...Costing Methods Paper LaKeisha R. Fields ACC/561- Accounting July 15, 2013 Facilitator: Shirley Smith Costing Methods Paper Introduction-Absorption vs. Variable Costing In managerial accounting there are two cost methods that can be utilized for the purpose of presenting financial data in a manufacturing environment. They consist of absorption and variable costing methods. Although they are somewhat similar they have key differences that impact a company. In absorption costing the profit is attached to the unit of each item produced. The fixed costs associated in the manufacturing are also considered. This leaves much uncertainty to the actual price to the unit produce. In variable costing the accuracy is much more accepted in managerial accounting. Yet, the fixed costs are not attached the product costing because they change often. The use of these methods has its benefits in accounting; and will leave much to consideration in decision making by many managers working in production. Here as follows are some of those benefits and a possible decision-making consideration that can be beneficial in a low biding by competition in a manufacturing industry. Benefits of the Two Methods According to Articlebase.com in an article titled “Absorption vs. Variable Costing”, there are benefits to each cost methods in accounting. In Absorption costing the benefit of it would be that a company can have an inventory of finished goods. These finished goods are a part of the fixed...
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...Costing Methods ACC/561 May 14, 2012 Costing Methods According to Kimmel, Weygandt, and Kieso (2009), “a traditional costing system allocates overhead on the basis of a single predetermined overhead rate.” Although this may be the best costing method for some businesses, not all businesses are the same. Created in 1990, Super Bakery, Inc. started by using the traditional costing methods to determine costs; however, quickly came to realize that the methods were not taking individual markets into consideration. The purpose of this paper is to elaborate upon Super Bakery, Inc.’s transition from a traditional costing method to an activity-based costing method. In doing so, an attempt will be made to highlight the strategies of Super Bakery Inc.’s management team. Furthermore, this paper will share why the management of Super Bakery Inc. deemed it necessary to install the ABC system. Finally, the paper will divulge why a job order cost system or a process order cost system would or would not work for Super Bakery Inc. Strategies Super Bakery Inc. is a virtual company that outsources most of the manufacturing activities. By outsourcing most of the manufacturing activities, Super Bakery Inc. can save on cost associated with owning machinery. Not only does Super Bakery Inc. save on the cost of the machinery but also on the costly expense of maintenance and repairs. Furthermore, the company could reduce overhead expenses such as salaries and even utilities. By using this strategy...
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...overhead costs to the activity cost pools. 2. Compute activity rates for the activity cost pools. 3. Construct a table showing the overhead costs of units and four orders. Ferris Corporation makes a single product - a fire resistant commercial filing cabinet - that it sells to office furniture distributors. The company has a simple ABC system that it uses for internal decision making. The company has two overhead departments whose costs are listed below: |Manufacturing overhead |$5,00,000 | |Selling and administrative overhead |$300,000 | | |[pic] | |Total overhead costs |$8,00,000 | The company's activity based costing system has the following activity cost pools and activity measures: |Activity Cost Pool |Activity Measures | |Assembling units |Number of units | |Processing orders |Number of orders | |Supporting customers |Number of customers | |Other |Not applicable | Costs assigned to the "other" activity cost pool have no activity measure; they consist of the costs of unused...
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...WHIRLPOOL CORPORATION GLOBAL PROCUREMENT | Cost Analysis | Whirlpool is the world’s largest producer and marketer of small and large home appliances such as mixers, food processors, washing machines, refrigerators, air conditioners, etc. Whirlpool also has a long standing relationship with Sears, which sells Whirlpool products under the brand name Kenmore. In addition to its North American presence (both manufacturing and sales), Whirlpool also has a strong presence in Mexico, and Europe. Being the largest producer in the world has helped Whirlpool to compete on lower costs through economies of scale and through its Global Procurement Organization (GPO). In addition, its large networks also help in distribution, marketing, and ultimately in its sales. Another key factor how it competes is through its relationships with customers such as Sears. Our cost model was based on the “Principles of Cost Modeling” from the article Competitive Cost-Analysis: Cost-Driver Framework by Timothy Laseter, et al. Based on the article, we continuously pondered over not only the cost elements, but also the cost drivers, so as to get a better picture and to arrive at a more accurate analysis. To capture all the elements, we constructed our own template, so that we could customize it to Whirlpool, so as to capture as many cost drivers as possible. In addition, to ensure that we accounted for all parts contributing to the actual cost, we thought about total cost of ownership and considers drivers such...
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...Plantwide method has been used for long time and is still used successfully by many organizations. However, in some cases is not working well and is causing product cost distortion. Analysis of overhead cost assignment using alternative method show that the unit cost of the standard and specialty briefcases needs to be conducted using activity-bases costing instead plantwide method. Analysis of overhead cost using activity-based costing is presenting actual consumption of overhead costs by the standard briefcases and specialty briefcases. Instead pooling costs in plant pool; rates are calculated for each individual overhead activity. Consequently, costs are assigned to standard briefcases and specialty briefcases by multiplying the activity rates by amount consumed by each activity for each product. Breakdown of the manufacturing cost for each of WorkRite’ product is given below using activity-based costing and plantwide rates: Activity-Based Costing Standard Briefcases Specialty Briefcases Setup rate $ 100.00 Inspection rate $ 30.00 Frame Assembly rate $ 8.00 Machine rate $ 4.00 Prime cost per unit $ 10.00 $ 20.00 Overhead costs: Purchasing $ 6,000 $ 9,000 Material handling $ 6,200 $ 9,800 Setup $ 1,000 $ 5,000 Inspection $ 6,000 $ 12,000 Frame Assembly $ 5,600 $ 6,400 Machine $ ...
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...Cost Methods Super Bakery Inc. was created in 1990 by Franco Harris who is a former Pittsburgh Steelers’ running back. This company supplies baked goods and different types of doughnut to stores nationwide. This paper will discuss the strategies that management used, why management thought it was necessary to install an ABC system, and which cost system would work for Super Bakery. Management Strategies Since Super Bakery is a virtual corporation, only the core business functions are handled inside the company. All other functions are outsourced to external companies. These activities include warehousing, shipping, selling, and manufacturing. Outsourcing is the stategy that management uses at Super Bakery. The idea is to organize the work flow among the external companies by making the minimum investment in staff and assets, while at the same time adding maximum value to the company. ABC System Super Bakery was having problems controlling the cost of activities that were outsourced. Because of this, management decided that it was time to switch from its traditional cost method to a cost method that would more suit the company’s needs. The traditional system made it seem that every order cost the same to complete, when really it was not like that all. The new cost system could identify the costs that were associated with each activity performed and it showed that the profit margins and the costs on each sale varied a significant amount. I agree that it was a...
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...by Manipulating Inventory: The Effects of Cost Structure and Valuation Method Introduction In this memo, we intend to analyze and breakdown Managing Earnings by Manipulating Inventory: The Effects of Cost Structure and Valuation Method by Kirsten A. Cook, Ryan Houston & Michael R. Kinney’s major faults and weak-points. The article examines how production cost structure and inventory valuation affect a company’s earning management through inventory manipulation. Its two main findings are the following: i. Firms with high fixed-cost ratios are more likely to manipulate production but make smaller abnormal inventory changes than companies with low fixed-costs ratios; ii. LIFO firms are less likely than other companies to manage earnings by using the production lever (i.e. shifting fixed costs between COGS and inventory) because they may also manage earnings by liquidating LIFO layers and releasing the LIFO reserve. Before we begin our analysis, we put together a brief rundown of the essential concepts the article’s authors go through to form their conclusions. Cost Structure Cost structure refers to the types and relative proportions of fixed and variable costs that a business incurs. Valuation methods A company can value its inventory using several methods. The two most important methods are LIFO (“last in first out”) and FIFO (“first in, first out”). Under FIFO, the cost of goods sold (COGS) is based upon the cost of material bought earliest in the period...
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...ANALYSIS OF BIOLOGICAL ASSETS VALUATION WITH FAIR VALUE ACCOUNTING AND HISTORICAL COST ACCOUNTING METHOD IN PLANTATION SUBSECTOR OF INDONESIAN AGRICULTURAL INDUSTRY IN THE PERIOD OF 2007-2012 Karina Putri Ramadhani1 and Indra Pratama2 1 Thesis Writer, Swiss German University 2 Thesis Advisor, Swiss German University Abstract The analysis of biological assets valuation with fair value accounting and historical cost accounting method in plantation subsector of Indonesian agricultural industry, in the period of 2007-2012, tries to evaluate the relevance of historical cost towards the fair value of biological assets. It also tries to look for empirical evidence on the differences in calculations on biological assets between FVA and HCA toward company’s EBIT, net income, and potential tax liabilities. The research tests 5 companies within the plantation subsector in agricultural industry listed in Bursa Efek Indonesia (BEI). This study shows that there is a strong correlation between all variables tested. Among all statistical tests conducted, all hypotheses are rejected. This study concludes that the historical value of biological assets does not represent its real fair market value, or irrelevant. Also, the change in biological assets valuation from historical cost to fair value accounting would significantly affect the company’s EBIT, tax expense, and net income. Keywords: Fair Value, Historical Cost, Agricultural Industry, Plantation, Fair Market, EBIT, Tax Expenses, Net Income...
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...Layout Planning Models, Algorithms and computerized l h d d Layout Planning References 1. Tompikins et al., Facility Planning, 3rd edition, John Wiley & Sons Ltd., Singapore,2003. i 2003 2. Richard L.Francis et al., Facility Layout and Location: an analytical d diti approch, 2nd edition, P ti H ll of I di Ltd 2002 h Prentice Hall f India Ltd., 2002. 3. Dr-Ing. Daniel Kitaw, Industrial Management and Engineering Economy 4-1 Introduction • The generation of layout alternatives is a critical step in the facilities planning process, since th l i th f iliti l i i the layout t selected will serve to establish the physical relationships between activities. 4-2 CONT’D • Which comes first, the material handling system or the facility layout? Centralized versus decentralized storage of work in i process(WIP), t li (WIP) tooling, and supplies d li Fixed path versus variable path handling The degree of automation used in handling The type of level of inventory control physical control, control, and computer control of materials. 4-3 Layout procedures • A number of different procedures have been developed to id the facilities l t aid th f iliti planner i d i i l in designing layouts. t Construction type Improvement type 4-4 Apples plant layout procedure • • • • • • • • • • Procure th b si d t P the basic data Analyze the basic data Design the productive process Plan the material flow pattern Consider the handling l h dli plan general material •...
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...C# Development Rob Miles Edition 1.1 October 2009 Department of Computer Science University of Hull i Contents Introduction...................................................................................................................... 11 Welcome ............................................................................................................. 11 Reading the notes................................................................................................ 11 Getting a copy of the notes ................................................................................. 11 Computers 12 An Introduction to Computers .......................................................................................... 12 Hardware and Software ...................................................................................... 12 Data and Information ........................................................................................................ 13 Data Processing .................................................................................................. 13 Programmer’s Point:At the bottom there is always hardware ............................. 14 Programming Languages 15 What is Programming? ..................................................................................................... 15 From Problem to Program .................................................................................. 15 Programmer’s Point:The specification must always be there...
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...Riki Shafier Professor Kimberlee Hoftiezer SOS-110 24 January 2016 Music Education: A Personal Journey For the past few years I have been taking different courses, learning many things and preparing myself for the life ahead of me. As a soon-to-be college graduate, the future beckons, bright and inviting. There are endless career opportunities that await those who have put forth the effort to receive an education. The career goals toward which I am currently preparing are to become a highly sought-after piano teacher and piano-teacher trainer with a full roster of students, complete with a waiting list for those who wish to join my studio. I plan to build a fully- developed business model for my piano studio. This plan will include curricula for various ages and skill levels, as well as plans for accommodating specific needs of individual students. The plan will also have processes for the acceptance and rejection of potential students, registration and payment options, and online booking opportunities. This will be optimized through the use of technology. Technology, in all its many forms, has transformed the world we live in, and I anticipate that it will prove to be of great use to me in the development of my career goals. In the short-term, I will be able to train under experienced piano educators and teacher-trainers via Skype lessons and workshops, and use various training software programs to improve my technical and teaching skills. Additionally, I plan to...
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...Blue Pelican Java by Charles E. Cook Version 3.0.5h Copyright © 2004 - 2008 by Charles E. Cook; Refugio, Tx (All rights reserved) 1-1 “Blue Pelican Java,” by Charles E. Cook. ISBN 1-58939-758-4. Published 2005 by Virtualbookworm.com Publishing Inc., P.O. Box 9949, College Station, Tx 77842, US. ©2005, Charles E. Cook. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, recording or otherwise, without the prior written permission of Charles E. Cook. Manufactured in the United States of America. Preface You will find this book to be somewhat unusual. Most computer science texts will begin with a section on the history of computers and then with a flurry of definitions that are just “so many words” to the average student. My approach with Blue Pelican Java is to first give the student some experience upon which to hang the definitions that come later, and consequently, make them more meaningful. This book does have a history section in Appendix S and plenty of definitions later when the student is ready for them. If you will look at Lesson 1, you will see that we go right to work and write a program the very first day. The student will not understand several things about that first program, yet he can immediately make the computer do something useful. This work ethic is typical of the remainder of the book. Rest assured that full understanding...
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...Researching Variable Naming Rules Visual Basic You must use a letter as the first character. You can't use a space, period (.), exclamation mark (!), or the characters @, &, $, # in the name. Name can't exceed 255 characters in length. Generally, you shouldn't use any names that are the same as the functions, statements, and methods in Visual Basic. You end up shadowing the same keywords in the language. To use an intrinsic language function, statement, or method that conflicts with an assigned name, you must explicitly identify it. Precede the intrinsic function, statement, or method name with the name of the associated type library. For example, if you have a variable called Left, you can only invoke the Left function using VBA.Left. You can't repeat names within the same level of scope. For example, you can't declare two variables named age within the same procedure. However, you can declare a private variable named age and a procedure-level variable named age within the same module. Python Must begin with a letter (a - z, A - B) or underscore (_) Other characters can be letters, numbers or _ Case Sensitive Can be any (reasonable) length There are some reserved words which you cannot use as a variable name because Python uses them for other things.- See more at: http://www.w3resource.com/python/python-variable.php#sthash.5AXuVlWN.dpuf Java Variable names are case-sensitive. A variable's name can be any legal identifier — an unlimited-length...
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...SD2720 Module 3 Working with Methods Click Link Below To Buy: http://hwcampus.com/shop/sd2720-module-3-working-with-methods/ SD2720 Module 3 Working with Methods and Encapsulation Lab 3.1 Creating a Method In this lab, you will complete two tasks related to Java methods. The tasks performed in this lab will help you use method overloading and understand ambiguous overloading. Task 1 Write a program for swapping two numbers. In the program: • Create a method by passing primitive values as parameters for checking the result. • Create another method by passing object references as parameters for checking the result. • Identify the difference between two outputs. Task 2 Write a Java program that accepts 10 numbers from the user and finds the greatest and smallest numbers among them. Create two methods, findGreatest() and findSmallest(), to find the greatest and smallest numbers, respectively. Task 3 Write a Java program that implements the following methods: • getNumbers()to accept two numbers from the user. • calculateHCD()to calculate the highest common divisor (HCD) of the two numbers. Please note that it should be a recursive function. • calculateLCM()to calculate the least common multiple (LCM) of the two numbers. Display()to display HCD and LCM. Submission Requirements: Compress your Java project folder and responses in a Microsoft Word document into one zipped folder and submit it to the instructor. Evaluation Criteria:...
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...A Programmer’s Guide to Java™ SCJP Certification Third Edition This page intentionally left blank A Programmer’s Guide to Java™ SCJP Certification A Comprehensive Primer Third Edition Khalid A. Mughal Rolf W. Rasmussen Upper Saddle River, New Jersey • Boston • Indianapolis • San Francisco New York • Toronto • Montreal • London • Munich • Paris • Madrid Capetown • Sidney • Tokyo • Singapore • Mexico City Many of the designations used by manufacturers and sellers to distinguish their products are claimed as trademarks. Where those designations appear in this book, and the publisher was aware of a trademark claim, the designations have been printed with initial capital letters or in all capitals. The authors and publisher have taken care in the preparation of this book, but make no expressed or implied warranty of any kind and assume no responsibility for errors or omissions. No liability is assumed for incidental or consequential damages in connection with or arising out of the use of the information or programs contained herein. The publisher offers excellent discounts on this book when ordered in quantity for bulk purchases or special sales, which may include electronic versions and/or custom covers and content particular to your business, training goals, marketing focus, and branding interests. For more information, please contact: U.S. Corporate and Government Sales (800) 382-3419 corpsales@pearsontechgroup.com For sales outside the United...
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