44. Problems with Overhead Application: Decision Focus – Bergan Brewery uses the latest in modern brewing technology to produce a prizewinning beer. In both 2011 and 2012, Bergan produced and sold 100,000 cases of beer and had no raw materials, work in process, or finished goods inventory at the beginning or end of either year. At the end of 2011, the company installed machines to perform some of the repetitive tasks previously performed with direct labor. At the beginning of 2012, Bergan’s bookkeeper
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following: Depreciation of factory equipment Setup costs Miscellaneous indirect costs Total RM 2,000,000 1,500 000 1,000,000 4,500,000 , At the current time, the company still uses traditional costing system to calculate the cost of production. The overhead cost is applied based on direct labour hour. However the chief management accountant found that the company's selling price is different from their competitors. As the new junior management accountant of the company you are responsible
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unnecessary. For example, the article states that in order to succeed, MiCRUS “had to be as efficient as possible, concentrating everyone’s efforts and talents on keeping costs low while maintaining rigorous technical requirements for quality”. Under the costing system at the time, this concentration on keeping costs low must have been a difficult task, as all costs were pooled together. Although the managers at MiCRUS used all available information to help them reduce costs, this information was quite vague
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product costing; costvolume-profit analysis; and budgeting. Course Objectives After completion of the course, you should be able to: Understand the roles of financial accounting (external) and managerial accounting (internal) Analyze financial reports, specifically the balance sheet, statement of profit and loss and statement of cash flow. Identify and apply key financial ratios to financial statement analysis. Identify and apply basic elements of cost concepts, product costing and
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Question 2: What is activity-based costing (ABC)? What are the five steps of the ABC process? Question 17: Describe the two issues that managers face with respect to computer and data security. Chapter 14: Question 3: What are the differences between a centralized and a decentralized logistics department? Question 20: Name the seven types of comprehensive logistics systems audits that should be performed. Which do you view as the most important? The least important? Why? Activity mode aims to provide
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face was controlling the functions outside of the company. Quality and cost were of major concern when outsourcing sections of the manufacturing and distribution process. A standard costing system would not provide accurate costing for each customer as each customer’s needs vary. Implementing an activity based costing (ABC) system would provide accurate information. According to Davis and Darling (1996), “Assigning costs accurately to each account would allow the company to access the profitability
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Managerial & Cost Accounting ACCT610 Activity-Based Management Made Possible By Activity-Based Costing Supervised by Professor Majboor Alnamri Prepared by: EMBA Student 1 KAAU - EMBA Overview • • • • • • Over/Under Costing Methods of Allocating Indirect Cost Refining a cost system Costs/Benefits of ABC ABC in service & retail Example from an Organization 2 KAAU - EMBA Over Costing & Under Costing Over Costing—a product consumes a low level of resources
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Name________________________________________ University of Oregon ACTG 360 Instructor: Kenneth Njoroge SPRING 2012 SAMPLE FINAL EXAM You have 2hrs to complete this final exam. You are allowed to use a single note sheet, no larger than 8.5 by 11 inches, during the exam. This sheet may be typed on both sides in any font size. Any other additional material is strictly prohibited. There are 13 pages in this quiz, including this cover sheet. The pages are photocopied on one side of the
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Executive Summary Diageo, PLC is an international company responsible for producing assorted liquor drinks for the consumer domestically and globally. Diageo is the #1 premium liquor producer and disturber in the United States. Within this company the North America Global Supply provides one of the leading ultra high premium triple filtered premium liquors. This organization strives to provide quality product to their consumer. Through the years this company has shown their commitment to the
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BE111 Management Accounting Drawing initially on Chandler (1977) and Hoskin & Macve (1990), discuss what you see as the key features of (a) the structure and (b) the processes that make up the new form of management as described by Chandler. Pay attention in your discussion to the roles played within the new ‘staff’ function by accounting and accountants, and how these contribute to the new processes of ‘administrative coordination’. Seal et al (2012: p10) argue that in recent decades there have
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