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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cartons through the facility, entering electronic and manual customer orders, shipping cartons on commercial carriers, and the cost per hour for desktop deliveries. There will be calculated data for the cost and profitability of five exhibited orders, with a comparison of the costs and profitability to those calculated by Midwest’s existing costing system. The analysis provides a difference explanation for profitability of the five orders by the ABC system and the company’s existing cost system, and what
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Differential cost and revenue, Opportunity and Sunk cost, fixed and variable cost, mixed cost, statement of cost of goods manufactured and sold statement. Ch 1, Book 2 Ch 2, Book 1 A Material Planning, Controlling and Costing: • Procedure for material procurement and use • Material costing methods • Inventory valuation at cost or market whichever is lower • Procedure for spoiled, scrap and defective work • EOQ , Inventory level and reserve stocks • Valuation of inventory • Planning materials requirement
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PRODUCT COSTING A noted earlier, all product costs are charged to inventory. To facilitate this process, manufacturers break inventory into three categories: RM inventory, WIP inventory, and FG inventory. There are two categories of direct cost (DL & DM) and then there is overhead, which is a catch-all term for everything except DL and DM. Raw materials are charged to RM inventory when purchased and transferred to WIP inventory when it is used. DL is charged directly to WIP. Indirect product costs
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1 Cost Analysis 1st August – 12th August 2011 Programme Day 01.08.2011 • • • • • • • • • • • • • • • • • • A.M. Introduction Costing Definitions Cost Behaviour Job Costing Material Costing Labour Costing Overhead Analysis Total Absorption Costing Total Absorption Costing Activity Based Costing Variable (Marginal) Costing CVP Analysis CVP Analysis Relevant Costing for decision-making Budgeting Budgetary Control Budgetary Control Exam • P.M. Worked examples 02.08.2011 03.08.2011 04.08.2011
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necessary for Colorscope to provide high quality products and service to their client. In that way, it can build a long-term customer relationship and attractive other customer’s to invest their products. 2. Two stage cost system In activity based costing, the two stage
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19, 2013 The company owned by MGMT 312 manufactures custom-order holiday decorations and display items. Currently the company is using a periodic inventory system and is not satisfied with the timeliness of its information and its inventory management. The following paragraphs outline a proven system known as job order cost accounting that will generate timely and accurate inventory information. Job order cost accounting is used by many businesses that have to meet the specific
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subcontractors, the costs of the materials and the indirect costs associated with those costs. The company needs to do several things relating to their engineering costs. They need to set up a job costing system in which each project is set up as a special job. Any costs that are directly associated with that job need to be kept track of by type. The only way for the company to know how they are performing on each of their sale
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KAIZEN COSTING THE PERFORMANCE OF THE ORGANIZATIONS TABLE OF CONTENTS Page Table Of Contents 1 1.1 Introduction 2 1.2 The Concept Of Kaizen Costing 2 1.3 Kaizen And Management 4 1.4 Kaizen -The Three Pillars 5 1.4.1 Housekeeping 5 1.4.2 Waste (Muda ) Elimination 7 1.4.3 Standardization 10 1.6 Kaizen And Total Quality Management (Tqm) 13 1.7 Kaizen And Suggestion Systems 14 1.8 Goals Of Kaizen Vs. Quality, Cost And Delivery 15 1.9 Common
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Capital Budgeting Course Project (DEVRY) ACCT 505 Entire Course (DEVRY) ACCT 505 Week 1-7 All Discussion Questions Cost Terms, Classifications, and Behavior Research and Application Job Order and Process Costing Systems Research and Application Variable Costing and CVP Concepts Research and Application Budgeting Case Study Exam Review Standards, Variances, Flexible Budgets Research and Application Segment Reporting and Relevant Costs
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