Many of the local and national headlines are calling attention to how universities will be handling large budget cuts and tumbling balances in endowment funds. The market downturn and struggling economy are mainly to blame for these budget cuts. As a student, my main concern is will I still be able to take the courses I need and want. Our textbook offered a look at break-even analysis, and the article I selected shows how break-even analysis can be used by universities to determine the profitability
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15,625 $40,625 (b) Per box of chemicals $40,625/1,000 = $40.63 (5) These two product costing systems result in such widely differing costs because of the inaccuracy of the traditional single volume based overhead rate. The use of machine hours in the pre-determined rate does not reflect the usage of other activities during production. I would recommend the activity based costing system because of the accuracy of costs for each product, and it results in much better control over
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Case Study: Fine Foods EXECUTIVE SUMMARY From the information obtained in the case study, the main problems facing Strategic Marketing Unit Two (SMU2) were: 1) the product costing system allocated cost unfairly; 2) operating profit did not reflect true performance of the unit. It was obvious that Fine Foods needs to change the cost allocating system. They could either improve the current cost system or change to a new cost allocating system. My recommendations for Find Foods are to: 1) change
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issues with the company’s current cost system, executives at Sippican Corp. have some decisions to make regarding the future of the company’s costing system. Appendix A offers a time-driven activity-based costing system approach to Sippican’s financial woes. Quantitative Summary Calculations (Appendix A) reveal that utilization of an time-based activity costing system provides a more detailed analysis of the amount of time (in minutes) each unit, or employee/machine actually uses versus the amount
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How would you classify Forest Hill Paper Company in terms of size and ownership? What is the nature of the industry in which Forest Hill competes? A cyclical economic environment Identify and discuss the strategy used by Forest Hill to compete in a commodity market. Forest Hill’s strategy is to create a niche based on service and rapid response to customer needs. What are some examples of complexity that drive overhead costs for Forest Hill? Paperboard differs by basis weight for a
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Lim, the cost accountant for Hi-Power Mower Company, recently installed activity-based costing at Hi-Power’s St. Louis lawn tractor (riding mower) plant where three models—the 8-horsepower Blade Runner, the 12-horsepower Quick Cut, and the 18-horsepower Super Cut—are manufactured. Marcus’s new product costs for these three models show that the company’s traditional costing system had been significantly under costing the 18-horsepower Super Cut. This was due primarily to the lower sales volume of the
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References Argyris, C. and Kaplan, R. (1994). Implementing new knowledge: the case of activity-based costing. Accounting horizons, 8, pp.83--83. Baird, K., Harrison, G. and Reeve, R. (2007). Success of activity management practices: the influence of organizational and cultural factors. Accounting & Finance, [online] 47(1), pp.47--67. Available at: http://search.ebscohost.com.ezproxy.mdx.ac.uk/login.aspx?direct=true&db=bth&AN=24165021&site=ehost-live [Accessed 4 May. 2014]. Charaf, K. and Bescos
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assign costs. 2. Provide a detailed description of activity-based product costing. 3. Describe how homogeneous cost pools can be used to reduce the number of activity rates. 4. Describe activity-based system concepts including an ABC relational database and ABC software. chapter summary This chapter explains how activity-based costing systems produce more accurate product cost information than traditional costing systems that use unit-based drivers. Potential users of ABC systems are those
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3 - Week 3 Quiz Activity-Based Costing Click Link Below To Buy: http://hwcampus.com/shop/acc650-module-3-week-3-quiz-activity-based-costing/ 1. Activity-based costing systems: a. use a single, volume-based cost driver. assign overhead to products based on the products' relative usage of direct labor. often reveal products that were under- or over-costed by traditional costing systems. typically use fewer cost drivers than more traditional costing systems. have a tendency to distort
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SUPPORT@WISEAMERICAN.US BSOP 434 WEEK 5 ASSIGNMENT Chapter 3: Question 3: Name the six general types of information management systems, and give one logistics application for each one that you’ve named. Chapter 13: Question 2: What is activity-based costing (ABC)? What are the five steps of the ABC process? Question 17: Describe the two issues that managers face with respect to computer and data security. Chapter 14: Question 3: What are the differences between a centralized and a decentralized logistics
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