ACTIVITY-BASED COSTING & BUDGETARY PLANNING AND CONTROL AT AEROSPACE MANUFACTURING INDUSTRY By WAN MOHD SHOFIAN CHE WAN ABU BAKAR SITI IRSALINA AIZAD ABU BAKAR MOHD FARID HUSSEIN JUNAIDA MOHD DAUD HASLAN LAIRIN Subject: MANAGERIAL ACCOUNTING (ACC 720) Lecturer:- DR. HJ. SOFIAN SHAMSUDDIN TABLE OF CONTENT No | Title | Page | 1. | Group member personal profile | | 2. | Objective of study | | 3. | Definition 1) Activity Based costing 2) budgetary planning
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Five myths about time-driven activity-based costing The straight facts about traditional and time-driven costing methodologies After decades of proven success, activity-based costing (ABC) has come under fire from its earliest and most active proponents. Robert S. Kaplan and others are promoting a “new, innovative, time-driven methodology” that presumably “delivers great improvements to the older systems of 15 years ago.”1 Companies are replacing their current costing solutions to try to get strategic
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To download more slides, ebooks, solution manual and test bank, visit http://downloadslide.blogspot.com Solutions Manual COST ACCOUNTING © 2012 Pearson Education, Inc. Publishing as Prentice Hall. SM Cost Accounting 14/e by Horngren © 2012 Pearson Education, Inc. Publishing as Prentice Hall. SM Cost Accounting 14/e by Horngren To download more slides, ebooks, solution manual and test bank, visit http://downloadslide.blogspot.com Solutions Manual COST ACCOUNTING Fourteenth Edition Charles
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the costing system likely to be beneficial? Multiple products, including commodity and specialized products, with large differences in volume and resource consumption. Price pressures and declining margins. Mature product market with limited opportunities for innovation. Low entry barriers in product market. High overhead costs. Wilkerson meets most of these criteria. 15.521 [Spring 2006] Managerial Accounting & Control 3 Wilkerson Activity-based costing (ABC)
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ACTIVITY-BASED COSTING McGraw-Hill/Irwin Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved. ACTIVITY BASED COSTING Traditional costing system 1. Direct and indirect costs are allocated to process centres or major departments ABC System 1. The direct and indirect costs are allocated to activities like Purchases, Material handling, Producing the goods, machine set ups, Supervising production workers, Inspecting finished goods, Dispatching good to customers 2.Cost
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Greetings Inc. Activity Based Costing Analysis Reasons for ABC An activity-based costing system may be appropriate for Wall Décor, when traditional overhead allocation based job-order costing system provides product line cost bias. For example, Greetings. INC has added a new product line, Wall Décor. However, they have noticeably raised their overhead costs by increasing their cost drivers. In this circumstance, Wall Décor should amend its costing system so that overhead costs will be allocated
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H & R Block is one of the largest and oldest service providers. The company was founded by brothers Henry and Richard Bloch in 1955. The company began franchising in 1956 and they went public in 1962. The company employed over 100,000 tax professionals that are trained both within the U.S. and worldwide. The company has prepared more than 550 million tax returns since the business started in 1955. One key important key to the company success is that they have a retail office within 5 miles of
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Exam 2 1. Which of the following is NOT a component of the master budget? c. Budget to Actual Variance Analysis 2. Figure 4-10 The Manoli Company has collected the following data for use in calculating product costs: Activity Data: (expected and actual) | rug cleaners | sweepers | total | units produced | 50,000 | 250,000 | 300,000 | prime costs | $200,000 | $750,000 | $950,000 | direct labor hours | 10,000 | 40,000 | 50,000 | machine hours | 20,000 | 10,000 | 30,000 | number
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Introduction Activity-based costing (ABC) is a methodology of costing that recognizes activities in an organization as a whole and then allocates the cost of each activity or transaction with resources to all services and products in accordance to the actual consumption by each of the cost. This model assigns more indirect costs into the direct costs when it is being compared to conventional or traditional costing. According to CIMA (Chartered Institute of Management Accountants), ABC is a medium
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practices: Activity Based Costing Management Operational Control Systems Performance Measurement: The Balanced Scorecard Activity Based Cost (ABC) Management Traditional cost allocation system that is identical to overhead allocation and direct costing were acknowledged to be obsolete. New cost system shifts the paradigm of how to allocate cost, to the paradigm of how to identify the cost flows from organizational spending to supply resources that create the capability to perform activities.
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