this is a study guide, not a cheat sheet. -Revenues: For the first year the expected revenues will be: R1 = $950,000 For the years Yi (i=2 to 8): Ri = $1,500,000 -Expenses: Indirect incremental costs will be $80,000 all the eight years. For each year the direct costs will be 0.55*Ri. Then for each year Yi (i=1 to 8), the expenses (Ei) will be: this is a study guide, not a cheat sheet. Ei = $80,000 + 0.55*Ri, Then: E1 = $80,000 + 0.55*$950,000 = $602,500 For i=2 to
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process costing (b) Describe situations where the use of process costing would be appropriate (c) Calculate the cost per unit of process outputs (d) Explain the concepts of 'normal and abnormal' losses and 'abnormal' gains (e) Prepare process accounts, involving normal and abnormal losses and abnormal gains (f) Calculate and explain the concept of equivalent units (g) Apportion process costs between work remaining in process and transfers out of a process using the weighted average and FIFO methods
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QUESTIONS APPLE VALLEY FAMILY PRACTICE Cost Allocation Methods 1. Briefly describe the differences in the four allocation methods discussed in the case. (Hint: Don’t discuss the mathematics of the schemes, but rather how they differ conceptually.) Which of the four methods is conceptually the most reasonable? 2. What are the allocations to each patient services department, and resulting profitability, under the four allocation methods using the base case cost amounts (Exhibit 4.1) and allocation
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like to thank the institution – M.E.T. College and the faculty members without whom this project would have been a distant reality. PREFACE Comparative Study of Accounting System of Gunnebo India Pvt. Ltd and Ashok Leyland Ltd.: As part of the project we have studied the standard costing systems and the general accounting related to it followed by Gunnebo India Pvt. Ltd and Ashok Leyland Ltd. As per the guidelines given for the project we have taken the two companies. Both are manufacturing
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PROFESSIONAL ETHICS AND CODE OF CONDUCT The Institute of Cost and Management Accountants of Bangladesh ICMA Bhaban, Nilkhet, Dhaka-1205. C:\Documents and Settings\All Users\Documents\Code-of-ethics-Rashid.doc Page 1 of 22 Foreword The Institute of Cost and Management Accountants of Bangladesh (ICMAB) is pleased to publish the Professional Ethics and Code of Conduct in a book-let form. For continued growth and development of the profession, professional ethics and code of conduct
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Scrubs produces uniforms for hospital staff. Both companies have consulted with their financial department and received a report stating the benefits of the merger. However, there is some concern with respect to the differences in managerial accounting procedures. The main differences are stated below. Orders CoolSchool: CoolSchool delivers to a fixed number of schools each year. The schools provide CoolSchool with the exact enrolment number two weeks before the start of school year. Since
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C H A P T E R F I V E INTRODUCTION TO COST MANAGEMENT Activity-Based Costing and Management After studying this chapter, you should be able to . . . 1. Explain the strategic role of activity-based costing 2. Describe activity-based costing (ABC), the steps in developing an ABC system, and the benefits and limitations of an ABC system 3. Determine product costs under both the volume-based method and the activity-based method and contrast the two 4. Explain activity-based management (ABM)
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products to multiple industries. The first company that apparently uses job-order costing systems is Nortech Systems, Inc. Their website is http://www.nortechsys.com and a brief summary of their services is as follows: Nortech Systems, Inc., is a full-service electronics manufacturing services (EMS) provider of wire and cable assemblies, printed circuit board assemblies and diagnostic repair and integration services including, higher-level assemblies and box builds for a wide range of industries
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businesses that provide a broad range of products, including components, products, systems and subsystems, and related services to military and commercial customers in several niche markets. L-3 Communications was awarded a $25,683,928 cost-plus-award-fee and cost-plus-fixed-fee contract. This contract modification is for the Modernized User Equipment (MUE) completion effort (L-3 communication, 2011; 10k). This effort corrects MUE receiver card deficiencies that were identified during Functional
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4 JOB COSTING 4-1 Cost pool––a grouping of individual cost items. Cost tracing––the assigning of direct costs to the chosen cost object. Cost allocation––the assigning of indirect costs to the chosen cost object. Cost-allocation base––a factor that links in a systematic way an indirect cost or group of indirect costs to a cost object. 4-2 In a job-costing system, costs are assigned to a distinct unit, batch, or lot of a product or service. In a process-costing system, the cost of a product or service
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