...Use the following information on a company’s investments in equity securities to answer questions 1 4 below. The company’s accounting year ends December 31. Investment Ajax Company stock Bril Corporation stock Coy Company stock 1. Date of acquisition 6/20/13 5/1/13 8/2/13 Cost $40,000 20,000 16,000 Fair value 12/31/13 $35,000 N/A 16,500 Date sold 2/10/14 11/15/13 1/17/14 Selling price $32,000 26,000 23,000 Topic: Accounting for trading securities LO 1 If the above investments are categorized as trading securities, what amount is reported for gain or loss on securities, on the 2013 income statement? a. b. c. d. $1,500 gain $6,000 gain no gain or loss $4,500 loss ANS: a 2. Topic: Accounting for trading securities LO 1 If the above investments are categorized as trading securities, what amount is reported for gain or loss on securities, on the 2014 income statement? a. b. c. d. $1,000 loss $4,000 loss $3,500 gain $6,000 loss ANS: c You can buy the this complete file at http://testbanksfor.com 3. Topic: Accounting for AFS securities LO 1 If the above investments are categorized as availableforsale securities, what amount is reported for gain or loss on securities, on the 2013 income statement? a. b. c. d. $1,500 gain $6,000 gain no gain or loss $4,500 loss ANS: b 4. Topic: Accounting for AFS securities LO 1 If the above investments are categorized as availableforsale securities...
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...Pop Quiz: 1. What type of accounts appear on the balance sheet? - Assets & Liabilities & Shareholders Equity 2. What is the accounting equation: - Assets = Liabilities + Capital 3. How is the net income calculated? - Revenue (gross income) – expenses 4. Prepare the journal entry to record purchase of supplies on account for $300 A/P Supplies Credit $300 Debit $300 Financial Accounting Managerial Accounting Outsiders Insiders Summarized Detailed Historic Forward Looking GAAP – Rules of Accounting Not GAAP Discussion Topic One: 1. Answer: Basically the same, but details will be different. Cost of goods sold – manufacturer is different. Basics are the same, cost of goods sold different from organization to organization. 2. Answer: They can be related to different industries. Discussion Topic Two: Marketing strategy? IE sell lower end/cost goods – why? Variable Costs Pg. 48 – Cost that varies in total in direct proportion to changes in the level activity Fixed Costs Pg 49 – Costs that remain the same. Fixed within a relevant range. - Fixed costs per unit can change with different levels of activity. Product Costs Pg. 38 = Inventoriable Costs (costs that go into inventory) Direct Materials: major components of finished products (high cost) Direct Labor: get involved with product ex. Assembly worker Overhead: Indirect manufacturing cost ex. Supervisor, onsite accountant( no direct contact with merchandise). Small costs = overhead ...
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...AMERICAN INTERNATIONAL UNIVERSITY-BANGLADESH Spring’ 2013-2014 MID-TERM EXAM SCHEDULE (Released on February 04, 2014) Day 1: March 01, 2014(Saturday) TIME Campus 1, 5 & 4 PRINCIPLES OF ECONOMICS ECONOMIC GEOGRAPHY GLOBAL FINANCE MEASUREMENT & INSTRUMENTATION BASIC PLANNING AIRLINE RESERVATION & TICKETING SELECTION AND STAFFING PHYSICS 1 PHYSICS 1 FOR ARCHITECTS MODERN PHYSICS SYLLABUS DESIGN DEV COMMUNICATION & DEV JOURNALISM LOGIC & PHILOSOPHY STATISTICS FOR DEVELOPMENT SOFTWARE DEV. & PRO. MGMT. THEORY OF COMPUTATION HOUSING FINANCIAL INS. AND MARKET LEGAL ENVIRONMENT IN BUSINESS MEDIA LAW AND ETHICS 12-2 PHYSICS 2 STRUCTURE-II (REINFORCED CONCRETE DESIGN) STRUCTURE-I (BASIC MECHANICS OF SOLIDS) CONTROL SYSTEM DATA WAREHOUSING AND DATA MINING [CS] PHONETICS AND PHONOLOGY LANGUAGE TESTING FINANCIAL STATEMENT ANALYSIS BASICS IN SOCIAL SCIENCE ENTREPRENEURSHIP DEVELOPMENT MUSIC APPRICATION GLOBAL OPERATIONS MANAGEMENT MULTIMEDIA SYSTEMS [CS] TRAINING & DEVELOPMENT COMPUTER VISION & PATTERN RECOGNITION 3-5 VISUAL ENVIRONMENT SOFTWARE REQUIREMENT ENG. STATISTICS & PROBABILITY INTRODUCTION TO STATISTICS [ECO] POWER STATIONS RURAL MARKETING ADVERTISING AND PUBLIC POLICY INTRODUCTION TO SOCIOLINGUISTICS CONTEMPORARY ISSUES IN GLOBAL ECONOMY [ECO] Campus 7 SECTIONS A,B,C,D,E,F,G,H,I,J,K A,B,C,D,E,F,G,H A,B,D A A A A,B A,B,B1,B2,B3,B4,B6,B8,B9,B10, C1,C2, C3,C5,C6,C7,C4,D A A,B,C,D,E,F,G,H A A A A A,B A,B,C,D A A,B,D,E B,C,D,E,F,G,H,I,J,K,L A A,B,C,D,E,F,G,H,I,J,K,L,M,N A A A,B,C,D...
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...Cost Control Conte nts Pref ace to the New Edition The Cost Manager’s Toolkit – PDA-size Summary 1 GOOD COST MANAGEMENT The Unsung Hero Cheaper and Better Managing and Cutting Costs – Intelligently 2 COST LEADERSHIP A Challenging Base Case Indiv idual Accountability Persistence A Continuous Improv ement Culture Short Timef rames Feedback Loops Strategic Skepticism Top Team: Finance Top Team: Human Resources Role Models Toolkit – Cost Leadership 3 TECHNIQUES AND TACTICS Understanding Cost Dy namics Management Accounts and Metrics Bang f or Buck Slice and Dice Understanding Natural Cost Trends Cash Cost Not P&L Cost Best Practice (and Lev el Play ing Fields) Competitiv e Analy sis Toolkit – Techniques and Tactics 4 PEOPLE Why Is People Cost So Problematic? Hiring Pay ing Technology and Productiv ity Firing Managing the Av erage Perf ormer Minimizing the Core Organization Toolkit – People 5 SUPPLIERS Who Manages Supplier Costs? Understand the Balance of Power Consolidate to Fewer Better Suppliers Negotiate Intelligently Don’t Get Locked In Manage Total Cost of Ownership Get Tough on the Costs of Serv ices Toolkit – Suppliers 6 COST CUTTING CASE STUDY Month 1 Month 2 Month 3 Month 4 7 WIRED AND GLOBAL The Internet Globalization Toolkit – Wired and Global 8 LATERAL THINKING Indirect Cost Generators Let the Customers Do the Work Cost into Rev enue Toolkit – Lateral Thinking ...
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...Dr. George Gekas Notes These notes are posted on blackboard to high light and complement certain aspects of the topic, facilitate those students who may have missed my lecture, balance traditional with internet based learning and overall enhance student’s learning.. The notes are not meant to suggest what may be in the exams, replace textbook studying and/or problem solving. WHAT IS ALL ABOUT? Cost allocation deals with one of the following large areas: 1. How should fixed or overhead costs be allocated to different departments or products? 2. How should costs of shared services be allocated among various departments? 3. How should joint (common) costs of a single production process be allocated to products that emerge from this joint process? TERMINOLOGY USED: Cost allocation Cost assignment Cost apportionment Cost distribution Cost application Cost tracing REASON FOR COST ALLOCATION: 1. To establish cost 2. To price inventories 3. To establish the right price, what price to charge (Pricing decision). 4. To determine accurately net profit (Price-cost) 5. To motivate managers/ employees to decrease overhead cost, and to encourage production and other designs less costly to service 6. To evaluate performance of different departments 7. To allocate overall capacity among different products, or to assist in the decision to add / delete a product or department. THEORETICAL CRITERIA FOR COST ALLOCATION 1. Cause and effect criterion...
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...1. The budgeted profit for the period under the absorption costing has been calculated as $210,000. It has based on production of 30,000 and sales of 35,000 units. Budgeted fixed overheads were $105,000. What is the budgeted profit under marginal costing? 2. Which of the following statement concerning the valuation of the inventory is correct: A. It is impossible to say whether absorption or marginal costing will give the higher value without further information. B. The values under absorption and marginal will be the same. C. The value will be lower under absorption costing and marginal costing. D. The value will be higher under absorption costing and marginal costing. 3. One unit of a product requires three kilo grams of material and the expected cost of material is $ 4 per kg. labor will be paid at $ 2 per hour and each employee will make four units in an hour. Budgeted fixed overheads are $800,000 per period and are to absorbed using budgeted labor hours of 40,000. What is standard total absorption cost per unit? 4. In which circumstances does under absorption of overheads occur? A. Absorbed overheads exceed budgeted overheads B. Absorbed overheads exceed actual overheads C. Budgeted overheads exceed actual overheads D. Actual overheads exceed absorbed overheads 5. Budgeted overheads of $22,000, an OAR are $22 per labor hour. During the period actual OH incurred were $22,600 and actual labor hours are 1,120 hours. What...
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...MANAGEMENT ACCOUNTING Study Material Prepared By INSTITUTE OF COST AND WORKS ACCOUNTANTS OF INDIA for Junior Accounts Officer(Civil) Examination Conducted By CONTROLLER GENERAL OF ACCOUNTS 1 BASICS OF COST ACCOUNTING 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 ♦ ♦ Evolution of Cost Accounting, Cost Concepts and Cost Classification Introduction Evolution of Cost Accounting Financial Accounting and Cost Accounting Management Accounting Financial, Cost and Management Accounting Cost Concept and Cost Object Cost Management Cost Classification Methods of Costing Techniques of Costing Specific Cost Systems Cost Department and its relationship with other Departments Installation of Costing System Specimen Questions with Answers Test Yourself Page . No 1 1 2 3 4 .5 6 7 10 12 13 14 16 17 18 20 1.0 EVOLUTION OF COST ACCOUNTING, COST CONCEPTS AND COST CLASSIFICATION 1.1 INTRODUCTION Traditionally, cost accounting is considered as the technique and process of ascertaining costs of a given thing. In sixties, the definition of cost accounting was modified as ‘the application of costing and cost accounting principles, methods and techniques to the science, art and practice of cost control and ascertainment of profitability of goods, or services’. It includes the presentation of information derived therefrom for the purpose of managerial decision making. It clearly emphasises the importance of cost accountancy achieved during the period by using cost concepts in...
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...MANAGEMENT ACCOUNTING Study Material Prepared By INSTITUTE OF COST AND WORKS ACCOUNTANTS OF INDIA for Junior Accounts Officer(Civil) Examination Conducted By CONTROLLER GENERAL OF ACCOUNTS 1 BASICS OF COST ACCOUNTING 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 Evolution of Cost Accounting, Cost Concepts and Cost Classification Introduction Evolution of Cost Accounting Financial Accounting and Cost Accounting Management Accounting Financial, Cost and Management Accounting Cost Concept and Cost Object Cost Management Cost Classification Methods of Costing Techniques of Costing Specific Cost Systems Cost Department and its relationship with other Departments Installation of Costing System Specimen Questions with Answers Test Yourself Page . No 1 1 2 3 4 .5 6 7 10 12 13 14 16 17 18 20 ♦ ♦ 1.0 1.1 EVOLUTION OF COST ACCOUNTING, COST CONCEPTS AND COST CLASSIFICATION INTRODUCTION Traditionally, cost accounting is considered as the technique and process of ascertaining costs of a given thing. In sixties, the definition of cost accounting was modified as ‘the application of costing and cost accounting principles, methods and techniques to the science, art and practice of cost control and ascertainment of profitability of goods, or services’. It includes the presentation of information derived therefrom for the purpose of managerial decision making. It clearly emphasises the importance of cost accountancy achieved during the period by using...
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...Unit 1: Role and Scope of management accounting 1.1The Role of the Management Accountant |Content |CLP |Text |Worked Example/Activity Ref | | | | | | |What is it? Provision of info financial and non-financial to decisions makers usually in|Pg 9 | |Activity 1 - the role of the| |the organisation | | |decision maker | | | | | | |Thought Process: | | | | |understanding what is required | | | | |calculating or compiling the information required | | | | |analysing, interpreting or understanding the information obtained | | | | |Making recommendations and drawing conclusions | | ...
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...A. Davis, Jr. ACC/542 October 21, 2013 Irene Branum Preface In the last few weeks the accounting firm, Team D has looked into characteristics of Kudler Fine Foods and provided recommendations to update and replace existing components of the IT system. These recommendations made can yield in the company’s increased productivity, profitability, and remove potential threats. Team D determined that industry specific software is useful in comparison to customized software. Four main modules such as payroll, account payable, accounts receivable, and inventory were developed as well as enhancement of each flowchart based on the appropriate system. Team D examined the database completeness at Kudler’s intranet and developed a pivot table; therefore, making the decision-making process easy. External and internal risks were analyzed and internal control points were developed by incorporating both risks and controls into a flowchart. Team D also showed why findings and recommendations are more useful to the company in comparison to SAS70 and SAS94 audits. The team identified events that will lessen the dependence on auditing through computer and showed a brief description how the audit should be conducted. System Integrity and Validation Kudler Finer Foods has looked for recommendations regarding the company, to include computer information system, automated process of an accounting information system, data table analysis, internal control and risk evaluation, and auditing procedures...
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...I. Introduction The Royal Mint has a unique manufacturing operation in the United Kingdom and also designated as an executive agency responsible to the treasury to the “Her Majesty's” Government. Its objective is to provide the government with coinage at a competitive price and its manufacturing requirement ranges from high volumes of standard coinage to individual service medals or commemorative coins. In the case of the Royal Mint, they follow a unique cost ceiling that their cost base must always be less than the face value of the coins being produced. In order to follow that unique cost ceiling, the researchers follow the concept of simultaneous design by being involved in initiatives to improve materials being used in both coins and dies. Then due to high inflation rate, the face value of the coin is exceeding the cost base of the raw material and with the help of using the concept of simultaneous design, the Royal Mint quickly mitigated the risk by changing the composition of the 2 Pound and 1 Pound coins to a steal core with an electroplated copper outer layer and has significantly reduced the unit cost and it added expected lifetime by using a less expensive metal base. II. Background The Royal Mint has a cost ceiling that the cost base of the material must be less than the face value of the coin being produced. In order to follow that unique cost ceiling, the Royal Mint implemented the Concept of Simultaneous Design to research on how to further improve...
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...CHAPTER 17 PROCESS COSTING 17-1 Industries using process costing in their manufacturing area include chemical processing, oil refining, pharmaceuticals, plastics, brick and tile manufacturing, semiconductor chips, beverages, and breakfast cereals. 17-2 Process costing systems separate costs into cost categories according to the timing of when costs are introduced into the process. Often, only two cost classifications, direct materials and conversion costs, are necessary. Direct materials are frequently added at one point in time, often the start or the end of the process. All conversion costs are added at about the same time, but in a pattern different from direct materials costs. Conversion costs are often added throughout the process, which can of any length of time, lasting from seconds to several months. 17-3 Equivalent units is a derived amount of output units that takes the quantity of each input (factor of production) in units completed or in incomplete units in work in process, and converts the quantity of input into the amount of completed output units that could be made with that quantity of input. Each equivalent unit is comprised of the physical quantities of direct materials or conversion costs inputs necessary to produce output of one fully completed unit. Equivalent unit measures are necessary since all physical units are not completed to the same extent at the same time. 17-4 The accuracy of the estimates of completion depends on the care and skill of the estimator...
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...Memo of law Question/Issue Presented What evidence can be found during a legal discovery and how does this affect the record-keeping policy of a business organization? Applicable Law and Ethical Standards Newby v. Enron Corp. , 2002 U.S. Dist. LEXIS 28397 (S.D. Tex. May 1, 2002) Newby v. Enron Corp. (In re Enron Cor... , 2003 U.S. Dist. LEXIS 1668, Fed. Sec. L. Rep. (CCH) P92404 (S.D. Tex. Jan. 28, 2003) United States v. Arthur Andersen LLP , 2002 U.S. Dist. LEXIS 26870 (S.D. Tex. May 24, 2002) 18 USCS § 1512 Discussion/Analysis (of Law and Facts) During a legal discovery which includes the procedures of Deposition, Interrogatories and Production of Documents there can be different evidence found depending on the area of work the business organization is involved in. An example could be that a company tried to create false documents with the intent to seem like a good investment or to avoid paying taxes. During a deposition evidence can be found that people questioned tell conflicting stories. It is crucial to be able to deliver the right documents requested during a discovery. Therefore, it is important to have an organized record-keeping policy for any organization. Furthermore, a business should keep its records as correct as possible and not be tempted to give in to fraud, changing documents or destroying important documents. A company should follow the law to keep the required documents. It would be a crime to hide, destroy and/or withhold subpoenaed...
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...TOOLBOX: 1) Inventory Management - Inventory Turnover Ratio = Costs of Goods Sold/ Inventory If inventory turns over 6 times, how many days does it stay on the shelves or in the warehouse? These are annual figures: 365/7 = 60 days on the shelves. Need a better specific Mission Statement. 2) Costs that do no change with volume of output are called -Fixed Costs Costs that change when volume changes are called -Variable Costs 3) Fishbone Analysis 4) Low Urg/Low Impt – Low Urg/High Imp High Urg/Low Impt – High Urg/High Imp 5) Present Value and Future Value PV x C^n = FV When comparing investments....pick the one that has a larger present value. 6) PORTER 5 Porter 5 does not cover the opportunities part of the SWOT ad Market Growth Potential. 7) HILO METHOD: Finds Slope (FC, VC) [(Total Cost From Later Year - Total Cost from Year Before Later)] / [(Units from Later Year /-Units from Year Before Later)] = VC FC = Total Cost – (VC)(UNITS) 2012 Units: 800 Total costs: 7000 2011 Units: 500 Total costs : 6100 [7000/6100] / [800/500] = $3/unit ( VC 3(800) 2400 ... 7000-2400 FC= 4600 8) BREAKEVEN POINT BE = [FC/[P-VC] BE ( Given a total profit ) = [FC+TP]/[P-VC] QUESTION: How many units must you sell to earn $100 000 in profit 4600+ 100 000/ [5-3] = 104600/2 = 52 300 9) FINANCIAL STATEMENT BALANCE SHEET - ASSETS = LIABILITIES + EQUITY INCOME STATEMENT- NET INCOME = REVENUE MINUS EXPENSES CASH FLOW STATEMENT ...
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...ACCT310 - 1304B – 07 Andre’s Hair Styling American Intercontinental University Online December 1, 2013 ABSTRACT The following information is going to contain information from Andre’s hair styling. The information is going to detail the contribution margin, the annual break-even point, as well as the operating income. Fixed costs consist of the barbers so to figure that out we must take their nine dollars and ninety cents an hour that they are paid and multiply that by the barbers forty hour work week and then multiply that by the fifty weeks that they work a year and then again multiply by the five different barbers that are working at Andre’s Hair Styling; we then get ninety-nine thousand dollars as the outcome. ($9.90*40 hours a week*50 weeks a year* 5 barbers) = $99,000 which added together is one hundred and twenty thousand dollars. Other expenses for Andre’s Hair Styling consists of the remaining fixed costs per month which is one thousand seven hundred and fifty and then multiply that by twelve months and we get twenty-one thousand dollars a year for other fixed expenses. ($1,750 fixed expenses * 12 months in a year) = $ 21,000 Now that we have done all of that calculations to begin answering the questions at hand we will go from 1-4. 1. The first task is to find the contribution margin per hair cut at the same time assuming that the barber’s compensation is a fixed cost. So we take the following in mind. Andre’s hair styling is charging twelve dollars...
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