Difference between Variable Costing and Absorption Costing………………………………………………………………7 Cost-Volume-Profit Relationship A. Cost Classification: 1. Variable Costs--variable costs are those costs that vary proportionately with changes in the level of activity (such as direct materials, direct labor, salesmen’s commissions, etc.) a) Relevant Range--even though variable cost per unit may vary throughout the entire range of possible activity, the variable cost
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Source: http://www.allbusiness.com/accounting-reporting/methods-standards-cost-accounting/498244-1.html#ixzz1nMWBS5qI By Juras, Paul E. ABSTRACT Descriptions of activity-based-costing (ABC) systems have become a standard part of managerial accounting texts. While ABC implementation issues are the focus of a number of articles, these issues are often not addressed in a typical textbook. This case is designed to familiarize you with the behavioral and technical variables that can aid or impede
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promotion) Accounting: financial (FS, reporting) and cost accounting () Cost types: a) Direct (labour, material) b) Overheads (burden/indirect costs) allocated based on direct labour or machine hours c) Nonmanufacturing (period costs): G&A and selling expenses Prime costs = Direct labour + Direct materials Conversion
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viable supply chain management framework is to decrease inventory (with the presumption that products are accessible when required). As an answer for fruitful supply chain management, refined software frameworks with Web interfaces are rivaling Web based Application Service Providers (ASP) who guarantee to furnish part or the sum of the SCM administration for organizations who rent their administration. Supply chain management flows might be separated into three primary flows: * the product
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1. The budgeted profit for the period under the absorption costing has been calculated as $210,000. It has based on production of 30,000 and sales of 35,000 units. Budgeted fixed overheads were $105,000. What is the budgeted profit under marginal costing? 2. Which of the following statement concerning the valuation of the inventory is correct: A. It is impossible to say whether absorption or marginal costing will give the higher value without further information. B. The values under
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Week 4: Costing Methods The week four individual paper addresses the implementation of Activity Based Costing (ABC) by Super Bakery, Inc., a virtual corporation founded by Franco Harris. Specifically, management strategies, the reasoning behind an ABC system, and the alternatives of a job order cost system or a process order cost system are assessed for this enterprise. Management Strategies A virtual corporation is described as a technology-linked network of companies, suppliers, and customers
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Disney continually make the right calls in terms of investment capital, providing new attractions that appeal to its audience while earning a superior return for its shareholders? The company evaluated its existing business and new initiatives based on their ability to contribute to Disney’s long term cash flow and earnings growth, and to provide returns that exceed Disney’s cost of capital. Through strategic planning, sound decision making, and creative and disciplined management, the Walt
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sales data to make future projections of the size that will be demanded and style in that specific store. It uses this information for buying and distribution of workflows. Store-specific sizes match local demand. Wet Seal’s business structure is based on providing customers with many up-to-date clothing like many stores do although they turn over inventory two to three times faster than a traditional retailer. Eighty-five percent of products are not restocked, this allows new clothing to come and
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KAIZEN COSTING THE PERFORMANCE OF THE ORGANIZATIONS TABLE OF CONTENTS Page Table Of Contents 1 1.1 Introduction 2 1.2 The Concept Of Kaizen Costing 2 1.3 Kaizen And Management 4 1.4 Kaizen -The Three Pillars 5 1.4.1 Housekeeping 5 1.4.2 Waste (Muda ) Elimination 7 1.4.3 Standardization 10 1.6 Kaizen And Total Quality Management (Tqm) 13 1.7 Kaizen And Suggestion Systems 14 1.8 Goals Of Kaizen Vs. Quality, Cost And Delivery 15 1.9 Common
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cost structure. e. starts with the buyer’s lowest reasonable price target, and works to a negotiated price agreed on by the buyer and the supplier. 2. Activity based costing attempts to: a. correct the distortions built into product costing by the way that direct costs are allocated. b. correct the distortions built into product costing by the way that the learning curve is applied to direct labor costs. c. turn indirect costs into direct costs by tracking the cost drivers behind indirect
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