparea contribution income statement for the quarter using variablecosting. (Do not use negative signs with your answers, EXCEPT ifyou calculate a net loss.) Peachtree Company Contribution (VariableCosting) Income Statement For the Summer Quarter 2009 Sales $AnswerVariable expenses: Manufacturing $Answer Selling and administrativeAnswer Answer Contribution margin Answer Fixed expenses:Manufacturing overhead $Answer Selling and administrative AnswerAnswer Net income (loss) $Answer (c) What is the value of endinginventory under absorption costing? $Answer (d) What is the valueof ending inventory under variable costing? $Answer (e) Thedifference in the value of ending inventory in parts (c) and (d) isexplained by the following difference between absorption anvariable costing: Variable costing treats all manufacturing costsas variable costs while absorption costing treats only variablemanufacturing costs as variable costs. Absorption costing treatsfixed costs as period costs while variable costing treats fixedcosts as product costs. Variable costing assigns only variablemanufacturing costs to products while absorption costing assignsboth variable and fixed manufacturing costs to products. Absorptioncosting treats all manufacturing costs as period costs whilevariable costing treats only variable manufacturing costs as periodcosts. Skip Assignment navigation Assignment navigation Question 1Question 2 Question 3 Question 4 Question 5 Question 6 Question 7Question 8 Question 9This page Finish attempt ...  Absorption andVariable Costing Comparisons Peachtree Company manufactures peachjam. Because of bad weather, its peach crop was small. Thefollowing data have been gathered for the summer quarter of 2009:Beginning inventory (cases) 0 Cases produced 10,000 Cases sold9,200 Sales price per case $60 Direct materials per case $6 Directlabor per case $8 Variable manufacturing overhead per case $3 Totalfixed manufacturing overhead $400,000 Variable selling andadministrative cost per case $2 Fixed selling and administrativecost $48,000 (a) Prepare a functional income statement for thequarter using absorption costing. (Do not use negative signs withyour answers, EXCEPT if you calculate a net loss.) PeachtreeCompany Functional (Absorption Costing) Income Statement For theSummer Quarter 2009 Sales $Answer Cost of goods sold: Variablecosts $Answer Fixed costs Answer Goods available Answer Endinginventory Answer Answer Gross profit Answer Operating expenses:Variable selling and administrative $Answer Fixed selling andadministrative Answer Answer Net income (loss) $Answer (b) Preparea contribution income statement for the quarter using variablecosting. (Do not use negative signs with your answers, EXCEPT ifyou calculate a net loss.) Peachtree Company Contribution (VariableCosting) Income Statement For the Summer Quarter 2009 Sales $AnswerVariable expenses: Manufacturing $Answer Selling and administrativeAnswer Answer Contribution margin Answer Fixed expenses:Manufacturing overhead $Answer Selling and administrative AnswerAnswer Net income (loss) $Answer (c) What is the value of endinginventory under absorption costing? $Answer (d) What is the valueof ending inventory under variable costing? $Answer (e) Thedifference in the value of ending inventory in parts (c) and (d) isexplained by the following difference between absorption anvariable costing: Variable costing treats all manufacturing costsas variable costs while absorption costing treats only variablemanufacturing costs as variable costs. Absorption costing treatsfixed costs as period costs while variable costing treats fixedcosts as product costs. Variable costing assigns only variablemanufacturing costs to products while absorption costing assignsboth variable and fixed manufacturing costs to products. Absorptioncosting treats all manufacturing costs as period costs whilevariable costing treats only variable manufacturing costs as periodcosts.

Please help me find each answer to all of the questions below. I am unable to rotate the picture.

Explain the CM approach and its advantages. Would the CMapproach better assist management in ensuring that all costs willbe covered? I think that under absorption costing, FC would becomeinventoriable and thus buried when production exceeds sales.Conversely, under the CM approach, FC are treated as period costs,and thus it is less likely to overstate profits. What are yourthoughts on this topic?

Would the CM approach better assist management in ensuring that all costs will be covered?

When pricing products or services, all costs must be accounted for. This list would include VC and FC. I've seen government project bids badly priced (VC + markup rather than total costs + markup). Ultimately, as stated, consumers will not pay above what they can pay another supplier for the same product. Here we have a few things to consider: reduce costs to remain competitive, and/or differentiate our product.

Please answer thoroughly, so I can understand the thinking process. Thank you again!

Q1. A question related to cost control (without jeopardizing quality): What can the purchasing manager of an organization do to control costs of raw materials? And the production manager? Or is this cost control strategy company wide? What are some management tools that we can use to encourage everyone to think lean yet maintain quality? Examples: Quality circles, TQM, continuous process improvement, JIT, participative leadership styles, and so forth. Let's think outside of the box!

Q2. When pricing products or services, all costs must be accounted for. This list would include VC and FC. I've seen government project bids badly priced (VC + markup rather than total costs + markup). Ultimately, as stated, consumers will not pay above what they can pay another supplier for the same product. Here we have a few things to consider: reduce costs to remain competitive, and/or differentiate our product. Let's discuss!

Q3. Would the CM approach better assist management in ensuring that all costs will be covered? I think that under absorption costing, FC would become inventoriable and thus buried when production exceeds sales. Conversely, under the CM approach, FC are treated as period costs, and thus it is less likely to overstate profits. What are your thoughts on this topic?

• Would the CM approach better assist management in ensuring all costs are covered? Under absorption costing, FC would become inventoriable and thus buried when production exceeds sales. Conversely, under the CM approach, FC is treated as period costs, making it less likely to overstate profits. What are your thoughts on this topic?

hi can u pls send me the dvst100 notes if possible cause i can't open it 

thanks