------------------------------------------------ Top of Form Bottom of Form Chapter 4 - Discussion Questions Read Chapter 4 and answer the Discussion Questions #1, 2, 3 page 78 1. Discuss the effect of the fast pace of technological change on human resources. Since it is known that the higher level technologies tend to be more complex, which results in a requirement for a highly skilled workforce to maintain and sustain, the cost to hire and retain these experts is rising at a pace that
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profitability. The company is currently using a traditional volume-based costing system with direct labor cost as the allocation base. Problems and Issues The main problem faced by Destin Brass Products is the falling profitability of pumps due to competitive pressure. The competitors kept reducing price on pumps and Destin was forced to follow regardless of the high production costs. The key issue sits in the costing system. Destin is using a plant-wide rate to allocate all overhead with a base of
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Extending New Institutional Theory: Regulation and ActivityBased Costing in Portuguese Telecommunications* Maria Major1, 2 and Trevor Hopper3 1 Departamento de Finanças e Contabilidade, ISCTE – Escola de Gestão, Av. das Forças Armadas, 1649-026 Lisboa, Portugal. 2 UNIDE Researcher. 3 Manchester School of Accounting and Finance, University of Manchester, Manchester, M13 9PL, UK. * The authors wish to thank Bob Scapens, Sven Modell, Salvador Carmona, Angelo Riccaboni, John Burns, Mahmoud Ezzamel
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SYNOPSIS: Since the early 1980s standard cost systems (SCSs) have been under attack as not providing the information needed for advanced manufacturers. In spite of the its critics, SCSs are stili the system of choice in some 86 percent of U. S. manufacturing firms. This paper discusses the criticisms of SCSs that (1) the variances are obsolete, (2) there is no provision for continuous improvement, and (3) use of the variances for responsibility accounting result in internal conflict rather than
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uses a traditional based costing (TBC), however an activity based costing (ABC) may be more beneficial. Also, the company’s breakeven point with regards to cost volume profit for each bike type is in question, especially since there is the potential for a $50,000 increase to production facility and a 10% materials cost increase. These areas are under evaluation to help the company navigate the new dual product line production. A1: Costing Method A Traditional Based Costing method looks at the cost
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Business Costing Technique Chosen PROCESS COSTING 1 2 2 2 Assumptions Processes of Manufacturing Beer DEPARTMENT ONE: STAGE 1 - MIXING DEPARTMENT ONE: STAGE 2 - BREWING DEPARTMENT TWO: PACKAGING 3 4 4 4 5 Process Costing DETERMINING FIGURES CALCULATING COST PER EU 6 7 8 Cost Reconciliation Recommendations CAPPING & LABELLING BOTTLES & UTILITIES TRANSPORTATION 9 10 10 11 11 Introduction of Outpatient Business Costing Technique Chosen ACTIVITY BASED COSTING (ABC)
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Solutions to Questions 8-1 Activity-based costing differs from tradi-tional costing systems in a number of ways. In activity-based costing, nonmanufacturing as well as manufacturing costs may be assigned to products. And, some manufacturing costs—including the costs of idle capacity—may be excluded from prod-uct costs. An activity-based costing system typically includes a number of activity cost pools, each of which has its unique measure of activity. These measures of activity often differ from
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Chapter 5 Activity-Based Costing and Customer Profitability Analysis Cases |5-1 |Blue Ridge Manufacturing (Activity-Based Costing for Marketing Channels) | |5-2 |Columbo Soft-Serve Frozen Yogurt: Using Activity Based Costing To Assess Channel/Customer Profitability | |5-3 |Wilson Electronics (A) | |5-4 |Wilson
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ACTIVITY-BASED COSTING IN THE SERVICE SECTOR - NAM DUONG BANK Nam Duong Bank began operations in the mid-1990s. The bank quickly grew by providing checking account services to many small businesses that preferred to do business with a "local" bank. Although Nam Duong initially offered checking account services for individual accounts (retail customers), the bank primarily focused on serving its business customers. During the Asian financial crisis after the mid-1990s that weakened the Vietnamese
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1. CLASSIC PEN COMPANY DEVELOPING AN ABC MODEL GROUP V1 (SECTION 4) HARISH B 13419 ANINDYA GANGULY 13406 ANURAG BOTHRA 13411 PRAGATI CHAUHAN 13435 RENJIT THOMAS 13440 Cost Accounting Case analysis 2. Case Background ¨ Classic Pen was a low-cost producer of traditional Blue and Black pens ¨ Profit margins were over 20% of sales ¨ Five years earlier Red pens were introduced at 3% premium ¨ Recently Purple pens were introduced at 10% premium. 3. Issues faced by Management ¨ Red and Purple pens seem
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