called allocation bases. Cost Drivers: activity-based and volume-based. Activity-based drivers are developed at a detailed level of operations and are associated with a given manufacturing activity. Volume-based cost drivers are developed at an aggregate level. Activity-Based Cost Drivers. Activity-based cost drivers are identified by using activity analysis, a detailed description of the specific activities performed in the firm’s operations. For each activity, a cost driver is developed to explain
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------------------------------------------------ Top of Form Bottom of Form Chapter 4 - Discussion Questions Read Chapter 4 and answer the Discussion Questions #1, 2, 3 page 78 1. Discuss the effect of the fast pace of technological change on human resources. Since it is known that the higher level technologies tend to be more complex, which results in a requirement for a highly skilled workforce to maintain and sustain, the cost to hire and retain these experts is rising at a pace that
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Table of Contents 1. Introduction: 2 2. Three voice telecommunication costing system: 3 2.1 Overview about three system: 3 2.2 The differences between 2 common system 1995-1998 and 1999: 4 3. Overcharging of the 1995-1998 system: 5 4. Assessment of overconsumption in 1995-1998 period: 6 5. Cost savings through reduced consumption in the 1999 system: 7 6. Conclusion: 8 7. Recommendation: 8 Appendix 1: Calculation cost of a large and a small customer in 1995-1998 system
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Discuss how company’s can use activity-based costing to evaluate financial performance. Activity-based costing can be used to evaluate company’s financial performance for management to improve profitability. Activity measures in both financial and nonfinancial forms. These measures are used to evaluate how well an activity how well an activity was performed and what was accomplished. They are setup to see if constant improvement is being realized. Measure of activity performance focuses on three
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RSM 222 Case Assignment Question A1 The chocolate industry is one with many players. There are many custom bar providers as well as big players within the industry. The direct result of that is very high rivalry between competitors within the industry. The internet provides customers with the ease of obtaining information about the various types of chocolate on offer from the many chocolate makers, and that will quite possibly lead to intense price competition between chocolate makers.
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lines. There are several types of costing systems, including job-order system, process costing system, and activity-based system. For instance, the activity-based system is composed of cost drivers, fixed cost, variable cost, and fixed/variable overheads. Cost drivers help allocate variable cost to the production of different product lines. Process costing method distributes the cost according to the manufacturing progress of the products, while job-order costing system assigns costs to different
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experience of anticipating consumers’ needs and creating solutions. Nestle contributes to your well-being and enhances your quality of life.” COST ACCOUBTING INFORMATION SYSTEM OF NESTLE INPUT MEASUREMENT BASIS STANDARD COSTING Nestle is using STANDARD COSTING as a base for input measurement Standard costs are usually associated with a company’s costs of direct material, direct labor, and manufacturing overhead. Rather than assigning the actual costs of direct material, direct
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Wilkerson Company Analysis June 30th, 2014 1. If Wilkerson were to cut prices, based on contribution margin, to just cover short-term variable costs, what consequences could it experience? Contribution margin-based pricing attempts to maximize profit generated from the sale of each unit of product by maximizing the difference between that product’s price and variable costs, or contribution margin. Under this pricing strategy, only variable costs, which increase with a higher sales volume and
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PHILIPPINESManilaMANAGEMENT ADVISORY SERVICESACTIVITY-BASED COSTINGTHEORY 1.An accounting system that collects financial and operating data on the basis of the underlyingnature and extent of the cost drivers isa.Direct costing.c.Cycle-time costing. b.Activity-based costing.d.Variable costing.2.The resource utilized by a given product divided by the total amount of the resource availableis called thea.Activity driver.c.Cost object. b.Consumption ratio.d.Sustaining activity.3.Which of the following statements is
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300225853 Course Name: ACCT 3420-002 Instructor: Shirley Mauger Date: April 01, 2016 Table of Content I. PROBLEM IDENTIFICATION ……………..……… 3 II. ANALYSIS ………………………………………..….... 3 1. Overhead Assignment ………………………….…… 4 2. Activity-based Costing System ……………..…….… 5 a. Appendix ……………………………….……...... 5 b. ABC and Actual Production Volume ………….…... 5 c. ABC and Capacity Production Volume ……….….... 5 3. Expand and Analysis …………………………..…… 5 III. ALTERNATIVES
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