Strengths and Weaknesses of the existing cost system at JDCW? The Weaknesses are as given below: • The current costing system followed at JDCW is not effective for individual parts bidding and costing. • The allocated Machine Hours are not supported by the product unit which thus leads to improper allocation of costs. • By using only three overhead rates the current costing system doesn’t calculate the true production costs as the other activities of the production process are not taken into
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expected returns and assess the risks associated with those returns | none of the above | 7 | An example of an inventoriable cost is: | advertising expense | depreciation on office equipment | indirect labor | research costs | 8 | In a process costing system, the entry to record the use of direct materials in production would include a: | debit to finished goods inventory | debit to materials
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accounting system and financial reports are not subjected to the rules and standards of accounts, like the general accepted accounting principal. Which leads to different application of cost accounting system in different kinds of organization sometimes even in different departments in the same organization. There are five main essential objectives of cost accounting, which are; I. Ascertain of cost They are two main methods of ascertaining cost, which are post costing and continuous costing. Post
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FAB 461 Exam 2 Summer, 2013 Due July 1. (Please bring a hardcopy to class) Name:__________________________________________________________________ Problem 1. (6 points) 2. Bottle size = 750 ml OI (bottles) = 3.4 Issues (bottles) = 5.0 EI (bottles) = 3.8 Bottle cost = $28.00 Number sold = 165 Drink size (oz) = 1.4 Drink price = $7.90 A. What is the bottle sales value? B. What is the standard cost per drink? C. What is the contribution margin?
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3 Given some of the apparent problems with Wilkerson’s cost system, should executives abandon overhead assignment to products entirely by adopting a contribution margin approach in which manufacturing overhead is treated as a period expense ? Why or why not ? 3 How does Wilkerson’s existing cost system operate ? Develop a diagram to show how costs flow from factory expense accounts to products. 4 Develop and diagram an activity-based cost model using the information in the case. Provide your best
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Cost Accounting Systems 1. Cost accounting involves the measuring, recording, and reporting of product costs. From the data accumulated, both the total cost and unit cost of each product is determined. 2. A cost accounting system consists of accounts for the various manufacturing costs. These accounts are fully integrated into the general ledger of a company. An important feature of a cost accounting system is the use of a perpetual inventory system. Such a system provides information immediately
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Product Costing Module in ERP for L&T Kansbahal Works, Kansbhal, Orissa : A Case Study 1 Seema G. Bhol, 2Arun Mishra & 3Srikanta Patnaik Sambalpur University, Burla, Orissa, India, 2Head (IT Services), L&T, Kansbhal, Orissa, India, 3 Department of Computer Science ITER , SOA University , Bhubaneswar, Orissa, India E-mail : guptaseema@hotmail.com, arun-kbl@kbl.ltindia.com, patnaik_srikanta@yahoo.co.in 1 Abstract - One need to be very accurate in what the products and services are costing. Inaccurate
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Management control system From Wikipedia, the free encyclopedia Jump to: navigation, search |[pic] |This article may require cleanup to meet Wikipedia's quality standards. (Consider using more specific cleanup instructions.) Please | | |help improve this article if you can. The talk page may contain suggestions. (August 2008) | A management control systems (MCS) is a system which gathers and uses information to evaluate the performance
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Chapter 7 Activity-Based Costing and Management LEARNING OBJECTIVES Chapter 7 addresses the following questions: Q1 How is activity-based costing (ABC) different from traditional costing? Q2 What are activities, and how are they identified? Q3 What process is used to assign costs in an ABC system? Q4 How are cost drivers selected for activities? Q5 What is activity-based management (ABM)? Q6 What are the benefits, costs, and limitations of ABC and ABM? These learning questions (Q1 through
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Aussie pies Anna Amphlett and Andrew Ferris has decided to startup a new business in Seattle, U.S.A under the name of Aussie Pies Inc. after their visit to Australia; where they discovered the meat pies, the national snack food of Australia and interested in starting up a business in U.S to produce and sell similar meat pies, The couple has decided to apply for a loan through a contact to establish a new business. Even though bank has tentatively agreed to provide the loan up to one million
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