Preliminary Test of Cost Accounting Knowledge--Does not affect your grade! Name___________________________________ Mark one letter for each question response. Note that in some cases there are options like ʺD) Both A and C are correct.ʺ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Cost objects include: A) customers C) products B) departments D) All of these answers are correct. 2) Cost tracing is: A) the process of tracking both
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According to the Article “ABC in a Virtual Corporation;” in response to the questions I believe the company is operating under a decentralized system. The challenges that the company was facing during the time was control costs. The pricing strategy did not differentiate between small and large orders, so the profitability of the orders varied. They relied on requesting everyone to keep costs down and distributing the costs evenly. I feel that Super Bakery’s management thought it was necessary
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each production department and that the cost for each department is then split correctly between the underlying manufacturing processes within the department. EDD AND ACTIVITY-BASED COSTING. EDD has already completed a great deal of work for "Activity Based Costing" (ABC), however their actual costing system needs to be capable of allocating the costs of multiple support departments in a refined and appropriate manner. As EDD has good product diversity, broad allocation of costs has becoming
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MANAGMENT ACCOUNTING Launchbreak LTD 1. Be able to analyse cost information within a business 1.1 classify different types of cost 1.2 use different costing methods 1.3 calculate costs using appropriate techniques 1.4 analyse cost data using appropriate techniques 2. Be able to propose methods to reduce costs and enhance value within a business 2.1 prepare and analyse routine cost reports 2.2 use performance indicators to identify potential improvements 2.3 suggest improvements
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condition has incentivized Chinese firms to improve their management accounting practices. Subsequently, the traditional costing method is also facing a sudden threat by the influx of ABC/M, Target Costing, Responsibility Accounting, etc. Presented with new ideas, this essay will discuss the popular cost management accounting trend in China, specifically the responsibility cost control system. I will also compare the changes in the Chinese management accounting practices and give opinions on the possible
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process. These charts were displayed on the walls in their world wide facility showing monthly results, along with target and future goals. CSP was also tied to an annual bonus incentive plan for all team members. AT&T Paradyne's manufacturing cost system in 1990 was still based on the traditional approach of assigning materials and production overhead to products as percentage markups over materials cost and direct labor. The cost per part number of about $1,000 led to very high reported costs for
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Control Process •Nature of Strategic Planning •Relation between Strategy Formation & Strategic Planning •Advantages of Strategic Planning •Limitations of Strategic Planning •Analyzing Proposed New Programs •Analyzing Ongoing Programs •Activity Based Costing •Strategic Planning Process Management Control Process Involves interaction between mangers & their subordinates In formal organizations control processes are more or less the same Due to differential managerial abilities Implementation
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assure use of and accountability for its resources. The Institute of Management Accountants ( IMA ) defined Management Accounting is a profession that involves partnering in management decision making, devising planning and performance management system and providing expertise in financial reporting and control to assist management in the formulation and implementation of an organization’s strategy. Managerial accounting applies to all types of business such as service, merchandise and manufacturing
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Revised Fall 2012 CHAPTER 2 SYSTEMS DESIGN: JOB ORDER COSTING Key Terms and Concepts to Know Job-Order Costing vs. Process Costing Job-order costing is used for companies that produce different products each period. Costs are accumulated for each job. Process costing is used for companies that produce many identical units of a single product for long periods of time. Costs are accumulated by manufacturing department. Key Job-Order Costing Documents Material requisitions request
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Activity-Based Systems: Measuring the Costs of Resource Usage Robin Cooper and Robert S. Kaplan Robin Cooper is a Professor at the Claremont Graduate School and Robert S. Kaplan is a Professor at the Harvard Business School. This paper describes the conceptual basis for the design and use of newly emerging activity-based cost (ABC) systems. TVaditional cost systems use volume-driven allocation bases, such as direct labor dollars, machine hours, and sales dollars, to assign organizational expenses
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