Appendix C Activity-Based Costing QUESTIONS 1. Manufacturing overhead costs cannot be directly traced to units of product like direct materials and direct labor. Assigning overhead costs to units of product requires some sort of allocation on some “reasonable” basis. 2. In the first stage, service department costs are assigned to operating departments. In the second stage, a predetermined overhead rate is computed for each operating department and used to assign overhead to output (or
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Uitwerking Case 8-1 Allied Office Products Door: Joey de Klerk (481002) en Roel van Berkel (468870) Introductie Allied Office Products is a large corporation that builds its reputation on its annual sales of $900 million in business forms and specialty in paper products. Its paper products vary from envelopes to greeting cards and writing papers. Allied has incorporated a new program called Total Forms Controls (TFC) for its clients enabling Allied to separate this business forms division
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References Argyris, C. and Kaplan, R. (1994). Implementing new knowledge: the case of activity-based costing. Accounting horizons, 8, pp.83--83. Baird, K., Harrison, G. and Reeve, R. (2007). Success of activity management practices: the influence of organizational and cultural factors. Accounting & Finance, [online] 47(1), pp.47--67. Available at: http://search.ebscohost.com.ezproxy.mdx.ac.uk/login.aspx?direct=true&db=bth&AN=24165021&site=ehost-live [Accessed 4 May. 2014]. Charaf, K. and Bescos
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เรียงเรียงโดย ศูนย์การลดต้นทุน Cost Reduction Center บทสรุป เอกสารฉบับนี้มีวัตถุประสงค์ในการศึกษาต้นทุนโลจิสติกส์ของบริษัทกาวอุตสาหกรรม โดยมีการนำระบบต้นทุนฐานกิจกรรม (Activity-based Costing) เข้ามาเป็นเครื่องมือในการวิเคราะห์ต้นทุน โลจิสติกส์ของบริษัทกรณีศึกษา ในการศึกษาวิจัยครั้งนี้ ผู้วิจัยได้เก็บข้อมูลต้นทุนเบื้องต้นในทุกแผนกที่เกี่ยวข้องกับกิจกรรมโลจิสติกส์ รวมไปถึงสัมภาษณ์เจ้าหน้าที่เกี่ยวข้อง จากนั้นจึงนำข้อมูลที่ได้มาทำการวิเคราะห์ต้นทุน และทำการคำนวณต้นทุนทรัพยากรทั้งหมดที่ใช้ไปในทุกกิจกรรม
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Solution to Case 8-1 Allied Office Products Prepared based on Instructor’s Manual to Accompany Anthony and Govindarajan’s Management Control Systems textbook. 1) Activity Based Costing service costs for the TFC business Value added activities Storage Requisition handling Warehouse activity Pick Packing Data entry Desk top delivery Total expense per activity $000 (1992) 1,550 1,801 761 734 612 250 Cost driver Cost driver units (1992) 350,000 310,000 775,000 697,500 775,000 8,500
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Activity-Based Costing: A Tool for Manufacturing Excellence ABC is a strategic weaoon in the Quest for comoetitive oosition. By Peter B.B. Turney, Ph.D. This article exammes rne role of actiVity-based costing in the achievement of manufacturing excellence. It describes manufacturing excellence and the product cost information requirements of managers who seek to achieve it. It shows how conventional product costing fails to meet these needs, and demonstrates how activity-based costing corrects
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International Journal of Trade, Economics and Finance, Vol. 1, No. 2, August, 2010 2010-023X Factors Influencing Activity-Based Costing Success: A Research Framework Zhang Yi Fei and Che Ruhana Isa becoming more and more popular [3-7] ABC aims to provide accurate costing information to managers to allocate activity costs to products and services by applying cost drivers [8]. Academics who advocate ABC, such as, Cooper and Kaplan [9], and Swenson [10] argue that it provides more accurate cost
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CASE 5-69 (60 minutes) 1. Standard Model Deluxe Model Heavy-Duty Model Product costs based on traditional, volume- based costing system $105.00 $215.00 $232.00 × 110% × 110% × 110% × 110% Target price $115.50 $236.50 $255.20 2. Product costs based on activity-based costing system: Regular Model Standard Model Deluxe Model Direct material $10.00 $ 25.00 $ 42.00 Direct labor 10.00 20.00 20.00 Machinery depreciation
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Managerial Decision Making, Case 2, Greetings Inc. Activity Based Costing |Case 2 | | Greetings Inc.: Activity-Based Costing | |This case is from the book: Managerial Accounting: Tools for Business Decision | |Making, 5th Edition | |Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso | |©2010 | |And was answered by some students. | | | | | 1. Activity Based Costing benefits businesses that are more complex in nature. In this case, Greetings. INC has added a new product
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COSTING METHODS Costing methods for Super Bakery University of Phoenix ACC/561 December 19, 2011 Timothy W. Williams, Ph.D. Costing methods for Super Bakery Super Bakery is a virtual corporation created in 1990 by Franco Harris, developing a network of supply for “donuts and other baked goods aimed for the institutional food market” (Kimmel, et al, 2009, pg 867). According to Kimmel, et al (2009), “only the cores, strategic functions of the business are performed
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