Possible Questions TRUE-FALSE STATEMENTS 1. Process cost accounting focuses on the process involved in mass-producing products that are very similar in nature. 2. Process cost systems are used to apply costs to a specific job, such as the manufacturing of a specialized machine. 3. A company that produces motion pictures would likely use a process cost system. 4. In a process cost system, costs are tracked through a series of connected manufacturing processes
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Marginal costing and Absorption costing: the concept of marginal and absorption costing and its practical applications on business decisions. Cost Volume Profit Analysis: Relationship, impact on pricing, practical decision making strategies through CVP analysis Standard Costing and Variance analysis: concept and objectives of standard costing, advantages and limitations, variance analysis (Material, labour, overheads and sales variance), practical applications Budgeting and budgetary control mechanism
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carrying and financing costs (FASB glossary). This subtopic requires that a product financing arrangement be accounted for as a borrowing rather than as a sale (470-40-25-1). If a sponsor sells a product to another entity and, in a related transaction, agrees to repurchase the product, the sponsor shall record a liability at the time the proceeds are received from the other entity to the extent that the product is covered by the financing arrangement (470-40-25-2a). Costs of the product, excluding
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and no notes. This is testing basic managerial accounting knowledge that everyone should know and understand to be able to add value to any type of organization. Make sure you bring a calculator. Please feel free to ask questions about the review sheet if you do not understand what I am asking. You will also have access to the answers to the online quizzes you have taken, so I would review these quizzes. The textbook website has interactive quizzes that you can take at the textbook website and
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provide a detailed product or service cost analysis for the company/business of your choice. Since MODCOS1 tackles about job order costing system, make sure that the company you choose is using a job order costing system. Please ensure that the business is registered with the respective government offices. You are to provide a picture/photocopy of the certificate that the business/company is indeed registered (part of attachments section). Project Title: Cost Analysis of (Product/Service): A Case
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Managerial Accounting Grading Summary | | Grade Details | Page: | 1 2 | 1. | Question : | (TCO F) For which situation(s) below would an organization be more likely to use a job-order costing system of accumulating product costs rather than a process costing system? | | | Student Answer: | | a steel factory that processes iron ore into steel bars | | | | a factory that processes sugar and other ingredients into black licorice | | | | a costume maker that
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for discussion and Review 3.2) Q: Discuss the cost leadership, differentiation, and focus strategies. A: Cost leadership: describes a way to establish the competitive advantage. Differentiation: undertake to set its products, services and brands apart from those of its competitors. Focus: concentrates its resources on entering or expanding in a narrow market or industry segment. 3.4) Q: What are the 3 key components of a balance sheet? A: assets, liabilities and owner’s equity 3
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statement. Income statement, statement of owner equity, balance sheet, statement of cash flow 2. Describe how changes to a company’s revenue and expenses affect their Income Statement and Balance Sheet. Income statement presents the summary of revenues and expenses for a period of time. Changes in these two entity’s will affect the report of the company net income and net loss. 3. How do changes in the Income Statement and Balance Sheet data affect a Statement of Cash Flows? The statement of cash
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Cost Accounting Systems 1. Cost accounting involves the measuring, recording, and reporting of product costs. From the data accumulated, both the total cost and unit cost of each product is determined. 2. A cost accounting system consists of accounts for the various manufacturing costs. These accounts are fully integrated into the general ledger of a company. An important feature of a cost accounting system is the use of a perpetual inventory system. Such a system provides information immediately
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construct building etc., under a contract. In the history of costing, when contract costing was introduced as a method of costing, financial accounting already had a system of accounting for construction contracts. The same system was adopted under cost accounting as well. This is the reason why contract costing has more linkage with financial accounting concepts. The parties involved under a construction contract: 1. Contractor, who undertakes to construct any building etc. 2. Contractee
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