Financial analysis task 4 competition bikes

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Financial analysis task 4 competition bikes

Task 4 Costing A. Costing Methods Competition Bikes Inc.

Financial analysis task 4 competition bikes

This is a technique in which the cost of the given object was accumulated so that the total economic resources consumed by the particular product can be represented Simprocess. This method of costing is suitable for manufacturing companies such as CBI, therefore it is beneficial and helpful to the company in such a way that the process doesn't require too much financial resources, time commitment and elaborate special software system to be integrated into general ledger.

ABC enables the company to dissect every costing requirement of each product allowing a more defined and precise determination of expenses.

To apply this method to CBI's overhead and material costing for Carbon DL and titanium based products, it appears that traditional method only provides a generalized overview of the cost and does not define other items that contributed to the cost amount, therefore the results are not precise and most of the time renders over-budgeting.

However, ABC is more precise by accounting every aspect of manufacturing process especially in the overhead where every cost of resources employed to manufacture the product was included.

The bottom line is the cost is showing the precise amount up to the last item and resources used to manufacture the product like utilities, factory set-ups, engineering, and quality controls among others.

The implications of precise costing include improvements the company to make decisions in terms of cost cutting and budgeting, therefore it would be much recommended to use ABC method because the company can determine how low or high the cost of each product and this diversifies options to make adjustments.

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Break-even Points Break-even points is when the net sales and the expenses comes equally, this means the company neither earned or lose in the process.

There are basic principles in analyzing break-even points. To calculate the break-even point for Carbon Lite and Titanium products contribution margin has to be determined.


The results showing on the above tables suggests the relationship between cost against volume and the resulting profit, which means volume determines the amount of profit that can be obtained.

Break-even Analysis Change When the cost is affected by increase in the price of materials, the selling price of product cannot be changed just as easy, otherwise it will cause the company to lose customers for the reason that their product is too expensive for the average consumer. This will also result to drastically low amount of sales and losses for the company.

The only way to avoid such thing to happen is to calculate how low the company should reduce the contribution margin in order to at least meet the break-even point.

Primarily when the cost went up the only way to get even is to reduce the contribution margin. This means reducing the amount of expected profit because basically the difference in selling price against the variable cost is the company's profits or contribution margin.

Regarding fixed cost, the fact that it is fixed, the company cannot change or make adjustment out of it, further deduction in contribution margin will cause much lower sales in the future.

The University of California, Davis (also referred to as UCD, UC Davis, or Davis), is a public research university and land-grant university as well as one of the 10 campuses of the University of California (UC) system. It is adjacent to Davis, California, west of Sacramento, and has the third-largest enrollment in the UC System after UCLA and UC Berkeley. financial analysis task 1 wgu Looking Two Wheel Racing’s Current Debt Ratio at , shows Competition Bikes has been better at maintain a high ratio than the compotator. Acid Test Ratio tells whether the company can pay all its liabilities if they were due immediately. Financial Analysis Task 4 A1. Costing Method In order for a. Lamar kids are becoming more connected to the great outdoors. Students from One Step Up and the HOPE Center at Lincoln School have been working to complete two long-range projects. One is to see sod laid on the dirt playground at Lincoln School and the other is the completion of the skate park.

However, losses can also be avoided as a result of fixed cost increase. But the previous break-even point can no longer be changed and the increase in fixed cost will result to losses. This is because the number of manufactured units was already set.Search and browse our historical collection to find news, notices of births, marriages and deaths, sports, comics, and much more.

Financial analysis task 4 competition bikes

Financial Statement Analysis for Competition Bikes, Inc Financial statement analysis Six means the way of evaluating, reviewing balance sheets with the aim of gaining insight, and understanding of the financial welfare of a company and providing management with information for decision-making.

In the Financial Statement Analysis event, teams are given the task of reviewing the annual reports of two companies whose primary operations are within the same industry.

Account Options

The teams will be acting as financial consultants. Now that the litigation between the City of Lamar and ARPA, Arkansas River Power Authority, has been settled, ARPA is looking for a means to reduce the size of the $M in outstanding construction bonds for the Lamar Repowering Project. Introduction: Competition Bikes Inc.

has retooled and is making both the CarbonLite and the Titanium frame bikes. The company vice president directed that a cost study be conducted, and an activity-based costing analysis was undertaken in one of the company plants.

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It would behoove Competition Bikes to create realistic predictions (as stated above). Another idea would to be to examine the sales process. Compare and contrast what strategies were compared between the successful year 7 and the down year 8 to determine if any changes took place in .

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