operations information regarding the physical aspects of the manufacturing operation to give real time information to enable companies to monitor quality and correct defects before they drive up costs. This is a basis for the ABC (Activity Based Accounting) systems. ABC
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control. 2. Strategic management can be defined as the development of a sustainable: A. B. C. D. E. Chain of command. Competitive position. Cash flow. Business entity. Company image. 3. Cost management has moved from a traditional role of product costing and operational control to a broader strategic focus, which places an emphasis on: A. B. C. D. E. Competitive pricing. Domestic marketing. Short-term thinking. Strategic thinking. Independent judgment. 4. All of the following are examples of total
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entry may indicate which of the following: a. 0 An increase in an asset account b. 0 A decrease in an asset account c. 0 An increase in a liability account d. 0 An increase in a capital account Objective: Journalize basic transactions. 5. ABC Corporation records sales for the day totaling $50,000 in cash sales and $35,000 in sales on account. Which of the following is the correct journal entry? a. 0 Cash $50,000 Accounts Receivable $35,000
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Executive Summary: Management practices and methods have changed over the years and the organizations are moving to managing vertically to managing horizontally i.e. to move from functional orientation to horizontal orientation. TQM, JIT, BPR are all examples of horizontal management improvement initiatives. However management systems have lagged significantly in tracking and providing information about the horizontal aspects of business and Activity based costing /Activity based management mirrors this
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quality and customer satisfaction, reduce costs and production lead-times, and increase value-creation. Activity based costing: Activity-based costing (ABC) is a costing methodology that identifies activities in an organization and assigns the cost of each activity with resources to all products and services according to the actual consumption by each. Activity-Based Budgeting: A method of budgeting in which the activities that incur costs in every
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Name________________________________________ University of Oregon ACTG 360 Instructor: Kenneth Njoroge SPRING 2012 SAMPLE FINAL EXAM You have 2hrs to complete this final exam. You are allowed to use a single note sheet, no larger than 8.5 by 11 inches, during the exam. This sheet may be typed on both sides in any font size. Any other additional material is strictly prohibited. There are 13 pages in this quiz, including this cover sheet. The pages are photocopied on one side of the
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Activity Based Costing (ABC) is best known for its appilcation in computing product costs, but firms also find it useful in determining the cost of serving customers and as a basis for evaluating the profitabilty of a specific customer or group of customers. Why is this important? Most managers agree that 80% of their profits come from the top 20% of their customers and most important, the bottom 20% of their customers are unprofitable. For example, to compete with Walmart,Best Buy works hard to
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Questions 1. Calculate the revised product costs for the four pens, using the activity information collected by Dempsey. In your calculations, assume that the fringe benefits associated with direct labor can be directly traced. Activity ABC Rates Scheduling/Handling Production runs 50%*$20,000=$10,000/150= $66.67 Physical changeover 40%*$20,000=$8,000/526=$15.21 Maintaining Records 10%*$20,000=$2,000/100,000=$0.02 Computer (production runs) 80%*$10,000=$8,000/150=$53
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strong input-output relationship are commonly called A. Committed costs. B. Discretionary costs. C. Opportunity costs. D. Differential costs. [Fact Pattern #1] The estimated unit costs for a company using absorption (full) costing and planning to produce and sell at a level of 12,000 units per month are as follows. Estimated Cost Item Unit Cost --------- --------- Direct materials
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Stacy Raudman 000202145 JET2 Task 5 Introduction Custom Snowboards has been continually growing and is now considering expansion into Europe. There are a variety of options for expansion that the company can consider. The CEO, as should be, is concerned about the risks of expansion. He is specifically concerned about the affect on internal operations of the entity and how the company will react to external issues. The two options for expansion are building a new manufacturing facility
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