COMPARISON ON TRADITIONAL AND ACTIVITY-BASED ACCOUNTING SYSTEM TABLE OF CONTENT CHAPTER TITLE PAGE LIST OF TABLES i LIST OF FIGURES ii CHAPTER 1. INTRODUCTION 1.1 Understanding of Traditional and Activity-Based Costing System 1 1.2 Company Background 3 1.3 Company History 3 1.4 Company Operation
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Business Costing Technique Chosen PROCESS COSTING 1 2 2 2 Assumptions Processes of Manufacturing Beer DEPARTMENT ONE: STAGE 1 - MIXING DEPARTMENT ONE: STAGE 2 - BREWING DEPARTMENT TWO: PACKAGING 3 4 4 4 5 Process Costing DETERMINING FIGURES CALCULATING COST PER EU 6 7 8 Cost Reconciliation Recommendations CAPPING & LABELLING BOTTLES & UTILITIES TRANSPORTATION 9 10 10 11 11 Introduction of Outpatient Business Costing Technique Chosen ACTIVITY BASED COSTING (ABC)
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Bronson Shrimp Farms 1. Budgeted cost per package – Original costing system Using the original costing system that used total direct labor hours as the indirect cost allocation base, the total projected indirect costs will be allocated by first determining the allocation rate. Since we will be producing 10,000 packages of headless shrimps at 0.01 labor hours per package, the total number of hours worked would be 10,000 x 0.01 = 100 hours. Similarly, for the 50,000 packages of peeled and deveined
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of each year, based on actual expenses in prior years, the general industry condition and competitive trends. Costs continue to rise for customers at normal circumstances which may due to various external reasons like inflations, economic situations etc. The current costing system could not cope with the highly competitive market, and the inflation will cause the costs keep increasing to a level that the selling price might not able to cover it. It is because the selling price in based on actual expenses
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Harvard Business School professor Robert S. Kaplan authored the case study as an illustration of use of activity based cost allocation and profitability (Kaplan, 2005). In the case presentation, John Malone, the General Manager of Dakota Office Products (DOP) commissioned analysis of the company’s operations and cost allocation practices; it focused on the company’s distribution center. Activities that emerged as cost drivers included: commercial freight shipping, personal delivery of orders under
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decision making and control. In contrast to financial accounting, managerial accounting is concerned with providing helpful information and reports to internal users such as managers and entrepreneurs, so that they can control and plan the business activities. According to the Chartered Institute of Management Accountants (CIMA), Management Accounting is "the process of identification, measurement, accumulation, analysis, preparation, interpretation and communication of information used by management
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Costing Methods ACC 561 July 15, 2014 Costing Methods Absorption and variable costing are two methods an organization such as Polk Company can employ when accounting for costs and generating income statements. The differences between the two methods are focused on the types of costs absorbed or assigned to the product, specifically fixed and variable overhead expenses as well as when fixed overhead manufacturing costs are allocated. In absorption costing all costs are charged to the product
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of 2 points In SWOT analysis, strengths and weaknesses are most easily identified by looking: • Question 6 2 out of 2 points Which of the following organizations presents awards to firms that excel at execution of strategy, based on criteria such as leadership, marketing, strategic planning and process management? • Question 7 0 out of 2 points Michael Porter's five competitive forces include which one of the following: • Question 8 2 out of
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dynamics of costing systems as organizations try to predict those unseen costs that factor so heavily in the success and profitability of a business. The various costing systems are defined with a special emphasis on their ability to accurately predict those costs that are not of the normal operation and production of the company. Recent events in human society have drawn attention to issues that our predecessors could have only dreamed about and would have quickly dismissed. These costing systems are
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5.17 | Q1, Q2, Q3Job costing, service sector Consider the following budgeted data for a client job of Bob Crachit’s accounting firm. The client wants a fixed price quotation. Direct professional labor | $20,000 | Direct support labor | 10,000 | Fringe benefits for direct labor | 13,000 | Photocopying | 2,000 | Telephone calls | 2,000 | Computer equipment | 6,000 | Overhead is allocated at the rate of 100% of direct labor cost.REQUIRED: | A. | Prepare a schedule of the budgeted total
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