ABC: GS-157: $816.000,00 HS-241: $524.700,00 OS-367: $54.000,00 TRADITIONAL: GS-157: $716.400,00 HS-241: $475.200,00 OS-367: $204.000,00 The total cost allocated for those services are different depending on the technique used to allocate the total cost of each product. Using the traditional approach, the product OS-367 has less total costs allocated to it, which makes the unitary cost cheaper that if we analyze with the ABC approach, which includes and allocates more total costs
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000 697,500 775,000 8,500 Activity 350 364 910 350 910 0 ABC Cost $1,550.00 $2,114.72 $893.56 $368.32 $718.61 $0.00 $1,950.00 $2,250.00 $9,845.21 Total Cost Activity 700 790 2500 200 2500 26 ABC Cost $3,100.00 $4,589.65 $2,454.84 $210.47 $1,974.19 $764.71 $6,500.00 $7,500.00 $27,093.85 Total Costs ABC Costing (service fee) $9,845.21 $27,093.85 Total Traditional Costs (service fee) 16,100 16,100 Total ABC Costing (product cost) 50000 50000 Traditional Costs (product cost)
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G. G Toys Case Analysis By Managerial Accounting June 16, 2013 Costing systems are components of a broader accounting system used by a given company or organization. Their main function is to keep a focused eye on expenditures made by the company in question. Synthesis of Existing Cost Models to Meet System of System Needs, p.86. G.G. Toy's production process for dolls started with the basic raw materials needed for the bodies of the dolls, wool and things for the hair and clothing
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Demarcus B. Wilson Accounting 561 June-26, 2012 Edward Hastings Abstract In this paper I will discuss the doughnuts business called Super Bakery, Inc. owned by Pittsburgh Steelers' running back Franco Harris. I talk about the different types of ABC systems, which one they used to operate their company, and what changes they had to make to insure that the business continued make a profit while providing excellent service to their customers. Broadening Your Perspective The Super Bakery, Inc
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Wilkerson Co. Case Group 6 #1) Wilkerson is dealing with many different factors when it comes to the competition in their industry. First, the main issue in regards to competition is the fact that all the competitors are cutting the price on their pumps in order to gain market share and creating a price war within the industry. This is something that happens often in very competitive industries and usually the largest companies survive such tactics. This tactic is good for the consumers in the
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estimates calculated under each of the two costing systems are significant. This is especially the case with regard to Job order 973. The management accountant’s calculations for the cost estimates produce the following increase/ (decrease) in reported costs: Job order 973 Job order 974 $ $ Unit cost per job under existing system 1,172·00 620·00 Unit cost per job under activity based costing 1,612·00
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Business School Case #9-190-089 (Rev. April 24, 1997) Questions 1. Explain how costs are estimated in the three cost systems delineated in the case: (a) The traditional cost system, (b) the modified cost system, and (c) the activity based costing (ABC) system. How do you determine which cost system is better suited for a given company? The traditional cost accounting system in Destin is built on measurements of direct and direct costs and on assumptions about its production and sales activity
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government sites), the costs of the various specialized subcontractors, the costs of the materials and the indirect costs associated with those costs. The company needs to do several things relating to their engineering costs. They need to set up a job costing system in which each project is set up as a special job. Any costs that are directly associated with that job need to be kept track of by type. The only way for the company to know how they are performing on each of their sale contract is to
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attempts to analyze, manage, and improve customer profitability. Activity based costing (ABC) has created a framework for companies to examine more closely the causes of their costs in order to improve management decisions and corporate profitability. Companies initially focused on product profitability are now using ABC and other models to examine further the profitability of distribution channels and customers. ABC has developed into a broad-based tool that provides information on many aspects
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