4-1 Traditional cost accounting systems assign operating expenses to products with a two-stage procedure: 1. expenses are assigned to production departments; 2. production department expenses are assigned to the products Departmental structure influences the first stage allocation process. Production Departments refer to departments that have direct responsibility for converting raw materials into finished products. Service departments perform activities that support production such
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ACCTG 404: Managerial Accounting sections 001, 002, 003 Spring 2012 Instructor: Benjamin Lansford, Ph.D. Office: 325 Business Building E-mail: lansford@psu.edu Office Hours: Fridays 1:30 pm – 4:30 pm, and by appointment TA: Chase Livengood Office: 305A Business Building E-mail: ctl5040@psu.edu Office Hours: Wednesdays 12:15 pm – 3:15 pm I. Course Objectives This course emphasizes the
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currently being used in the Chicago plant. G.G. Toys should change its existing cost accounting system from traditional costing to activity-based costing because it is calculating its manufacturing overhead on only one cost, direct labour. Since overhead at the Chicago plant is high, the cost accounting system must be accurate. Different types of dolls require different amounts of machine hours and other variable costs. By using Activity-based costing, each doll would have a different manufacturing
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Direct Costs: $1 000,000 / 400 surgeries performed = $2,500/surgery Transplants: 2,500 x 50= $125,000 Valve Replacements = 2,500 x 1,000 = $250,000 Bypass = 2,500 x 250 = $625,000 Indirect Costs: Medical Salaries: $5,000,000/10,000 hours = $500 per hour Transplants: 500 x 2,000 = $1,000,000 Valve Replacements: 500 x 3,000 = $1,500,000 Bypass: 500 x 5,000 = $2,500,000 1. Building Maintenance: $1,000,000/50,000 = $20 per square foot Transplants: 20 x 30,000 = $600,000 Valve Replacements:
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Costing Managerial accounting is made up of different forms of accounting. This week was focused on cost accounting and the two different forms of cost accounting, job and process costing. According to Albert Galway, cost accounting, in general, involves determining the costs for different areas of a firm (1991). Depending on the firm, one may find a job costing system more important as where another firm may be able to utilize a process costing system to allocated costs. Stephen did a very good
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complete product cost estimate for Buffalo Ale, Bismark Bock an Four Heads Stout (see Exhibit 4) using: a. The plant-wide allocation based on direct-labor hours b. An activity-based cost system Activity rates: Cost estimate based on activity rates: 2. For each costing method, what is the gross margin per batch for each beer label, in dollars? What is the gross margin percentage? What is the total gross margin for each beer label? Plant-wide allocation method: ABC method:
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Managerial Accounting Discussion Questions: Owens & Minor 1. What are the services rendered by the distributor to manufacturers and hospitals? 2. How has the competitive environment at O&M changed over time? 3. Explain Exhibit 5. How does the pricing matrix work? How do the costs in exhibit 5 correspond to the costs shown in the customer profitability statement in Exhibit 4? 4. Numerical Exercise a. You are an account manager at O&M. You have two customers on a stockless program. Below are each
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SAMPLE PAPER BANK OF KHYBER (MTO) ENGLISH Complete the sentences by choosing the most appropriate word, from the given lettered choices (A to D/E) below each. 1. Despite the _____ of the materials with which Tahira had worked, many of her glass masterpieces have survived for more than seventy years. A. beauty B. translucence C. abundance D. majesty E. fragility 2. If I ________ the promotion, I would have bought a new car. A. received B. had received
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taken from our text book, Management and Cost Accounting 8 edition, which is written by Drury Colin. The author is an emeritus professor at Huddersfield University and a leading textbook author for a generation of accounting students. His books have been widely recommended by the main professional accounting bodies. He is an active researcher and published in the main peer-reviewed journals including Management Accounting Research and European Accounting Review, with his research focusing on the
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Definition of managerial accounting -- The process of preparing management reports and accounts that provide accurate and timely financial and statistical information required by managers to make day-to-day and short-term decisions. Unlike financial accounting, which produces annual reports mainly for external stakeholders, management accounting generates monthly or weekly reports for an organization's internal audiences such as department managers and the chief executive officer. These reports
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