ANALYSIS 9-1 No. Differences in operating income between variable costing and absorption costing are due to accounting for fixed manufacturing costs. Under variable costing, only variable manufacturing costs are included as inventoriable costs. Under absorption costing, both variable and fixed manufacturing costs are included as inventoriable costs. Fixed marketing and distribution costs are not accounted for differently under variable costing and absorption costing. 9-2 The term direct costing
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POSITIVE ACCOUNTING THEORY, POLITICAL COSTS AND SOCIAL DISCLOSURE ANALYSES: A CRITICAL LOOK Markus J. Milne Accountancy and Business Law University of Otago Dunedin New Zealand Ph: 64-3-479-8120 Fax: 64-3-479-8450 Email: mmilne@commerce.otago.ac.nz POSITIVE ACCOUNTING THEORY, POLITICAL COSTS AND SOCIAL DISCLOSURE ANALYSES: A CRITICAL LOOK* ABSTRACT This paper critically reviews the literature seeking to establish evidence for a positive accounting theory of corporate social disclosures
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Machining and Assembly. Its job-costing system has two direct cost categories (direct materials and direct manufacturing labour) and two manufacturing overhead cost pools (the Machining Department, allocated using machine hours and the Assembly Department, allocated using direct manufacturing labour costs). The 2010 budget for the plant is as follows: Machining Dept. Assembly Dept. Manufacturing Overhead Direct manufacturing labour cost Direct manufacturing labour hours Machine hours $1,800
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CHAPTER 1 The Changing Role of Managerial Accounting in a Dynamic Business Environment ANSWERS TO REVIEW QUESTIONS 1-1 The explosion in e-commerce will affect managerial accounting in significant ways. One effect will be a drastic reduction in paper work. Millions of transactions between businesses will be conducted electronically with no hard-copy documentation. Along with this method of communicating for business transactions comes the very significant issue of information security
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Table of Contents 1. The Raymond Group – An Introduction.............................................................................2 2. Applications ........................................................................................................................5 2.1. FLUCTUATIONS IN RAW MATERIAL PRICES..................................................5 2.2. DECISION REGARDING LOCATION...................................................................7 2.3. Fixing of SALE price using
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Objective: 1 Historical costs may be helpful in making future predictions, but are not relevant costs for decision making. 3. The amount paid to purchase tools last month is an example of a sunk cost. Answer: True Difficulty: 2 Objective: 2 4. For decision making, differential costs assist in choosing between alternatives. Answer: True Difficulty: 1 Objective: 2 5. For a particular decision, differential revenues and differential costs are always relevant. Answer:
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CHAPTER 6 MASTER BUDGET AND RESPONSIBILITY ACCOUNTING 6-1 a. b. c. d. The budgeting cycle includes the following elements: Planning the performance of the company as a whole as well as planning the performance of its subunits. Management agrees on what is expected. Providing a frame of reference, a set of specific expectations against which actual results can be compared. Investigating variations from plans. If necessary, corrective action follows investigation. Planning again, in light of feedback
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Assignment II – Blue Ridge Manufacturing INTRODUCTION: Blue Ridge Manufacturing produces and sells sport towels in the USA market. The firm knits all the towels it sells and tracks costs for towel production separately from the cost to customize the towels. Seventy-five percent of its orders include logo design, while the balance are print only and require the payment of a licensee fee for the logo used. Towels are made in four different sizes: Regular, hand, mid-range and hand. The normal
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Name: ________________________ Class: ___________________ Date: __________ ID: A ACCT1B - Managerial Accounting: Sample Exam 1 Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 1. Which of the following concepts of cash is not appropriate to use in preparing the statement of cash flows? a. cash b. cash and money market funds c. cash and cash equivalents d. cash and U.S. treasury bonds 2. On the statement of cash flows, the cash flows from operating
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No Consideration Of Price Level Changes Financial statements prepared under historical cost accounting are merely statement of historical facts. Changes in the value of money as a result of changes in general level of price are not taken into account. Hence, they fail to give true and fair picture of the state of affairs of the organization. 2. Unrealistic Fixed Assets Values In historical cost accounting, fixed assets are recorded and presented at the price at which they are acquired. Changes
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