Question: O.T company manufactures and sells two types of wooden deck chairs: Deluxe and Standard. Annual sales in units, direct labour hours (DLHs) per unit, and total direct labour hours per year are provided below. Deluxe deck chairs: 2,000 units × 5 DLHs per unit................. 10,000 Standard deck chair: 10,000 units × 4 DLHs per unit............... 40,000 Total direct labour hours 60,000 Cost for direct materials and
Words: 909 - Pages: 4
2 II. Customer portfolio concept 3 2.1 Concept of customer portfolio and its application in company 3 2.1.1 Customer Lifetime Value (CLV) 3 2.1.2 Market segmentation 4 2.1.3 Sales forecasting methods 5 2.1.4 Activity based costing 6 2.2 Customer portfolio application of “CDNow” 6 2.3. Concept application for e-tailer companies 8 III. Conclusion 10 References 11
Words: 3226 - Pages: 13
Managing operations and activities is a continuous improvement process rather than being a custodial task. A structured approach to continual improvement is shown in the figure below: 3. How activity-based costing works with activity-based management? ABC is not a method of costing, but a technique which measures the cost and performance of activities, resources and the objects which consume them in order to generate more accurate and meaningful information for decision-making. It helps in
Words: 1894 - Pages: 8
device for coping with foreseeable adverse situations. 2. Budgeting: The act of preparing a budget is called budgeting. Budgeting is the process of creating plan to spend money. It is simply balancing expenses with income. 3. Zero Budget: A method of budgeting in which all expenses must be justified for each new period. It requires managers to justify all budgeted expenditures, not just changes in the budget from the prior year. 4. Muster Budget: A set of interconnected budgets of sales
Words: 869 - Pages: 4
Factory overhead: Chargeable expenses are those direct costs other than direct material and direct labor. Cost other than materials and wages which are incurred for specific product or saleable services are known as Direct/ Chargeable expenses. COSTING SYSTEM OF SQUARE TEXTILES LIMITED Inventory control: Inventories are valued in accordance with IAS-2 (Inventory) at the lower of
Words: 6003 - Pages: 25
Memo To: Management Committee From: Student, Vice President Controller Date: June 6, 2012 Subject: Maintain Current Business Process vs. Modify Internal Business Process Dear Professor, As per your request, attached is the report that we have prepared, outlining the course of action Clearwater Small Appliances management team should adopt in designing and planning for the operation, given the opportunities and constraints faced at present. This report gives a complete analysis
Words: 2119 - Pages: 9
expected returns and assess the risks associated with those returns | none of the above | 7 | An example of an inventoriable cost is: | advertising expense | depreciation on office equipment | indirect labor | research costs | 8 | In a process costing system, the entry to record the use of direct materials in production would include a: | debit to finished goods inventory | debit to materials
Words: 1481 - Pages: 6
Excerpted from Time-Driven Activity-Based Costing: A Simpler and More Powerful Path to Higher Profits By Robert S. Kaplan, Steven R. Anderson Harvard Business Press Boston, Massachusetts ISBN-13: 978-1-4221-2227-3 2227BC Copyright 2008 Harvard Business School Publishing Corporation All rights reserved Printed in the United States of America This chapter was originally published as chapter 5 of Time-Driven Activity-Based Costing: A Simpler and More Powerful Path to Higher Profits
Words: 7486 - Pages: 30
Task 5 CFO Presentation A1. Key Points The profitability of the Custom Snowboards Inc can be seen in the following areas: net sales, gross profits and net earnings. Net sales increased between years 12 and 13 by 3.21% and again between years 13 and 14 by 1.91%, as shown in the horizontal analysis line 10. The company has continued to grow its net sales for the past three years. Custom Snowboards Inc has the ability to continue increasing net sales. Gross profits have remained constant at
Words: 5206 - Pages: 21
be planned and stored for those periods when they would not be readily available. Forecasting and planning are essential to maintaining a proper inventory. Available space to store inventory is also a contributing factor. Activity Based Costing (ABC) is a method of allocating overhead and
Words: 770 - Pages: 4
