1. Cost accounting relates to what industry? a. public accounting b. financial accounting c. service d. manufacturing 2.Sunk costs are ______. a. future costs b. costs that do not affect the decision c. costs from the past and cannot be changed. d. choice b & c are both correct 3.Which is not a characteristic of managerial accounting information? a. Emphasizes the external financial statements b. Emphasizes relevance c. Provides detailed information about individual parts of the company
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Job Costing: A Few Observations Understanding activities and processes is fundamental to modern management accounting. When you complete your study of material in this chapter, you should be able to: • . Take a factual situation and calculate a product's indirect cost. • . Discuss the shortcomings of the traditional approach and how products may be miscosted using such an approach. • . Take a factual situation and trace the flow of costs for a product using T-accounts; also, take the same situation
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c | | |1 |Understand financial concepts used to inform management decisions | | |1.1 |Explain the differences between capital and revenue expenditure using examples | | | |Starting up a business involves a considerable amount of research notwithstanding knowledge of the market you wish to compete but | | | |also
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These residual costs caused more products to become non-world class and hence candidates for outsourcing. The firm has entered the death spiral. Activity-Based Costing Case: Destin Brass Products Co. Case Description: A specialized manufacturer of brass valves, pumps, and flow controllers is troubled by competitive pricing in pumps and higher than expected margins for flow controllers. Managers’ are increasingly questioning whether they know the true manufacturing costs of its products
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These residual costs caused more products to become non-world class and hence candidates for outsourcing. The firm has entered the death spiral. Activity-Based Costing Case: Destin Brass Products Co. Case Description: A specialized manufacturer of brass valves, pumps, and flow controllers is troubled by competitive pricing in pumps and higher than expected margins for flow controllers. Managers’ are increasingly questioning whether they know the true manufacturing costs of its products
Words: 1304 - Pages: 6
These residual costs caused more products to become non-world class and hence candidates for outsourcing. The firm has entered the death spiral. Activity-Based Costing Case: Destin Brass Products Co. Case Description: A specialized manufacturer of brass valves, pumps, and flow controllers is troubled by competitive pricing in pumps and higher than expected margins for flow controllers. Managers’ are increasingly questioning whether they know the true manufacturing costs of its products
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controllers, this is not the most accurate either. 3. How does Wilkerson’s existing cost system operate? Develop a diagram to show how costs flow from factory expense accounts to products. Wilkerson’s existing cost system is a tradition value based costing systems. Direct costs are based on the
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|Manual processing; high order error rates |Electronic processing (EDI) with zero defects | |Large amounts of pre-sales support (marketing, technical, and sales |Little to no pre-sales support (standard pricing and | |resources) |ordering) | |Large amounts of post-sales support (installation, training, warranty,|No post-sales support
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tracking costs to help business owners and managers make decisions. In the early industrial age, most of the costs incurred by a business were what modern accountants call "variable costs" because they varied directly with the amount of production. Money was spent on labor, raw materials, power to run a factory, etc. in direct proportion to production. Managers could simply total the variable costs for a product and use this as a rough guide for decision-making processes. Some costs tend to remain the
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the lineboard and corrugating medium to Thompson Division in the event the latter got the order from Northern. 2. Decentralization Policy The Company observes the practice of decentralization where the responsibility and authority in all decision-making for the divisions’ operations lie in its respective division managers, except those relating to overall company policy. For several years, top management felt that the decentralization concept had been successfully
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