cannot be traced … Cost-allocation base—a systematic way to link an indirect cost or group of indirect costs to cost objects Costing Systems:In a JOB COSTING SYSTEM, the cost object is a unit or multiple units of a distinct product or service which we call a job. Each job generally uses different amounts of resources. In a PROCESS COSTING SYSTEM, the cost object is masses of identical or similar units of a product or service. In this type of system, we divide the total cost of producing an identical
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Chapter 5 Profit Ceflter. 201 Case 5-2 North Country Auto, Inc. George G. Liddy, part owner of North Country Auto, Inc., was feeling pretty good about the new control systems recently put in place for his fiv e department managers (new and used car sales, service, body, and parts departments). Exhibit 1 descdbes each department. Mr. Liddy strongly believed in the concept of evaluating each department individually as a profit center. But he also recog· nized the challenge of getting his
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negative word of mouth in the industry the customer is in preventing future sales. | Price | Low Price and High Costs mean Low Margins * Contribution Margin Decreasing – Costs make up for 85% of the contribution margin (Exhibit 4). Although still making a profit, a low cost product with superior service brings in high revenue but a high cost resulting in a low margin. * On site visit by a rep costs $1700 yet only a 1/8 chance of closing
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Chapter Three 3 Fundamentals of Cost-Volume-Profit Analysis Orientation P A R T 1 LEARNING OBJECTIVES Preparing and Organizing Yourself After reading this chapter, you should be able to: for Success in College L.O.1 Use cost-volume-profit (CVP) analysis to analyze decisions. L.O.2 Understand the effect of cost structure on decisions. L.O.3 Use Microsoft Excel to perform CVP analysis. L.O.4 Incorporate taxes, multiple products, and alternative cost structures into the CVP analysis. L.O.5 Understand
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MODULE 2, ASSIGNMENT 4 October 22, 2013 Topic: Standard Costing, Variance Analysis and Budgets Overview The main topics for Assignment 4 are standard costing, variance analysis, and budget creation. Accountants of all management levels often have to analyze variance reports in order to help in the decision-making process. Through the differentiation of costs into fixed and variable classifications, managers are better able to construct break-even charts and other decision-making and control
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University of Greenwich Strategic Financial Management (FINA1035) Programme: UOG (3+0) BAAF Student ID: 000721005 Submission Date: 10th February 2014 Content Page 1. Introduction 3 Internal Analysis 2. Financial Analysis 4 3. Human Resource Management(HRM) Analysis 7 4. Marketing Analysis 8 5. Operational Analysis 10 6. Strength and Weakness of the Company 11 External Analysis 7. P.E.S.T.E.L. Analysis 12 8.
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BRIDGESTONE BEHAVIORAL HEALTH CENTER: COST-VOLUME-PROFIT ANALYSIS FOR PLANNING AND CONTROL I. INTRODUCTION Bridgestone Behavioral Health Center, a medical center for comprehensive outpatient substance abuse treatment center positioned at the Midwest United States and has been operating since 1985. Some of the services offered by Bridgestone grouped generally are counselling, crisis intervention, detoxification and methadone maintenance. Under these services they offer patient assessment
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problem. Currently the performance metrics of each department are left either unclear or overlapping between groups. The conflicting performance metrics are causing opportunities to be missed, frustration between employees and departments, lower profit margins, lack of information flow through the mobile division, and the development of products that do not currently have a market need. It is necessary to create more clear and effective performance metrics in order to create an atmosphere that allows ideas
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MODULE 2, ASSIGNMENT 4 December 12, 2011 Topic: Standard Costing, Variance Analysis and Budgets Overview The main topics for Assignment 4 are standard costing, variance analysis, and budget creation. Accountants of all management levels often have to analyze variance reports in order to help in the decision-making process. Through the differentiation of costs into fixed and variable classifications, managers are better able to construct break-even charts and other decision-making and control
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Exposure Draft: Revenue Recognition (Topic 605): Revenue from Contracts with Customers The Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) have publishing this exposure draft as revenue is a vital number that financial statement users use to value a company’s performance. Both Boards require improvements in their revenue recognition requirements, therefore joined forces to refine the principles for revenue recognition. The goal of the FASB
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