1. Activity costing would be appropriate 1. An activity-based costing system may be appropriate for Wall Décor, when overhead allocation based job-order costing provides product cost distortion. As seen on previous case, this distortion happens when one product is manufacturing in high volume and the others are manufacturing in complexity as well as in low volume. In this situation Wall Décor should change its costing system for selling its high volume produced products whereas low-volume produced
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Chapter-9 1. Budget: A budget is a detailed quantitative plan for acquiring and using financial and other resources over a specified forthcoming time period. Budget is a plan of action for achieving quantified objectives, standard for measuring performance and device for coping with foreseeable adverse situations. 2. Budgeting: The act of preparing a budget is called budgeting. Budgeting is the process of creating plan to spend money. It is simply balancing expenses with income. 3
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Name________________________________________ University of Oregon ACTG 360 Instructor: Kenneth Njoroge SPRING 2012 SAMPLE FINAL EXAM You have 2hrs to complete this final exam. You are allowed to use a single note sheet, no larger than 8.5 by 11 inches, during the exam. This sheet may be typed on both sides in any font size. Any other additional material is strictly prohibited. There are 13 pages in this quiz, including this cover sheet. The pages are photocopied on one side of the
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EROW SARNIA 1 PLANT Halobutyl SARNIA 2 PLANT Butyl ANTWERP PLANT Butyl & Halobutyl AGENDA Polysar Ltd. Introduction to Polysar Standard Costing Variance Analysis for Variable Costs Fixed Overhead Volume Variance Transfer Pricing POLYSAR 1a) What evidence do we have that Polysar is on a standard costing system? 1b) Interpret the amount $22,589 on Exhibit 2, for variable costs. 1c) Interpret the amount $21,450 on Exhibit 2, for variable costs. POLYSAR 1d) Evaluate
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Marvelous Metals Co. ACTIVITY-BASED COSTING and CORPORATE STRATEGY Marvelous Metals Co. specializes in the production and sale of two machine parts: Part 245A and Part 666B. Historically, the profitability of the company has been tied to Part 245A. In the last two years, however, the firm has been facing intense competition, and its sales of this part have dropped. Much of the competition was from foreign sources, and the general manager was convinced that the foreign producers were
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financial accounting. In particular, the objective of the course is to familiarize students with the fundamental concepts of management accounting system, and use of such information for decision making and performance evaluation. COURSE LEARNING OBJECTIVES: The primary objectives of this course are: 1. To develop an understanding of the costing, cost calculation. 2. To develop understanding of application of different techniques of cost allocation. 3. To understand the relationship between
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This company was use the simple method of costing system for classic pens. All indirect costs were aggregated at factory level and allocated to products based upon the direct labour cost. At this time, the overhead rate was 300% of the direct labour cost. Before the new types of pens were introduced the overhead rate was only 200% of direct labour cost. Sales cost is allocated in proportion with sales. Product Costing Calculated with Traditional Full Costing Method. | BLUE | BLACK | RED | PURPLE
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ACCOUNTING SYSTEM TABLE OF CONTENT CHAPTER TITLE PAGE LIST OF TABLES i LIST OF FIGURES ii CHAPTER 1. INTRODUCTION 1.1 Understanding of Traditional and Activity-Based Costing System 1 1.2 Company Background 3 1.3 Company History 3 1.4 Company Operation 5 2. TRADITIONAL COSTING SYSTEM
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dynamics of costing systems as organizations try to predict those unseen costs that factor so heavily in the success and profitability of a business. The various costing systems are defined with a special emphasis on their ability to accurately predict those costs that are not of the normal operation and production of the company. Recent events in human society have drawn attention to issues that our predecessors could have only dreamed about and would have quickly dismissed. These costing systems are explored
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buyer. You can’t expect to create the same level of sales simply by increasing your product prices if you happen to sell a lower number of product units. The problem with the traditional cost computation led to the popularity of using activity based costing. The perspective at which the whole manner of computing the manufacturing cost associated with the end product is very radical compared to the traditional variable and fixed cost methods only. The activity based method depends on computing how much
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