product, they should not consider the in-sourcing because it affects key partnerships – semiconductor supplier 2. If excess capacity costs are excluded from product cost, how should these excess capacity cost be accounted for and made visible to management? The excess capacity arises due to larger productivity or due to imbalanced equipments within the department. The overhead rate and decision making should include the cost of idle Capacity, but should exclude the cost of excess Capacity and counted
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to a problem on the test and feel confused, try to put something down so you might earn partial credit. If you understand the review sheet, you should do well on the exam. 25 Multiple choice 2 pts. each 1. Understand what Financial and Management accounting are? 2. What are the differences among Manufacturing, merchandising, and service companies? 3. How do you compute COGM, COGS, and operating income and what do these figures represent? 4. What are prime and conversion costs? 5.
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an income statement that would reflect the economic state of their business. Silver quoted that from his experience, if sales went high the profit will also rise. This led Silver perplexed. Wilcox’s retrospect on recent meeting at Institute of Management Accountant. The Controller of Winjum Company had introduced the firm’s variable costing method, which charge Fixed Overhead To net income as a period expense and treated only variable cost as inventoriable product cost. Also stress that, variable
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balanced scorecard. A company that has a sound balance scorecard will thrive in meeting their organizational goals and commitment. Atkinson, A. A., Kaplan, R. S., Matsumura, E. M., & Young, S. M. (2011). The Balanced Scorecard and Strategy Map. In Management Accounting, Information for Decision Making and Strategy Execution (p. 67). Prentice
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BE111 Management Accounting Drawing initially on Chandler (1977) and Hoskin & Macve (1990), discuss what you see as the key features of (a) the structure and (b) the processes that make up the new form of management as described by Chandler. Pay attention in your discussion to the roles played within the new ‘staff’ function by accounting and accountants, and how these contribute to the new processes of ‘administrative coordination’. Seal et al (2012: p10) argue that in recent decades there have
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DESCRIPTION: As a historied plant that was developed by several industry uses, ACF ultimately become an original plant site of Bridgeton Industries. The whole production of ACF was sold to the Big-Three automobile manufacturers, major competitors were the local&foreign suppliers and intracompany plants. Production processes of six major products (as fuel tanks, manifolds, etc.) were diverse from each other. ACF was using the relatively old cost system of ‘one plant-wide overhead pool’, in which
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Managerial accounting is different from cost accounting in that it takes into account more than the cost of the perpetual inventory system; it also has to make decisions based on the needs of the whole company. Cost accounting deals with the process of tracking recording and analyzing costs that are associated with a company’s product or project. As an internal manager, they are the ones that normally use the cost accounting information. Direct costs, indirect costs and overhead costs are what
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Learning Team C Week 3 Case Study BYP 4-2 ACC349 April 4, 2011 Learning Team C Week 3 Case Study BYP 4-2 [pic] [pic] (a) |Activity cost pool |Estimated overhead |Cost drivers per activity |Total cost driver activity |Activity-based overhead rate | |Market analysis |$1,050,000 |Hours of analysis |15,000 hrs |$1,050,000 =$70 | | | |
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customer’s high-quality customer service and a differentiated product.´ (JetBlue,2005) By doing this, they are trying to ³stimulate market demand while maintaining a continuous focus on cost-containment and operation efficiencies.´ (JetBlue, 2005) Based on the filing, JetBlue relies on product leadership customer value proposition. The four key elements to their strategy are: Stimulate demand with low fares Emphasize low operation costs Offer point to point flights to underserved and/or overpriced
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£99,000 Sale Staff salaries £259,200 Warehouse Staff wages £120,960 Administration Staff wages £122,946 General Overheads £700,000 £1302,496 Activity | Cost Driver | Design Staff salaries | No. of Consultations with design staff | Sale Staff salaries | No. of items sold | Warehouse Staff wages | No. of items sold | Administration Staff salaries | Purchase orders | General Overheads |
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