1HarshElectricals-ObjectivesandQuestions.docx
Objectives:
· Explain cost concepts and classifications for managerial decisions
· Calculate product costs and profitability
· Prepare a cost of goods sold statement
· Understand cost-volume-profit analysis and the BEP
· Prepare a projected income statement
Questions:
1. Discuss the various cost concepts that are part of the managerial decision-making process
2. List the costs involved in air-cooler manufacturing, and classify them for various managerial decisions.
3. Describe a cost system. Using the conventional cost system, estimate the profitability of each type of cooler that Harsh Electricals manufactures.
4. Prepare a cost of goods sold statement for Harsh Electricals.
5. Considering Harsh Electricals’ product and period costs, create a projected income statement for the calendar year 2014.
6. Calculate Harsh Electricals’ BEP in terms of units and volume.
7. Calculate the number of units that Harsh Electricals must sell to match the level of profit earned in financial year 2010-11.
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