financial expression of the project and should accurately reflect the costs of the proposed research/education/service program. The budget justification provides the sponsor agency and reviewers of the application with information such as why costs are programmatically necessary and how they are calculatced. Reviewers will analyze the financial data to determine if the proposed costs are allocable to the program, allowable under federal cost principles or non-federal sponsor guidelines (whichever is applicable)
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Wilkerson operates under a simple job-costing accounting system. It accounts for distinct cost objects. For example, it produces unique and different products for its customers such as valves, pumps and flow controllers. Direct material and labor are directly charged to the product (based on production units) and indirect overhead costs are allocated using one cost pool, direct labor production run time at 300%. The problem with this simple cost accounting system is that the products they make consume
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Budget Planning and Control Anita Wright Professor Mohamed Gurey ACC556 – Financial Accounting for Managers December 11, 2015 Introduction A company I started working for a couple of months ago as a Finance manager is Home Depot. Since I own a home, I know how expensive it is to maintain. I do a lot of shopping there for various items and appreciate the reasonable prices as well as the valuable advice from my associates. The store has everything one could possibly need to help turn a
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costing concepts Traditional costing is to consider how much will cost to produce a product. It plays an important role in the business to predicting the profitability of a product. Traditional costing is also well known as the conversional method costing, which refers to the allocation of manufacturing overhead costs to the product manufactured (Harold, n.d.). Traditional costing assigns manufacturing overhead on the basis of volume of a cost driver, such as direct labor hours, production machine hours
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610 Calculations for Setup cost (S): 1 Size changeover cost = (cost of resetting all machinery for change in bottle size/ avg. no. of different items of given size processed between size changeover) = 23000 / (52X7X10) = $6.3186 per changeover Label changeover cost = Labour cost incurred while label changeover process = (23000X0.5X8*)/(52X7) + 5X2.5X0.5 = $10.2 per labour changeover *Assumption each working day is of 8 hrs. Order Processing cost = 18000/ 350 = $51.43 per order
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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) PART I 5. Describe
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Precision Worldwide, Inc. Case Study BUS5431 – Managerial Accounting Summary Precision Worldwide, Inc. (PWI) manufactures industrial equipment and parts for sale in numerous countries. Repair and replacement parts account for a substantial part of the company’s business with the replacement part in question, steel rings, occur in the machines manufactured only in PWI’s German plant, but can also be used on some competitor’s machines. This steel ring has an average normal life of about 2 months
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HCM 733 F1WW Professor Edward Schaffer July 13, 2014 Justification of Additional Space Based on my interpretation of the allocation costs for the Outpatient Clinic Advantages & Disadvantages Facility Allocation Recommendation for Final Allocation References Case Study: Rio Grande, Week 2 Learning Outcome: Justify an indirect cost allocation scheme for outpatient services for a healthcare organization. | Score | | Below Expectations0 – 15 | Approaches Expectations16
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reporting requirements, the traditional cost accounting system is closely linked to its general ledger system. This in particular has to do with cost allocation. Mostly, costs are accounted either for valuation (i.e., financial statements analysis) or decision-making activities (i.e., internal purpose) or both. Meanwhile, sometimes the costs are accounted for reimbursement purposes (e.g., corporate health insurance, corporate travel). The traditional approach to cost-allocation manages three sequence of
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and restaurants. Technical research was done by the major firms of food suppliers and their products slowly became accepted by the catering industry, as skilled catering staff began to be in short supply. This was further optimistic by the rising costs of space that was necessary for a traditional kitchen. Traditional kitchen tasks were beginning to disappear at increasing speed. In 1966 the first cook-freeze operation in the UK began,
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