14/05/2014 Mixed Costs Total Mixed Cost VC Per Unit (Slope) Purpose of Mixed Cost Analysis To predict cost at an activity level with no historical record: Total mixed cost line can be expressed as: 2N Y Total Utility Cost Fixed Cost (Intercept) Level of Activity If your fixed monthly utility charge is $40, your variable cost is $0.03 per kilowatt hour, can you predict the utility of next month when you plan to use 2,000 kilowatt hours? Y = a + bX Variable Cost per KW Fixed
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possible miscalculations in accounting records. As a second primary goal, they also serve as pre-emptive measures against fraud, embezzlement, and theft by workers with access to financial records within the company, vendors, and the company’s clients. The Sarbanes-Oxley Act of 2002 had a major impact on internal controls. It was enacted after major scandal was uncovered by corporate giants such as Enron, Tyco International, and WorldCom amongst others. These scandals cost investors billions of dollars
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and assigns the cost of each activity with resources to all products and services according to the actual consumption by each. This model assigns more indirect costs (overhead) into direct costs compared to conventional costing. CIMA (Chartered Institute of Management Accountants) defines ABC as an approach to the costing and monitoring of activities which involves tracing resource consumption and costing final outputs. Resources are assigned to activities, and activities to cost objects based on
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margin, to just cover short-term variable costs, what consequences could it experience? Contribution margin-based pricing attempts to maximize profit generated from the sale of each unit of product by maximizing the difference between that product’s price and variable costs, or contribution margin. Under this pricing strategy, only variable costs, which increase with a higher sales volume and decrease with a lower sales volume, are considered; fixed costs are assumed to be constant over a range of
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BACK FLUSH ACCOUNTING 1.0 Introduction Back flush accounting is one of the accounting systems that support Just in Time system. Just in time is the inventory system that produced the required items at the right time and the right place. Accounting was delay the recording of transaction during process is known as back flush accounting. The system is the transaction was only recorded once the product was completed. Back flush accounting is the system that focuses on the output of organization
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PCAOB is carefully considering the likely costs and benefits of this requirement before making a final decision (http://pcaobus.org/News/Speech/Pages/120 42013_Harris_Transparency.aspx). The authors present arguments for and against requiring audit partner disclosure and summarize the current practice and empirical findings in foreign jurisdictions, such as the EU and China. While the debate for the past five years has been an argument about the possible costs and benefits of a signature or disclosure
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1. Introduction - The role of Human Resource During the early 20th century, the primary role of human resource is a care taker. Primarily they are involve in record keeping of the employee personal information, the most administrative job scoop. Hence during that period of time most human resource personnel is not required to go through formal training. Moving forward to 21st century, the primary role of human resource has been shift from a care taker to strategic planner which is vital for all
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[pic] A B E R D E E N B U S I N E S S S C H O O L Course Work Submission Form |Name: |Vigneshwaran Palanisamy | |Email: |1118562@rgu.ac.uk | |Course: |Msc Purchasing & Supply Chain Management | |Module:
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overhead and the total cost are significant larger than the past. Therefore, the existing costing system is not fit the current production. Secondly, the manufacturing space has been reset but the direct labour standards was not been renewed yet. The changes of manufacturing space are reduce time per unit of product in the long term. The company should update the costing system in order to improve the costing accuracy. Therefore managers can get the more accuracy product cost data. Moreover, they
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Cost-Volume Profit Analysis Cost-Volume-Profit (“CVP”) analysis is essential for any company to be able to determine break-even points, and determining short term decisions. Arguably, for small businesses, nothing could be more important, as CVP provides the minimum volume of a product needed to sell in order to experience neither a gain nor loss. For entrepreneurs it is important to be effective and efficient when utilizing CVP accounting processes. This provides the framework
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