2023 As EEC s corporate business financial analyst you will need to have a clear understanding of the different types | Assignments Online

As EEC’s corporate business financial analyst, you will need to have a clear understanding of the different types of costs (variable, fixed, and mixed) that the company carries. Complete the following for this assignment:

• Review EEC’s journal activity.
• Define and identify its variable, fixed, and mixed costs.
• Determine what affect a sales volume increase or decrease will have on unit fixed cost, unit variable cost, total fixed cost, and total variable cost.

Click here to view EEC’s journal activity.

Part 2

As an EEC corporate business financial analyst, you must have an expert understanding of the various costing methods. Select 1 of the following costing concepts:

• Full costing or absorption costing
• Variable costing
• Target costing
• Life cycle costing
• Activity-based costing

Respond to the following questions on the costing concept that you selected:

• Provide the definition of the concept.
• Discuss how and when the concept could be used by EEC.
• Discuss the advantages and disadvantages of the concept as it relates to EEC.

Eddison Electronic Company

Journal Entries 2005 “000” Omitted

   Activity

1 Sales not on account $29,440

2 Sales on account 28,060

3 Selling Expense 3,220

4 Administrative Expense 6,210

5 Supplies Factory 3,450

6 Insurance Factory 920

7 Indirect Labor 6,900

8 Factory Salaries 288

9 Factory Property Tax 173

10 Maintenance Expense Factory 2,001

11 Depreciation Expense Factory 3,726

12 Utilities Factory 828

13 Purchases of Raw Materials 17,250

14 Direct Labor Factory 3,450

15 Raw Material Inventory, January 1 2,070

16 Raw Material Inventory, December 31 1,380

17 Work in Process Inventory, January 1 4,140

18 Work in Process Inventory, December 31 2,300

19 Finished Goods Inventory, January 1 5,980

20 Finished Goods Inventory, December 31 4,830

21 Bad Debt Expense 276

22 Accounts Receivable, net 9,430

23 Prepaid Expenses 840

24 Land 2,760

25 Plant and Equipment 37,950

26 Cash 1/1/05 4,646

27 Accounts Payable 14,410

28 Interest Expense 28

29 Notes Payable, 10% 2,070

30 Bonds Payable 8% 8,510

31 Stockholders’ Equity 31,510

32 Retained Earnings 6,670

33 Income tax rate 30%