Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Wardlaw Company, ( It is the same company!) a mid-sized engineering firm operates in mid-town Toronto from a suite of offices on the fifth floor

Wardlaw Company, ( It is the same company!) a mid-sized engineering firm operates in mid-town Toronto from a suite of offices on the fifth floor of a high-rise office building. All professional personnel Engineers, Computer Specialists, Surveyors, Managerial/Tax Accountants, Sales and Admin personnel are on fixed salary Annual Payroll, all fixed .

Fixed Costs:

Rent: 10,000 Sq Meters $ 8,250,000

Salaries all fixed: 30,000,000 Engineering/Survey

Equipment 1,250,000

Marketing Professional/Industry journals 750,000

Computers - Hardware 8,750,000

Annual Variable Costs include:

Marketing/Travel - Client focused $1,300,000

Blueprinting/Design- Job Specific $2,450,000

Other Supplies $1,250,000

Software $1,285,000

Wardlaw has hired your managerial accounting firm to design a Project Management System. Required: Suggest methods for charging both fixed and Variable costs. Your answer must address

Cost behaviour:

Cost drivers Direct Costs Indirect Costs Client Profile Large vs small Client-focused charges Distance/mileage charges Non-financial: Identify Non-financial issues to be considered

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Finance questions

Question

=+b) Should the company send the fact-finding trip? Explain.

Answered: 1 week ago